Six Sigma and Earned Value

Six Sigma is a gauge of superiority that struggles for near perfection. A disciplined methodology that is data-driven for purging defects from products and services. The Six Sigma statistical representations describe quantitatively how a progression is performing. Six Sigma is only achieved when the total defects in a process do not exceed 3.4 per million opportunities. In Six Sigma, a flaw is anything that does not comprise the customers expectations. An opportunity therefore comprises the total magnitude of chances for a imperfection.
To determine the total defects, a business uses the Six Sigma calculator. A customer focused business strategy that aims to improve customer experience by systematically enhancing the production process. It gives the business the ability to deliver accelerated results by using tools and techniques that allow the business to improve the processes (Larson, 2003).
Through the application of the Six Sigma improvement projects, a business enterprise improves that production process of either goods or services by reducing the variations within the products. This measurement-based strategy uses two Six Sigma sub-methodologies. The two sub-methodologies include DMAIC and DMADV. The DMAIC (define, measure, analyze, improve, and control) is an improvement system for already established processes that fall below the specifications required by the customers. The DMADV (define, measure, analyze, design, and verify) is a Six Sigma process used to develop new processes that adhere to the Six Sigma quality levels. First, the project management office (PMO) considers the requirements of the customers and aligns the project goals with them. Measurement involves the identification of specific qualities in the product or services important to the quality standards set by the customers. Analyzing involves the development and consideration of alternatives to meet the requirements (Kerzner, 2005). Verification involves setting up a pilot run to ascertain the process is running as expected. The DMADV is applicable it the current processes in a business require more than incremental improvements.
Earned Value
Earned value is a scheme administration practice that uses work in advancement to indicate future possibility. It is an enhancement of traditional accounting because, unlike traditional accounting that considers only expenditure and actual costs; earned value considers the actual accomplishments of a project. The insight earned value provides enables managers to identify and mitigate potential risks. The mitigation plans considers the actual cost, program, and procedural progress of the project. Earned value is therefore an early warning system that enables project managers to identify and solve challenges before they become insuperable. It is a set of guidelines that guide the supervision control scheme of the business, ensuring the project is completed on budget and in time (Fleming & Koppelman, 2009).
For a project manager to successful implement earned value, he or she must get the support of the stakeholders involved in the project. When the management commits to the use of earned value management in the project, they have a number of performance metrics to use for monitoring the project. Many of the performance markers have value for the project; however, the CPI (Cost Performance Index) and the TCPI (To-Complete Performance Index) are paramount for the project to succeed. The CPI enables the projects managers and the stakeholders involved to evaluate how much has already been spent. Using this information, the managers can know if they are within the budget. If not, they take the necessary measures to avert a crisis in the future. The TCPI focuses on the remaining part of the project. It enables the managers to determine the performance levels they must maintain for them to meet the budget constraints. The CPI reflects the cost efficiency of the project. It relates actual cost incurred in the physical work accomplished and the expressed value for the complete tasks in the budget. The TCPI works with the CPI to avert potential risks to the project in the future. Unlike CPI that constitute already spend money and finished tasks, TCPI focuses on future performance (Suketu, 2002).
 References
Fleming, Q. & Koppelman, J. (2009). The two most useful earned value metrics: The CPI and the TCPI. Cost Engineering, 11(6), 1-6.
Kerzner, H. (2005). Using the Project Management Maturity Model: Strategic planning for project management (2nd ed.). Hoboken, NJ: John Wiley and Sons, Inc. ISBN: 9780471691617.
Larson, A. (2003). Demystifying six sigma: A company-wide approach to continuous improvement. New York: AMACOM.
Suketu Nagrecha. (2002). An introduction to Earned Value Analysis. 3-11.