barcode dll for vb net SIX SIGMA AN OVERVIEW in Software

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SIX SIGMA AN OVERVIEW
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for superior performance, and the application of Malcolm Baldrige National Quality Award guidelines worldwide, a comprehensive, practical and progressive performance system is needed to realize dramatic improvement on the order of 50 percent. The Six Sigma Business Scorecard combines various performance measures and goal-setting methods of Six Sigma to meet corporate needs for dramatic improvement and higher profitability.
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C H A P T E R T H R E E
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NEED FOR THE SIX SIGMA BUSINESS SCORECARD
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recent business assessment survey [developed by the National Institute of Standards and Technology (NIST)] and conducted by Quality Technology Company led to some interesting findings about business performance. Most respondents reported that they have no idea how company leadership planned to improve the profitability. Only a few people knew how successfully their department was in achieving business objectives. The respondents in the survey represented owners, managers, engineers, and operators of several companies (including those in the Fortune 100). The responses of employees to questions in various business areas are summarized in Table 3-1.
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TABLE 3-1. Business Assessment Survey Findings
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EASY TO ANSWER
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53 32 27 26 19 32
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BUSINESS AREAS
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Organization Environment Organizational Relationships Competitive Environment Strategic Challenges Performance Improvement System Overall
SOURCE:
COULD ANSWER
38 46 41 30 37 38
DIFFICULT ANSWER
9 22 32 44 44 30
www.NIST.org.
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CHAPTER THREE
As is apparent from this table, only about one-third of the employees can easily answer questions about business performance, implying that information about the business performance is not readily available to employees. Interestingly, the consistency of responses among the sections was quite surprising. The two weakest areas are the strategic challenges and the performance improvement system. In the case of the process improvement system, only about 20 percent could easily answer any questions. (See Table 3-2 for details on the process improvement area.)
TABLE 3-2. Response to Process Improvement Related Questions
PROCESS IMPROVEMENT RELATED QUESTIONS
How do you maintain an organizational focus on performance improvement What approaches do you use to systematically evaluate and improve key processes and to foster organizational learning and knowledge sharing How do you measure product and process quality What processes do you have in place to evaluate root cause and improve performance At what rate is your operations performance in quality, cost, cycle time, and profitability improving annually How do you maintain an organizational focus on customer satisfaction What processes do you have in place to improve customer satisfaction How do you evaluate employee job satisfaction What processes do you have in place to initiate steps to improve employee morale Overall
EASY TO ANSWER
26 9
COULD ANSWER
23 41
DIFFICULT ANSWER
61 50
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MISSING RATE OF IMPROVEMENT
The most significant finding is that people are unaware of the rate of improvement in their companies. They are also unaware of their process for improvement, implying that the focus is on delivery, not on getting better. In addition to reporting being unaware of process improvement, most respondents indicate that mechanisms to assess employee satisfaction are very sparse. Only 15 percent of people could easily answer questions about their company s process for improving employee satisfaction. Considering that employees input is critical to the leadership, for generating new ideas as well as for getting feedback about the performance of the company leadership, this finding is troubling. As for the competitive position of the company, only a few employees know about their competitors and their competitive advantages. This lack of awareness can limit a company s improvement. Employees are very familiar with their customers, as well as what their customers want. At least they think so! In the current business environment, the supply chain relationship plays a critical role in the success of a company; employees, however, have limited interaction with their suppliers. Supplier relationships have become very important as businesses become increasingly dependent on their suppliers. These employees know what they are supposed to do, but they have a difficult time figuring out how well they are doing. Whether they are in engineering, sales, purchasing, production, quality, or another department, they do not have measures of performance for the various aspects of their jobs. They believe that their company has measurements for the short term but does not care about long-term performance. They have measurements about the function of the company, but they do not have the measurements about the company s strategic intent. Employees are unaware of the competitive position of their products and services, mission and values, and results achieved. In summary, employees feel good about their products and services; however, they are not informed of the performance levels expected or what rate of improvement they are supposed to achieve.
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