For example, Motorola's Six-Sigma Quality initiative is essentially a goal of having Cpk's greater than two for all of the relevant processes. Thus, one balanced scorecard measure might be to measure the Cpk of each process and then compute a weighted average of the Cpk's to find a company average. It is universally clear that most companies that are attempting to achieve excellence are also attempting to get all of their processes under statistical control. Thus, another potential balanced scorecard measure could be the percentage of the relevant processes that are under statistical control. Process Steps Good processes most frequently have fewer steps involved than do poorer processes.
Fewer steps mean quicker, higher quality and more responsive processes.
Reengineering of processes is targeted to removing steps that do not add value. Many other indirect measures related to quality exist. It should be very evident that high quality incoming material from other vendors is prerequisite to smoothly functioning processes and high quality products. Thus, it is essential that incoming product be monitored. In businesses in which most, or all, of the material used in manufacture is outside the control of the business and solely dependent on outside vendors, incoming material quality could well be a potential balanced scorecard type of measure.