Emerging Markets and International Business
International Businesses and the Opening up of Emerging Economies The previous articles in this module have discussed the contours of international business and the key drivers of the phenomenon. This article discusses how international businesses are affected by the rise of the emerging markets especially the BRICS (Brazil, Russia, India, China, and South Africa) and […]
What is Due Diligence, Why it is Important, and How it Works and, What it Does ?
What is Due Diligence? Many of us would have heard the term Due Diligence in various contexts and situations where one party to a transaction often tells the other to do their due diligence or states that it is considering the same. Indeed, as anyone who has negotiated an employment contract or a legal drafting […]
Person Dependence in Organizations and Steps to Manage or Reduce the Same
Some Real World Examples of Person Dependence and its Perils A common problem across organizations in the contemporary corporate world is about person dependence and the ways and means to manage person dependence. The term person dependence refers to the phenomenon wherein the organizations are overly dependent on individuals for their success and even for […]
What is Learning Curve ? – Meaning and Concept
Introduction In any environment if a person is assigned to do the same task, then after a period of time, there is an improvement in his performance. If data points are collected over a period of time, the curve constructed on the graph will show a decrease in effort per unit for repetitive operations. This […]
Components of Commercial Value Chain
Introduction The concept of the value chain was introduced by Michael Porter. The concept helps categories’ activities undertaken by enterprise to deliver a successful product to a customer. The concept since its introduction in 1980s has become a forefront in developing strategies around customer delight and commercial success. The value chain is series of activities […]
In order to truly control a process, one must understand the inputs as well as outputs of the process. These inputs and outputs are displayed through numbers which are called “metrics”. The primary metric is a way to say with numbers how well your process is performing. Here are a few pointers that will help understand the concept of primary metrics in detail.
Any process can be defined as Y = f(x) where X’s are the critical inputs. The output here is Y. The primary metric of a process is the Y of that process, meaning an output of the process under consideration. The state of the output needs to be consistently measured, errors must be spotted and correction must be immediately made. It is therefore of vital importance for a Six Sigma project to identify the correct primary metrics. This ensures that the project is in control. Choosing the wrong primary metrics will create a situation wherein the wrong thing is being measured. This focuses the organization in the wrong area creating colossal losses in the long run.
The primary metric does not appear in this stage. It has been present in the project since the first step. The primary metrics have their roots in the critical to quality measures defined by the customer. The get recorded in the problem statement, goal statement and business case. Then they are formally chosen as the primary metric if the project is being correctly executed.
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