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Balanced Scorecard Six Sigma

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What businesses can do is initiate a performance review program using scorecards that keep a tab on the actual performance of each and every organizational member associated with the Six Sigma implementations.



For better understanding, we'll discuss exactly how these scorecards help in augmenting the performance of different organizational members and consequently in ensuring the success of Six Sigma implementation projects.

Reviewing Performance of Implementation Team Members

By using performance scorecards, businesses can easily assess the individual contributions of team members towards the progress of the Six Sigma project implementation. Although only the most talented and skilled employees are selected to join the implementation team, assessing their performance is still necessary because being skilled in a routine job is a lot different from displaying the same level of expertise in a completely new setup.

Performance scorecards are preferred even by the team members because they allow them to uncover their strengths and weaknesses, based on which they can then select the right course of action. For example, if a team member's scorecard shows less marks in the "problem-solving" category, he can either opt to improve it or make a shift to other important implementation functions such as "communications", "financing", etc.

For best results, what businesses can do is link the performance review program with an incentives scheme. Such schemes will provide the right motivation, both to members who might already be giving their best performance and members who may still require unleashing their full potential.

Reviewing Performance of Six Sigma Professionals

Since the eventual success of Six Sigma implementation projects depends on the skills and talents of Six Sigma professionals such as Black Belts, businesses should not shy away from assessing their performance, even when these professionals might have been awarded full freedom to carry out the implementations exactly as they like.

However, efforts should be made to avoid any direct confrontations - obviously because that will do more harm than good as far as the implementations are concerned. In effect, when using scorecards, the focus should be solely on assessments and in no way should relate to the kind of efforts that are generally made to reform an organizational member.

Reviewing the Performance of Management

Although management is not directly related to the implementations, reviewing their performance is still necessary because they do perform some important tasks such as making funds and resources available to the implementation team as and when needed. If performance scorecards were not used for assessing the performance of management officials, it would become quite difficult to identify the culprit in case something goes terribly wrong with the Six Sigma implementation.

Performance scorecards certainly help, but since there is a limit to their overall usability, it is recommended that businesses consider other factors as well before taking decisions based on the scorecards. Using performance scorecards in this manner will be beneficial for all the stakeholders including the business and the organizational members. It will also contribute a lot towards the success of the Six Sigma implementation project.
Balanced Scorecard Six Sigma
These designs are used for developing completely new product or business processes to meet consumer requirements and specifications or to achieve elite Six Sigma quality levels. IDOV is just one methodology - there are other methodologies as well, like DMAIC (define, measure, analyze, improve and control) but they are quite different from each other. DMAIC is used mainly for optimizing any existing business process or product.

The Four IDOV Phases

The IDOV methodology has four phases. Given below is their explanation, which will help you understand more about the IDOV methodology:

Identification Phase

The starting phase deals with identifying specific customer needs. Once customer needs are determined based on these points, an appropriate business process or product will be designed. It is essential that the identification of customer needs is accurate because this phase sets the launching pad for a new product or service. It requires the Six Sigma team to define the voice of customer very clearly and then move on to developing a team and a team charter, along with performance competitive analysis and identifying all the critical to quality factors (CTQ).

The most crucial steps of this phase are identification of product requirements as per customer needs, establishing an appropriate business model, identifying the technical requirements as CTQ's, proper allocation of roles and responsibilities to the team and setting up milestones that are to be achieved. Some of the main tools that are used in this particular phase are quality function deployment (QFD), failure means and effects analysis (FMEA), target costing and benchmarking, Integrated product delivery system (IPDA) and SIPOC (supplier, input, product, output and customer product map).

Designing Phase

The second phase is known as the design phase. It deals with various fundamental issues like chalking out functional requirements, developing alternate business processes, evaluating available options, and then selecting the most appropriate business process based on the CTQ's that were earlier identified in the first phase. The second phase (i.e. the design phase) includes the formulation of concept design, identifying probable risk factors, identifying design parameters with the help of advanced simulation tools and formulation of procurement and manufacturing plans. The main tools used in this phase are smart yet simple designs, risk assessment procedures, FMEA, some engineering analysis, choosing material selection software, simulation tools and techniques, designs of experiment, system engineering and analysis tools.

Optimizing Phase

The third phase manipulates the CTQ's for assessing the tolerance level of the selected business process using the help of advanced simulation tools. This phase predicts the performance capability of a business process, optimizes the existing designs, and finally developing the alternative design elements. The optimize phase also involves assessment of process competence, optimization of design criteria, developing a sturdy design for robust performance and reliability along with error proofing and establishing the endurance measurement objectives. The tools used in this phase are manufacturing databases along with flow back tools, designs for the manufacturing process, process capability models, sturdy designs, Monte Carlo methods, tolerance measurement tools and all this merged with Six Sigma tools.

Validation Phase

This is the fourth and the last phase known as validation phase - as the name suggests, this phase deals with the testing and validation of selected designs. Changes, if required, in any business process design can be incorporated only in this phase. Some of the major steps of this phase include prototype testing and validation, assessment of performance, possible failure modes, reliability and risk factors, design iteration and lastly the final phase review.
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