Step 1: Collect and Review Primary Information
February 12, 2025
All firms aim to become market leaders and be the dominant player in their chosen niche and space. Towards this, they actualize some strategies aimed at seizing the market and grab market share. However, not all firms succeed, and hence, the so-called “Holy Grail” (the quest for perfection and mastery) eludes most firms. For instance, […]
Introduction Plant and machinery in the initial days always perform to their fullest capacity but as time goes with regular wear and tear, this becomes increasingly difficult. If proper and regular maintenance is undertaken than production capacity can be maintained at a more or less same level. Maintenance also requires replacement decisions. Replacement is a […]
What is the P-Value ? The P-Value is a statistical representation of the likelihood that the null hypothesis is true. Therefore the P-Value is the probability that the output (Y) will not change as a result of the variation that we are deliberately introducing in the input (X). Example: If we have a null hypothesis […]
Export credit agencies are quasi-government agencies. These agencies are usually backed by government institutions. This means that they are under the purview of government authorities and also have access to taxpayer funds. All developed countries in the world have created their own export credit agencies. Collectively these agencies wield a tremendous amount of influence on […]
In the beginning of 2019, America has been hit by a weather phenomenon known as the Polar Vortex. This phenomenon has brought chilly winds and freezing temperatures to the United States. In many parts of the country like Chicago, the temperatures have hit historic lows and were close to -50 degrees! The daily life of […]
In order to truly control a process, one must understand the inputs as well as outputs of the process. These inputs and outputs are displayed through numbers which are called “metrics”. The primary metric is a way to say with numbers how well your process is performing. Here are a few pointers that will help understand the concept of primary metrics in detail.
Any process can be defined as Y = f(x) where X’s are the critical inputs. The output here is Y. The primary metric of a process is the Y of that process, meaning an output of the process under consideration. The state of the output needs to be consistently measured, errors must be spotted and correction must be immediately made. It is therefore of vital importance for a Six Sigma project to identify the correct primary metrics. This ensures that the project is in control. Choosing the wrong primary metrics will create a situation wherein the wrong thing is being measured. This focuses the organization in the wrong area creating colossal losses in the long run.
The primary metric does not appear in this stage. It has been present in the project since the first step. The primary metrics have their roots in the critical to quality measures defined by the customer. The get recorded in the problem statement, goal statement and business case. Then they are formally chosen as the primary metric if the project is being correctly executed.
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