Six Sigma is a process improvement strategy with the goal of process quality improvement through the identification and removal of the causes of errors and defect and the minimization of variability which occurs in manufacturing and business (Kwak & Anbari, 2004). The strategy is comprised of the implementation of quality management tactics, including statistical approaches, and specially trained professionals within the organization considered experts in the technique of Six Sigma. These experts hold titles including Champions, Black, Green and Yellow Belts. For every project particular steps are outlined sequential steps with targeted outcomes. Target outcomes included reduction of process cycle duration, cost reduction, pollution curtailment, profit maximization, and increased customer satisfaction (Kwak & Anbari, 2004).
The doctrine of Six Sigma doctrine posits that stable and foreseeable results are achievable through continuous efforts which are vital to the success of every business. Second, organization processes have components that can be measured, investigated, managed, and advanced. Finally, in order to achieve sustained quality improvement, the entire organization must be on the same page and committed to improving the way business is conducted. Top-level management is an integral part of the Six Sigma doctrine (Kwak & Anbari, 2004).
Six Sigma differs from other quality improvement processes in that; there is a clear focus on the achievement of financial returns; the emphasis is on strong and effective leadership and support; and there is a definite commitment to making changes based on the statistical data and not through conjecture and postulation.
One company which uses the Six Sigma organizational model is Ford. The decision to implement Six Sigma as a means to improve manufacturing and business processes was not just rooted in the goal of quality improvement, but was used as a way to redefine how the company relates and attracts new business. The Ford Company wanted to transform its image from merely a car company to a consumer products company. By looking as Six Sigma efforts from the consumer angle, Ford was able to investigate the different components involved and discover the root cause (Arnheiter, & Maleyeff, 2005). . The investigation uncovered significant contributors and how each compounds the issue. Ford also used component search analysis of the assembly line process, as well as process mapping and assembly assessment to evaluate the manufacturing operating. The Six Sigma implementation of the hood closing system of their cars is expected to save over $250,000 in reduced scrap, modification, and vehicle-warranty jobs (Arnheiter, & Maleyeff, 2005).
Used in several sectors including business, government and nonprofit, the balanced scorecard is a strategic improvement process which aligns organizational activities to the overall strategy and vision goals of the business (Niven, 2011). Once used simply as a performance and management planning system, the balanced scorecard is a transformative process to transform the strategic plan to a set of ordered steps for the daily business operation. . The balanced scorecard has evolved from its early use as a simple performance measurement framework to a full strategic planning and management system..In addition to performance measures, the balanced scorecard helps with the identification of areas for improvement and allows for execution of those improvement strategies (Niven, 2011).
More than just a measurement system, the balanced scorecard is a management system which allows organizations to clearly identify the vision and strategy of the business and for transcription of those written goals into action items (Niven, 2011).. The balanced scorecard provides a feedback system, giving details about the internal organizational processes, and the current external outcomes. The Balanced Scorecard, when embraced and fully embraced but the organization and its staff, has the potential of morphing strategic planning from a paper outline into an integral and indispensible part of the organization.
To align company views, focus employee vision on their role and educated them on business drivers, Philips Electronics implemented the balanced scorecard strategic planning system . The scorecard is used by the management of Philips as a guide to enhance organizational learning and focus on ways to continual improve business operations.
For Philips, by understanding the drivers of performance, the company will be able to regulate future performance; the balanced scorecard provides the outlet for this discovery. The scorecard is used by Philips to aid the employee understanding of the strategic policies and future company vision (Gumbus & Lyons, 2002). Philips conceived four crucial success factors to align benchmarks that measure markets, operations, and laboratories with business achievement. The plan also included six key indicators: Competence – knowledge, technology, leadership, and teamwork, with the key indicators of organizational development and IT support; processes, with operational excellence as the indicator; customers with the key indicators of customer pleasure and employee satisfaction; and the financial benchmark, and profitable revenue growth as the key indicator (Gumbus & Lyons, 2002).. These measureable benchmarks and key indicators which identify goal attainment, Philips has created steps that are visible for management and staff to know what is working and how well it is working.
Implementing ways in which to improvement performance are no-brainer avenues to make business better, more efficient, profitable, help with employee retention, and stay current with the times. Depending on the nature of the business and the goals and vision it strives to reach, will indicate which strategic process will most efficiently analyze the current business acumen.
