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We Must Acknowledge Our Vulnerabilities • Poor Quality That Impacts Customers • Problems with NPI • Too High Internal Costs
We Need a Major Initiative to Move From Where we Are to Where we Want to be
• 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.
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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 ~ $10.5 Billion per Year!
Why “Six Sigma”?
• Proven Successful in “Quality-Demanding” Industries e.g., Motorola, Texas Instruments (many process steps in series)
to Design for Quality Concepts • Has Support and Commitment of Top Management
It Works!!!
6 Overview
Sigma: A Measure of Quality
Sigma 3
Spelling
1.5 Misspelled Words per Page in a Book
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
2 1/2 Days per Century
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1 Misspelled Word in
a set of Encyclopedias
$570 Indebtedness per $1 Billion in Assets
6 Overview
Why Does GE Need A Quality Initiative?
Cost of Failure (% of Sales)
40% 35% 30% 25% 20% 15% 10%
5%
Defects per Million 3.4 Sigma 6
233 6210 66,807 308,537 500,000
• Six Sigma Structure
• Key Concepts & Tools
• A Pwenku.baidu.comactical 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.
• Proven Method to Reduce Costs • Highly Quantitative Method – Science and Logic Instead of Gut Feel • Includes Manufacturing & Service (close to customer) and Provides Bridge
“...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
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 Traditional Competitors in 5 Years – Goal Consistent with Reduced Total Costs
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1 Misspelled Word
per 30 Pages in a Book
Money
$2.7 Million Indebtedness per $1 Billion in Assets
Time
3 1/2 Months per Century
$63,000 Indebtedness per $1 Billion in Assets
A Rigorous Method for Measuring & Controlling Our Quality
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!
