Metrics, Six Sigma, And Improved ROI

by: tjacowski
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Using Six Sigma Metrics

The exact Six Sigma tools and techniques employed may differ from organization to organization depending on specific project requirements, but the basic concept or methodology that is used in most implementation projects is Six Sigma metrics. These metrics are quite effective because they help in selecting the most effective solution for a given problem. The metrics are also used for analyzing the effects that different variables have on the outcome of a suggested plan of action, based on which the management can then make the necessary changes required.

The metrics also measure exact effects, based on which all the variables are classified into different categories, making it easier for the management to find exactly which variables are creating the maximum impact and the ones that are quite dormant. Management can then concentrate on the variables that are creating the maximum impact, something that is certainly the right thing to do because it will be quite difficult even for a small organization to consider all the variables involved for making a decision.

Attracting Customers

You might think that the metrics can only be used in the manufacturing sector, but you will be surprised to know that Six Sigma metrics are just as beneficial for service sector companies as they are for manufacturing companies. As evidence, take the example of a website that has implemented Six Sigma concepts and methodologies.

Such a website will certainly be able to attract more visitors because by using Six Sigma metrics, the website managers can determine exactly which variables (site design, navigation, color schemes, user-friendliness, overall looks, and others) are having the maximum influence on customer behavior.

Based on this, they can then make the most appropriate changes on the website so as to make it more desirable to the majority of online visitors. It is just like carrying out renovations inside a shopping mall in order to make it look more attractive, and in turn attract more and more customers.

Increasing Sales And Improving ROI

Six Sigma metrics can also be used for improving the ratio of actual sales and casual visits by identifying and eliminating variable factors that might be deterring online visitors from clicking on the "BUY" button. Now, don't start thinking that such targets can be achieved in a single day; Six Sigma is based on the concept of continuous quality improvements, and as such it may take some time before the desired results actually see the light of the day.

However, when the objectives are finally achieved, the business, which in this example is a commercial website, can hope to witness a substantial increase in it's sales volumes and in turn get an improved ROI (return on investment) - something that is necessary for the long term success of any organization, big or small.

About the Author

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.  

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