In Six Sigma projects we usually try to improve the capability of the process in order to achieve a better DPMO(defects per million opportunities) than the current DPMO. In simpler words, how much the input material/effort is converted to quality output. And since, variation is a given in the near perfect world, it is challenging to always achieve 100% good output. That's where most of us LSS practitioners delve in order to improve quality.
In general, the formulas for : -
% Yield = Actual Good Output/Maximum Good Output * 100.
% Defective = Actual Bad Output/Maximum Good Output *100.
These 2 metrics could be used for anything ranging for products manufactured, quality level of any particular sub-operation, raw materials received from a partner, etc in the manufacturing industry as well as quality of service provided, no. of bugs detected, no. of failed transactions, no. of dissatisfied customers etc. in the Service Industry.
When this metric of %Yield or %Defective is used across various industries, various operations, various metrics, various people at various levels of maturity towards their quality journey it becomes very challenging to measure it for their projects as there could be multiple inputs, multiple processes & reprocessing, multiple interpretations of the data etc.
Some of the Challenges are: -
1. Complex or Multiple Operations
When the operations are complex or has got multiple operations going on simultaneously or in sequence there are challenges in finding the reason why a defect or variation has occurred.
For e.g. in the brewing industry, the % conversion of the sugars to alcohol has multiple steps and is based on multiple factors such as source of starch/sugars, filtering conditions, microbial culture, pH of water, and a whole lot of other variables and it is still now an empirical calculation that translates to the yield % for the processes. This causes difficulty in identifying why a particular batch had low yield.
Rolled Throughput Yield supplemented by cross-functionally accepted definition of Operations Parameters can be an effective tool to use in such cases as it would further breakdown the process steps and help identify the operation/process where the loss actually occurred.
2. Varying Skill Levels and Maturity in Business Excellence
Very few organizations have matured in Business Excellence principles. Thereby, still having some elements of functional disagreements and siloed work processes. In such cases, it becomes very difficult to calculate the yield as conflicts would arise on the method and parameters to calculate the %yield and %defectives and spark off a blame game.
For e.g., In many industries the output of a particular process of the Production department is dependent on availabilities of utilities which may not be aligned with the goals the Maintenance & Engg departments. In such cases, it is important to get a sign-off on the parameters and methodologies to calculate the yields and the definition of the Defects , In-process parameters and Service Level Agreements right at the Define Stage itself or at the Toll Gate reviews from the Team Members/Project Champion/Subject Matter Experts.
3. Unreliable/biased/inconsistent/Insufficient/Wrong Data Sources
There is always a challenge in getting accurate, consistent, unbiased or correct data especially when there is a human element to the data collection techniques when initiating a LSS Project. It's important to clean and categorize the data and undertake a Normality study or any other applicable data reliability study & MSA in order to ensure that the data can be used for analysis.