What are the best metrics to assess process maturity and capability?

1 Process maturity

Process maturity is the degree to which a process is defined, managed, controlled, and optimized. A higher level of process maturity indicates a lower level of variation, waste, and defects, and a higher level of customer satisfaction and profitability. One of the most widely used frameworks for measuring process maturity is the Capability Maturity Model Integration (CMMI), which defines five levels of process maturity, from initial to optimizing. Each level has specific criteria and practices that a process must meet to achieve that level. You can use the CMMI self-assessment tool or a certified appraiser to determine your process maturity level and identify areas for improvement.

2 Process capability

Process capability is the ability of a process to meet the specifications or requirements of its customers or stakeholders. A higher level of process capability indicates a lower level of variation, waste, and defects, and a higher level of quality and consistency. One of the most common metrics for measuring process capability is the process capability index (Cpk), which compares the natural variation of a process to the specification limits. A Cpk value of 1 means that the process is capable of meeting the specifications, while a Cpk value of 2 means that the process is highly capable and has a very low probability of producing defects. You can calculate the Cpk value by using statistical software or a spreadsheet formula.

3 Process performance

Process performance is the result of a process in terms of efficiency, effectiveness, and customer satisfaction. A higher level of process performance is associated with lower costs, cycle time, and errors, as well as higher value, throughput, and customer loyalty. To measure process performance, you can use metrics such as Defects per million opportunities (DPMO), Sigma level, On-time delivery (OTD), and Net promoter score (NPS). Data collection tools like surveys, checklists, or charts can be used to collect and analyze these metrics. Additionally, data analysis tools like histograms, control charts, or Pareto charts can be employed to gain further insights.

4 Process improvement

Process improvement is an ongoing effort to optimize the performance and capability of a process by reducing variation, waste, and defects. This leads to lower levels of rework, delays, and complaints, as well as higher levels of innovation, productivity, and profitability. To measure the effectiveness of process improvement, you should consider metrics such as return on investment (ROI), cycle time reduction (CTR), defect reduction (DR), and customer satisfaction improvement (CSI). You can track these metrics using project management tools like dashboards, scorecards, or reports. Additionally, improvement methods like DMAIC, Kaizen, or PDCA can help you calculate and monitor the progress of process improvement.

5 Process benchmarking

Process benchmarking is the practice of comparing the performance and capability of a process to that of a similar or best-in-class process, either within or outside the organization. A higher level of benchmarking indicates lower levels of gaps, inefficiencies, and risks, as well as a higher degree of learning, adaptation, and competitiveness. To conduct process benchmarking, you must identify and compare metrics such as key performance indicators (KPIs), best practices, and benchmarks. These metrics can be identified and compared by using benchmarking tools like surveys, interviews, or site visits, as well as benchmarking models like competitive, functional, or generic.

6 Process optimization

Process optimization is the primary aim of Lean Six Sigma, which seeks to attain the highest level of performance and capability of a process by minimizing variation, waste, and defects, and maximizing value, quality, and customer satisfaction. Metrics for achieving process optimization include Value Stream Mapping (VSM), Design for Six Sigma (DFSS), and Lean Six Sigma (LSS). VSM is a visual tool that identifies sources of value and waste, while DFSS is a methodology that meets or exceeds customer needs and expectations. LSS combines Lean and Six Sigma methodologies to reduce variation in a process or product. You can apply and monitor these metrics by using optimization tools such as brainstorming or fishbone diagrams, as well as optimization techniques like 5S or Poka-Yoke.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?