6 Overview
Six Sigma:
- A Definition
- Applied to GE
- GE Quality Initiative
- Why This Approach?
- Origin of Six Sigma
- The “Breakthrough Strategy”
- Arriving at Sigma
Six Sigma Structure
Key Concepts & Tools
A Practical Example
An Overview....Not a lot of Details!!
6 Overview
“Six Sigma”
If we can’t express what we know in the form of numbers,
we really don’t know much about it.
If we don’t know much about it, we can’t control it.
If we can’t control it, we are at the mercy of chance.
Mikel J. Harry
President & CEO
Six Sigma Academy, Inc.
A Rigorous Method for Measuring & Controlling Our Quality
“...will bring GE to a whole new level of quality in a fraction of the
time it would have taken to climb the learning curve on our own.”
John F. Welch, Jr.
1995 GE Annual Report
6 Overview
What Does “Sigma” Mean?
Sigma is a Measure of the Consistency of a Process
It (is Also the 18th Letter in the Greek Alphabet!
Why Does GE Need A Quality Initiative?
GE Raising The Bar
New Goal to be “Best in the World” vs. #1 or #2
Customers are Expecting More, we Must Deliver
“Ship-and-fix” Approach no Longer Tolerated in the Market
Aim to Speed Past petitors in 5 Years
Goal Consistent with Reduced Total Costs
We Must Acknowledge Our Vulnerabilities
Poor Quality That Impacts Customers
Problems with NPI
Too High Internal Costs
6 Overview
We Need a Major Initiative to Move From
Where we Are to Where we Want to be
6 Overview
Why Does GE Need A Quality Initiative?
40%
35%
30%
25%
20%
10%
15%
5%
Cost of Failure (% of Sales)
Defects per Million
233
6210
66,807
308,537
500,000
Sigma
6
5
4
3
2
1
Estimated Cost of Failure in US Industry is 15% of Sales; Taking
GE From a 3 to a 6 Company Will Save ~ $ Billion per Year!
Why “Six Sigma”?
Proven essful in “Quality-Demanding” Industries .,
Motorola, Texas Instruments (many process steps in series)
Proven Method to Reduce Costs
Highly Quantitative Method – Scienc
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