Comparison of Operational Efficiency and Value Augmentation in Business Enterprises

The first and second responses on operational efficiency and value augmentation in business enterprises are compared and evaluated. The impact of Six Sigma implementation on business procedures is discussed.

Running head: ACCOUNTING
Accounting
University Name
Student Name
Authors’ Note

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Analysis of Response 1:
Comparison, critical evaluation and justification of statements
The first response talks about operational efficiency that stresses on quality of
product/service. As per the first response, superior operational efficiency refers to higher
quality product over cost of the product. Bearing operational effectiveness can get superior
quality product for the least operational cost (superior quality and cost effectiveness).
Operational efficacy implies getting appropriate individuals at the appropriate places with the
correct portfolio of investments at correct times (Goetsch & Davis, 2014). This response also
presents the fact that important operational stratagem in easily eliminating wastage of
products and attainment of sustainability can help in improvement of business procedures.
However, this response also mentions about usage of business mechanism such as Six Sigma
that can aid business owners to enhance the present business procedures and at the same can
eliminate issues otherwise defects that are found. This first reaction also states that in the
concerned business concern under consideration, six-sigma can add automation into
procedures of the business and can properly improve and make sure fixing of errors of new
procedures. Nonetheless, six-sigma can prove to be costly for small sized businesses to
execute. Also, the companies might face difficulty in delivering training to different
employees and understanding the specific system and the way to apply the same to a definite
business procedure (Goetsch & Davis, 2014). Furthermore, Six Sigma is implemented to
different facets of production along with planning procedures. This might possibly generate
rigidity and bureaucracy that in turn can produce delays and smother creativity (Martínez-
Jurado et al., 2018). Furthermore, the focus of customers that makes sense for a corporation
are not considered owing to underlying objective of attainment of stipulated level of
satisfaction of customers of Six Sigma. In this way, it becomes possible to undertake
operational efficacies for proper functioning of the business concern in a cost efficient

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manner. For example, Ford Motor Company started utilizing strategy of Six Sigma in the
1990s to lessen rate of satisfaction of customers. The pressing issues of defects in
manufacturing cars were resolved by the usage of Six Sigma. This lessened cost, improved
quality, dampened rates of satisfaction and lowered environmental influence by decreasing
solvent consumption.
Analysis of Response 2:
The second response stresses on undertaking different functions of the business
enterprises for augmentation of value of the business organization. Comparative analysis of
the responses reveals that the first response emphasizes on enhancement of quality whereas
the second reaction stresses on augmentation of overall value of the company (Martínez-
Jurado et al., 2018). The second reaction also mentions about operational stratagem that
indicates towards a comprehensive plan for undertaking operations of the business concern.
Also, the second response talks about operational sustainability that refers to conservation of
diverse resources in operation of the business concern. The objective can prove to be regional
to the corporation that can prove to be effectual resource management (Goetsch & Davis,
2014). Critical evaluation of this response shows that in the current case, six-sigma can aid in
augmentation of operational effectiveness by enhancing performance. This statement can also
be justified by real life examples. For instance, Amazon.com is a shinning case of adoption of
Six Sigma. The company Amazon has adopted a number of Six Sigma concepts, counting a
conscious attempt to recruit the premium leaders from premier top schools such as MIT as
well as Carnegie-Mellon. The business concern is good when the individual can add value to
the business enterprise. This way the company could streamline its operations in daily
practices by devoting appropriate manpower adequately and augmenting customer service
units than deployment of high level engineering service.

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References
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Martínez-Jurado, P. J., & Moyano-Fuentes, J. (2018). Lean Management and Supply Chain
Management: Interrelationships in the Aerospace Sector. In Operations and Service
Management: Concepts, Methodologies, Tools, and Applications (pp. 1208-1242).
IGI Global.