This document provides an overview of Six Sigma, including its basics and benefits, pioneers like Motorola, methodologies like DMAIC, and case studies of companies that implemented it successfully, like General Electric. Six Sigma aims to systematically reduce defects through disciplined process improvement efforts focused on meeting customer needs and increasing profits and quality. It has helped companies like GE significantly boost their operating margins and savings.
What is Six Sigma?,Methodology of Six sigma, What Six Sigma involve? , Why to adopt Six sigma?, Six sigma levels, Advantages of Six Sigma?, Disadvantages of Six Sigma?, Six Sigma Companies
Six Sigma was originally developed by Motorola in 1985 as a set of tools and strategies to improve quality and reduce variability and errors in processes. It was invented by Bill Smith at Motorola and helped the company save over $15 billion in its first 10 years of implementing Six Sigma. Six Sigma seeks to define steps for processes, identify causes of defects, and set quantified targets to improve customer satisfaction and organizational goals. It has since been adopted by many top companies to help transform processes through definable phases and leadership, although it also has some limitations.
The document discusses Six Sigma, a methodology used to improve quality and reduce defects. It explains what Six Sigma is, the key methodologies of DMAIC and DMADV, why companies implement it, the different belts within Six Sigma, and why it is preferred over total quality management. It also covers the Altman Z-Score, which uses financial ratios to predict the likelihood of bankruptcy, walking through an example calculation and interpretation. Finally, it briefly introduces the topics of virtuous and vicious business cycles.
Six Sigma is a set of process improvement techniques and tools used to reduce variability and increase profits through statistical quality control. It aims to enhance customer satisfaction and product quality. Key methodologies for implementing Six Sigma include DMAIC, which follows the plan-do-check-act cycle to define problems, measure metrics, analyze root causes, improve processes, and control results. DMADV is used for developing new processes and products. Both draw on techniques like FMEA, DOE, control plans and more. Six Sigma benefits organizations through lower costs, fewer defects, and stronger business performance.
This document summarizes a presentation about Six Sigma. It defines what Sigma and Six Sigma are, which is a statistical measure of quality that aims for near zero defects. Six Sigma was originally developed by Motorola in the 1980s and was later implemented by GE in the 1990s to significantly improve customer satisfaction and shareholder value. The presentation provides details on GE's implementation of Six Sigma, including retraining their workforce and setting specific goals. It notes the significant outcomes GE achieved through Six Sigma, such as increased revenues, earnings, and operating margins. In conclusion, it states that over 25% of Fortune 200 companies now claim to have serious Six Sigma programs.
This document provides an introduction to Six Sigma, which is a data-driven methodology for improving business processes. It aims to reduce defects and variability in processes by focusing on customer needs. Key aspects include using a define-measure-analyze-improve-control approach to projects led by Black Belts over 3-5 months. The goal is to drive processes to be defect free over 99.9997% of the time (3.4 defects per million opportunities). Senior leadership commitment is critical to the success of Six Sigma.
This document discusses Six Sigma, which aims to reduce variability in business processes. It defines Six Sigma as a statistical term representing 3.4 defects per million opportunities. The document outlines the benefits of Six Sigma, such as generating sustained success, enhancing customer value, and accelerating improvement. It also describes the DMAIC methodology, which is a five-step approach for process improvement involving Define, Measure, Analyze, Improve, and Control phases.
What is Six Sigma?,Methodology of Six sigma, What Six Sigma involve? , Why to adopt Six sigma?, Six sigma levels, Advantages of Six Sigma?, Disadvantages of Six Sigma?, Six Sigma Companies
Six Sigma was originally developed by Motorola in 1985 as a set of tools and strategies to improve quality and reduce variability and errors in processes. It was invented by Bill Smith at Motorola and helped the company save over $15 billion in its first 10 years of implementing Six Sigma. Six Sigma seeks to define steps for processes, identify causes of defects, and set quantified targets to improve customer satisfaction and organizational goals. It has since been adopted by many top companies to help transform processes through definable phases and leadership, although it also has some limitations.
The document discusses Six Sigma, a methodology used to improve quality and reduce defects. It explains what Six Sigma is, the key methodologies of DMAIC and DMADV, why companies implement it, the different belts within Six Sigma, and why it is preferred over total quality management. It also covers the Altman Z-Score, which uses financial ratios to predict the likelihood of bankruptcy, walking through an example calculation and interpretation. Finally, it briefly introduces the topics of virtuous and vicious business cycles.
Six Sigma is a set of process improvement techniques and tools used to reduce variability and increase profits through statistical quality control. It aims to enhance customer satisfaction and product quality. Key methodologies for implementing Six Sigma include DMAIC, which follows the plan-do-check-act cycle to define problems, measure metrics, analyze root causes, improve processes, and control results. DMADV is used for developing new processes and products. Both draw on techniques like FMEA, DOE, control plans and more. Six Sigma benefits organizations through lower costs, fewer defects, and stronger business performance.
This document summarizes a presentation about Six Sigma. It defines what Sigma and Six Sigma are, which is a statistical measure of quality that aims for near zero defects. Six Sigma was originally developed by Motorola in the 1980s and was later implemented by GE in the 1990s to significantly improve customer satisfaction and shareholder value. The presentation provides details on GE's implementation of Six Sigma, including retraining their workforce and setting specific goals. It notes the significant outcomes GE achieved through Six Sigma, such as increased revenues, earnings, and operating margins. In conclusion, it states that over 25% of Fortune 200 companies now claim to have serious Six Sigma programs.
This document provides an introduction to Six Sigma, which is a data-driven methodology for improving business processes. It aims to reduce defects and variability in processes by focusing on customer needs. Key aspects include using a define-measure-analyze-improve-control approach to projects led by Black Belts over 3-5 months. The goal is to drive processes to be defect free over 99.9997% of the time (3.4 defects per million opportunities). Senior leadership commitment is critical to the success of Six Sigma.
This document discusses Six Sigma, which aims to reduce variability in business processes. It defines Six Sigma as a statistical term representing 3.4 defects per million opportunities. The document outlines the benefits of Six Sigma, such as generating sustained success, enhancing customer value, and accelerating improvement. It also describes the DMAIC methodology, which is a five-step approach for process improvement involving Define, Measure, Analyze, Improve, and Control phases.
This presentation is for the novice, who knows nothing about Quality, forget Six Sigma Concepts and enables them to grasp the essentials of not only quality but the basic knowlwdge of Six Sigma.
Happy Learning!!
In the early and mid-1980s, Motorola engineers decided that the traditional quality levels — measuring defects in thousands of opportunities – didn’t provide enough granularity. Instead, they wanted to measure the defects per million opportunities. Motorola developed this new standard and made a cultural change associated with it. Six Sigma helped Motorola realize powerful bottom-line results in their organization – in fact, they documented more than $16 Billion in savings as a result of our Six Sigma efforts.
Six Sigma has evolved over time. It’s more than just a quality system like TQM or ISO. It’s a way of doing business.
Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. A Six Sigma defect is defined as anything outside of customer specifications.
A Six Sigma opportunity is then the total quantity of chances for a defect.
Six Sigma (6σ) is a set of techniques and tools for process improvement. It is a methodology used for eliminating defects in a product, process or a particular service at a rate of 3.4 Defects Per Million Opportunities. In this document, basic of Six Sigma is highlighted, sigma process calculation is done and various metrics and belts are discussed at the end.
Six Sigma is a data-driven methodology for eliminating defects and reducing variation in manufacturing and business processes. It aims to achieve near-perfect process performance or outputs. The key aspects of Six Sigma discussed in the document are:
- The DMAIC and DMAIV processes which involve defining problems, measuring key aspects, analyzing data, improving processes, and controlling/verifying results.
- Key roles like Champions, Master Black Belts, Black Belts and Green Belts who lead and work on Six Sigma projects.
- Statistical and analytical tools used at each stage like fishbone diagrams, ANOVA, regression and control charts.
- Its origins at Motorola in the 1980s and how it has
Six Sigma is a methodology that seeks to improve processes by reducing defects and variation. It was developed by Motorola to help improve quality and lower costs. The Six Sigma methodology uses a data-driven approach to identify and remove causes of defects and minimize variability in manufacturing and business processes. It aims to achieve as close to zero defect levels as possible.
This presentation is for the personnel who are going to be a part of Six Sigma project as process owner or team member & need to know the basics.
The scope of this presentation is “Overview” & “Define” of Six Sigma.
Six Sigma Foundation and Principles:
To understand the Presentation better with animation and videos, please download the PPT and watch it in slide show mode.
This presentation will provide an introduction to six sigma in a very simple way.
Happy learning!
Regards,
Ram Prasath S
The document discusses Six Sigma, a statistical process used to improve quality and reduce defects. It defines Six Sigma as seeking to drive defects below 3.4 per million and outlines the DMAIC process used for Six Sigma implementation and improvement. The roles and responsibilities in a Six Sigma initiative include Sponsors, Leaders, Champions, Black Belts, Master Black Belts, Green Belts, team members and process owners.
Six Sigma is data-driven methodology that's used to eliminate defects in the manufacturing process. Here we'll explore how each level of certification helps to drive Six Sigma success.
Quality improvement has been a long concern for any organizations. Six sigma in this case is an efficient tool to gain service excellence that is imroving the capability of business. This tool is basically based on statistics, focused on process,followed by a data-driven methodolgy. With an aim to improve the output quality, which includes risk and/or fault identification and applying procedure to minimize the risk, six sigma serves the purpose of defect reduction and a boost up of employee morale, profit and services. The integration of defect detection and minimizing it hence improving the quality of service is the main concern here.
Six Sigma is a data-driven methodology for improving business processes and reducing defects. It uses a five-phase approach called DMAIC (Define, Measure, Analyze, Improve, Control) to systematically identify and eliminate defects. Six Sigma aims to achieve 3.4 defects per million opportunities to guarantee complete customer satisfaction. It requires commitment from top management and training employees in Six Sigma techniques to achieve its quality goals.
Six Sigma is a set of techniques and tools for process improvement. It aims to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. The core idea is that if you have six standard deviations between the process mean and the nearest specification limit, you will produce 3.4 defective parts per million opportunities. Six Sigma follows the DMAIC model which stands for Define, Measure, Analyze, Improve, and Control. It relies on a strong emphasis on data and statistics to measure and improve processes. The Dabbawala system in Mumbai, India is often cited as an example of a near Six Sigma level process with an error rate of around 1 in 16 million deliver
This document provides an overview of Six Sigma Yellow Belt training objectives and concepts. The objectives are to understand the need for Six Sigma and explain the DMAIC process. Key Six Sigma concepts covered include: the history and focus on reducing defects, standard deviation and the sigma scale, the DMAIC methodology of Define, Measure, Analyze, Improve, and Control problems, and how Six Sigma can be applied to any business function. An example of applying Six Sigma to improve a pizza delivery service is also provided.
Six Sigma is a data-driven methodology for improving processes by reducing variation. It involves defining problems, measuring processes, analyzing causes of defects, improving processes, and controlling improvements. The goal is to take small steps forward to meet customer requirements. Key players include Champions, Black Belts, Green Belts and Project Sponsors. Six Sigma has been successfully applied across industries like automotive, healthcare, financial services and retail to reduce costs and improve customer satisfaction.
The document presented information on Six Sigma and its application to software engineering. It began with an outline of the topics to be covered, including definitions of Six Sigma, its history and evolution, key statistical concepts, and the DMAIC methodologies. It then discussed Six Sigma as a metric, philosophy, and management system. Specific examples of how Six Sigma was implemented at Motorola in the 1980s-1990s were provided to help drive defect reduction and process improvement through statistical analysis.
Six sigma is a statistical approach to process improvement originally developed by Motorola in the 1980s. It aims to identify and remove defects in manufacturing and business processes by lowering variation in processes and producing products that meet customer specifications. Key aspects involve defining a project, measuring the current process, analyzing data to determine causes of defects, improving the process based on findings, and controlling to maintain improvements. Six sigma has been implemented by many companies globally and across industries to reduce costs and increase profits through higher quality and customer satisfaction.
Six Sigma is a data-driven methodology for improving processes by reducing variation. It was developed by Motorola in the 1980s to help address quality issues that were causing them to lose market share to Japanese competitors. Motorola found that the Japanese companies had much lower variation in their production processes, allowing them to produce higher quality products at a lower cost. By implementing Six Sigma, Motorola was able to improve their processes, lower defects, and increase customer satisfaction, leading to billions of dollars in savings over time. The core of Six Sigma is reducing defects to 3.4 per million opportunities through the DMAIC process of Define, Measure, Analyze, Improve, and Control. It has now been adopted by many major companies
The document discusses Lean Six Sigma, which is a methodology that combines Lean (focused on eliminating waste) and Six Sigma (focused on reducing defects and variability). It aims to improve productivity and profitability by reducing inefficiencies. Six Sigma seeks to improve quality by identifying and removing causes of defects. A Six Sigma process produces only 3.4 defective parts per million. Lean Six Sigma is presented as a way for healthcare organizations to enhance quality, optimize costs and performance, increase productivity and income, boost credibility and reputation, and deliver greater value and satisfaction to customers.
Six Sigma is a data-driven methodology for improving processes by reducing variability, waste, and defects. It aims to achieve near-perfect process efficiency, accuracy, and quality. Key aspects of Six Sigma include defining and measuring quality in terms of defects per million opportunities, setting ambitious quality goals such as 3.4 defects per million, training Green and Black Belts to lead improvement projects, and delivering substantial financial returns and customer satisfaction gains. Implementing Six Sigma requires executive support, thorough training programs, establishing roles and responsibilities, identifying high-impact projects, and continuously measuring outcomes.
Six Sigma is a data-driven methodology for improving processes by eliminating defects. It involves the following key aspects:
- A structured DMAIC methodology of Define, Measure, Analyze, Improve, and Control phases to systematically solve problems.
- A focus on processes capable of producing no more than 3.4 defects per million opportunities. This is derived from operating processes with no more than six standard deviations from the mean.
- Use of statistical tools during the Analyze phase to determine root causes of defects and during the Improve phase to develop and test solutions.
- An emphasis on controlling performance through statistical process controls after improvements are made to maintain results.
Six Sigma is a highly disciplined process that helps companies focus on developing and delivering near-perfect products and services. It is a statistical term that measures how far a given process deviates from perfection, with the goal of striving for as close to zero defects as possible. Major companies that implemented Six Sigma like Motorola, General Electric, and Honeywell saw significant financial benefits through increased profits and cost savings of 15-40% of sales by reducing process variability. Six Sigma provides a framework called DMAIC (Define, Measure, Analyze, Improve, Control) to help companies redesign processes in a rigorous way to drive out defects.
This presentation is for the novice, who knows nothing about Quality, forget Six Sigma Concepts and enables them to grasp the essentials of not only quality but the basic knowlwdge of Six Sigma.
Happy Learning!!
In the early and mid-1980s, Motorola engineers decided that the traditional quality levels — measuring defects in thousands of opportunities – didn’t provide enough granularity. Instead, they wanted to measure the defects per million opportunities. Motorola developed this new standard and made a cultural change associated with it. Six Sigma helped Motorola realize powerful bottom-line results in their organization – in fact, they documented more than $16 Billion in savings as a result of our Six Sigma efforts.
Six Sigma has evolved over time. It’s more than just a quality system like TQM or ISO. It’s a way of doing business.
Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service. A Six Sigma defect is defined as anything outside of customer specifications.
A Six Sigma opportunity is then the total quantity of chances for a defect.
Six Sigma (6σ) is a set of techniques and tools for process improvement. It is a methodology used for eliminating defects in a product, process or a particular service at a rate of 3.4 Defects Per Million Opportunities. In this document, basic of Six Sigma is highlighted, sigma process calculation is done and various metrics and belts are discussed at the end.
Six Sigma is a data-driven methodology for eliminating defects and reducing variation in manufacturing and business processes. It aims to achieve near-perfect process performance or outputs. The key aspects of Six Sigma discussed in the document are:
- The DMAIC and DMAIV processes which involve defining problems, measuring key aspects, analyzing data, improving processes, and controlling/verifying results.
- Key roles like Champions, Master Black Belts, Black Belts and Green Belts who lead and work on Six Sigma projects.
- Statistical and analytical tools used at each stage like fishbone diagrams, ANOVA, regression and control charts.
- Its origins at Motorola in the 1980s and how it has
Six Sigma is a methodology that seeks to improve processes by reducing defects and variation. It was developed by Motorola to help improve quality and lower costs. The Six Sigma methodology uses a data-driven approach to identify and remove causes of defects and minimize variability in manufacturing and business processes. It aims to achieve as close to zero defect levels as possible.
This presentation is for the personnel who are going to be a part of Six Sigma project as process owner or team member & need to know the basics.
The scope of this presentation is “Overview” & “Define” of Six Sigma.
Six Sigma Foundation and Principles:
To understand the Presentation better with animation and videos, please download the PPT and watch it in slide show mode.
This presentation will provide an introduction to six sigma in a very simple way.
Happy learning!
Regards,
Ram Prasath S
The document discusses Six Sigma, a statistical process used to improve quality and reduce defects. It defines Six Sigma as seeking to drive defects below 3.4 per million and outlines the DMAIC process used for Six Sigma implementation and improvement. The roles and responsibilities in a Six Sigma initiative include Sponsors, Leaders, Champions, Black Belts, Master Black Belts, Green Belts, team members and process owners.
Six Sigma is data-driven methodology that's used to eliminate defects in the manufacturing process. Here we'll explore how each level of certification helps to drive Six Sigma success.
Quality improvement has been a long concern for any organizations. Six sigma in this case is an efficient tool to gain service excellence that is imroving the capability of business. This tool is basically based on statistics, focused on process,followed by a data-driven methodolgy. With an aim to improve the output quality, which includes risk and/or fault identification and applying procedure to minimize the risk, six sigma serves the purpose of defect reduction and a boost up of employee morale, profit and services. The integration of defect detection and minimizing it hence improving the quality of service is the main concern here.
Six Sigma is a data-driven methodology for improving business processes and reducing defects. It uses a five-phase approach called DMAIC (Define, Measure, Analyze, Improve, Control) to systematically identify and eliminate defects. Six Sigma aims to achieve 3.4 defects per million opportunities to guarantee complete customer satisfaction. It requires commitment from top management and training employees in Six Sigma techniques to achieve its quality goals.
Six Sigma is a set of techniques and tools for process improvement. It aims to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. The core idea is that if you have six standard deviations between the process mean and the nearest specification limit, you will produce 3.4 defective parts per million opportunities. Six Sigma follows the DMAIC model which stands for Define, Measure, Analyze, Improve, and Control. It relies on a strong emphasis on data and statistics to measure and improve processes. The Dabbawala system in Mumbai, India is often cited as an example of a near Six Sigma level process with an error rate of around 1 in 16 million deliver
This document provides an overview of Six Sigma Yellow Belt training objectives and concepts. The objectives are to understand the need for Six Sigma and explain the DMAIC process. Key Six Sigma concepts covered include: the history and focus on reducing defects, standard deviation and the sigma scale, the DMAIC methodology of Define, Measure, Analyze, Improve, and Control problems, and how Six Sigma can be applied to any business function. An example of applying Six Sigma to improve a pizza delivery service is also provided.
Six Sigma is a data-driven methodology for improving processes by reducing variation. It involves defining problems, measuring processes, analyzing causes of defects, improving processes, and controlling improvements. The goal is to take small steps forward to meet customer requirements. Key players include Champions, Black Belts, Green Belts and Project Sponsors. Six Sigma has been successfully applied across industries like automotive, healthcare, financial services and retail to reduce costs and improve customer satisfaction.
The document presented information on Six Sigma and its application to software engineering. It began with an outline of the topics to be covered, including definitions of Six Sigma, its history and evolution, key statistical concepts, and the DMAIC methodologies. It then discussed Six Sigma as a metric, philosophy, and management system. Specific examples of how Six Sigma was implemented at Motorola in the 1980s-1990s were provided to help drive defect reduction and process improvement through statistical analysis.
Six sigma is a statistical approach to process improvement originally developed by Motorola in the 1980s. It aims to identify and remove defects in manufacturing and business processes by lowering variation in processes and producing products that meet customer specifications. Key aspects involve defining a project, measuring the current process, analyzing data to determine causes of defects, improving the process based on findings, and controlling to maintain improvements. Six sigma has been implemented by many companies globally and across industries to reduce costs and increase profits through higher quality and customer satisfaction.
Six Sigma is a data-driven methodology for improving processes by reducing variation. It was developed by Motorola in the 1980s to help address quality issues that were causing them to lose market share to Japanese competitors. Motorola found that the Japanese companies had much lower variation in their production processes, allowing them to produce higher quality products at a lower cost. By implementing Six Sigma, Motorola was able to improve their processes, lower defects, and increase customer satisfaction, leading to billions of dollars in savings over time. The core of Six Sigma is reducing defects to 3.4 per million opportunities through the DMAIC process of Define, Measure, Analyze, Improve, and Control. It has now been adopted by many major companies
The document discusses Lean Six Sigma, which is a methodology that combines Lean (focused on eliminating waste) and Six Sigma (focused on reducing defects and variability). It aims to improve productivity and profitability by reducing inefficiencies. Six Sigma seeks to improve quality by identifying and removing causes of defects. A Six Sigma process produces only 3.4 defective parts per million. Lean Six Sigma is presented as a way for healthcare organizations to enhance quality, optimize costs and performance, increase productivity and income, boost credibility and reputation, and deliver greater value and satisfaction to customers.
Six Sigma is a data-driven methodology for improving processes by reducing variability, waste, and defects. It aims to achieve near-perfect process efficiency, accuracy, and quality. Key aspects of Six Sigma include defining and measuring quality in terms of defects per million opportunities, setting ambitious quality goals such as 3.4 defects per million, training Green and Black Belts to lead improvement projects, and delivering substantial financial returns and customer satisfaction gains. Implementing Six Sigma requires executive support, thorough training programs, establishing roles and responsibilities, identifying high-impact projects, and continuously measuring outcomes.
Six Sigma is a data-driven methodology for improving processes by eliminating defects. It involves the following key aspects:
- A structured DMAIC methodology of Define, Measure, Analyze, Improve, and Control phases to systematically solve problems.
- A focus on processes capable of producing no more than 3.4 defects per million opportunities. This is derived from operating processes with no more than six standard deviations from the mean.
- Use of statistical tools during the Analyze phase to determine root causes of defects and during the Improve phase to develop and test solutions.
- An emphasis on controlling performance through statistical process controls after improvements are made to maintain results.
Six Sigma is a highly disciplined process that helps companies focus on developing and delivering near-perfect products and services. It is a statistical term that measures how far a given process deviates from perfection, with the goal of striving for as close to zero defects as possible. Major companies that implemented Six Sigma like Motorola, General Electric, and Honeywell saw significant financial benefits through increased profits and cost savings of 15-40% of sales by reducing process variability. Six Sigma provides a framework called DMAIC (Define, Measure, Analyze, Improve, Control) to help companies redesign processes in a rigorous way to drive out defects.
Six Sigma is a highly disciplined process that helps companies focus on developing and delivering near-perfect products and services. It aims to measure and reduce defects and variation in processes by using statistical methods. The central idea is that if you can measure defects in a process, you can systematically figure out how to eliminate them and get as close to zero defects as possible. Motorola first developed Six Sigma in the 1980s and it has since been adopted by many other companies to significantly improve customer satisfaction and increase profits by reducing variability.
Six Sigma is a data-driven methodology for process improvement originally developed by Motorola in 1986. It aims to reduce defects to 3.4 per million opportunities. General Electric adopted Six Sigma in the 1990s and achieved significant cost savings. The third generation combines Lean techniques with Six Sigma. Companies use the DMAIC framework involving Define, Measure, Analyze, Improve and Control phases. Six Sigma projects have helped many companies realize hundreds of millions of dollars in savings through eliminating waste and reducing defects.
The document provides an overview of Six Sigma, including its meaning, methodology, origins, growth, key roles, benefits, and certification. Six Sigma is a data-driven methodology for eliminating defects in any process, with the goal of achieving nearly flawless quality. It was developed by Motorola in the 1980s and later adopted by other companies like GE. The DMAIC and DMADV methodologies are used to define, measure, analyze, improve, and control processes. Key roles include Master Black Belts, Black Belts, and Green Belts. Companies report significant financial benefits and cost savings from Six Sigma implementation.
The document provides an overview of the Six Sigma Green Belt training program. It outlines that upon completion, Green Belts will be able to identify and lead projects that impact business results, implement Six Sigma methodologies, and use basic statistical tools. The training will cover Six Sigma tools and techniques through a syndicated project exercise. At the end, participants must work on and present a project. An examination will be conducted on the last day.
This document provides an overview of Six Sigma and examples of how Motorola, General Electric, and AlliedSignal implemented Six Sigma programs. It summarizes Motorola's origins with Six Sigma, which began when quality issues cost the company $800-900 million annually. Implementing Six Sigma principles allowed Motorola to save $2.2 billion within four years. General Electric saw significant profit increases after implementing Six Sigma across its operations. AlliedSignal faced challenges retaining Black Belts and coordinating suppliers, but ultimately achieved $2 billion in savings from Six Sigma. The document outlines lessons learned from each company's Six Sigma journey.
Six Sigma is a data-driven methodology for process improvement that focuses on reducing defects. It aims for near perfection by striving for no more than 3.4 defects per million opportunities. The document discusses the key principles and tools of Six Sigma including defining critical customer requirements, measuring processes and quality, analyzing data to identify sources of variation, improving processes by addressing key causes of defects, and controlling processes to sustain improvements. It also explains the DMAIC methodology for improving existing processes and DMADV for designing new processes.
Six Sigma was developed by Motorola in the 1980s to improve manufacturing processes and reduce defects. It uses a data-driven approach called DMAIC (Define, Measure, Analyze, Improve, Control) to reduce variation and improve quality. Companies that implement Six Sigma see significant financial benefits like cutting costs and increasing profits. It is popular across many industries and common certifications are Green Belt, Black Belt, and Master Black Belt which help individuals advance their careers.
The document discusses Six Sigma, a statistical approach to process improvement. It was developed by Motorola in the 1970s to improve quality by identifying and removing defects. Six Sigma aims to reduce variation and prevent deficiencies through techniques like DMAIC (Define, Measure, Analyze, Improve, Control) and DMADV (Define, Measure, Analyze, Design, Verify). It utilizes belts, champions, masters belts, and executives for implementation. Case studies show how Samsung adopted Six Sigma to remedy defects, reduce costs, improve cycle time, and increase customer satisfaction.
This document discusses the relevance of Six Sigma to India's economic development. It provides an overview of Six Sigma, including its history, definition, methodology, belts, and applications. Six Sigma was developed by Motorola to improve process quality and reduce defects. It aims for no more than 3.4 defects per million opportunities. Regular use of Six Sigma can help organizations achieve 20% annual profit margin growth through quality improvements, capacity increases, staff reductions, and capital savings. The document also outlines a case study of General Electric's improved financial results after implementing Six Sigma.
Six Sigma is a statistical methodology for process improvement that aims to reduce defects to 3.4 defects per million opportunities. It involves a structured DMAIC approach of defining problems, measuring processes, analyzing root causes, improving processes, and controlling improvements. Six Sigma has helped companies like GE, Motorola, and DuPont achieve over $1 billion in annual savings through projects focused on reducing variation and improving quality. It provides a mechanism for organizations to progress up the steps of quality, delivery, cost, and flexibility competencies needed to become industry leaders.
The document provides an overview of Six Sigma, including its objectives, key concepts, and methodology. It discusses how Six Sigma aims to reduce variation and solve problems scientifically using DMAIC (Define, Measure, Analyze, Improve, Control). It also summarizes how Motorola pioneered the use of Six Sigma in 1987 to dramatically improve quality from 4 sigma to 6 sigma over 5 years, helping them win the Malcolm Baldrige National Quality Award.
The document provides an introduction to Six Sigma, including what it is, why it is used, and how it compares to other management initiatives. It defines Six Sigma as a metric representing 3.4 defects per million opportunities (DPMO) and as a methodology and management system focused on process improvement, defect reduction, and customer requirements. The document also discusses the costs of poor quality at different sigma levels and examples of the impact of Six Sigma implementation at GE.
Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in the 1980s to reduce defects but aims for near perfect processes. The goal of Six Sigma is to reduce process variation and defects to 3.4 defects per million opportunities. It uses methodologies like DMAIC for improvement and DMADV for new process design. Key benefits include increased profits by eliminating defects and accelerating improvement rates. Common roles include Champions, Master Black Belts, Black Belts, and Green Belts. Tools include control charts, Pareto charts, and design of experiments. Many major companies worldwide have implemented Six Sigma.
Six sigma methodology was developed by Motorola in 1987 to improve quality and reduce defects. It aims for only 3.4 defects per million opportunities. Six sigma provides statistical tools to analyze processes, identify issues, and implement solutions to improve processes and customer satisfaction while reducing costs. The methodology was later adopted by other companies like General Electric and focuses on both manufacturing and business processes.
#An Introduction to Lean Six Sigma (6σ)# By SN Panigrahi, SN Panigrahi, PMP
#An Introduction to Lean Six Sigma (6σ)# By SN Panigrahi,
Essenpee Business Solutions,
Lean - Six Sigma,
Six Sigma - Introduction,
Six Sigma – Methodology - DMAIC,
Six Sigma – Tools & Techniques,
Lean Defined – 5 Principles of Lean,
Lean – 7 / 8 Wates,
Implementing Lean Six Sigma
Six Sigma is a methodology for continuous improvement and creating high-quality products and processes. It involves using statistical tools and a DMAIC or DMADV approach. Motorola developed Six Sigma in the 1980s and saw over $17 billion in savings from 1986-2004 by reducing defects. General Electric widely adopted Six Sigma in the late 1990s and realized billions in annual savings. The document describes how Catalent Pharma Solutions applied Six Sigma processes like control charts to improve efficiency and prevent losses worth $50,000 on a proprietary product.
Six Sigma is a statistical methodology for improving quality and reducing defects. It aims for near perfect accuracy, with the goal of fewer than 3.4 defects per million opportunities. Six Sigma was introduced by Motorola in 1987 and uses a define-measure-analyze-improve-control methodology. It has been adopted by many companies and led to billions of dollars in savings at places like GE and Motorola through eliminating defects and improving processes.
The document provides an overview of Six Sigma, including:
1) Six Sigma is a data-driven approach to process improvement that aims to reduce defects. It uses statistical tools and methodology applied to projects selected for high impact.
2) Major companies like GE and Motorola have successfully adopted Six Sigma, achieving significant cost savings and quality improvements.
3) Six Sigma aims for near-perfect processes, with less than 3.4 defects per million opportunities. Achieving six sigma quality levels can have substantial financial benefits for companies.
2. Six Sigma Basics
Benefits of Six Sigma and Why it is Utilized
Pioneers of the Science
Methodologies/How to Apply it
General Electric
Conclusion
Q & A
3. Six Sigma developed from TQM and similar quality initiatives
Evolved to be about business management, value creation and
improvement for the customer and the shareholder
4. “A highly disciplined process that helps us
focus on developing and delivering near-
perfect products and services”
3.4 Defects per million opportunities (DPMO) and
CTQ’s
◦ 1 Sigma = 690,000 DPMO =31% efficiency
2 Sigma = 308,000 DPMO = 69.2% efficiency
3 Sigma = 66,800 DPMO = 93.32% efficiency
4 Sigma = 6,210 DPMO = 99.279% efficiency
5 Sigma = 230 DPMO = 99.977% efficiency
6 Sigma = 3.4 DPMO = 99.9996% efficiency
5. (1) # of Defective units = DPU (Defects per unit)
# of units input
(2) % of defects (DPU) = DPO (Probability of defective units)
# of “opportunities” for defect
(3) 1- DPO (Opportunity level for “non-defected unit”)
(4) DPO x 1,000,000 = DPMO
(5) Reference σ chart
Example:
Produce 100 units with 5 defects in total; there are 20 CTQ’s defined by the
customer. What is the Sigma level of the company?
(1) 5 Defects =.05 DPU
100 units
(2) .05 DPU = .0025 DPO
20 CTQ’s
(3) 1- .0025 = .9975
(4) .0025 x 1,000,000 = 2,500 DMPO
(5) 2,555 DPMO = 4.30σ ; therefore ≈ 4.3 σ
6. Process Variances
◦ Inadequate training
◦ Unreliable vendors
◦ Insufficient process capabilities/
barriers to achieving CTQ’s
Goals:
◦ Eliminate variation in processes
◦ Enhance productivity
◦ Eliminate wastes
◦ $ value increase of bottom line
“Any customer can have a car
painted any colour that he wants
so long as it is black”
-Henry Ford
7. 1979 Art Sundry of Motorola
“The real problem with Motorola is that our
quality stinks!”
- Art Sundry
Higher quality products are less expensive
◦ Less re-work
◦ Fewer re-funds
◦ Lower EE costs
Sought a proactive approach through Prevention not
Detection (Reactive)
“Stealing” market share through quality
◦ The Bandit Pager
8. 1986- Invested $25 million in training
◦ $250 million ROI in 1st
year
1992- 70% of EE’s participated training
Reduced errors by 80%
◦ $4 Billion in savings
◦ $16 Billion by 2000
1988 – Baldrige National
Quality Award
9. Hidden defects = High costs (20% -30% every
$1 of sales)
◦ Increase Profitability
◦ Improve market share
◦ Meet overall strategic business goals
◦ Ensure long-term viability of company
◦ Fix “low hanging fruit = significant impacts to bottom
line “Every company that has followed our Six
Sigma methodology has achieved
breakthrough profitability.”
-Mikel Harry and Richard Schroeder
10. #1 Reason…Improve Profitability Quickly
◦ Earn 8% more in the prices established
◦ 3x more profitable than those with inferior levels of quality
◦ 10x improvement from previous level of profitability
Being Better is Cheaper
◦ 1 Sigma level increase each year
◦ 20% profit margin improvement
• 12-18% increase in capacity
• 12% reduction in EE’s and costs
associated with them
• 10-30% capital reduction
11. “The best executive is the one who has sense
enough to pick good men to do what he wants
done, and self-restraint enough to keep from
meddling with them while they do it.”
-Theodore Roosevelt
◦ Discover
◦ Decide
◦ Organize
◦ Initialize
◦ Deploy
◦ Sustain
Customer
Green Belts
Black Belts
Master Black Belts
Champions
Executive Leadership
Initial Stages
of Six Sigma
12. The methodology behind the Six Sigma Science is
the DMAIC model for process improvement
◦ Define opportunity
◦ Measure performance
◦ Analyze opportunity
◦ Improve performance
◦ Control performance
13. Define the problem
◦ Prioritize issues based on:
Impact to the organization
Profitability
Strategic direction
◦ Set Goals
Should be realistic
◦ Determine deliverables and set dates
◦ Define metrics to be used
◦ ID your team
“If you don’t know where
you are going you will end
up somewhere else”
- Yogi Berra
DMAIC
14. Measure performance
◦ Establish baseline data
◦ Taking a snapshot of current process from all angles
◦ Develop a Value Stream Map (VSM)
◦ Audit data for validity
“What does not get counted
does not count”
- Charles Handy
15. Analyze opportunities
◦ Systematically look at data collected
◦ Use data to understand the “root causes”
◦ Quantify performance gap
◦ ID opportunities for Improvement
16. Improve performance
◦ The fun part! – begin to implement projects and
see results
Implemented on pilot level
Champions head projects
Executed by black belts/master black belts
◦ ROI becomes visible!
17. Control performance
◦ Don’t rest; continuous improvement (Kiazen!)
Take new baseline measurements
Capitalize on opportunities to enhance process further
◦ Monitor new process
Develop metrics and control charts
◦ Documentation of training for new process
Develop a system to properly train EE’s in new process
◦ Summarize results and make recommendations
18.
19. Between 1981 and 1998 the market value of GE
increased from $12 billion to $280 billion dollars
Ranked 4th
on the Fortune 500
◦ Nearly $157,000 million in revenues
◦ $11,025 million in Profits
Can attribute much of this success to 6σ
General Electric
20. “GE Quality 2000”
◦ (1) Retain businesses determined to retain a competitive
edge in; eliminate businesses that don’t
◦ (2) Strive for Six Sigma by the year 2000
◦ (3) Invest in Training
1996 - $200 million to train 200 master black belts and
800 black belts
1997 Additional $250 million in training 4,000 black
belts/master black belts and 60,000 green belts
out of a 222,000 workforce.
Certifications became mandatory if EE’s wanted to progress
vertically
GE Quality 2000
21. Results:
◦ 1997- $200m invested in training
$300mi increase in operating income
◦ 1998- Total of $500m invested in Six Sigma up to this point
$750m in savings
Saved over $¾ billion in cost savings by 1998 through its Six Sigma
initiatives (=1/3 of net income at the time
◦ 1999 – $1.5 billion in savings
◦ Operating margin increase from 14.8% (1996) to 18.9% (2000)
General Electric
22. Basics of Six Sigma
Benefits of Six Sigma and why it is utilized
Motorola and their role in process improvements
Methodologies and applying Six Sigma
GE and their Six Sigma Experience
Any company that is:
•Open to and prepared for change?
• Ready to take a scientific approach to increase profits quickly
•Willing to commit the time and resources necessary to realize
great rewards….
That company is ready for
Editor's Notes
Six Sigma is a program developed from a combination of quality initiatives such as TQM, Lean manufacturing and the Kiazen approach to quality in order to create the “ultimate” process improvement method.
It is a Scientific method that takes a step by step approach to process improvements, creating benefits for both the CUSTOMER and the SHAREHOLDER that can be measured in direct costs savings and increased market share.
Six Sigma is “A highly disciplined process that helps a business develop and deliver near-perfect products and services” to customers.
It is the scientific approach to process improvement that systematically uncovers variances, utilizing a thorough step by step method to achieving near perfect process performance.
Six Sigma is achieved once a process manages to produce no more than 3.4 defects per every 1 million opportunities (DPMO)
This equates to 99.9996% process efficiency and is extremely difficult to achieve. However, an increase in a Sigma level will yield positive results and once 6 Sigma is achieved the benefits far outweigh any costs incurred to achieve them.
Just to clarify:
An opportunity is defined as the number of times a defect can occur that will negatively affect the value of a single unit of product/service and how the.
This defect can take place at any point in the process from the time it enters the supply chain to the time it is received by the customer.
An opportunity does not represent each individual unit as a whole. (1 car does not equal 1 opportunity)
It essentially means that any step adding value to a product in which an error can occur is an opportunity for a defect to occur. .
Critical to Quality Characteristics, or CTQs are those characteristics that positively or negatively impact the quality of a product or service.
They are defined by the customer, and it is the responsibility of the business to listen to what these are and meet customer expectations with regard to them.
For example if there is a small air bubble in the paint on a new car it will not likely capable of significantly detracting from the cars overall value . Therefore this would not be considered a defect.
However, a transmission that does not work correctly will significantly impact a critical function of the vehicle and as a result diminish its overall value. Therefore, A functioning transmission is considered to be a Critical To Quality characteristic.
So just so you can get a better idea of what Six Sigma might look, think about how well a carpet is cleaned:
The average company experiences process performance at a level somewhere between 3 / 4 Sigma. At first glance having between 93% and 99% process efficiency would appear to be pretty good.
But consider this….if a 1500 sq foot area of carpet is cleaned to a 3.4 - 4 Sigma level, about 4sq ft will remain dirty. Whereas, if it is cleaned to a Six Sigma level then only about a pinhead worth of dirt will remain.
After # 3 go back to previous slide and note that this number means we should have a sigma level between 4 and 5 sigma.
Process variances measure the degree to which a process deviates from perfection
Variation leads to defects, and defects lead to unhappy customers and lower profitability And Variances exists in all processes
They can occur for a number of reasons including:
Inadequate training of EE’s in a process
Unstable/unusable parts and materials from suppliers
or
Insufficient process capability, and inability to meet process specifications of Critical to Quality characteristics as identified by the customer
The greater the variability in a process the greater the number of defects.
A single defect is never a 1:1 ratio with regard to additional costs. For every one defect there are a multitude of costs associated with correcting the error including: equipment setup, warranty expenses, re-work, wasted materials and of course the most valuable commodity of all TIME. EE’s are not cheap and you want to be paying them for new value added work not to correct errors.
Henry Ford was a pioneer in reducing variance. With the proper training employees could quickly produce large quantities of inventory with far less error because each task was clearly defined for the individual worker. As a result costs were lower an Ford could reduce its prices to consumers. Although this was more of a “Lean manufacturing” improvement than a Six Sigma one, it showed just how important the elimination of variance is when producing products or services.
Therefore the purpose of Six Sigma is to eliminate variation in a processes, enhance productivity, eliminate wastes that occur, and eliminate the costs associated with them..
One morning at a management meeting the Vice President of Motorola Art Sundry sits down with his managers and says “the real problem with Motorola is that our quality stinks!”
The company was experiencing a great deal of early life defects in their products that failed quickly once in the hands of the customers. During the production stage many of the units were being tested as many as 5 times before they were shipped and testing is a non-value added process that becomes highly expensive very quickly.
Operating processes focused around detection and re-work leave a company at 4 Sigma at best.
Because the overall quality of Motorola’s products was so low, the company sought to figure out how they could shift from detecting defects and scrambling to correct errors to preventing them from occurring in the first place at all.
The foundation for the Six Sigma philosophy states that Higher quality products or services are LESS expensive to produce than lower quality products….
As logical as this sound many organizations are opposed to developing better processes due to higher initial costs.
People are naturally adverse to changes, particularly drastic ones like spending large sums of money on process changes….and
2) The initial high costs mislead companies into thinking that process changes will always be more expensive than simply maintaining existing processes.
The reality is that money spent on re-work, re-funds, materials waste and hidden costs are the result of poor quality products and these account for the bulk of production or service costs AND if PREVENTED, the savings realized would far outweigh the initial costs of this money can be returned DIRECTLY to the bottom line.
One thing Motorola did a great job of as they worked to improve their processes was to look outside of their own industry at other companies with similar processes.
They used process ideas from many different companies and combined them to create the “perfect process and product”, appropriately named the Bandit Pager.
THE BANDIT PAGER was:
Built right – Life Expectancy of 150 years!
So reliable virtually eliminated any costs associated with testing because Motorola did not need to test a product that is virtually defect free
No money was ever spent on re-work because if for some outlandish reason a pager was defective (though highly unlikely) they would simply replace the unit at minimal cost.
In 1986 Motorola invested an initial $25 million in training to implement the new Six Sigma program. One year after the program was initiated, the company saved $250 million (not a bad ROI for one year).
Experience a five-fold growth in sales, with profits climbing nearly 20% per year.
By 1992 70,000 out of 100,000 employees had participated in Six Sigma training
Motorola reduced errors in manufacturing by 80 percent, resulting in a savings of $4 billion
To date cumulative business impact from Six Sigma efforts is estimated at US$ 16 billion.
The first recipient of the Baldridge National Quality Award in 1988
The Baldrige Award is given by the President of the United States to businesses that are judged to be outstanding in seven areas: leadership; strategic planning; customer and market focus; measurement, analysis, and knowledge management; human resource focus; process management; and results.
As I have mentioned already poor process controls yield high production costs
In a 3.4-4 Sigma performance company approx. 20-30% of every sales dollar goes directly into the COST of producing a product or service…..yet many companies wrongly estimate their costs to be only 5%!
With these companies must increase their prices to counteract these costs or risk losing their ability to grow or even maintain profit margins and market share.
For example at a 3.5 Sigma level GE was wasting $5 Billion each year in costs associated with poor quality and process
It becomes difficult to quantify true costs of products or services when quality measurements are measured through:
1. Cost of failure in the hands of the customer
2. Internal failure from re-work (hidden costs like products moving up and down the production stream for re-work undetected), downtime, and waste.
3. Appraisal (Testing, audits, inspection etc.)
By using Six Sigma companies will have the opportunity to:
Increase Profitability
Improve market share
Meet overall strategic business goals
Ensure long-term viability of the business
Ultimately by FIX the “LOW HANGING FRUIT” issues and see IMMEDIATE and SIGNIFIGANT impacts to the bottom line.
SO WHY USE SIX SIGMA!??
#1 Reason is to improve profitability QUICKLY
Six Sigma is based on a 12 month time period while other methodologies (e.g. ABC costing, Kiazen, TQM, etc.) can take a minimum of 3 years before yielding noticeable bottom line results
Businesses that achieve significant quality improvements earn 8% more than competitors in the prices they can establish for their products or services
A Businesses that achieves a superior-quality position are three 3x more profitable than those with inferior levels of quality
Those Businesses that improve quality gain 4% in market share each year
Each significant positive shift in process capability equates to 10x improvement in PROFITABILITY
With Six Sigma BEING BETTER IS CHEAPER!
If there is a full commitment throughout the ENTIRE organization (TOP down and BOTTOM up), on average companies can expect to see:
1 Sigma level increase each year
20% profit margin improvement
12-18% increase in capacity
12% reduction in required EE’s and costs associated with them
10-30% capital reduction
There are 6 initial steps that must be taken when first considering 6 sigma and a HIERARCHY that the program is built upon.
Discover the need for Six Sigma and explore its potential impact on your company
Asking new questions Working side by side with those closest to a process to better explore the benefits that implementing a program like Six Sigma can yield.
Decide through Executive leadership and define the purpose and scope of Six Sigma
The Executive leaders are the basis of any Six Sigma initiative and therefore must be willing to fully commit the necessary resources to ensure a projects success
Organize by establishing targets, set timelines, and train deployment champions
Initialize by creating deployment plans for metric that will be used, communications, human resources, begin Black Belt training
Deploy by fully training train project Champions and Black Belts
Sustain through Training Six Sigma Green belts and process improvement Team Leaders.
Here is a further breakdown of how leadership is structured in a Six Sigma organization:
Executive Leadership- Guides, fully supports and leads the company throughout the Six Sigma Initiative (the captain of the ship)
Champions- Executive champions or senior champions select master black belts below them who will address specific business needs across the organization and improve key functions within these business sectors.
Master Black Belts - Selected by champions to act as in house experts for disseminating six sigma knowledge and strategies throughout different parts of the organization. Training is extensive and they are responsible for creating lasing changes in an organization by getting employees to think in terms of six sigma.
Black belts- Apply strategies and knowledge to specific projects and figuring out details for “how to get it a project done”
Green Belts – are made up of employees throughout the organization closest to the processes being improved that physically execute a six sigma projects. Less training than black belts but are the primary tool in implementation of a project throughout an organization.
Trusting in those who are closest to a processes to improve upon it provides EE empowerment
The first step in the scientific approach of Six Sigma is to Define the problem or problems that can create an opportunity for business improvements
Prioritize process issues based on their impacts to the organization, their profitability, and the strategic direction they lead compared to those of the organization
From here it becomes possible to better identify the “low hanging fruit” that can be quickly addressed and yield the most significant financial impacts
Select projects based on this criteria and how well they align with the organizations values and goals.
Next, it is necessary to define project goals moving forward. These goals should be timely and realistic
Determine appropriate deliverables and when they should be completed. Make sure that these are also realistic
Determine metrics that will be used in the future to gauge process performance and improvements
And finally, identity you team that will be heading the project
The measure phase is used to take “snapshots” of the current state of a process from all angles.
Establish baseline data to evaluate where a process currently stands
Develop a Value Stream Map (VSM) to view the process and its inputs/outputs in detail
Utilize this to better understand what inputs are producing beneficial or detrimental outputs in a process.
Review the data and audit its validity to ensure that it will be useful in understanding process performance
Be wary of outliers that can cause a “shift in the average” performance of a process like human error when evaluating process performance in the future
Back to carpet example I mentioned earlier…..if the person cleaning the carpet is overly tired one day then soiled area that was previously the size of a recliner chair will now be about 100 sq ft (size of another bedroom)….the person performing at a six sigma level will now leave an area about the size of a chair base unclean rather than a pinhead.
The analyze phase consists of:
Systematically analyzing the data collected in a step by step fashion
Digging further into the “root causes” of a process deficiency and better determine what the underlying cause behind this deficiency might be
Quantify the performance gap of where a company actually is vs. where it should be in relation to goals that have been set
Make the performance gap known to EE’s so that the common goal is understood and everyone can strive towards achieving it together
ID opportunities for additional improvement
The Improve phase is the “Reward phase” for all of the hard work carried out thus far
Solutions are identified and implemented in “pilot runs” to determine their effectiveness
Headed by Champions and executed by black-belts and master black belts
Implemented on a larger scale if they prove successful
Begin to see ROI for all of the time and money put into the project up to this point
Save if you need this
Process improvement of Statutory Filings as Dave Doherty briefly mentioned during one of our speaker sessions:
Invested time to define the problem by talking with people and ultimately developing solutions to improve the .
Process was streamlined and time it took to file was reduced from 6 months to only taking 4 months
Yielded financial benefits through the time that was saved
EE’S were happier and more motivated
The goal of the control phase is to make sure that the benefits realized for everything invested up to this point are retained and carried forward.
Don’t rest once goals are reach;
Develop new baseline measurements and strive for more keeping in mind continuous improvement from this point on (KIAZEN!)
When additional opportunities for improvement arise; capitalize on them
Processes should be continually monitored to ensure that positive results are still being recognized
Use metrics and control charts to do this at regular intervals and continue to remind employees of project goals
**Documentation and training of new process is vital.
Develop a system to properly train all EE’s in the new process and keep them up-to-date on the new standard operating procedures that exists
Summarize project results and make recommendations for future plans.
In 1981 GE discovered that they were operating somewhere between 3 and 4 Sigma and had a market value of $12 billion. Of this an astounding $7-10 Billion dollars were estimated to be scrap, re-work and error correction.
GE Quality 2000 was ultimately implemented at the end of 1995 to early 1996 in which Jack Welch made it the goal of GE to reach Six Sigma performance levels by the year 2000. By 1998, GE managed to increase its market value to $280 billion.
(Pause)
Now proudly ranked 4th by Fortune as of 2010, GE generated nearly $157,000 million in revenues and $11,025 million in profit during its last fiscal year….
This success can be largely attributed to Jack Welch’s 6 Sigma initiative that continues to re-vamp and improve company-wide processes and margins since its first began in 1996.
“GE Quality 2000”
GE began GE Quality 200 with the following 3 goals in mind:
(1) Retain businesses determined to hold competitive edge in; eliminate businesses that don’t
(2) Strive for 6 Sigma processes by the year 2000
(3) Invest in Training and fully commit resources to the program.
Confident that any money invested would provide the company returns there were looking for GE began to invest in training its employees in the art of Six Sigma.
So what was the initial investment made by GE in their Six Sigma initiative:
1996 - $200 million to train 200 master black belts and 800 black belts
1997- Additional $250 million in training 4,000 black belts/master black belts and 60,000 green belts out of a 222,000 workforce.
Certifications became mandatory if EE’s wanted to progress vertically
1997
GE’s $200m investment in Six Sigma training performed in exactly the way Six Sigma was intended….yielding positive short term financial impacts. GE realized its first $ 300m increase to operating income in just the first year of implementing Six Sigma within its business functions
1998
GE had invested a total of $500m in Six Sigma that yielded benefits of over US$ 750m in savings
1999
GE had $1.5billion as a result of its tireless commitment to Six Sigma and improved its operating margin from 14.8% (1996) to 18.9% (2000)
STOP:
As part of the Six Sigma process GE began by identifying CTQs that would be essential to meeting customer needs.
One CTQ that GE identified as being extremely important from a service perspective was that timeliness and accuracy of service was essential. In listening to the Voice of the Custoemr (VOC) GE Mortgage Capital Insurance company applied a flex billing system to customers needs. The result: market share retention and competitive growth as portrayed in $60 million insurance policy purchased by a single customer.
The ingredients of chocolate pudding and chocolate soufflé are exactly the same, the only difference is the steps that are taken when mixing them all together….and that is what makes all the difference in business.