Introduction to Six Sigma

Purpose of six sigma :

To make customer happier and increase
profits

Origin of Six Sigma

1987 Motorola Develops Six Sigma
Raised Quality Standards

Other Companies Adopt Six Sigma

GE

Promotions, Profit Sharing (Stock Options), etc.

directly tied to Six Sigma training.

Dow Chemical, DuPont, Honeywell, Whirlpool

Time Line

Allied Signal
Motorola

1985
1985

1987
1987

Dr Mikel J Harry wrote a

Paper relating early failures
to quality

General Electric

1992
1992 1995
1995

Johnson & Johnson,

Ford, Nissan,
Honeywell

2002
2002

Pilots Six-Sigma
Performance
Width of
landing strip 1/2 Width
of landing
strip

If pilot always lands

within 1/2 the landing
strip width, we say that
he has Six-sigma
capability.

Current Leadership Challenges

Delighting Customers.
Reducing Cycle Times.
Keeping up with Technology
Advances.
Retaining People.
Reducing Costs.
Responding More Quickly.
Structuring for Flexibility.
Growing Overseas Markets.

Six Sigma Benefits?

Generated sustained success
Project
selection
tied
to
organizational strategy
Customer focused
Profits
Project 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.

Management involvement?
Executives and upper management
drive the effort through:
Understanding Six Sigma
Significant financial commitments
Actively selecting projects tied to
strategy
Setting up formal review process
Selecting Champions
Determining strategic measures

Management Involvement?
Key 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. QMS
How will the progress be monitored?

What can it do?

Motorola:
5-Fold growth in Sales
Profits climbing by 20% pa
Cumulative savings of $14 billion
over 11 years

General Electric:
$2 billion savings in just 3 years
The no.1 company in the USA

Bechtel Corporation:
$200 million savings with
investment of $30 million