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Six Sigma Business Scorecard 2/E : Mechanical Engineering - Praveen Gupta

Six Sigma Business Scorecard 2/E

Mechanical Engineering

Hardcover

Published: 2nd January 2007
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$72.25
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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 management

"Six Sigma Business Scorecard" will show you how to implement a successful and a measurable Six Sigma program.

Excerpts from review by Paul Harmon Praveen Gupta was at Motorola in 1987 when Bill Smith first proposed what has become Six Sigma, and has been working to improve processes ever since. Somewhere along the line Mr. Gupta became focused on the problems of relating corporate goals and profits to process changes. Mr. Gupta describes the history and practices of Six Sigma in a few succinct chapters. He goes on to compare and contrast Six Sigma measures with ISO 9000 measures and the measures used by the US's Baldrige award system. In the end he concludes that, while each contributes to improved processes, they do not tend to establish clear links to corporate goals, and ultimately, to corporate profits. Or, put slightly differently, there is no way to conclude, from lots of specific Six Sigma projects, whether the organization, as a whole is getting better.

Next, Gupta considers Kaplan and Norton's Balanced Scorecard system. Balanced Scorecard seeks to shift senior management's attention for financial measures to a more balanced set of measures which include: (1) Financial Measures, (2) Customer-Related Measures, (3) Internal Business Operations Measures, and (4) Learning and Growth Measures. Gupta describes the system and some of its successes. He proceeds, however, to argue that, as a generalization, the Balanced Scorecard has been more successful with senior managers than with operations managers.

In other words, Six Sigma focuses on processes, and rather narrowly defined processes at that, and doesn't reach up to link to strategies and goals. Balanced Scorecard starts with the strategies and goals of senior managers and doesn't reach downward to provide direction for managersand employees engaged with lower-level process improvement.

Gupta concludes that a better performance measurement system is required, and proposes it. Gupta's solution is the "Six Sigma Business Scorecard." In a nutshell, he attempts to merge the best of the scorecard approach with some Six Sigma measurement concepts. Rather than rely on four sets of measures, Gupta proposes that companies rely on seven, including: Leadership and Profitability Management and Improvement Employees and Innovation Purchasing and Supplier Management Operational Execution Sales and Distribution Service and Growth

...I...recommend this book to those concerned with the measurement of corporate performance, with Balanced Scorecard programs, and with Six Sigma programs. Clearly Gupta has thought long and hard about these issues and he provides detailed discussions of many important and difficult issues that those involved in performance management must solve in the years ahead. A company may not adopt Gupta's entire approach, but this book is a valuable sourcebook that describes specific problems and suggests ways of dealing with the shortcomings of existing practices. It will probably inspire others to work on the important problems that Gupta pinpoints. Excerpts from article: New Book Captures Keys to Short- and Long-Term Business Success

..."Six Sigma Business Scorecard, "published by McGraw-Hill, combines today's most powerful management concepts...The book starts with a comprehensive review of Six Sigma and its ability to generate significant returns by focusing on customer satisfaction and profitability. Gupta then describes the following seven highly critical areas to manage in any organization: 1) leadership and profitability; 2) management and improvement; 3) employees and innovation; 4) purchasing and supplier management; 5) operational execution; 6) sales and distribution; and 7) service and growth. Using these criteria, Gupta develops the Business Performance Index (BPIn), a comprehensive business guide that can judge the overall performance of any organization. The book also portrays how the BPIn can be used to determine a corporate sigma level that is missing in the Six Sigma methodology used today.

Additionally, "The Six Sigma Business Scorecard" includes an interview with Bob Galvin, former CEO of Motorola, in which he shares his views on leadership performance...

Forewordp. xiii
Forewordp. xv
Prefacep. xvii
Trends in Performance Measurementsp. 1
Technology and Globalizationp. 1
Macro Economic Measuresp. 2
Evolution in Performance Measurementsp. 3
Juran's Financial and Quality Trilogiesp. 5
Business Trilogyp. 6
ISO 9000 Quality Management Systemp. 7
Process Thinkingp. 9
Malcolm Baldrige National Quality Award Guidelinesp. 10
Balanced Scorecardp. 14
Six Sigma Business Scorecardp. 14
Take Awayp. 16
Six Sigma-An Overviewp. 19
Complexity and Performancep. 19
Cost of Poor Performancep. 20
Basics of Six Sigmap. 23
Traditional Approach to Six Sigmap. 24
The Breakthrough Approach to Six Sigmap. 25
Definep. 26
Measurep. 28
Analyzep. 33
Improvep. 38
Controlp. 39
Challenges in Implementing Six Sigmap. 41
Take Awayp. 43
Need for the Six Sigma Business Scorecardp. 45
Missing Rate of Improvementp. 47
Insufficient Process Performance Measurementsp. 48
Deming's 14 Pointsp. 51
Measurement Challenges with Quality Systemsp. 52
Limits of ISO 9000p. 52
Shortcomings of six sigma measurementsp. 55
Limits of the Balanced Scorecardp. 56
Measurements According to The Goalp. 58
Developing a New Measurement Systemp. 58
Take Awayp. 60
The Six Sigma Business Scorecardp. 63
Business and Leadersp. 63
Current Accounting Systemsp. 65
Information Age Paradigmp. 65
Sipoc Analysis for Constraintsp. 67
Managing the Profitability Processp. 69
External Factorsp. 70
Process-Based Measurementsp. 71
Six Sigma Business Scorecardp. 71
Business Processes to Considerp. 72
Elements of the Six Sigma Business Scorecardp. 73
Leadership and Profitabilityp. 75
Management and Improvementp. 77
Employees and Innovationp. 80
Purchasing and Supplier Managementp. 82
Operational Executionp. 83
Sales and Distributionp. 87
Service and Growthp. 87
Six sigma Business Scorecard Measurementsp. 88
Business Performance Indexp. 89
Corporate DPU and DPMOp. 90
Corporate Sigma Levelp. 91
Comparing Balanced Scorecard and Six Sigma Business Scorecardp. 91
Take awayp. 92
Planning for the Six Sigma Business Scorecardp. 95
Leadership and Improvementp. 95
Extent of Improvementp. 96
Business Opportunity Analysisp. 97
Organizational Adjustmentsp. 98
Visionp. 100
Goalsp. 101
Core Competenciesp. 102
Systems Thinkingp. 102
Employees' Involvementp. 103
Team Structurep. 104
Understanding Measurementsp. 105
Identifying Process Measurementsp. 106
Action Plan for Performancep. 109
Corporate Plansp. 112
Progress Reviewp. 112
Take Awayp. 113
Six Sigma Business Scorecard Developmentp. 115
Profitability Visibilityp. 117
Measurement Failuresp. 118
Features and Benefits of the Six Sigma Business Scorecardp. 120
Impact of Customer Requirements on Measurementsp. 121
Factors Influencing Profitabilityp. 123
Growth and Profitabilityp. 124
Ownership for Performancep. 126
Step-by-Step Development of the Six Sigma Business Scorecardp. 127
Sample Measurementsp. 129
BPIn Examplep. 130
Take Awayp. 132
Measures of Innovationp. 135
Understanding Innovationp. 137
Managing Ideasp. 140
Direct Measures of Innovationp. 142
Take Awayp. 144
Implementing the Six Sigma Business Scorecardp. 145
Creating Awarenessp. 146
Building the Business Modelp. 146
Establishing the BPInp. 147
Establishing Six Sigma Business Scorecard Measurementsp. 148
Ensuring Data Collection Capabilityp. 150
War on Wastep. 152
Managing Changep. 153
Integrating Technology and the Six Sigma Business Scorecardp. 156
Take Awayp. 157
Strategy for Executionp. 159
Strategyp. 160
Executionp. 162
Strategy for Executionp. 163
Organizational Alignmentp. 165
Business Scorecard for Strategy Executionp. 167
Improving Performancep. 169
The Execution Mapp. 170
Take Awayp. 190
Adapting the Six Sigma Business Scorecard to Small Businessesp. 191
Six Sigma Business Scorecard and Business Sizep. 191
Implementing in a Small Businessp. 194
Take Awayp. 196
Monitoring Performance Using the Six Sigma Business Scorecardp. 197
Management Reviewp. 197
Leadership Performance Reviewp. 200
Employees' Performance Reviewp. 203
Management Performance Reviewp. 204
Compensation for Performancep. 207
Communication with the Communityp. 208
Annual Reviewp. 208
Take Awayp. 209
Performance, Profitability, and Standardsp. 211
Dow Jones Industrial Average Companiesp. 211
Performance and Profitabilityp. 212
Measurements for Growth and Profitabilityp. 215
Balancing the Six Sigma Business Scorecard for Growth and Profitabilityp. 216
Business Performance Index (BPIn)p. 218
Managing for Profitabilityp. 221
Managing Salesp. 221
Reducing Costsp. 222
Facilitating Growthp. 224
Inspiring for Innovationp. 225
Take Awayp. 227
Leadership for Performancep. 229
Leadership Challengesp. 229
Lessons in Leadershipp. 232
Seven Practices of Good Leadership for Superior Executionp. 234
Personal Practicesp. 234
Professional Practicesp. 235
Leadership Expectationsp. 235
Leadership role modelsp. 237
Leadership Characteristics According to the MBNQA Guidelinesp. 239
Leadership Improvementp. 241
Take Awayp. 242
Six Sigma Business Scorecard Validationp. 245
The 10 BPIn Measurementsp. 246
Employee Recognition (Percentage of Employees Recognized by CEO)p. 247
Profitability (Percentage of Net Income)p. 247
Rate of Improvement in Process Performancep. 248
Recommendations per Employeep. 248
Total Spending/Salesp. 249
Suppliers' Defect Ratep. 249
Operational Cycle Time Variancep. 250
Operational Sigmap. 251
New Business/Total Salesp. 251
Customer Satisfactionp. 252
Application of BPIn to DOW 30 Companiesp. 252
Correlation Between BPIn and Profitability Performancep. 254
Take Awayp. 257
Field Implementationp. 259
Business Scorecard Implementation Stepsp. 267
Take awayp. 274
Integrating the Six Sigma Business Scorecard and Quality Management Systemsp. 275
Six Sigma Methodology for Continual Improvementp. 280
Six Sigma Business Scorecard for Effectivenessp. 280
Integrating the Six Sigma Business Scorecard with ISO 9001p. 282
Cost Containmentp. 282
The Improvement Methodologyp. 283
Steps to Integrate Six Sigma and ISO 9001p. 287
Conducting Good Internal Auditsp. 289
Benefits of Integrating ISO 9001 and Six Sigmap. 290
Take Awayp. 291
Note from the Authorp. 293
Indexp. 295
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9780071479431
ISBN-10: 0071479430
Series: Mechanical Engineering
Audience: Professional
Format: Hardcover
Language: English
Number Of Pages: 325
Published: 2nd January 2007
Publisher: McGraw-Hill Education - Europe
Country of Publication: US
Dimensions (cm): 23.7 x 16.0  x 3.0
Weight (kg): 0.65
Edition Number: 2
Edition Type: Revised