Six Sigma | Chapter 2 - Stakeholders Flashcards
Everything we need to know about the stakeholders
What are stakeholders?
Stakeholders: A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.
Stakeholders may be actively involved in the project or have interests that may be positively or negatively affected by the performance or completion of the project.
Different stakeholders may have competing expectations that might create conflicts within the project.
Stakeholders may also exert influence over the project, its deliverables, and the project team in order to achieve a set of outcomes that satisfy strategic business objectives or other needs.
Who are stakeholders in a Six Sigma project?
- Project Manager
- Team members
- Project sponsor
- Customer
- End users
- Shareholders
What is the risk of focusing too much on decreasing costs if stakeholders are asking for this?
Too much emphasis on decreasing costs may mean short term increase in margins and profitability, but in the long term may result in lower quality.
Why do we need a balanced scorecard for stakeholders?
Usually stakeholders have conflicting needs and focusing too much on any particular group may be detrimental to the needs of all other stakeholders. Balanced scorecard is a tool used to measure different stakeholders’ goals quantitatively and translate these goals into metrics.
What is the risk of focusing too much on increasing shareholder value if stakeholders are asking for this?
Concentrating only on increasing shareholders value and share-price in the short term may result in the company losing sight of long-term goals e.g. loss of market share and customers.
What is the first step in creating a balanced scorecard for stakeholders?
Balanced scorecard begins with determining the vision and strategy for of the organization. This forms the basis for each balanced scorecard.
Who determines important metrics for each stakeholder in a balanced scorecard?
Experienced black belts and master black belts.
What is the general formula for balanced scorecards?
In mathematical parlance, this is referred to as Y = f(X) or the result Y is a function of several effects i.e. Xs
Let us consider Customer Satisfaction may be a metric on a top level dashboard which we want to aim for. So, this is a potential result (Y). Customer Satisfaction can be obtained through several effects (i.e. “Xs”) e.g. through decreasing defects, improving customer service, improving quality and better brand recognition.
Hence, Customer Satisfaction (results - Y) is achieved through a combination of effects - Xs.
What does VOC stand for?
Voice of Customer (or Client)
What are the benefits of a balanced scorecard?
- Very effective tool for getting inputs from different stakeholders, and ensuring that it aligns with the strategy and vision of the company.
- Helpful in project selection where inputs from all stakeholders ensure that no particular group gets undue advantage in the project selection process.
- Helps to quantify very high level objectives or results (i.e “Y’s”) in terms of measurable effects (i.e. “X’s”), thus enabling management to make a more informed decision in the project selection process.
What are “Vital X’s” in a balanced scorecard?
The critical effects are also referred to as “Vital X’s” in the balanced scorecard. These are the components which, if improved, will have a significant effect on the results i.e. the “Y variable.”
What are the 3 steps needed to understand VOC?
- Identify the customer
- Collect and analyze customer data
- Determine critical requirements
T/F | When identifying a customer they are classified in two ways: Internal and External.
TRUE.
For any Six Sigma project, the customers may be classified as:
1. Internal i.e. within the same organization (e.g. a technology group within the company that provides support to customer service representatives within the same organization)
2. External i.e. outside the organization (e.g. customers who finally buy a car produced by the company).
What are some facts to know about customers? What can this include?
- Age
- Gender
- Living habits
- Income Levels
- Education Levels
- Past buying history
Where do we begin with the identification and proper segmentation of the customer?
Begin analysis through existing customers. Companies keep details of customers who buy their product or service, which can be a starting point in identifying and segmenting customers.
To calculate the financial value of customer loyalty what should one consider?
To calculate the financial value of customer loyalty, one should consider the total sales that can be expected over a period of time.
Data can be broadly classified into what types of data?
Data can be broadly classified into two types: Discrete Data and Continuous Data
What is discrete data?
Discrete Data: This is a whole number (or count) of attributes like: Number of people buying a product. Number of defects per 1000 events. Number of satisfied customers
What is continuous data?
Continuous Data: This is information that can be measured on a continuum or scale e.g. Weight of packages sent. Customer wait time for every customer service call. Average speed of cars traveling on a highway
Why is knowing the type of data important?
Why is understanding of data types important? One of the first steps that one has to perform with any data is to determine whether the data is discrete or continuous. Depending on whether the data is discrete or continuous, different Six Sigma tools should be used to get information from and perform analysis of the data.
What are the three high-level steps to survey making?
- Create & Validate the questionnaire
- Sent to respondents
- Collect and analyze the results.
What are question types to ask on a survey?
Determining types of questions. Some examples are:
- Demographic : Demographic information about the customer (e.g. gender, age, nationality etc.)
- Attitudinal : Attitude and views of the customer (e.g. likes/dislikes, expectations etc)
- Service/Product Attributes : How the customer perceives different parameters of the product or service
What is the Kano Model?
Determining Product Attributes Perceived to be Important by Customers
What are question response types on a survey?
Determining Response types:
- Open Ended questions : questions which request the customers to write down their views or opinions (e.g. What is your perfect holiday? ___________________)
- Rating questions: Request customers to select from possible values which are rated along a scale (e.g. How would you rate the customer service provided by XYZ company? - Very Good- Good- Satisfactory- Not Satisfactory- Poor- Very Poor)
