What is Bank for International Settlement-BIS
? The Bank for International Settlements (BIS)
is an international organisation which fosters international monetary
and financial cooperation and serves as a bank for central banks
.The head office is in Basel, Switzerland .
What is US GAAP ? US
GAAP- or the Generally Accepted Accounting Principles used by
US based companies and developed by the Financial Accounting
Standards Board; The Accounting Profession and SEC- Securities
Exchange Commission.It is the commonly accepted ways of accounting
and maintaining accounts based records. US GAAP standards are
extensive and a very detailed approach to accounting.
What is Six Sigma? Six
Sigma is a highly disciplined process that helps organisation
focus on developing and delivering near-perfect products and
services. "Sigma"- the word is a statistical term that
measures how far a given process deviates from perfection. Six
Sigma is a disciplined, data-driven approach and methodology
for eliminating defects. Motorola engineers developed the Six
Sigma methodology in the 1980's.G.E under Jack Welch popularised
it globally. The fundamental objective of the Six Sigma methodology
is the implementation of a measurement-based strategy that focuses
on process improvement and variation reduction through the application
of Six Sigma improvement projects. Six Sigma methodolgy is all
about- D.M.A.I.C-(define, measure, analyse, improve, control).
When applied correctly D.M.A.I.C will produce consistently better
results than most other methods. To achieve Six Sigma, a process
must not produce more than 3.4 defects per million opportunities....more
More on Six Sigma ?
The first step of Six Sigma is to identify what is value for
customers, implementing it should take emotion and guesswork
out of your decision making. By eliminating all the emotive statements
people tend to attach to problems, you can create a statistical
solution and turn that statistical solution into a practical
reality.The implmentaing of Six SIgma methodoligies involve the
Six Sigma specialist - the master blaxk belt or simply balck
belts holders. They define what customers want and what processes
will deliver that for them. This then creates a benchmark for
measurement of existing processes and defects become obvious.
In step two it is vital to involve staff because the person "on
the shop floor" often knows both the problem and the solution.
But it takes some training at this stage to get senior management
capable of getting this feedback, as well as training workplace
staff to "green belt" status. This staff involvement
might be in the form of Six Sigma teams, creating their own program.
The focus is on eliminating non-value activities from processes
(manufacturing or services) by applying a robust set of performance
change tools, and emphasise excellence in operations to deliver
superior customer service.Measurement is an important function
in implementing Six Sigma-measuring the number of defects happening
per unit. This also involves getting data from the customers'
perspective, measuring every process and collecting statistical
data about the process alsoconsiders data involving customer
staisfaction. Then begins the analysis of all the new data collected,
identifying the difference between "perfection" and
the exisiting process, with an aim to continuously reduce the
variation between the two.
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