Six Sigma Presented By:- Amit Kumar DMS Pondicherry University
What is six sigma?•Sigma is a measure of “goodness: the capability of a process to produce perfect work.• Sigma indicates how often defects are likely to occur.• The higher the sigma level, the lower the defect rate.• The lower the defect rate, the higher the quality.
Sigma Conversion Table:If your yield is: Your DPMO is: Your Sigma is: 30.9% 690,000 1.0 62.9% 308,000 2.0 93.3 66,800 3.0 99.4 6,210 4.0 99.98 320 5.0 99.9997 3.4 6.0
The Six Sigma Evolutionary Timeline1986: Bill Smith, a senior 1995: Jack Welchengineer and scientist launches Six Sigma atintroduces the concept of GE.Six Sigma at Motorola 1994: Larry Bossidy launches Six Sigma at Allied Signal.
General Overview The General Electric Company (GE) is a multinational American technology and services conglomerate incorporated in the state of New York.
Group Companies of GE Radio Corporation of • GE Infrastructure America (RCA) • GE Money• The Electric Bond and • GE Security Share Co • GE Industrial• GE Commercial GE Healthcare Finance• GE Consumer Finance
• Welch’s Corporate Model: – High Discipline – High Efficiency – Cut costs whenever possible• Per Annum organic growth rate: – Only 4%
• Implementation of lean Six Sigma methodology for manufacturing and service processes• Originally established in U.S. by Motorola• Goal: meet or exceed level of 3.4 defects per million operations within any process
General Electric• In 1995 GE mandated each employee to work towardsachieving 6 sigma• The average process at GE was 3 sigma in 1995• In 1997 the average reached 3.5 sigma• GE’s goal was to reach 6 sigma by 2001• Investments in 6 sigma training and projects reached45MUS$ in 1998, profits increased by 1.2BUS$“the most important initiative GE hasever undertaken”. Jack Welch Chief Executive Officer General Electric
Six Sigma Results Company Annual SavingsGeneral Electric $2.0+ billionJP Morgan Chase *$1.5 billion (*since inception in 1998)Motorola $ 16 billion (*since inception in 1980s)Johnson & Johnson $500 millionHoneywell $600 million 13