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Six Sigma Financial Tracking and Reporting: Measuring Project Performance and P&L Impact (Six SIGMA Operational Methods)
 
 
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Six Sigma Financial Tracking and Reporting: Measuring Project Performance and P&L Impact (Six SIGMA Operational Methods) [Hardcover]

Michael Bremer (Author), Brian McKibben (Author), Thomas McCarty (Author)
4.0 out of 5 stars  See all reviews (1 customer review)

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Book Description

0071458913 978-0071458917 December 15, 2005 1
As Six Sigma and Lean Enterprise techniques continue to evolve and become more and more engrained in the business, it is harder and harder to track the impact of savings on a project by project basis. Especially when you have more than one project concentrating on different functional areas, through the use of case studies, worked out examples, and bench marking techniques, Michael Bremer, a Senior Instructor at Motorola University, helps you to put the right infrastructure in place for project identification, project scoping, and financial reporting.

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Editorial Reviews

From the Back Cover

Move Six Sigma Savings to Your Bottom Line

Most business process improvement activities do not yield the P&L dollar savings impact that executives expect to see. If this is a challenge in your organization, you need Six Sigma Financial Tracking and Reporting. This operating manual shows Master Black Belts, Black Belts, Project Champions, Sponsors, and Six Sigma and Lean Manufacturing/Enterprise practitioners how to increase the yield of savings dollars that hit the bottom line. This is a major challenge for any improvement initiative.

Loaded with advanced yet practical approaches, leadership pearls, and analytical solutions you can use to get more out of your improvement activities, this book:

  • Clarifies why some savings do not have a P&L impact
  • Explains the interplay between Six Sigma savings and business activities
  • Makes it easier for operations managers, accountants, and engineers to speak the same language

Success stories and actions taken at Motorola, Agilent, Allied Signal, General Electric, a private healthcare foundation, and other organizations will hold your interest and provide a steady stream of innovative ideas that will demystify accounting procedures, clarify the role of leadership, and gain more alignment inside the organization.

Achieve a clear line of sight from project savings to financial accounts:
Model for getting savings into the P&L * Designing bridge P&L model structure--Define in DMAIC * Tracking and communicating bridge metrics--Measure in DMAIC * Identifying the things that are "off track"--Analyze in DMAIC * Planning corrections to keep "on track:--Improve in DMAIC * Adjusting the support systems to sustain the P&L bridge--Control in DMAIC * Getting the savings in struggling or transitioning industries

As Six Sigma and Lean Enterprise techniques continue to evolve and become more engrained in business, it is harder to track the impact of savings on a project basis. Through the use of case studies, worked-out examples, and benchmarking techniques, this team of experts from Motorola University helps you to put the right infrastructure in place for project identification, project scoping, and financial reporting. You will be able to:

  • Achieve a clear line of sight from project savings to financial accounts
  • Prove the net worth of your improvement projects to your CFO
  • Find ways to justify cost avoidance on your bottom line
  • Examples of how to financially track Six Sigma projects
  • Establish metrics that represent reality
  • Simplify metrics you use to measure project impact

With this powerful resource you will learn how to get reported roject savings into the P&L, simplify financial reporting, and shepherd projects to successful completion. With this book, your Six Sigma or Lean Manufacturing team can accomplish more projects each year, achieve a superior ROI, and quickly surpass your competitors following traditional improvement approaches.

About the Author

Michael Bremer is President of The Cumberland Group—Chicago, as well as adjunct senior consultant for Motorola University. He is a nationally recognized speaker on process improvement, leadership, and management team effectiveness. He is a board member of the Association for Manufacturing Excellence—Midwest Region.

Brian McKibben is a Co–Chief Executive Officer of Flow-Works, Inc., and a Vice President of The Cumberland Group—-Chicago. He is a board member of the Association for Manufacturing Excellence—Midwest Region, and is past president of the Chicago chapter of the Institute of Industrial Engineers.

Thomas McCarty is Executive Vice President and Six Sigma Practice Leader at Jones Lang LaSalle Americas, Inc., responsible for improving the business performance of suppliers, partners, and customers through consulting on performance, process, and continuous improvement.


Product Details

  • Hardcover: 460 pages
  • Publisher: McGraw-Hill Professional; 1 edition (December 15, 2005)
  • Language: English
  • ISBN-10: 0071458913
  • ISBN-13: 978-0071458917
  • Product Dimensions: 9.3 x 6.5 x 1.5 inches
  • Shipping Weight: 1.6 pounds (View shipping rates and policies)
  • Average Customer Review: 4.0 out of 5 stars  See all reviews (1 customer review)
  • Amazon Best Sellers Rank: #1,382,938 in Books (See Top 100 in Books)

More About the Author

Michael Bremer, born in St. Louis, MO. Started business career in public accounting, migrated to operations and information systems. Worked for a number of highly effective leaders and a few not so effective senior executives. Learned much from both groups. Those experiences sparked in interest in understanding why leaders do what they do and a curiosity about why some organizations work very hard to improve, but fail to improve their competitive position.

Was given the responsibility for creating a company wide improvement effort in 1980 for a Fortune 30 company. Had no idea what I was supposed to do. Spent time with Dr. W. Edwards Deming and Joseph Juran, as well as a few leaders in other companies, and they gave me a few ideas on how to do my job. But early in my improvement career, I simply did not have enough pegs on my knowledge board (brain) to understand. It took me a very long time to more fully understand the principles Deming and Juran were trying to impart. I am still learning.

I have had the good fortune to be able to travel all over the world. Beyond North America my travels have included: Asia, South America, Australia and the non-exotic parts of Africa. As I interacted with people in their communities a common pattern emerged. Many of them have strong spiritual beliefs, they work hard, they want to provide a better place for their children and they wish to live a life safe from physical threats to their family.

There is also another common pattern. There is not enough critical thinking from the top to the bottom of most organizations, and in today's world. Knowledge and an ability to act against fundamentalism (be it nationalistic, religious or corporate greed - where one set of people believe they are much better than another set of people) is important to our society. The problems we face as a society are large. But every generation feels that way to some degree. Some generations are builders and create a better society and community. Other generations go the other way, it is a cycle that has been repeated through-out history.

I get very excited when I see people learn, gain confidence and take action on new knowledge. Sometimes you literally see people grow before your eyes. It is an intoxicating experience! My goal for the remainder of my life is to shine a small light on an alternative path. Where we can make our organizations, our communities and our global society a better place.

 

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3 of 4 people found the following review helpful:
4.0 out of 5 stars Good for controversial topic, July 2, 2007
This review is from: Six Sigma Financial Tracking and Reporting: Measuring Project Performance and P&L Impact (Six SIGMA Operational Methods) (Hardcover)
Good read but a financial background or training is a must to appreciate the ideas inside.
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Inside This Book (learn more)
Key Phrases - Statistically Improbable Phrases (SIPs): (learn more)
causal metrics, upstream metrics, tollgate questions, customer loyalty factors, business process metrics, metrics roadmap, upstream causal factors, results for key measures, soft dollar savings, soft savings, bridge process, hard cost savings, time common thread, process lead time, avoidance savings, critical customer requirements, key business goals, nonfinancial metrics, downstream results, business performance improvement, business process model, performance improvement efforts, sync point, appropriate support systems, transactive memory
Key Phrases - Capitalized Phrases (CAPs): (learn more)
Black Belt, Jones Lang, Financial Bridge Model, Value-Stream Mapping, Collaborative Management Model, Business Metrics Roadmap, Jim Collins, Oppty Base, Carlos Ghosn, Allied Signal, Collaborative Management Process, Guidance Center, United States, Collaborative Management Team, Edwards Deming, Nissan Revival Plan, Process Characteristics Chart, Projected Savings, Balanced Scorecard, General Electric, Global Tech, Actual Savings, Airplane Factory, Bridge Span, General Motors
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