Six sigma business scorecard : ensuring performance for profit

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Title:

Personal Author:

Gupta, Praveen

Publication Information:

New York : McGraw-Hill, 2004

ISBN:

9780071417303

Subject Term:

Six sigma (Quality control standard)

Quality control -- Statistical methods

Production management -- Statistical methods

Available:*

Library	Item Barcode	Call Number	Material Type	Item Category 1	Status
Searching... PSZ JB	30000010038892	TS156 G864 2004	Open Access Book	Book	Searching... Unknown
Searching... PSZ KL	30000010129327	TS156 G864 2004	Open Access Book	Book	Searching... Unknown
Searching... Razak School	30000005120203	TS156 G864 2004	Open Access Book	Book	Searching... Unknown

Six Sigma has become a recognized strategic tool to improve business performance and profitability. Without a grasp of performance metrics, a company can have no clear, quantitative indication of its quality improvement. This book is an approach to measuring performance. It shows you how to implement Six Sigma program.

Author Notes

Praveen Gupta has been president of Quality Technology Company since 1989. Mr. Gupta was present at the origin of Six Sigma and taught Six Sigma at Motorola University for more than a decade

Bob Galvin's Reflections	p. xiii
Foreword	p. xxi
Preface	p. xxiii
Acknowledgments	p. xxv
Introduction	p. xxvii
Chapter 1. Trends in Performance Measurements	p. 1
Technology and Globalization	p. 1
Macroeconomic Measures	p. 2
Evolution in Performance Measurements	p. 3
Juran's Financial and Quality Trilogies	p. 5
Business Trilogy	p. 6
ISO 9000 Quality Management System	p. 7
Process Thinking	p. 9
Malcolm Baldrige National Quality Award Guidelines	p. 10
Balanced Scorecard	p. 14
Six Sigma Business Scorecard	p. 14
Chapter 2. Six Sigma--An Overview	p. 17
Complexity and Performance	p. 17
Cost of Poor Performance	p. 18
Basics of Six Sigma	p. 21
Traditional Approach to Six Sigma	p. 22
The Breakthrough Approach to Six Sigma	p. 23
Define	p. 24
Measure	p. 26
Analyze	p. 31
Improve	p. 36
Control	p. 37
Challenges in Implementing Six Sigma	p. 39
Chapter 3. Need for the Six Sigma Business Scorecard	p. 43
Missing Rate of Improvement	p. 45
Insufficient Process Performance Measurements	p. 46
Deming's 14 Points	p. 49
Measurement Challenges with Quality Systems	p. 50
Limits of ISO 9000	p. 50
Shortcomings of Six Sigma Measurement	p. 53
Limits of the Balanced Scorecard	p. 54
Measurements According to The Goal	p. 56
Developing a New Measurement System	p. 56
Chapter 4. The Six Sigma Business Scorecard	p. 59
Business and Leaders	p. 59
Current Accounting Systems	p. 61
Information Age Paradigm	p. 61
SIPOC Analysis for Constraints	p. 63
Managing the Profitability Process	p. 65
External Factors	p. 66
Process-Based Measurements	p. 67
Six Sigma Business Scorecard	p. 67
Business Processes to Consider	p. 68
Elements of the Six Sigma Business Scorecard	p. 69
1. Leadership and Profitability	p. 71
2. Management and Improvement	p. 73
3. Employees and Innovation	p. 76
4. Purchasing and Supplier Management	p. 78
5. Operational Execution	p. 79
6. Sales and Distribution	p. 83
7. Service and Growth	p. 83
Six Sigma Business Scorecard Measurements	p. 84
Business Performance Index (BPIn)	p. 85
Corporate DPU and DPMO	p. 86
Corporate Sigma Level	p. 87
Comparing Balanced Scorecard and Six Sigma Business Scorecard	p. 87
Chapter 5. Planning for the Six Sigma Business Scorecard	p. 89
Leadership and Improvement	p. 89
Extent of Improvement	p. 90
Business Opportunity Analysis	p. 91
Organizational Adjustments	p. 92
Vision	p. 94
Goals	p. 95
Core Competencies	p. 96
Systems Thinking	p. 96
Employees' Involvement	p. 97
Team Structure	p. 98
Understanding Measurements	p. 99
Identifying Process Measurements	p. 100
Action Plan for Performance	p. 103
Corporate Plans	p. 106
Progress Review	p. 106
Chapter 6. Six Sigma Business Scorecard Development	p. 109
Profitability Visibility	p. 111
Measurement Failures	p. 112
Features and Benefits of the Six Sigma Business Scorecard	p. 114
Impact of Customer Requirements on Measurements	p. 115
Factors Influencing Profitability	p. 117
Growth and Profitability	p. 118
Ownership for Performance	p. 120
Step-by-Step Development of the Six Sigma Business Scorecard	p. 121
Sample Measurements	p. 123
BPIn Example	p. 124
Chapter 7. Implementing the Six Sigma Business Scorecard	p. 127
Creating Awareness	p. 128
Building the Business Model	p. 128
Establishing the BPIn	p. 129
Establishing Six Sigma Business Scorecard Measurements	p. 130
Ensuring Data Collection Capability	p. 132
War on Waste	p. 134
Managing Change	p. 135
Integrating Technology and the Six Sigma Business Scorecard	p. 138
Chapter 8. Adapting the Six Sigma Business Scorecard to Small Businesses	p. 141
Six Sigma Business Scorecard and Business Size	p. 141
Implementing in a Small Business	p. 144
Chapter 9. Monitoring Performance Using the Six Sigma Business Scorecard	p. 147
Management Review	p. 147
Leadership Performance Review	p. 150
Employees' Performance Review	p. 153
Management Performance Review	p. 154
Compensation for Performance	p. 157
Communication with the Community	p. 158
Annual Review	p. 158
Chapter 10. Performance, Profitability, and Standards	p. 161
Dow Jones Industrial Average Companies	p. 161
Performance and Profitability	p. 162
Measurements for Growth and Profitability	p. 165
Balancing the Six Sigma Scorecard for Growth and Profitability	p. 166
Business Performance Index (BPIn)	p. 168
Managing for Profitability	p. 171
Managing Sales	p. 171
Reducing Costs	p. 172
Facilitating Growth	p. 174
Inspiring for Innovation	p. 175
Chapter 11. Leadership for Performance	p. 177
Leadership Challenges	p. 177
Lessons in Leadership	p. 180
Seven Practices of Good Leadership for Superior Execution	p. 182
Personal Practices	p. 182
Professional Practices	p. 183
Leadership Expectations	p. 183
Leadership Role Models	p. 185
Leadership Characteristics According to the MBNQA Guidelines	p. 187
Leadership Improvement	p. 189
Chapter 12. Six Sigma Scorecard Validation	p. 191
The Ten BPIn Measurements	p. 192
1. Employee Recognition (Percentage of Employees Recognized by CEO)	p. 193
2. Profitability	p. 193
3. Rate of Improvement in Process Performance	p. 194
4. Recommendations per Employee	p. 194
5. Total Spending/Sales	p. 195
6. Suppliers' Defect Rate	p. 195
7. Operational Cycle Time Variance	p. 196
8. Operational Sigma	p. 197
9. New Business/Total sales	p. 197
10. Customer Satisfaction	p. 198
Application of BPIn to Dow 30 Companies	p. 198
Correlation between BPIn and Profitability Performance	p. 200
Chapter 13. Integrating the Six Sigma Business Scorecard and Quality Management Systems	p. 203
Six Sigma Methodology for Continual Improvement	p. 206
Six Sigma Business Scorecard for Effectiveness	p. 206
Integrating the Six Sigma Business Scorecard with ISO 9001	p. 208
Cost Containment	p. 208
The Improvement Methodology	p. 209
Steps to Integrate Six Sigma and ISO 9001	p. 213
Conducting Good Internal Audits	p. 215
Benefits of Integrating ISO 9001 and Six Sigma	p. 216
References	p. 219
Index	p. 223

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Summary

Summary

Author Notes

Table of Contents