Introduction to Six Sigma

Purpose of six sigma : To make customer happier and increase profitsIntroduction to Six Sigma

1Origin of Six Sigma1987 Motorola Develops Six SigmaRaised Quality Standards

Other Companies Adopt Six SigmaGEPromotions, Profit Sharing (Stock Options), etc. directly tied to Six Sigma training.Dow Chemical, DuPont, Honeywell, Whirlpool2Time Line20021995199219871985Dr Mikel J Harry wrote aPaper relating early failures to qualityMotorolaAllied SignalGeneral ElectricJohnson & Johnson,Ford, Nissan,Honeywell3Width of landing strip1/2 Widthof landingstripIf pilot always lands within 1/2 the landing strip width, we say that he has Six-sigma capability.Pilots Six-Sigma Performance4Current Leadership ChallengesDelighting Customers.Reducing Cycle Times.Keeping up with Technology Advances.Retaining People.Reducing Costs.Responding More Quickly.Structuring for Flexibility. Growing Overseas Markets.

5Six Sigma Benefits?Generated sustained successProject selection tied to organizational strategy Customer focusedProfitsProject outcomes / benefits tied to financial reporting system.Full-time Black Belts in a rigorous, project-oriented method.Recognition and reward system established to provide motivation.

6Management involvement?Executives and upper management drive the effort through:Understanding Six SigmaSignificant financial commitmentsActively selecting projects tied to strategySetting up formal review processSelecting ChampionsDetermining strategic measures

7Key issues for Leadership:How will leadership organize to support Six Sigma ? (6 council, Director 6 , etc)Transition rate to achieve 6 .Level of resource commitment.Centralized or decentralized approach.Integration with current initiatives e.g. QMSHow will the progress be monitored?Management Involvement?What can it do?Motorola: 5-Fold growth in SalesProfits climbing by 20% paCumulative savings of $14 billion over 11 yearsGeneral Electric:$2 billion savings in just 3 yearsThe no.1 company in the USABechtel Corporation:$200 million savings with investment of $30 million

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