By Praveen Gupta, A. William Wiggenhorn
Six Sigma has turn into a well known strategic device to enhance enterprise functionality and profitability. Many books conceal uncomplicated Six Sigma options, yet none aspect the main serious component to its development technique: functionality measurements. and not using a powerful seize of functionality metrics, an organization could have no transparent, quantitative indication of its caliber development. "The Six Sigma company Scorecard" is a different method of measuring functionality. It permits businesses to trace their advancements in caliber and profitability - and make changes if such advancements will not be as much as expectancies - whereas enforcing Six Sigma. with no entire functionality size procedure, your organization cannot wish to harvest the various merits of Six Sigma. This guidebook will assist you enforce a profitable, statistically rigorous Six Sigma software. It presents numerical tools for comparing a corporation's Six Sigma luck (or lack thereof). it truly is written by means of an writer with twelve years instructing adventure at Motorola collage. It builds at the well-known enterprise Scorecard technique.
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Additional info for Six Sigma Business Scorecard : ensuring performance for profit
The Balanced Scorecard is designed to provide a strategic vision for the organization by looking at four perspectives: financial, customer, learning and growth, and internal business processes. ). The Balanced Scorecard has been used by senior executives for more than a decade as an excellent tool for strategy development. Kaplan and Norton demonstrated how executives in industries such as banking, oil, insurance, and retailing have used the Balanced Scorecard to guide their current performance and target future performance goals.
Today, the trend in the cost of a cellular phone is almost like that of a digital watch several years ago. Like the price of digital watches, the price of cell phones has dropped precipitously. Sometimes a cellular phone is even complimentary with the purchase of a cellular service. This is why new processes for improvement must be created continually and not just as a one-time deal. Sustaining the Six Sigma process is critical to maintain performance once the initial success is achieved. Before launching the Six Sigma initiative, Bill Smith had discovered that most customer complaints and failures of the product in the field were primarily caused by errors that the quality control system was unable to detect before the product was shipped.
The Gage R&R can be performed on any measurement method to apportion variances. The measurement method must have resolution an order of magnitude higher than the measurement itself. Internal Failures External Failures Appraisal Prevention Failure Reviews Customer Dissatisfaction Drawing Checking Planning Redesign Equipment Downtime Final Inspection Capability Studies Reinspection Excess Inventory In-Process Inspection Design Reviews Repair Costs Excess Travel Expense Laboratory Testing Field Testing Retesting Excess Material Handling Personnel Testing Vendor Surveys and Evaluation Rework Penalties Receiving Inspection Procedure Writing Scrap Allowances Pricing Errors Product Audits Training Shipping Inspection Market Analysis Engineering Changes FIGURE 2-7.