An integrated model for achieving business strategic objectives with a case study

Abstract

The paper proposes an integrated model of the balanced scorecard (BSC) and quality function deployment (QFD) in the define phase of the Six Sigma process (DMAIC). The BSC is used to translate the strategic objectives into operational actions with the associated key performance indicators (KPIs). The KPIs are considered as the voice of customer in the QFD. Whereas all firm's factories are used for satisfying these KPIs. A case study was implemented in a large manufacturing firm located in Egypt. Relying on the results of QFD, two factories among twelve are highlighted for improvement. Moreover, the defected parts cost, metal and plastic normal scrap costs were emphasized as the significant KPIs. By analysis, the normal metal scrap cost was identified as dominant. After improvement, the scrap cost was reduced with about 12% of the total scrap cost of each factory that can be translated to 12.5 million Egyptian pounds of saving.