The Metrics

Performance may be measured as productivity, quality levels achieved, customer satisfaction, project completion and so on. These performance measures can be further categorized as tangible, intangible and team effectiveness measures. The final word though is the success of the project.

The team undergoes training on Six Sigma tools and techniques, so that they may become Six Sigma Certified. They implement the tools for the betterment of the processes and improvement of the organization as a whole. In evaluating team performance, some tangible measures such as productivity, quality, cycle times, services, grievances and dismissals can be considered.

Productivity is the ratio of output over input. Team productivity is achieving certain targets in certain period without wastage of time and material. Here, the team performance also has to evaluate the quality the processes have achieved by utilizing different metrics. These metrics may be based on the cycle times required by the products, the complaints or grievances of the customers and so on.

The standard target to be achieved is Six Sigma. Anything much lower than that will result in the team's failure to achieve any substantial output after the effort. The success of the team can also be measured from the results they achieve by bringing about a change in the processes. It depends upon how they convert whatever they learn into tangible results for the organization.

They have to ensure that the defects in the processes reduce as a result of the measures they have put in place.

Level of Customer Satisfaction

Other measures for evaluating performance are intangible in nature. Teams are typically formed by selecting employees from cross-functions processes. All of them are aware and informed about the various processes and also display leadership qualities. They have to work as change agents and have to bring about a change in the attitude of the employees to accept the changes in the processes.

The most relevant measure of a team performing a good job with the entire project is the level of customer satisfaction they achieve. The team's performance depends upon the reduction in the customer complaints and increase in compliments. If the customer is satisfied, it means the defects have been reduced - which means the Six Sigma team's performance is on the mark.

Last but not least are effectiveness measures. They can be considered for a team's evaluation the extent to which the projects undertaken have been completed. Some projects may be completed and approved while some may not be approved.

This also involves measuring the number of potential volunteers who have actually undergone Six Sigma training in the end. There has to be marked improvement in the quality of the processes, and they should achieve the target of Six Sigma. The deciding factor, though, will be the net annual savings that they have been able to achieve in the projects undertaken.

Thus the bottom line to evaluating Six Sigma team performance is increased production, improved quality, decreased cost and defects and higher return on investment.