Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 55

Applying Six Sigma Principles to the Accounting Function P. C. Brewer and J. E. Eighme ("Using Six Sigma to Improve the Finance Function," Strategic Finance, May 2005, pp. 27-33) report the results of an actual case study of applying Six Sigma principles to improve the accounting function, specifically, to improve the speed with which a subsidiary communicated quarterly financial results to its parent company (to allow preparation of consolidated financial statements). Assume you are in charge of a Six Sigma project designed to address this problem. Discuss steps you would take as project manager to address the problem, including the five steps in the DMAIC (design, measure, analyze, improve, and control) framework discussed in the text.