When used as the main part of the executive decision process, Balance Scorecard recognizes the performance gaps and is used to ease decisions on how to deal with issues. Balance scorecard is based on its four perspectives that are the business process perspectives, the learning and growth process perspectives like training, the customer perspectives and the financial perspectives (Johnson, 2010). Balanced Scorecard is a single tool. On the other hand, Six Sigma is a set of methods that have been developed for tens of years. Balanced Scorecard is a tool that adds into the Six Sigma tool splendidly, as a single unit when collecting voice of the customer (Fisher, & Nair, 2009).
Balanced scorecard is a management and a strategic planning system that is in use all over the world in our businesses, industry, government agencies and non-profit organizations (NGO). This strategy aims to improve organizational communication both internal and external, bring into line business activities according to documented vision and strategic plan of an organization that is putting them into action. Robert Kaplan in liaising with David Norton in a session designed the balanced scorecard idea made use of the tool that measures organizational performance instead of using financial measures. They developed the system basing on the disadvantages companies accrued when using the old measures like the financial measures. They only measured short term and were manipulated more quickly thus not giving out exact measure of an organizational performance thus most companies have opted for balanced scorecard.
This gives grounds to argue that Six Sigma is a combination of both the process and the system approach, aimed at improving the effectiveness, as well as the efficiency of all the processes in a company. This way the Six Sigma approach contributes to the continuous development of the organization and management. Based on different perceptions of the Six Sigma approach nature and the following definition, emphasizing its main advantages if used as a business management approach, is
Gurus of the overall quality management discipline like Deming, Juran, Crosby, Ishikawa and Feigenbaum outlined the idea in several ways in which however still the essence and spirit remained constant. Consistent with Deming, quality could be continuous quality improvement method towards inevitable degree of uniformity and dependableness. Deming conjointly knew fourteen principles of quality management to boost productivity and performance of the organization. Juran outlined quality as "fitness to be used. "Consistent with him, everyone within the organization should be concerned within the effort to create product or services that square measure acceptable use.
Six Sigma uncovers the layers of procedure variables and defects that we have to comprehend and control to kill the squandered time, exertion, and materials that add to our expenses yet don't include esteem for our clients. It's a problem-solving technology, but on the other hand it’s a management methodology that binds process change specifically to bring down expenses, enhanced consumer loyalty, and higher profits for our venture of time and cash in our
The meaning of quality in terms of business and services has changed significantly. There are different definition of quality, however, each of the organisation interpret it as per their needs and requirement. According to Peter Drucker, quality in terms of products and service is not what is put in by the supplier but it is what is given to the customer or what the customer is willing to pay for the quality. While on the other hand, the American Society for Quality defined it as the subjective term for each of the individual because everyone has his or her own definition of quality. However, in technical terms quality is considered as the characteristics of the product or service through which ability to satisfy the need is achieved.
It requires the extensive training on the talented people in the organization as this six sigma method is quite complex as compared to other quality management activities. The research showed that employees who trained with six sigma have showed a good ability in solving problem and achieve the best results in their daily performance. The method they used to tackle each problem is taken from a standard methodology but is tailored for each different project assigned in hand. This six sigma significantly not only make the process more robust which increase the newness of the parts but less likely to subject to make errors in the process. From here, it can be said that this six sigma methodology is suitable for the manufacturing organization especially in supply chain management as they need to ensure that the process in delivering the final goods to customers is as good as well in order to satisfy consumers’ needs and
Differences CROSBY DEMING JURAN Quality definition It is conformance to requirements, not as goodness It is management’s job to set the requirements and communicate to employees. Meeting and exceeding the customer’s need and expectations and continuous improvement Quality mission of the company is “fitness for use” as known by customers. The mission of individual departments are to work according to specifications designed to achieve fitness for use. Senior management involvement degree Quality improvement starts from the top. Senior management is100 percent responsible for the problems with Quality and their continuance.
While much has been explored about quality administration in reference to manufacturing business sector, the emphasis on quality in service commercial ventures is recent. A significant part of the distributed literature in the area just goes back to the mid-1980s. Customers are turning out to be progressively basic and vocal, and business can no more disregard pressure from intense consumer bunches. In a study of 100 driving UK organisations, executives, CEOs and overseeing chiefs, the most essential issues distinguished for achievement in the 1990s were "building longer term associations with key customers" and " making a more customer focused society". To accomplish those objectives more than 90% reported quality and customer satisfaction to be "vital".
It is important to have these objectives to reduce drug failures, effect maximum utilization of resources, and increase productivity and optimum utilization of staff and other resources. 2. Six Sigma: A Retrospective and Prospective Study Weiyong Zhang, Arthur V. Hill, Glenn H. Gilbreath This paper first reviewed the current literature on Six Sigma, and then performed a critical analysis of Six Sigma in light of the management literature. The review and analysis suggested that Six Sigma is best defined as a new approach to quality management. Consequently, Six Sigma provides an interesting context for a number of research questions.