ABSTRACT

This chapter discusses metrics and performance measurement as they relate to the overall implementation of Lean Six Sigma programs. To successfully implement a Lean Six Sigma program, organizations must be able to quantify quality levels and costs to compare these amounts with similar industries. A common business adage summarizes this well, stating, “If you can’t measure it, you can’t manage it.” Due to signicant variation between industries, no single quality or cost standard exists that applies to every organization. For example, a jet engine manufacturer looks at a quality failure very differently than a fast-food restaurant. This variation can make quality improvement a very personal journey for an organization. Currently no comprehensive or universal quality measures exist for all companies. Various US government agencies at the state and local levels often use nonscientic and nonstandardized approaches to estimate quality. Metrics that track the effectiveness of the Lean Six Sigma program are a very important component in the process to ensure that goals are being met and that data-driven decisions are being made. The metrics that are created for the Lean Six Sigma program should be developed to provide valuable information on the success, variability, and efciency of the process. The metrics should gauge whether initiatives are accurately measuring the success of the programs.