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  • GE Takes Six Sigma Beyond The Bottom Line: Presented by Zaki Rezoana

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    Six Sigma is a methodology used by GE since 1995 to reduce defects and improve quality. It uses a DMAIC process (Define, Measure, Analyze, Improve, Control) for projects. Implementing Six Sigma at GE included training Green and Black Belts to lead projects, saving $50,000-$150,000 per project. It was then applied to customers, reducing errors and expenses. Six Sigma helped GE improve key metrics like productivity, margins, and inventory turns over five years.

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    Six Sigma is a methodology used by GE since 1995 to reduce defects and improve quality. It uses a DMAIC process (Define, Measure, Analyze, Improve, Control) for projects. Implementing Six Sigma at GE included training Green and Black Belts to lead projects, saving $50,000-$150,000 per project. It was then applied to customers, reducing errors and expenses. Six Sigma helped GE improve key metrics like productivity, margins, and inventory turns over five years.

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    77 views14 pages

    GE Takes Six Sigma Beyond The Bottom Line: Presented by Zaki Rezoana

    Uploaded by

    Zaki Rezoana
    Six Sigma is a methodology used by GE since 1995 to reduce defects and improve quality. It uses a DMAIC process (Define, Measure, Analyze, Improve, Control) for projects. Implementing Six Sigma at GE included training Green and Black Belts to lead projects, saving $50,000-$150,000 per project. It was then applied to customers, reducing errors and expenses. Six Sigma helped GE improve key metrics like productivity, margins, and inventory turns over five years.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 14

    GE Takes Six Sigma Beyond the Bottom

    Line
    - Gregory T. Lucier and Sridhar Seshadri

    Presented by
    Zaki Rezoana
    Outline
    GE Background
    Six Sigma
    Six Sigma at GE
    Six Sigma - DMAIC
    Implementing Sig Sigma in GE
    The Payback
    Taking Six Sigma to Customers
    Variation on a Theme
    Conclusion
    GE Background
    GE was a $25 billion bureaucratic in 1981
    Jack turned the company into $100 billion giant
    Work-out session introduced in 1989
    Eliminate unnecessary steps
    Remove barriers
    Six Sigma initiative was taken in 1990
    It was the largest initiative
    Jack sets goals and targets for 5 years
    Six Sigma
    Measures product or process defects
    Ensures nearly error-free performance
    Sigma Defects Per Million Opportunities

    2 3.8,537

    3 66,807

    4 6,210

    5 233

    6 3.4
    Six Sigma at GE
    Defect levels reduced by 84% per year
    The benefits overweigh the costs
    Six Sigma-DMAIC
    trol
    n
    Co

    rove Sustain
    p Improvements
    Im
    Mobilize change

    lyze initiatives

    A na
    Statistically find
    re
    asu
    root causes
    Me
    Measure what you
    care about
    e
    efin
    D
    Define the problem
    Six Sigma- DMAIC
    Define
    Teams define the problem
    CTQ factors are correlated with overall process

    Measure
    Measures inherent defects
    use statistical analysis to determine the root causes of
    the defects
    Six Sigma- DMAIC
    Analyze
    Teams explore underlying reasons for defects

    Improve
    Teams seek the optimal solution

    Control
    Control charting techniques are used
    Implementing Six Sigma in GE
    10 classroom days over 4 sessions and 90 days
    Action teams are created to attack business problems
    Green Belts
    All employees
    Required training and 2 projects
    Black Belts
    Lead small teams in business related projects
    Coach green belts
    Over 4,500 Black Belts in GE
    Implementing of Six Sigma in GE
    Master Black Belts
    Teach, mentor, develop Six Sigma tools
    GE has over 800 Master Black Belts

    Champions
    Promote the Six Sigma methodology
    Work with executives
    Drive initiatives into daily operations
    The Payback
    Reduced annual teleconferencing cost by $1.5
    Team cut customer processing time in half
    Projects are expected to save between $50,000
    and $150,000
    Taking Six Sigma to Customers
    Healthcare industry experiences monumental
    changes
    Consultants tried to improve the situation
    Six Sigma was introduced in 2000
    1,149 projects for customers

    Commonwealth Health Corporation


     Error in ordering process reduced by 90%
     Operating expenses reduced by $800,000
    Variations on a Theme
    Design for Six Sigma (DFSS)
    Customer requirement sand market analyses were
    scrutinized
    DFSS is different in three levels:
    1. Applies a level of rigor
    2. Acquires immediate understanding and provides feedback
    3. Enables team to review similar projects in GE
    Conclusion
    Key performance measures at GE:

    SIX SIGMA FIVE YEARS


    BEGINS: 1995 LATER: 2000

    Annual Productivity 1.5% 4.0%


    Gain
    Operating Margin 14.4% 18.4%

    Inventory Turns 5.8% 9.2%

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