You cannot improve what you can’t measure, we often hear this. But, it’s true! Because in the first place you wouldn’t know if your processes are still in synch or are already deviating from the norm.
Thus, data is valuable but can only be useful when you have the right metrics for it. Dorothy Miller shares her insights on improving business intelligence, the Six Sigma way. In that article on DM Review, Ms. Miller cites the Six Sigma breakthrough formula.
The breakthrough formula, that is often used in general business Six Sigma programs, is a foundation for my proposed Six Sigma BI Continuing Improvement Model (BI-CIM). The formula is: Y = f(X) + E. It defines the relationships between BI quality and the factors that cause or impact quality. The formula may be called breakthrough because the improvements are often dramatic. The formula, as I apply it to BI, means that quality (Y) is a result of, and dependent on, all the impacting factors (X). Y is the quality of the BI product. X includes all those components that cause or impact product quality. E is the uncertainty factor. Because the Six Sigma BI continuing improvement program discussed in this column is based on the breakthrough formula, it is important to define Y and X and the metrics for X for Y.
What is your breakthrough formula?
