How can you track KPIs when implementing Lean Six Sigma?

2 How to select KPIs for Lean Six Sigma?

When tracking KPIs for Lean Six Sigma, the first step is to select the right ones for your project and context. Make sure they meet the SMART criteria to be specific, measurable, achievable, relevant, and time-bound. Additionally, consider the problem you are trying to solve or opportunity you are trying to seize, the scope and scale of your project, customer requirements and expectations, critical success factors and potential risks of your project, as well as how you will collect, analyze, and report the data.

3 How to track KPIs for Lean Six Sigma?

Once you have selected your KPIs, you need to establish a baseline and a target for each one. The baseline is the current performance level of your process or product before implementing any Lean Six Sigma changes. The target is the desired performance level after completing your project. You should use data from historical records, benchmarks, or customer feedback to set realistic and meaningful baselines and targets.

To track your KPIs, you should use a dashboard or a scorecard that displays the data in a clear and visual way. A dashboard or a scorecard can help you to monitor the trends, compare the actual performance with the target, and identify any gaps or deviations. You should update your dashboard or scorecard regularly and share it with your team and stakeholders. You should also use control charts, run charts, or Pareto charts to analyze the variation and root causes of your KPIs.

4 How to use KPIs for Lean Six Sigma improvement?

Tracking KPIs is not enough to ensure the success of your Lean Six Sigma projects. To drive continuous improvement and sustain the results, you should use the Plan-Do-Check-Act (PDCA) cycle to apply the KPIs in each phase of your project. During the Plan phase, you should define your project goals, scope, and KPIs. Conduct a gap analysis between the baseline and the target, identify and prioritize root causes of the problem, and develop and test possible solutions. The Do phase involves implementing the selected solutions, collecting and recording data for your KPIs, observing and documenting effects of changes. The Check phase requires analyzing data and comparing performance before and after changes, evaluating impact of solutions on KPIs, verifying if target is met or exceeded, and identifying any issues or risks. Finally, during the Act phase you should standardize successful solutions, document and communicate results and best practices, recognize and reward team members, and identify new opportunities for improvement.

5 How to avoid common pitfalls when tracking KPIs for Lean Six Sigma?

Tracking KPIs for Lean Six Sigma can be challenging and complex. To ensure the validity and reliability of your KPIs, it's important to avoid common pitfalls. You should focus on the most relevant and critical KPIs for your project and context. Balance the lagging and leading KPIs to measure both the results and the drivers of your performance. Additionally, you should define your KPIs clearly and precisely with operational definitions and standard methods to measure and collect data. Your KPIs should also be consistent and comparable over time and across different sources. Finally, use KPIs as a tool for learning and improvement rather than blame or punishment. Encourage a culture of collaboration and feedback among your team and stakeholders, and celebrate the achievements as well as learn from the failures.