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How Do You Find Value?

published on July 1, 2011

In Six Sigma and change methodology there is a lot of emphasis on creating and sustaining value. This seems straight forward until you try to implement value and then you find yourself asking “What is value”?   It seems like such a simple question, but different organizations define value in different way. For LSS and SS projects I like to use DMADV as the easiest way to define value.

DMADV

Define:  Ensure your team defines the project and customer demands.

Measure:  Create value by measuring and assessing the current organizational situation.  The assessment creates a consensus within your organization about what is important and how it should be measured.

Analyze: Pros vs. Cons. This seems like a no brainer, but in business everything seems to become more complicated.  This step is in my opinion one of the most important value steps.

Design:  Design a new draft plan that incorporates the findings of the first 3 steps.

Verify:  Arguably one of the most important business concepts ever; verify the design and determine whether it is the appropriate design to meet your goals.

I know that this is simplistic, but it is just to get you started on your Six Sigma journey. You are not going to be able to take this outline and start a project but when you are talking to your belt, you will understand the information being presented to you.

published on July 1, 2011

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