Six Sigma Pricing: Improving Pricing Operations to Increase Profits

10Measure Phase

I never guess. It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.—Sir Arthur Conan Doyle

10.1 Introduction

This phase entails two activities: (1) to develop a detailed process map of the "as-is" process and (2) to identify, collect, and present the data we will need for subsequent analysis and design of controls. Recall that in the Define phase we needed data to quantify the extent of the problem, that is, the percentage of transactions that were priced too low relative to guidelines. In Measure, the purpose of collecting data is different, being motivated by analysis and design of controls in later phases of the project—Analyze and ...