...Journal of Case Research in Business and Economics Application of Six-Sigma in finance: a case study A. Ansari Seattle University Diane Lockwood Seattle University Emil Thies Zayed University Batoul Modarress Zayed University Jessie Nino Seattle University ABSTRACT In recent years, companies have begun using Six Sigma Methodology to reduce errors, excessive cycle times, inefficient processes, and cost overruns related to financial reporting systems. This paper presents a case study to illustrate the application of Six Sigma Methodology within a finance department. Specifically, the case relates to the Continuing Account Reconciliation Enhancement project undertaken by the finance department of a major U.S. defense contractor. The goal of the project was to streamline and standardize the establishment and maintenance of costing and planning for all business activities within the current financial management process. The Six Sigma implementation resulted in a significant reduction in the average cycle time and cost, per unit of activity, needed to produce the required financial reports. Key Words: Six Sigma, Process Management, Quality Management, Finance Application of Six-Sigma, Page 1 Journal of Case Research in Business and Economics INTRODUCTION In 1987, Motorola developed and organized the Six Sigma process improvement Methodology to achieve “world-class” performance, quality, and total customer satisfaction. Since that time, at least 25% of the Fortune 200, including...
Words: 4909 - Pages: 20
...The goal of a Marketing department is to match their products and services with people who want and need them. To do this, a company has many processes and costs associated with developing the four “P’s”, product, place, price, and promotion. To support the bottom line companies develop better practices to streamline process, decrease supply and delivery times, cut costs, and increase efficiency. The technique to improve processes is known as Six Sigma. Companies, such as General Electric and Toyota have been utilizing Six Sigma principles to improve manufacturing processes and quality measures; however, the principles have not been widely used in marketing environments. Apply Six Sigma to Sales and Marketing The author of “Apply Six Sigma to Sales and Marketing” defines Six Sigma as a road map to problem solving. A blueprint for the steps needed to take to improve clearly defined issues. So, why are marketing departments failing to utilize Six Sigma principles? Non-believers are under the impression standard operating procedures limits the ability to adjust accordingly to shifting environments and hinder creative magic. According to the author, this is not the case. He believes the real factors for slow adaptation are: - Facilities: Unlike manufacturing facilities, the design is not built for problem solving, data collection, and assessment. - Professional backgrounds: A large number of Six Sigma professionals joined manufacturing companies, limiting knowledgeable professionals...
Words: 764 - Pages: 4
...Why Six Sigma Applied to Marketing is not enough By Raymond Pettit The Current Challenge In the not too distant past, companies relied in large measure on anecdotal evidence, marketer’s experience, and rudimentary tools to develop marketing strategies and tactics, implement them, and assess their effectiveness. It was accepted that marketing cost money – a necessary evil. But recent economic challenges, measurement advancements, and executive expectations have changed all that. Marketers, and the organizations they work in, are increasingly feeling the pressure to demonstrate accountability. Initial attempts to address the problem have turned to statistical techniques used by economists to quantify marketing spending and return on investment (ROI). The result has been less than spectacular. That is because determining the return on investment of marketing needs more than a statistical technique; in fact, it requires a method that supports the use of a variety of analytic and measurement techniques at appropriate points in the marketing process. There are a number of ways to do this. For example, a growing proportion of marketers are very interested in using their detailed marketing databases to infer the unique contribution to sales of disparate marketing factors. But relatively few are actually deploying or successfully using the complex, and often expensive, statistical modeling techniques that are being promoted today, due to poor data quality, integration costs and...
Words: 1017 - Pages: 5
...Companies scramble daily to maintain their statuses in the business playing field. However, some win and some lose but it’s all in how the game was played as with the developing and implementing of strategic initiatives. All companies and organizations must plan to succeed and possess a sound marketing strategy to match both internal and external environments. (Ferrell and Hartline, 2014 p, 1) These initiatives are vital and play key roles developing and instituting positive outcomes within a company’s current and future marketing strategies. Currently, the goal set for the company is to increase development and expand markets already established by the company and that message is portrayed through various marketing tactics at their annual meetings and business trips. (p.468) However, based on Sigma’s mission statement “Sigma Marketing is a provider of custom printing and related services focused on meeting customer needs through creativity, flexibility and on-time performance” the goal of achieving customer satisfaction is an obvious priority, but the company will need to adapt and do it quickly in order to remain competitive. (Sigma...
Words: 412 - Pages: 2
...Quality Management Of Aqua-Fun ----Case 1 in Chapter 6 Team 4: Yudan Ding Wenqian Xu Xianjing Zhu Yukun Chen SCHM2301 Prof. Omar Elwakil 10/08/2013 Quality Management of Aqua-Fun 1. Cost of Quality Analysis A focus on quality management demands that the total cost and benefits of quality performance be first understood by everyone in the company. In order to successfully launch a companywide Six Sigma, the first step is to dig out all relative cost categories that associated with managing quality and quality failures. The marketing research and other similar costs categories should all be included in the Cost of Quality (CoQ) analysis. 1.1 Identification of Cost Categories Based on Roberta’s current CoQ analysis, there are 18 cost categories with question marks that she either did not have data for or wasn’t sure about including. For the prevention costs, Roberta is having problem with the costs of marketing research, customer/user perception surveys/clinics, supplier quality planning, supplier quality planning, quality program planning and reporting, and other prevention costs. As mentioned earlier in the case, Roberta wasn’t sure how the marketing manager would feel about including marketing research as a category in the CoQ because it seems that marketing research as well as the customer perception surveys have no direct relation with preventing product defects. In fact, the fast development and introduction of new product is a key factor that differentiates...
Words: 1656 - Pages: 7
...can be defined as the “stored value built up in a brand for achieving competitive advantage.” Several Ways of Gaining Brand Equity * Resilience of the brand, its intrinsic strength as compared to the competitive brands. * Trials and test marketing of new products as brand extensions. * Premium prices secured by the company for the existing branded product and product extended products. Several Ways of Gaining Brand Equity * Leverage of brands in gaining access to the bets channels of distribution. * Access to the best media required by the target market segment at reasonable rates. Brand Value The company acquiring or buying a brand finds it more relevant than the companies that possess the brand. Brands provide leverage for brand extensions, as several products can be sold under the brand umbrella. Example: Coca Cola offers under the same brand, Cola Lite, Coke. The company offers Orange and Lemon drinks too, but uses a different brand name. Brand Heredity Success of products using brand extensions is also dependent on the company’s marketing efforts, however, it remains useful for keeping the extensions in the customers’ “Top of the Mind Recall” zones . Marketing Research Process * Qualitative Research...
Words: 2606 - Pages: 11
...1. Cost of Quality Analysis A focus on quality management demands that the total cost and benefits of quality performance be first understood by everyone in the company. In order to successfully launch a companywide Six Sigma, the first step is to dig out all relative cost categories that associated with managing quality and quality failures. The marketing research and other similar costs categories should all be included in the Cost of Quality (CoQ) analysis. 1.1 Identification of Cost Categories Based on Roberta’s current CoQ analysis, there are 18 cost categories with question marks that she either did not have data for or wasn’t sure about including. For the prevention costs, Roberta is having problem with the costs of marketing research, customer/user perception surveys/clinics, supplier quality planning, supplier quality planning, quality program planning and reporting, and other prevention costs. As mentioned earlier in the case, Roberta wasn’t sure how the marketing manager would feel about including marketing research as a category in the CoQ because it seems that marketing research as well as the customer perception surveys have no direct relation with preventing product defects. In fact, the fast development and introduction of new product is a key factor that differentiates Aqua Fun from their competitors in the same market. To ensure the quality of the new products before they are launched into the market, it is essential for the company to develop effective and...
Words: 1699 - Pages: 7
...Toyota Motor Manufacturing, USA, INC. Background In the early 1980’s, Japanese automakers contemplated building cars in North America. Japan’s huge trade imbalance had caused political pressure to mount, while the economic feasibility of such investment had improved with a rapidly rising yen. At that time, however it was unclear whether cars produced outside Japan could live up to their hard-earned reputation of high quality at low cost. This issue was far from settled in 1985 when Toyota Motor Corporation (TMC) unveiled its plan to open and $800 million Greenfield plant in Kentucky. Thus, the company’s endeavor to transplant to unique production system to Bluegrass Country effectively became a live experiment for the world to watch. In July 1988, Toyota Motor Manufacturing, USA. (TMM) began volume production on a 1,300-acre site in Georgetown, near Lexington. The plant had an annual capacity of 200,000 Toyota Camry sedans, which would replace the bulk of Japanese imports of the same model. In 1992, TMM was expected to supply 240,000 of all the new Camry’s, whose sales were up by more than 20% since the model change in fall 1991. The new Camry joined the ranks of midsize family sedans, with constituted one third of the total American car market and returned an average 17% pretax profit margin on margin on a sticker price averaging $18,500. For the first time, in March 1992, TMM started producing wagon versions of the new Camry exclusively within Toyota’s worldwide plant...
Words: 2370 - Pages: 10
...Metabical After spending millions of dollars for ten years in research and development, Metabical was finally able to receive FDA approval, making it the first and only drug to receive FDA approval to meet the needs of customers who have been trying to lose weight. Like with any other new product, numerous issues need to be considered before Metabical is actually introduced in the market. Decisions about pricing, packaging and demand forecast of the product are key to the success of Metabical. Barbara Printup, senior director of marketing for CSP, needs to analyze the market critically in order to decide the pricing and packaging strategy and forecast the demand for the product before it is launched. The demand forecast and the pricing and packaging strategies all plays a significant role in determining the long-term success of Metabical because the drug market is intensely competitive and only those products which are marketed with innovative strategies can survive in the market. Packaging decision is the first thing that needs to be taken care of. Since FDA trials showed that most of the people were able to achieve their weight loss goals by week twelve, the drug would be approved as a twelve- week treatment plan. The major issue that Printup needs to consider is the number of pills that would be included in each pack. Packing the entire twelve- week supply in one package does sound like a good plan but CSP should not forget that packaging plan directly ties in with the...
Words: 7510 - Pages: 31
...the core of a business enterprise and to the decision making process from the leaders and managerial staff, is dysfunctional and an unhealthy approach to business. The benefits of ethical and standardized social responsibility an enterprise incorporates are intrinsic to an organization’s image and can have an impact on employee morale (Wicks & Freeman, 2010). Reference: Wicks, A., & Freeman, E. (2010). Business ethics. Upper Saddle River, NJ: Pearson Education, Inc. COMPLETE 1 Since Sigma is a small firm with limited resources, it must be selective in choosing customers so as to ensure the company can meet their needs effectively. How would you suggest that Sigma balance the need for continued growth with its desire to serve only those customers that it can satisfy completely? Sigma Marketing has been ahead its time from the marketing aspect for decades. Although the company will have to adjust to the external environment in order to have continued success. The case study did not seem to mention competition but the company has a niche which limits the competition they will face. Finding an unfilled need is the key to reducing or eliminating competition. Therefore, I do not...
Words: 2236 - Pages: 9
...IME 6120 PRODUCTION OPERATIONS MANAGEMENT SAKETH REDDY DUMPALA WMU ID #068431546 Case Study-2 1(a) The Penang Mutiara which is located on the lush greens of the Indian Ocean coast of Malaysia is one of the most luxurious hotels of South-East Asia. This hotel is owned by PernasOUE of Malaysia and managed by Singapore Mandarin International Hotels. This luxurious hotel gives its best quality of service to its customers. According to the Penang Mutiara hotel the quality of service means helping guests sort out their own problems. The hotel always tries to cut down their costs by increasing the volume, speed and flexibility. There are many situations described in the case study which shows the quality of service being offered by the hotel to its customers. This strategy helps them to be competitive enough to maintain their business. 1(b) The present strategy followed by the hotel management is yielding them many customers. There is still a scope for any organization to improve its profits by increasing the volume of customers. The hotel has to maintain a long term relationship with its existing and new customers. They can create a website as a part of promotion and also they can make the payments online. They also can attract customers by offering some exciting packages. They must not compromise in quality in order to keep the cost low. 1(c) The development of operations of the hotel which drives them in its long term strategy is as follows: i. ii. iii. iv. v. Appropriate Training...
Words: 942 - Pages: 4
...Competiveness, Strategy & Productivity Nicholas Deters Professor Ardy Management of Productions and Operations BSAB 420 11 December 2012 Abstract In our current society technological advancements, competitiveness, strategy and production are paramount in business relationships since technology advancements continue to gain momentum every day. Competition is what continues to enhance business strategy and production as companies strive to produce the latest technologically advanced product on the market while providing the best service for customer satisfaction at the lowest cost at with a high production rate. In the past few decades computer technology has been responsible for improved customer satisfaction and enhanced business production, spiking the level customer needs and competition between many businesses such as Ford vs. General Motors, Macintosh vs. Microsoft, UPS vs. FedEx, Import vs. Export as the list goes on forever. Whether the competition lie between an automotive industry or the computer industry, any company with a competitive advantage gains the ability to outperform its rivals, providing the ability for company growth and increased revenue. In the business aspect, competition continues to drive the market primarily by producing high quality products at a high output rate by using productivity and strategic road maps to aim for high goals and provide for further organizational achievements. Competitiveness, Strategy, & Productivity ...
Words: 2663 - Pages: 11
...What is Balanced Scorecard? In the early 1990s, Balanced Scorecard was developed as a new approach to performance measurement due to troubles of short-termism and past orientation in management accounting (Kaplan and Norton 1992). Balanced scorecard is a strategic planning and management system that is widely used in business and industry, government, and nonprofit organizations to side with business activities to improve internal and external communications and monitor organization performance against strategic goals (Balanced Scorecard Basics n.d) The balanced scorecard has changed from its simple performance measurement structure to a full strategic planning and management system. The balanced scorecard has evolved from its early application as a simple performance measure framework to a full strategic planning, a simple public presentation-measuring framework to a full strategic planning (Balanced Scorecard Basics n.d).The new balanced scorecard transforms an eye-catching but unreceptive document into the "marching orders" for the organization on a daily basis. It offers a framework that provides performance measurements as well as helping planners identify what should be through and considered. It also enables executives to truly implement their policies (Balanced Scorecard Basics n.d) The balanced scorecard does not only focus on attaining financial objectives, furthermore, it emphasizes the nonfinancial objectives that an organization must accomplish to convene and...
Words: 2447 - Pages: 10
...A Sigma Medical Technologies Offering TABLE OF CONTENTS Executive Summary 3 Problem Statement 4 Introduction 6 Analysis of the Facts 8 Expeditionary Marketing Tools 19 Summary of the Facts 27 Alternatives 30 Recommendations 35 I. EXECUTIVE SUMMARY Founded in 2015, Sigma Medical Technologies (SIGMA) is located in the SE region of Albuquerque, New Mexico, in the Sandia Industrial Park area east of Kirtland Air Force Base on Eubank Blvd. SIGMA, owned by Dr. Remy and Mr. Bob Sachs (of TEAM Technologies), serves as the patent holder and developer of “Ozone”. UNM Anderson has been contracted to provide an expeditionary marketing study. Ozone offers an invasive, defined space; gas based delivery system (generated by the product) to kill all living organisms in a room. It provides an affordable elimination and sterilization system for use by the Medical industry. It provides an additional layer of security against concealed germs, bacteria, and viral threats (pathogens). It may even be the cost effective solution to deliver solution based field units to disease hot spots that are engineered for quick and easy “Ozone” sterilization. The technology offers a “whole room” elimination solution (fills available defined space and kills pathogens) as opposed to standard “surface” based elimination systems (based on chemical wipe down style cleaning). Dr. Remy and his supportive team have a...
Words: 14589 - Pages: 59
... |W.James McNerney |Former CEO of 3M | | |George Buckley |Current CEO of 3M | |Facts | |What: |McNerney implemented Six Sigma approach to process and business improvement companywide: for existing process- the five step | | |DMAIC Model; for new product development- Design for Six Sigma; laid off 8000 workers (11% of the workforce); slashed capital | | |expenditures | | |Buckley continued Six Sigma in manufacturing and administrative areas but reduced in R&D; invested more in R&D and new | | |manufacturing plants | |Why: |McNerney: | | |Decrease production defects and increase efficiency;...
Words: 1017 - Pages: 5
