Abstract
Abstract This research introduces the Financial Effect Measurement (FE M) models which measures both the improvement and the innovation performance of Quality Control C ircle (QCC) and activities of Six Sigma. Concepts and principle of Comprehensive Income Statement (CIS), Balanced Scorecard (BSC), Time-Driven Activity Based-Costing (TDABC) and Total Productive Maintenance (TPM) are applied in order to develop the 4 FEM models presented in this paper. F irst of all, FEM using CIS depicts the improvement effects of production capacity and yield using rela tionships between demand and supply, and line balancing efficiency between bottleneck process and non-bottleneck processes . Secondly, cause-and-effect relation of Key Performance Indicator (KPI) is used to present Critical Success Factor (CSF) effects for QC Story 15 steps of QCC and DMAIC (Define, Measure, Analyze, Improve, and Control) of Six Sigma. The next is FEM model for service ma nagement innovation activities that uses TDABC to calculate the time-driven effect for improving th e indirect activities according to the cost object. Lastly, FEM model for TPM activities presents the interpretation of improvement effect model of TPM Capital Expenditure (CAPEX) and Operating Expendit ure (OPEX) maintenance using profit, cash and Economic Added Value (EVA) as metrics of enter prise values. To better understand and further investigate FEMs, recent cases on National Quality Circle Contest are used to evaluate new financial effect measurement developed in this paper.Keywords : FEM, Production Capacity, Yield, QC Story 15 Steps, Six Sigma, KPI Cascading, Indirect Activity, Time-Driver, CAPEX, OPEX
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