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Key Performance Indicators (KPI) by Bernard Marr

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Six Sigma level

Strategic perspective

Operational processes and supply chain perspective

Key performance question this indicator helps to answer

How capable are our processes of delivering error-free work?

Why is this indicator important?

The Six Sigma metric (which was pioneered by Motorola in the late 1980s and later adopted very successfully by global giants such as General Electric and Honeywell as well as many other companies of various sizes) informs managers as to the stability and predictability of process results. The goal is that process defect or error rates will be no more than 3.4 per one million opportunities. As an analogy, consider a goalkeeper of a football team who plays 50 games in a season and who faces 50 shots ...

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