Six Sigma

Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodology provides the techniques and tools to improve the capability and reduce the defects in any process.Six Sigma is a business management strategy, originally developed by Motorola in 1986.Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.Six Sigma is a systematical process of “quality improvement through the disciplined data-analyzing approach, and by improving the organizational process by eliminating the defects or the obstacles which prevents the organizations to reach the perfection”.The Six Sigma ensures the quality control, total quality management and zero defects.Customer requirements, design quality, metrics and measures, employee involvement and continuous improvement are main elements of Six Sigma Process Improvement. Through the implementation of the Six Sigma it is made sure that the goals are set on the improvement of all processes to reach the level of better quality. “The Six Sigma” shows the organization’s ability of highly capable processing in producing the outputs within the limited specifications. There fore it can be said that the processes that operates with the Six Sigma quality, is able to produce a quality products at a low rate of defects.When a process attains the certification of Six Sigma quality, it is clear that the organization has attained the standard deviations form the means of the production till the specific limitations, and so can make sure that there is no room for the items to fail to meet the specifications. Altogether we can consider the Six Sigma as the professionalizing of the quality management functions.ProjectsIndia is a training and consultancy organisation established in the year 2002 to train personnel in Lean manufacturing and Six Sigma improvement methodologies. The training programs have been conducted around the world in countries such as U.K, CHINA,INDIA,DUBAI,SPAIN ,SOUDIARABIA and JORDAN.

The Supply Chain

The Supply Chain“Users buy successful supplier products in order to better manufacture their own products and achieve market leadership. This is where the big money is.”NEMI(The National Electronics Manufacturing Initiative’s mission ), March 11, 1996

Financial Modeling

The process by which a firm constructs a financial representation of some, or all, aspects of the firm or given security. The model is usually characterized by performing calculations, and makes recommendations based on that information. The model may also summarize particular events for the end user and provide direction regarding possible actions or alternatives. If you are involved in financial decision making/ planning related to large corporate, then you would definitely need financial modelling day in and day out. Financial modeling is a mandatory activity for investment bankers, bankers, project finance persons, equity research folks, PE & VCs.

Balanced Scorecard (BSC)

The Balanced Scorecard (BSC) is a strategic performance management tool - a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.It allows organisations to manage and measure the delivery of their strategy. The concept was initially introduced by Robert Kaplan and David Norton in a Harvard Business Review Article in 1992 and has since then been voted one of the most influential business ideas of the past 75 years.

Off-Balance-Sheet Financing

With off-balance sheet accounting, a company didn't have to include certain assets and liabilities in its balance sheet -- it was "off-sheet" and therefore not part of their financial statements. We'll talk more later about how the Sarbanes-Oxley Act changed this practice. While there are legitimate reasons for off-balance-sheet accounting, it is often used to make a company look like it has far less debt than it actually does. Some types of off-balance-sheet accounting move debt to a newly created company specifically for that purpose, which was the case with Enron. These are called special purpose entities (SPEs) and are also known as variable interest entities (VIEs).

An accounting technique in which a debt for which a company is obligated does not appear on the company's balance sheet as a liability. Keeping debt off the balance sheet allows a company to appear more creditworthy but misrepresents the firm's financial structure to creditors, shareholders, and the public. The sudden collapse of energy-trading giant Enron Corporation is attributed in large part to the firm's off-balance-sheet financing through multiple partnerships. A type of company financing that does not appear as a liability on the company's balance sheet. A company may engage in off-balance-sheet financing if it wishes to keep its debt-equity ratio low and thereby appear as if it is carrying little debt. This, in turn, makes the company look more creditworthy than it would otherwise. A common form of off-balance-sheet financing is an operating lease, in which a company rents, rather than buys, a capital asset. In an operating lease, the company must record only the rental payments, and not the whole cost of the asset. While off-balance-sheet financing is permissible, it can become unsustainable and can hide a company's true financial state. The term came into common parlance when Enron collapsed in the wake of excessive off-balance-sheet financing. See also: Enron scandal.

Value at Risk (VaR)

VaR is the maximum potential loss that a portfolio can suffer in the 1% worst cases in N-days. -> wrong! VaR is the minimum potential loss that a portfolio can suffer in the 1% worst cases in N-days. -> Embarassing! VaR is the maximum potential loss that a portfolio can suffer in the 99% best cases in N-days. -> compromise! VaR is defined for a given confidence level time horizon.Modeling VaR would involve estimating ‘extreme percentiles’ - statistical distributions characterizing ‘returns’. time aggregation - square-root-of-time rule.

What is Risk Management

Risk Management includes the following:Measurement – What do we measure?.Individual and portfolio.Monitor – How do we measure? Methods to estimate ‘risk’ of a security or portfolio.Control – How do we control?.Allocation and Supervision

Option

An option is a contract that gives its owner the right, but not the obligation to conduct a transaction involving an underlying asset at a predetermined future date and at a predetermined price (exercise or strike price).