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How can lean six sigma methodology be used to quantify the cost of poor quality reference data?

Six Sigma Marketing: It’s All About Value Performance Gaps

Reg Goeke and Eric Reidenbach The first two generations of Six Sigma, with their emphases on defect reduction and cost reduction, respectively, relied heavily upon the Voice of the Business (VOB) to identify and prioritize projects. The third generation, with its emphasis on value creation and delivery, requires a shift in focus to the Voice of the Market (VOM). After all, who is the final arbiter of value? And how do you use the Voice of the Market to identify potential Six Sigma projects?

A Modified DMAIC

The Define phase of Six Sigma Marketing brought a laser-like focus on the two things that generate revenue for your organization: the products or services you provide and the customers who buy them. In the Measure phase you learned how your targeted customer groups evaluate the trade-off between Quality and Price, and which Quality factors they regard as most important. The Analysis phase of Six Sigma Marketing provides the answers to three important business questions:

  • What is your current competitive value proposition?
  • How loyal are your current customers, and what’s the basis of that loyalty?
  • How vulnerable are your competitors, and what’s the basis of their vulnerability?
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