PDF Ebook Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations
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Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations
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Amazon.com Review
Mikel Harry and Richard Schroeder think they've figured out a management program that really works. While at Motorola in the 1980s, they helped pioneer Six Sigma, a process that "guides companies into making fewer mistakes in everything they do--from filling out a purchase order to manufacturing airplane engines." Since then, the two have left Motorola and have turned Six Sigma into a lucrative business that saw over $100 million in consulting contracts in 1998. And now the book. 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
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From Library Journal
A hot new management tool; from the cofounders of the Six Sigma Academy, Inc. Copyright 1999 Reed Business Information, Inc.
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Product details
Hardcover: 320 pages
Publisher: Doubleday Business; 1 edition (December 28, 1999)
Language: English
ISBN-10: 0385494378
ISBN-13: 978-0385494373
Product Dimensions:
6.5 x 1 x 9.6 inches
Shipping Weight: 1.4 pounds (View shipping rates and policies)
Average Customer Review:
3.3 out of 5 stars
33 customer reviews
Amazon Best Sellers Rank:
#1,385,498 in Books (See Top 100 in Books)
Six Sigma superficially is an excellent concept and this book serves the reader well in providing a detailed description of the concept. Early chapters take the reader on a journey through various companies providing an education on the importance of benchmarking, measuring defect rates, implementation strategies, and measuring six sigma performance. When the book begins to focus on implementation and deployment in later chapters the paint strokes begin to get very broad. The ideas provided to the reader are oversimplified and basic. For example, "Companies that improve their ability to consistently meet their customer's needs will produce positive bottom-line results." Really? I believe that the 1% of managers that are unware of this concept are not reading this book. The inability of this book to lay out a detailed plan for implementation results from the fact that each business is significantly different. If after reading this book the six sigma concept is appealing one could consider employing a consultant or creating a team for implementation. In my opinion the book also applies more to businesses with easily measurable performance such as manufacturing products as opposed to service providing businesses. Although customer satisfaction can be measured it is much easier to note an increase in monthly unit production. In summary six sigma is a difficult concept to initiate without the full commitment of your management team but the individual businessman will gain some valuable managerial skills through the book's good advice.
If you want to understand what Six Sigma is, what it is good for, and how it can work for your company, then check this out. If you are looking for training materials to become a practitioner, such as learning to be a green belt or black belt, this is the wrong title for you.I listened to the CD set a couple times, and I still pick up new insights. It starts out slow, but it's worth the listen. I don't know where other reviewers get the idea this is a commercial - I didn't get this impression at all from the audio version.
From my prespective, readers who purchase a book on Six Sigma are somehow experienced on Quality processes and want to learn more on the topic. However, this book is a total dissapointemet, as it is more of advertisement than knowlege. The author could have written ten pages to describe what was said on 281 pages! All that was written were Black Belts, how vital were they to the process. No emphasis on the Six Segma process, no description of the mechanism from an engineering prespective. It is more of 'Six Segma is the best and we can deliver the impossible' approach! For me this could be a good Novel to read, not for serious Managers.
What was good
This is by far the best book that I have read on cost reduction management in business processes.The authors have been involved with Six Sigma methods since the initiative originally began at Motorola. In their role as trainers for those who apply Six Sigma methods, they have a bird's eye view of the implementation issues of the last few years.The book has a nice balance among explaining the concept, how to apply the concept, case examples of application, and comparisons to other ways of thinking about providing products and services. I found that perspective was unusually broad, but pretty specific for a business book.Three kinds of people will be disappointed in this book: (1) Those who already apply another quality improvement method and are pleased with the results they are getting. (2) People who have only a casual interest in cost reduction (3) People who would like to know the details of how to apply the analytical methods involved. If you fall into one of those camps, you should probably skim the book or skip it.On the other hand, if you are interested in improving your operations, profitability, performance and effectiveness, you should definitely read this book. It will give you a realistic sense of what the potential is for your enterprise to benefit from the Six Sigma process. If that potential interests you, it will also give you a variety of ways to investigate the opportunity. You can't ask for much more from one book.Separately, I should mention that some of the case studies cited here are ones that our firm has separately investigated for other purposes. In each case, the reports are identical to what we learned. The authors seem to have been scrupulously careful to get the details right -- something that seems very appropriate for people explaining Six Sigma (3.4 errors per million opportunities).Although I like this book very much, the Six Sigma concept does have some limitations. It may help you to be aware of some of them before reading this book. First, Six Sigma is usually focused on your own operations and those of your suppliers rather than the ecosystem that supports you. This limited focus causes some opportunities to be missed. Second, there may be trade-offs between time to market and Six Sigma in short-lived products that require separate consideration. Third, many people will make mistakes in how they measure performance for the customer and end user using this concept. The author warn against this, but the concept unfortunately lends itself to being weak in this area. Fourth, the concept tends to leave an organization too complacent after achieving Six Sigma. At such moments, there are probably still important areas where approach perfection will be incredibly valuable. But your organization may stop looking for them. The theory suggests limited benefits from pressing further at this point. The theory will turn out to be wrong in some critical applications, especially where life and death are involved.A good book to read at the same time is Lean Thinking which will give you another interesting perspective on ways to reduce defects and create more value at the same time.
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