Six sigma and balanced scorecard – Audit management

Performance measurement is important factor for enterprises. Performance measurement can be used to evaluate effectiveness and enterprises to arrange reward system. There are many tools for performance measurement such as Six Sigma and Balanced Scorecard.

This paper discuss how Six Sigma and Balanced Scorecard are used in performance measurement and relation between audit management and Six Sigma and Balanced Scorecard. Six Sigma and Balanced Scorecard are used in performance measurement by DMAIC method (define, measure, analyze, improvement, control).

Audit management Basic

Management auditor can use Six Sigma to evaluate management performance. BSC can be used by auditors to balance financial management performance measurement the U.S. lag factor and other non financial performance measurement lead the U.S. factor, such as customer, internal business process, and learning & growth perspective (BSC-First Generation).

But in the BSC-third Generation, the relationship between management of the audit with the BSC is if we want to design Enterprise BSC, we must do an audit management first.

In the era of globalization increasingly rigorous levels of competition. Each company is increasingly faced with scarcity in procurement the possession of resources so that there is no reason to justify the occurrence of inefficiency. In addition, the company will need to evaluate the functions in the Organization to determine. Whether the company has achieve the goals of the Organization efficiently and to recognize the signs of danger.

Performance measurement & evaluation

Therefore, organizations need to do an evaluation/performance measurement. Performance measurement is one of the factors that are important to the company. Performance measurement can be use to assess the success of the Organization and can be used to draw up a system of rewards in the company.

Audit management is the review over a certain part of the procedure. As well as the operational methods of certain organizations. Which aims to evaluate the efficiency and effectiveness of the procedures and methods. So in the management audit is also conduct an evaluation of performance. Management audit is complete to identify and analyze the typical deficiencies. That led to the company's performance inadequacy. After that, base on his professional considerations, the auditor can provide

recommendations to address these deficiencies so that the cause of improving and increasing the efficiency and effectiveness of the Organization's performance.

Efficiency & effectiveness of performance

There are some tools that can be use in evaluating the efficiency and effectiveness of performance. Including Six Sigma and the Balanced Scorecard. Base on the background and outline of the problem so it can be deduce that the purpose of this writing. It is to know how the performance measurement approach to Six Sigma, performance measurement with the Balance Scorecard approach. Even and linkages audit management with Six Sigma and Balanced Scorecard.

The benefits of writing this is to increase the understanding of how performance measurement approach. To Six Sigma, performance measurement with the Balance Scorecard approach. The interconnections of the audit management with Six Sigma and Balanced Scorecard.