A study on the effective utilization of balanced scorecard in six sigma project

Abstract

Recently, almost all companies have adopted various management innovation activities in order to achieve a breakthrough. However, the actual circumstance is that no undertaking can exist in isolation, but must work cooperatively in tandem with other operations. In order to avoid it, integration and alignment must be achieved. First of all, the companies have to examine the relevance of a project and should establish a long-range plan on how to apply for it. This study focuses on BSC and Six Sigma, which are major innovation activities. Every organization is motivated by its own vision and strategy. The BSC plays an important role in the organization, as a tool and philosophy to allow members to know what they should do to achieve the vision and strategy they need to adopt to succeed. Meanwhile, Six Sigma is another new wave in management innovation. It is based on scientific and statistical measurement of quantitative and qualitative concerns, so it is concerned mainly with enterprise quality management. The purpose of this study is to suggest an effective utilization of BSC for the Six Sigma project. In order to obtain this purpose, this study will progress as follows: The combined determinants will be reviewed in terms of each benefit and success factor. The effects and contributions of combined determinants will be reviewed. In this review, the relationship between the BSC and Six Sigma is defined, some suggestions for the reinforcement of the relationships are proposed, and the cases of ``Siemens Mobile`` in Germany and domestic company ``POSCO`` are analyzed. They seem to be different because the BSC begins with the customer``s voice and the marketplace, while Six Sigma focuses on the process. However, both of them ultimately aim at customer satisfaction and performance improvement and they manage them quantitatively. This relation clarifies that the integration between the BSC and Six Sigma is feasible and even necessary. The results show that utilizi...