Dynamics of Profit-Focused Accounting: Attaining Sustained Value and Bottom-Line Improvement

Six Sigma is commonly recognized by business managers as the killer app used by GE, Motorola, Allied Signal, and other corporate giants. Many smaller businesses perceive this is too much fire power and too costly for them to implement and manage. This potent management tool has been shrouded by an incorrect impression that has, to some extent, restricted its application. On the other hand, many companies have attempted to apply it without fully understanding it and realizing its true capability. I will explore the dimensions of Six Sigma, remove the myth, and provide a road map and an understanding of how to discover its potential impact for improving profitability.
Before digging into the details, let us first establish some basic understanding. Six Sigma is a process of asking questions that can produce tangible, quantifiable answers that translate into the creation of breakthrough profitability. It is not restricted to manufacturing, as it can be employed by any organization to improve its effectiveness by reducing the defects in operational and commercial processes. By improving processes and eliminating defects, companies create a competitive advantage in the way they do business and provide service to improve customer satisfaction. Some companies are well known for their leadership in adopting Six Sigma. Plus, there are thousands of other entities adopting and employing Six Sigma techniques that include service organizations, governmental entities, hospitals, and other healthcare providers. The tools and techniques are not restricted to a few large corporations; they are available to any organization. Six Sigma...