TOTAL QUALITY MANAGEMENT

Total Quality Management: Six sigma Integration with Balanced scorecard

Total Quality Management: Six sigma Integration with Balanced scorecard

Introduction

The Balanced Scorecard and Six Sigma are the top most process improvement strategies specifically in the context of quality management. The discussion is for the analysis of the new framework which involves the integration of these two methodologies. A merged framework can add additional value to the work processes. They have been studied from all perspectives along with the strengths and weaknesses, the pros and cons, the scenarios, failures and successes and the comparison of the elements. The core aspect is to find the potential reasons for their non-integration and their evaluation. Cock's (2010), recommended a framework with integration of these methodologies, so an analysis was made to judge them with the benefits and practical approaches.

Balanced Scorecard

A Balanced Scorecard is one of the most potential management concepts. The idea was initiated by Robert S. Kaplan and David P. Norton in the 1990s. Their first book, “The Balanced Scorecard” is among the most popular ones. In 1992, they first proposed the concept in a Harvard Business Review. The idea has been altered by many firms but is deeply embedded in many organizations around the globe. It is a tool that helps in executing effective strategies and aligns them with the activities of an organization for successful completion of the goals (Kaplan & Norton 1996, pg 2). The main goals are to achieve supply chain integration, manage service, reduce cost, improve productivity and manage the cycle time. It is a roadmap to measure performance and one of the best performance management systems. There are four perspectives of a Balanced Scorecard: the financial perspective, the business process perspective, the customer perspective, and the learning and growth perspective (Kaplan & Norton 1996, p.9). According to a survey 50 percent of the US companies and 40 percent of the European companies have implemented the Balanced Scorecard in their strategies.

The Financial Perspective

This perspective is based on the firm's view towards its stakeholders. It includes the contribution towards the bottom-line improvement, profitability, growth, and shareholder value. These are highly dependent on the firm's position in the business cycle which has 3 stages, growth stage, harvest stage and sustain stage. The aim is to contribute in a firm's prosperity and success. A well managed financial control system can directly contribute to a firm's financial success. The executives and the stakeholders mostly look towards a firm from this perspective.

The Business Process Perspective

This perspective caters the measures on what a company must do to meet its customers' requirements, retain and increase the customer base and also the operations of the firm and activities that contribute in meeting these measures. It includes technology compatibility, manufacturing excellence, productivity, and innovation, etc. Also, the time span taken for achieving the organizational goals and judgments made by the top management. The information systems play a vital role in this regard; they help in identifying the sources of ...