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Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top | |||
Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top |
In Six Sigma: The Breakthrough Management Strategy Revolutionizing the World''s Top Corporations, Harry and Schroeder explain Six Sigma and show how it''s working at companies such as General Electric, Polaroid, and Allied Signal. The authors contend that most companies today are working at a "sigma" level of between 3.5 and 4, and that with just a one-sigma shift, companies will experience "a 20 percent margin improvement, a 12 to 18 percent increase in capacity, a 12 percent reduction in the number of employees," as well as "a 10 to 30 percent capital reduction." Sigma is a quality metric that counts the number of defects per million opportunities (DPMO). For example, a sigma level of 3.5 means that a process has 22,700 DPMO; a sigma level of 4.5, 1,350 DPMO; and a perfect six sigma, 3 DPMO.
At the heart of Six Sigma is the notion that quality saves money--lots of money. Harry and Schroeder argue that for most companies "the cost of quality is roughly 25 to 40 percent of sales revenue ... at six sigma the cost of quality declines to less than one percent of sales revenue." The idea is not to create quality-assurance programs but to eliminate the need for them altogether. When a company is operating at six sigma, costs that would otherwise go to inspection, rework, warranties, and customer service drop to the bottom line. Six Sigma is a compelling concept that many companies have tied their futures to. Well written, this book is a great introduction for investors, managers, and anyone who sees Six Sigma on the horizon. --Harry C. Edwards --This text refers to an out of print or unavailable edition of this title.
From Library Journal
A hot new management tool; from the cofounders of the Six Sigma Academy, Inc.
Copyright 1999 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.
From AudioFile
Six Sigma is a business method for quantifying defects in a product or service transaction based on an ideal rate of 3.4 defects per million opportunities. Corporations achieve better Sigma numbers by scientifically observing business processes, identifying problems along the production path, and institutionalizing reliable solutions. It''s a meticulous and comprehensive narrative that embraces concepts from economics, marketing, consumer behavior, and organizational dynamics. It''s no wonder these consul-tants are hot and that the book is flying off the shelves. The only problem with the audio version is that their already wordy sentences are read at a relentless pace and with the emotional variability of a chalkboard. Better editing and a different narrator would make these ideas more accessible. T.W. © AudioFile 2001, Portland, Maine-- Copyright © AudioFile, Portland, Maine --This text refers to the Audio Cassette edition.
Review
What the business world is saying about Six Sigma:
"[Six Sigma] is the most important initiative GE has ever undertaken--it is part of the genetic code of our future leadership."
--Jack Welch, CEO, GE
"We''ve taken the difficult but basic Six Sigma skill of reducing defects and applied it to every business process, from inventing and commercializing a new product all the way to billing and collections after the product is delivered. Just as we think we''ve generated the last dollar of profit out of a business, we uncover new ways to harvest cash as we reduce cycle times, lower inventories, increase output, and reduce scrap. The results are better and more competitively priced products, more satisfied customers who give us more business, and improved cash flow."
--Larry Bossidy, CEO, AlliedSignal
"The [Six Sigma] Breakthrough Strategy gives new structure to the tools we already had. Structure has been the key element missing in Polaroid''s drive for quality. I keep telling my people that the Breakthrough Strategy cookbook tells us how to use time-tested ingredients in new ways--For us, the results from the Breakthrough Strategy have been quick and powerful." --Mike Hart, Black Belt engineer, Polaroid
"Mikel Harry''s innovation of Breakthrough Strategy has taken quality into America''s boardrooms. While Dr. Deming''s theory of profound knowledge built management awareness and Dr. Juran''s trilogy helped to establish the foundation of a solid quality ''science,'' Dr. Harry has demonstrated how to make theory become practice at companies like Motorola, ABB, AlliedSignal, and GE."
--Gregory Watson, President, American Society for Quality
From the Hardcover edition.
Review
What the business world is saying about Six Sigma:
"[Six Sigma] is the most important initiative GE has ever undertaken--it is part of the genetic code of our future leadership."
--Jack Welch, CEO, GE
"We''ve taken the difficult but basic Six Sigma skill of reducing defects and applied it to every business process, from inventing and commercializing a new product all the way to billing and collections after the product is delivered. Just as we think we''ve generated the last dollar of profit out of a business, we uncover new ways to harvest cash as we reduce cycle times, lower inventories, increase output, and reduce scrap. The results are better and more competitively priced products, more satisfied customers who give us more business, and improved cash flow."
--Larry Bossidy, CEO, AlliedSignal
"The [Six Sigma] Breakthrough Strategy gives new structure to the tools we already had. Structure has been the key element missing in Polaroid''s drive for quality. I keep telling my people that the Breakthrough Strategy cookbook tells us how to use time-tested ingredients in new ways--For us, the results from the Breakthrough Strategy have been quick and powerful." --Mike Hart, Black Belt engineer, Polaroid
"Mikel Harry''s innovation of Breakthrough Strategy has taken quality into America''s boardrooms. While Dr. Deming''s theory of profound knowledge built management awareness and Dr. Juran''s trilogy helped to establish the foundation of a solid quality ''science,'' Dr. Harry has demonstrated how to make theory become practice at companies like Motorola, ABB, AlliedSignal, and GE."
--Gregory Watson, President, American Society for Quality --This text refers to an out of print or unavailable edition of this title.