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    Home » Test Metrics » Balanced Scorecard Approach To Metrics

    Balanced Scorecard Approach To Metrics


    Many Six Sigma professionals advocate the use of a Balanced Scorecard type of approach for the selection of project metrics as a method for ensuring that the project meets both customer and business needs. The Balanced Scorecard approach includes both financial and non-financial metrics, as well as lagging and leading measures across the four areas or perspectives: Financial, Customer, Internal Processes, and Employee Learning and Growth. Lagging measures are those that are measured at the end of an event, while leading measures are measures that help as achieve the objectives and are measured upstream of the event.

    Most Balanced Scorecard metrics are based on brainstorming, however the approach of brainstorming can have limited success in establishing sound metrics that have a good balance between lagging and leading measures.

    Typical brainstormed Balanced Scorecard metrics utilized in Six Sigma projects can be summarized in the below. The primary issue in utilizing a scorecard is that it might not reflect the actual strategies applied by the team for achieving breakthrough in their project.

    Financial
    • Inventory Levels
    • Cost Per Unit
    • Hidden Factory
    • Activity Based Costing
    • Cost Of Poor Quality
    • Overall Project Savings
    Customer
    • Customer Satisfaction
    • On Time Delivery
    • Final Product Quality
    • Safety Communications
    Internal Business Processes
    • Defects, Inspection Data, DPMO, Sigma Level
    • Rolled Throughput Yield
    • Supplier Quality
    • Cycle Time
    • Volume Shipped
    • Rework Hours
    Employee Learning and Growth
    • Six Sigma Tool Utilization
    • Quality of Training
    • Meeting Effectiveness
    • Lessons Learned
    • Total Trained in Six Sigma
    • Project Schedule Versus Actual Date
    • Number of Projects Completed
    • Total Savings To Date


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