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Six Sigma: the Breakthrough Management Strategy Revolutionizing the World's Top Corporations
 
 

Six Sigma: the Breakthrough Management Strategy Revolutionizing the World's Top Corporations (Hardcover)

by Mikel Harry (Author), Richard Schroeder (Author)
3.2 out of 5 stars  See all reviews (4 customer reviews)

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Product details

  • Hardcover: 320 pages
  • Publisher: Bantam USA; 1 edition (1 Feb 2000)
  • Language English
  • ISBN-10: 0385494378
  • ISBN-13: 978-0385494373
  • Product Dimensions: 23.6 x 16.3 x 2.8 cm
  • Average Customer Review: 3.2 out of 5 stars  See all reviews (4 customer reviews)
  • Amazon.co.uk Sales Rank: 469,803 in Books (See Bestsellers in Books)

    Popular in this category:

    #79 in  Books > Business, Finance & Law > Management > Six Sigma

Product Description

Amazon.co.uk Review

Mikel Harry and Richard Schroeder think they've figured out a management programme 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 US$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 programmes 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, Amazon.com



Review

What the business world is saying about Six Sigma:
"[Six Sigma] is the most important initiative GE has ever undertaken--it is part of the genetic code of our future leadership."
--Jack Welch, CEO, GE
"We've taken the difficult but basic Six Sigma skill of reducing defects and applied it to every business process, from inventing and commercializing a new product all the way to billing and collections after the product is delivered. Just as we think we've generated the last dollar of profit out of a business, we uncover new ways to harvest cash as we reduce cycle times, lower inventories, increase output, and reduce scrap. The results are better and more competitively priced products, more satisfied customers who give us more business, and improved cash flow."
--Larry Bossidy, CEO, AlliedSignal
"The [Six Sigma] Breakthrough Strategy gives new structure to the tools we already had. Structure has been the key element missing in Polaroid's drive for quality. I keep telling my people that the Breakthrough Strategy cookbook tells us how to use time-tested ingredients in new ways--For us, the results from the Breakthrough Strategy have been quick and powerful." --Mike Hart, Black Belt engineer, Polaroid
"Mikel Harry's innovation of Breakthrough Strategy has taken quality into America's boardrooms. While Dr. Deming's theory of profound knowledge built management awareness and Dr. Juran's trilogy helped to establish the foundation of a solid quality 'science, ' Dr. Harry has demonstrated how to make theory become practice at companies like Motorola, ABB, AlliedSignal, and GE."
--Gregory Watson, President, American Society for Quality

Inside This Book (Learn More)
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Customer Reviews

4 Reviews
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Average Customer Review
3.2 out of 5 stars (4 customer reviews)
 
 
 
 
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Most Helpful Customer Reviews

 
12 of 14 people found the following review helpful:
1.0 out of 5 stars Dissappointing, 8 Nov 2001
I found the content very thin on practical tools/templates for applying the methodology.

Mostly self-fulfilling case histories, and over-frequent references to Master Black Belts, Black Belts, Green Belts, etc.

Poor value for money and nothing to take from the book and put into practice.

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6 of 9 people found the following review helpful:
5.0 out of 5 stars Highly readable - and important too!, 4 Dec 2000
By A Customer
Unputdownable! I am always suspicious of any management book with the word "Breakthrough". However, in Six Sigma: The Breakthrough Management Strategy Revolutionizing the World's Top Corporations, Harry and Schroeder provide a blueprint for transforming organisations that clearly aligns process improvement tools with business objectives to impact the bottom line. 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 per cent of sales revenue...at six sigma the cost of quality declines to less than one percent." Six Sigma is a compelling concept and unlike other fads which come and go it stands half a chance of lasting success through its attention to change, change management tools and ways of dealing with change resistance. The failure to deal with these has been the kiss of death to other management fads.
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2 of 3 people found the following review helpful:
5.0 out of 5 stars An Exquisite Introduction to the Value of Measuring, 28 May 2004
By Professor Donald Mitchell "Jesus Makes Me a P... (Boston) - See all my reviews
(TOP 10 REVIEWER)      
This is by far the best book that I have read to introduce 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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2.0 out of 5 stars Not a good place to start
If you are looking for a good introduction to Six Sigma - as I was. I don't think this is the right book for you. Read more
Published 21 months ago by Lendrick

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