Six Sigma and Sarbanes-Oxley
Posted by: meikah | 30 June 2008 | 9:20 pm
Six Sigma is about process improvement, while Sarbanes-Oxley or SOX is about compliance. If the two shall meet, then the organization will be doubly benefitted. If you may recall a SOX compliance was brought about after major and accounting scandals like Enron shocked the public.
I believe compliance is part of process improvement, thus all the activities related to compliance will bring about improvement and enhance sustainability of operations.
An article on CIO Today, presents a good discussion on how Six Sigma and Sarbanes-Oxley can complement each other.
There are striking similarities between Six Sigma’s proven process improvement methodology, DMAIC (define, measure, analyze, improve and control), and compliance activities such as controls documentation, testing and remediation. Both require definition of objectives, measurement of performance, remediation of weaknesses and continual monitoring. Companies that have already performed documentation and testing activities for compliance are in an excellent position to identify process improvement opportunities.
In the billing process, for instance, a key objective is to accurately invoice customers. By documenting and testing the billing process, companies can identify key performance indicators to measure the health of their billing process. An analysis of billing errors can streamline the process.
Source:
iSixSigma News
