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E-raamat: Six Sigma Business Scorecard, Chapter 3 - Need for the Six Sigma Business Scorecard

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  • Formaat: 325 pages
  • Ilmumisaeg: 12-Dec-2006
  • Kirjastus: McGraw-Hill Professional
  • Keel: eng
  • ISBN-13: 9780071735117
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Six Sigma Business Scorecard, Chapter 3 - Need for the Six Sigma Business ScorecardSuurem pilt
  • Formaat: 325 pages
  • Ilmumisaeg: 12-Dec-2006
  • Kirjastus: McGraw-Hill Professional
  • Keel: eng
  • ISBN-13: 9780071735117
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Filled with performance-measuring techniques that can be used throughout a corporation, the Second Edition of Six Sigma Business Scorecard continues to be a proven tool for gauging and ensuring success in today's complex business environment.

This guidebook was designed to translate an organization's mission and business strategies into performance measures and operating objectives. Widely used around the world, it has become the linchpin of an integrated approach to taking the Six Sigma program of any company to the next level.

Ensure Sustained Profitable Growth

Without a strong grasp of performance metrics, a company can have no clear, quantitative indication of its performance improvement. Six Sigma Business Scorecard offers a unique approach to measuring performance. Readers will learn how to track their improvements in operations and financials-and make critical adjustments if such improvements are not up to expectations-using Six Sigma. Written by an internationally recognized thought leader in business management and a practitioner of process management, Six Sigma, and innovation, this much-needed Second Edition of Six Sigma Business Scorecard delivers an innovative Execution Map allowing you to implement, reap, and quantify the many advantages of Six Sigma.

You'll benefit from:





Key performance metrics for companies already using Six Sigma, to determine their sigma level A well-defined measurement system, which builds on the "Balanced Scorecard," for use throughout a corporation The Business Performance Index (BPIn), specifically designed for CEOs, which monitors corporate wellness with ease The Innovation Index, for accelerating innovation The 4P model, for process managementSix Sigma Business Scorecard will show you how to implement a successful and a measurable Six Sigma program.
Foreword by A. William Wiggenhorn xiii
Foreword by Mohanbir S. Sawhney xv
Preface xvii
CHAPTER ONE. TRENDS IN PERFORMANCE MEASUREMENTS 1
Technology and Globalization
1
Macro Economic Measures
2
Evolution in Performance Measurements
3
Juran's Financial and Quality Trilogies
5
Business Trilogy
6
ISO 9000 Quality Management System
7
Process Thinking
9
Malcolm Baldrige National Quality Award Guidelines
10
Balanced Scorecard
14
Six Sigma Business Scorecard
14
Take Away
16
CHAPTER TWO. SIX SIGMA—AN OVERVIEW 19
Complexity and Performance
19
Cost of Poor Performance
20
Basics of Six Sigma
23
Traditional Approach to Six Sigma
24
The Breakthrough Approach to Six Sigma
25
Define
26
Measure
28
Analyze
33
Improve
38
Control
39
Challenges in Implementing Six Sigma
41
Take Away
43
CHAPTER THREE. NEED FOR THE SIX SIGMA BUSINESS SCORECARD 45
Missing Rate of Improvement
47
Insufficient Process Performance Measurements
48
Deming's 14 Points
51
Measurement Challenges with Quality Systems
52
Limits of ISO 9000
52
Shortcomings of six sigma measurements
55
Limits of the Balanced Scorecard
56
Measurements According to The Goal
58
Developing a New Measurement System
58
Take Away
60
CHAPTER FOUR. THE SIX SIGMA BUSINESS SCORECARD 63
Business and Leaders
63
Current Accounting Systems
65
Information Age Paradigm
65
Sipoc Analysis for Constraints
67
Managing the Profitability Process
69
External Factors
70
Process-Based Measurements
71
Six Sigma Business Scorecard
71
Business Processes to Consider
72
Elements of the Six Sigma Business Scorecard
73
1. Leadership and Profitability
75
2. Management and Improvement
77
3. Employees and Innovation
80
4. Purchasing and Supplier Management
82
5. Operational Execution
83
6. Sales and Distribution
87
7. Service and Growth
87
Six sigma Business Scorecard Measurements
88
Business Performance Index
89
Corporate DPU and DPMO
90
Corporate Sigma Level
91
Comparing Balanced Scorecard and Six Sigma Business Scorecard
91
Take away
92
CHAPTER FIVE. PLANNING FOR THE SIX SIGMA BUSINESS SCORECARD 95
Leadership and Improvement
95
Extent of Improvement
96
Business Opportunity Analysis
97
Organizational Adjustments
98
Vision
100
Goals
101
Core Competencies
102
Systems Thinking
102
Employees' Involvement
103
Team Structure
104
Understanding Measurements
105
Identifying Process Measurements
106
Action Plan for Performance
109
Corporate Plans
112
Progress Review
112
Take Away
113
CHAPTER SIX. SIX SIGMA BUSINESS SCORECARD DEVELOPMENT 115
Profitability Visibility
117
Measurement Failures
118
features and Benefits of the Six Sigma Business Scorecard
120
Impact of Customer Requirements on Measurements
121
Factors Influencing Profitability
123
Growth and Profitability
124
Ownership for Performance
126
Step-by-Step Development of the Six Sigma Business Scorecard
127
Sample Measurements
129
BPIn Example
130
Take Away
132
CHAPTER SEVEN. MEASURES OF INNOVATION 135
Understanding Innovation
137
Managing Ideas
140
Direct Measures of Innovation
142
Take Away
144
CHAPTER EIGHT. IMPLEMENTING THE SIX SIGMA BUSINESS SCORECARD 145
Creating Awareness
146
Building the Business Model
146
Establishing the BPIn
147
Establishing Six Sigma Business Scorecard Measurements
148
Ensuring Data Collection Capability
150
War on Waste
152
Managing Change
153
Integrating Technology and the Six Sigma Business Scorecard
156
Take Away
157
CHAPTER NINE. STRATEGY FOR EXECUTION 159
Strategy
160
Execution
162
Strategy for Execution
163
Organizational Alignment
165
Business Scorecard for Strategy Execution
167
Improving Performance
169
The Execution Map
170
Take Away
190
CHAPTER TEN. ADAPTING THE SIX SIGMA BUSINESS SCORECARD TO SMALL BUSINESSES 191
Six Sigma Business Scorecard and Business Size
191
Implementing in a Small Business
194
Take Away
196
CHAPTER ELEVEN. MONITORING PERFORMANCE USING THE SIX SIGMA BUSINESS SCORECARD 197
Management Review
197
Leadership Performance Review
200
Employees' Performance Review
203
Management Performance Review
204
Compensation for Performance
207
Communication with the Community
208
Annual Review
208
Take Away
209
CHAPTER TWELVE. PERFORMANCE, PROFITABILITY, AND STANDARDS 211
Dow Jones Industrial Average Companies
211
Performance and Profitability
212
Measurements for Growth and Profitability
215
Balancing the Six Sigma Business Scorecard for Growth and Profitability
216
Business Performance Index (BPIn)
218
Managing for Profitability
221
Managing Sales
221
Reducing Costs
222
Facilitating Growth
224
Inspiring for Innovation
225
Take Away
227
CHAPTER THIRTEEN. LEADERSHIP FOR PERFORMANCE 229
Leadership Challenges
229
Lessons in Leadership
232
Seven Practices of Good Leadership for Superior Execution
234
Personal Practices
234
Professional Practices
235
Leadership Expectations
235
Leadership role models
237
Leadership Characteristics According to the MBNQA Guidelines
239
Leadership Improvement
241
Take Away
242
CHAPTER FOURTEEN. SIX SIGMA BUSINESS SCORECARD VALIDATION 245
The 10 BPIn Measurements
246
1. Employee Recognition (Percentage of Employees Recognized by CEO)
247
2. Profitability (Percentage of Net Income)
247
3. Rate of Improvement in Process Performance
248
4. Recommendations per Employee
248
5. Total Spending/Sales
249
6. Suppliers' Defect Rate
249
7. Operational Cycle Time Variance
250
8. Operational Sigma
251
9. New Business/Total Sales
251
10. Customer Satisfaction
252
Application of BPIn to DOW 30 Companies
252
Correlation Between BPIn and Profitability Performance
254
Take Away
257
CHAPTER FIFTEEN. FIELD IMPLEMENTATION 259
Business Scorecard Implementation Steps
267
Take away
274
CHAPTER SIXTEEN. INTEGRATING THE SIX SIGMA BUSINESS SCORECARD AND QUALITY MANAGEMENT SYSTEMS 275
Six Sigma Methodology for Continual Improvement
280
Six Sigma Business Scorecard for Effectiveness
280
Integrating the Six Sigma Business Scorecard with ISO 9001
282
Cost Containment
282
The Improvement Methodology
283
Steps to Integrate Six Sigma and ISO 9001
287
Conducting Good Internal Audits
289
Benefits of Integrating ISO 9001 and Six Sigma
290
Take Away
291
Note from the Author 293
Index 295


McGraw-Hill authors represent the leading experts in their fields and are dedicated to improving the lives, careers, and interests of readers worldwide
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