This document discusses defining performance objectives based on the results of a process capability analysis. It explains that after determining the performance gap between customer requirements and process performance, the team should consider how severe the gap is and any constraints to improving it. The team then defines reasonable objectives for improving the process performance metrics and modifies the project scope accordingly. Objectives are defined quantitatively in terms of metrics like DPMO, Cpk, and Ppk. Practical examples are provided to apply these steps to specific process capability analysis results.

1. Section & Lesson #:
Pre-Requisite Lessons:
Complex Tools + Clear Teaching = Powerful Results
Defining Performance Objectives
Six Sigma-Analyze – Lesson 8
A review of how to define the performance objectives based on the results
of a process capability analysis.
Six Sigma-Analyze #05 – Process Capability: Step 4 (Normal Dist)
Six Sigma-Analyze #06 – Process Capability: Step 5 (Non-Normal
Dist)
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any means
(electronic, mechanical, photographic, photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.

2. Defining Performance Objectives
o How do you define performance objectives?
• At this point, you should know the Performance Gap (difference between VOC & VOP).
• Review the analysis and Performance Gap with the team and consider the following:
 How severe is the performance gap?
 Are the customer requirements
(VOC) realistic?
– Should they be re-evaluated or adjusted
in consideration of the VOP?
 What constraints (equipment, people,
cost, etc.) may limit the opportunity
to improve the gap (or VOP)?
• Based on a team review of the gap,
determine the following:
 What is a reasonable objective for
improving the VOP?
– Can it be defined in terms of DPMO, p(d),
Z score, Cpk/Ppk, etc.
 How should the scope be modified
to account for meeting these new
performance objectives?
• Ensure the team (especially the
Sponsor & Champion) agree with the
performance objectives and any
potential changes made to the scope.
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
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Process Capability
(Voice of Process or VOP)
Customer Requirements
(Voice of Customer or VOC)
Performance Gap
between VOC & VOP
What objectives will help
improve the performance?
How will it change scope?
Actual
Process
Performance

3. Practical Application
o Refer to the 2 continuous metrics identified in the lessons about process capability.
• For each metric, answer the following:
 Restate the key process capability values for each metric as previously defined:
– What is the DPMO?
– What is the Z score?
– What is the cumulative probability or p(d)?
– What are the Cpk and Ppk?
 Based on the above findings, what is the performance gap between the VOC and VOP?
 What is a reasonable objective for improving that performance gap?
– How would you define that objective in terms of process capability? (e.g., how much can the DPMO or p(d) be reduced?
Or how much can the Cpk and Ppk be improved?)
Copyright © 2011-2019 by Matthew J. Hansen. All Rights Reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted by any means (electronic, mechanical, photographic,
photocopying, recording or otherwise) without prior permission in writing by the author and/or publisher.
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