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Six Sigma Business Scorecard (Cont.): developing new measurement system in, 56 58 development of, 109 126 effectiveness of, 206 207 elements of, 69 84, 103, 104 employees and, 76 78, 97 98 empowerment and, 80 81, 98 executive commitment to, 93 external factors and, 66 67 failures in, 106 107, 112 113 features and benefits of, 67 68, 114 goal setting in, 90 91, 94 96, 113, 210 211 growth and, 118 120, 157, 174 hierarchical structure of measures in, 120 121 implementation of, 127 139 improvement and, 73 76, 89 91, 206 Information Age paradigm for, 61 63 innovation and, 76 78, 154, 175 176, 176, 191 192 inputs in measurement of processes in, 100 103, 122 insufficient process performance measurement and, 46 47, 51 integration of, 203 217 ISO 9001 and, 208 leadership and, 59 61, 71 73, 89 90, 120, 132, 177 190 management and, 73 76 measurement challenges with quality systems, 50 52 measurements in, 70, 70, 84 85, 99 100, 123 124, 124, 130 132 missing rate of improvement and, 45 monitoring performance using, 147 159
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Six Sigma Business Scorecard (Cont.): need for quality, 43 44, 43, 44 operational execution in, 79 82, 168, 207 opportunity analysis and, 209 210 organizational adjustment for, 92 93, 93 ownership of performance and, 120 121 parameters in measurement of processes in, 100 103, 122 Pareto analysis in, 212 performance levels in, 82 performance processes and, 213 performance tracking chart in, 124, 125 planning and, 80, 89 107 process-based measurement in, 67, 100 103, 131 profitability and, 65 66, 65, 71 73, 92, 92, 93, 109 112, 117 118, 131 132 progress reviews in, 106 107 purchasing and, 78 79, 102 103, 168 resistance to change and, 81 sales and distribution in, 83, 168 sample measurements in, 123 124, 124 savings realized by, 80 service and growth in, 83 84 Sigma level in, 87, 87 Six Sigma and, 213 214 size of business and use of, 141 144, 142 small business use of, 141 146, 143 steps in development of, 122 123 supplier management and, 78 79 Supplier, Input, Process, Output, Customer (SIPOC), 63 65, 64, 206
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INDEX
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Six Sigma Business Scorecard (Cont.): systems thinking in, 96 97 team structure in, 98 99, 99 technology integration in, 138 139 training in, 80, 81 understanding measurements in, 99 100 validation of, 191 202 vision for, 94 95 War on Waste (WOW), 134 135 size of business and use of Six Sigma Business Scorecard, 141 144, 142 small business use of Six Sigma Business Scorecard, 141 146, 143 business performance index (BPIn), 144, 144 defects per unit (DPU), 142, 144, 144 implementation in, 144 146 size of business and use of, 141 144, 142 Smith, Bill, 10, 12 13, 21, 67 spending/sales total and business performance index (BPIn), 195 stakeholder feedback, 151 standard deviation, 26 27, 30 31, 30 stock market, 161 162 Storming stage of change, 136 Straight from the CEO , 176 strategic planning, 79 82 Strategy of Focused Organization, The, 55 subjective measurement of performance, 115, 115
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supplier management, 47, 78 79 Supplier, Input, Process, Output, Customer (SIPOC), 25, 26, 63 65, 64, 206 support, 7 surveys, 98 systems thinking, 96 97 Taguchi, Genichi, 3 taxes, 3 team structure, 98 99, 99 technology, 1 2, 138 139 time zones, 2 total DPU (TDPU), 197 total quality management (TQM), 6 training and education, 80 81 trends in performance measurement, 1 16 U.S. economic performance, 2 3, 3 understanding measurements in Six Sigma Business Scorecard, 99 100 unemployment, 3 United Parcel Service, 168 Unlimited Power , 181 validation, 191 202 variation, 27 verification, 9 10 vision, 10 11, 94 95, 184 Walgreens, 168 Wal Mart, 168 War on Waste (WOW), 134 135 waste, 48, 57, 134 135 cost of poor performance (COPP) in, 18 21, 19 Welch, Jack, 23 24
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