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Video Summaries of Six Sigma
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1-Page Summary of Six Sigma
Theory + Common Sense
Six Sigma is a management system that combines common sense and customer needs to improve processes. It’s not about following strict rules, but adapting the Six Sigma process to fit your company’s specific problems. Companies can save money by implementing Six Sigma because it focuses on reducing defects in their manufacturing processes, which saves time and money.
Six Sigma is a management system that focuses on the customer and facts. It requires managers to understand processes, such as product design and performance measurement. With proactive management, companies can anticipate events rather than react to them.
- Organizations should tear down walls between departments. If different divisions work together, they can better serve customers and compete with other companies. 6. Organizations need to take risks in order to be successful, but they also need to accept failure as part of that process. However, organizations should still aim for perfection because it’s the best way to meet customers’ needs and avoid mistakes. For example, if a company sends out 300,000 letters then 99% perfection would result in 3,000 mis-deliveries while 99.9997% perfection would result in only one mis-delivery
Six Sigma ensures that businesses will continue to succeed. It also keeps employees striving for success by encouraging constant innovation and adaption. Six Sigma’s goal is to deliver products at a 99.9997 percent level of perfection to customers.
The initiative enhances customer value. It determines what customers want and how to give it to them. The initiative also accelerates the pace of improvement because competitors are trying to improve, too.
Companies that encourage constant learning by their employees are more successful. Employees learn how to evaluate processes, so they can be shifted to different functions in the company and still generate good ideas.
Businesses can benefit from this. They can use it to launch new products and ventures, enter new markets, and stay in touch with customers.
General Electric Case Study
Jack Welch, former CEO of General Electric, says he is obsessed with the Six Sigma approach. He started GE’s Six Sigma effort in 1995 because he wanted to improve the company and not just fix it when it was already struggling.
GE has seen an increase in profits thanks to Six Sigma. GE’s operating margins have gone up from 10% to more than 15%. A team working for GE Lighting was able to fix billing problems that hampered the company’s relationship with Wal-Mart. The same thing happened when a Six Sigma team at GE Capital streamlined paperwork, resulting in more quickly completed deals. In addition, GE Medical Systems used Six Sigma to improve medical scanning technology and created full body scans that take 30 seconds rather than three minutes. Finally, a group of employees at one branch office examined their practices and reproduced them at other branches as well, leading callers reach humans instead of voice mail more frequently and translating into new business opportunities. Not only did Six Sigma teach employees process improvement techniques but it also taught them how they could be moved easily among divisions within the company because they understood processes better now. For instance, managers who were previously in charge of operations within one division could move easily over to another division such as credit card processing or banking without having difficulties learning how things work there since they already understand processes so well after being trained on Six Sigma concepts before moving over there. Also 40% of bonuses are tied to performance using these techniques which helps motivate people even further toward improving results through this system
