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Six Sigma Business Scorecard Hardcover – December 12, 2006

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Editorial Reviews


Excerpts from review by Paul Harmon Praveen Gupta was at Motorola in 1987 when Bill Smith first proposed what has become Six Sigma, and has been working to improve processes ever since. Somewhere along the line Mr. Gupta became focused on the problems of relating corporate goals and profits to process changes. Mr. Gupta describes the history and practices of Six Sigma in a few succinct chapters. He goes on to compare and contrast Six Sigma measures with ISO 9000 measures and the measures used by the US's Baldrige award system. In the end he concludes that, while each contributes to improved processes, they do not tend to establish clear links to corporate goals, and ultimately, to corporate profits. Or, put slightly differently, there is no way to conclude, from lots of specific Six Sigma projects, whether the organization, as a whole is getting better. Next, Gupta considers Kaplan and Norton's Balanced Scorecard system. Balanced Scorecard seeks to shift senior management's attention for financial measures to a more balanced set of measures which include: (1) Financial Measures, (2) Customer-Related Measures, (3) Internal Business Operations Measures, and (4) Learning and Growth Measures. Gupta describes the system and some of its successes. He proceeds, however, to argue that, as a generalization, the Balanced Scorecard has been more successful with senior managers than with operations managers. In other words, Six Sigma focuses on processes, and rather narrowly defined processes at that, and doesn't reach up to link to strategies and goals. Balanced Scorecard starts with the strategies and goals of senior managers and doesn't reach downward to provide direction for managersand employees engaged with lower-level process improvement. Gupta concludes that a better performance measurement system is required, and proposes it. Gupta's solution is the "Six Sigma Business Scorecard." In a nutshell, he attempts to merge the best of the scorecard approach with some Six Sigma measurement concepts. Rather than rely on four sets of measures, Gupta proposes that companies rely on seven, including: Leadership and Profitability Management and Improvement Employees and Innovation Purchasing and Supplier Management Operational Execution Sales and Distribution Service and Growth...I...recommend this book to those concerned with the measurement of corporate performance, with Balanced Scorecard programs, and with Six Sigma programs. Clearly Gupta has thought long and hard about these issues and he provides detailed discussions of many important and difficult issues that those involved in performance management must solve in the years ahead. A company may not adopt Gupta's entire approach, but this book is a valuable sourcebook that describes specific problems and suggests ways of dealing with the shortcomings of existing practices. It will probably inspire others to work on the important problems that Gupta pinpoints.

From the Back Cover

Filled with performance-measuring techniques that can be used throughout a corporation, the Second Edition of Six Sigma Business Scorecard continues to be a proven tool for gauging and ensuring success in today's complex business environment.

This guidebook was designed to translate an organization's mission and business strategies into performance measures and operating objectives. Widely used around the world, it has become the linchpin of an integrated approach to taking the Six Sigma program of any company to the next level.

Ensure Sustained Profitable Growth
Without a strong grasp of performance metrics, a company can have no clear, quantitative indication of its performance improvement. Six Sigma Business Scorecard offers a unique approach to measuring performance. Readers will learn how to track their improvements in operations and financials -- and make critical adjustments if such improvements are not up to expectations -- using Six Sigma. Written by an internationally recognized thought leader in business management and a practitioner of process management, Six Sigma, and innovation, this much-needed Second Edition of Six Sigma Business Scorecard delivers an innovative Execution Map allowing you to implement, reap, and quantify the many advantages of Six Sigma.

You'll benefit from:

  • Key performance metrics for companies already using Six Sigma, to determine their sigma level
  • A well-defined measurement system, which builds on the "Balanced Scorecard," for use throughout a corporation
  • The Business Performance Index (BPIn), specifically designed for CEOs, which monitors corporate wellness with ease
  • The Innovation Index, for accelerating innovation
  • The 4P model, for process management

Six Sigma Business Scorecard will show you how to implement a successful and a measurable Six Sigma program.

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Product Details

  • Hardcover: 325 pages
  • Publisher: McGraw-Hill Education; 2 edition (December 12, 2006)
  • Language: English
  • ISBN-10: 0071479430
  • ISBN-13: 978-0071479431
  • Product Dimensions: 6.2 x 1.1 x 9.1 inches
  • Shipping Weight: 1.4 pounds (View shipping rates and policies)
  • Average Customer Review: 4.4 out of 5 stars  See all reviews (5 customer reviews)
  • Amazon Best Sellers Rank: #1,070,260 in Books (See Top 100 in Books)

More About the Author

Praveen Gupta, an ASQ Fellow, has authored several books on business management. Praveen is the founding Editor of the International Journal of Innovation Science, and has written columns on Innovation, Six Sigma and Manufacturing Excellence. He has published articles in publications such as Quality Progress, Quality Engineering, Quality Digest, Quality World, Quality System Update, Quality, Journal of Private Equity, to name a few. Praveen keynotes frequently on the topics of business innovation for profitable growth, Six Sigma, process excellence and performance measures.

Praveen has worked at Motorola and AT&T Bell Laboratories, and consulted with some 100 companies of all sizes. He taught Operations Management at DePaul University's MBA program; and teaches Innovation courses at the University of Illinois, Chicago and Illinois Institute of Technology (IIT) where he also serves as Director of the Center for Innovation Science and Applications.

More about Praveen:

Praveen's eternal passion is to bring out the intellectual best in every individual he meets, by sharing the secrets to innovation. He believes firmly that innovation competency is a mandatory skill for success in this knowledge age, and a competitive weapon in today's global economy.

Born in Buland Shahar, UP, India, Praveen moved to the United States in 1980. He hails from a family of 6 brothers and 6 sisters, and has two children of his own who are entrepreneurial in their own ways. Praveen graduated from the Indian Institute of Technology (IIT), Roorkee, and earned his MS degree from Illinois Institute of Technology (IIT), Chicago.

Praveen enjoys music, photography and networking.

Join Praveen in promoting innovation competency for youths today - for the leadership of tomorrow.

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Most Helpful Customer Reviews

1 of 1 people found the following review helpful By Edward J. Barton VINE VOICE on February 11, 2009
Format: Hardcover Verified Purchase
Good attempt at connecting in a practical way Six Sigma and the Balanced Scorecard approaches. The two management tools are connected by a common focus on metrics and management of process - and provide a logical operational and strategic framework for business. My one wish would be that the book include more practical examples of the implementation and measurements of the Business Scorecard and Indexing processes. The discussion is very good, and the concepts relatively straightforward - however a few practical examples or case studies would go a long way to improve understanding of the materials.
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Format: Hardcover
Finally a book that incorporates two powerful concepts: scorecards and six sigma. I have worked on various projects with the aim to achieve operational efficiency and at the same time I have been part of various meetings and discussions to find best ways to "empower" the staff to help them understand, align and achieve corporate goals. Both these efforts have largely been fragmented. The measurement tools to achieve both these goals have, at best, been mediocre. This book provides a comprehensive, more robust and practical approach to bringing the two concepts together.

This book gives a pragmatic approach to not just evaluating performance but also provides easy-to-use tools that help predict performance and profitability. This book provides a much needed scorecard methodology for the 'new' globalized world. A must-read for any business leader.
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Format: Hardcover
As a general manager I used the tools in this book to guide a three-fold profitalbe growth in a metals fabrication business. It helped me apply the Six Sigma training I had to more effectively managing a P&L and also to successfully communicate the change with my team members. After I was done reading and understanding it I passed it on to our Quality Manager and he passed it to the next in line. I would highly recommend this work if you are looking to practically apply the power of Six Sigma to improve your bottom-line.

Sachin Bapat
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Format: Hardcover Verified Purchase
Praveen Gupta organizes this text in small, digestible pieces that are well thought out and expertly written. His description of the uses of probability is the best I have read. I find myself reading this book for the sheer pleasure of learning.I recommend this book for anyone who is concerned that the concept of a business scorecard is meant to be difficult. Gupta takes things one step at a time and brings the reader along for an enjoyable journey.
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By Missing CS on January 27, 2010
Format: Hardcover Verified Purchase
In the book Six Sigma Business Scorecard by Praveen Gupta is "The Balanced Scorecard" and "Six Sigma" philosophies blended together. These performance measurement systems will give any business a fighting chance in this economy. I will be using many of the ideas on my Action Research Project.
It was a great referance for my courses as I progressed through my Master's in Leadership Management.
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