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
a set of Encyclopedias
6?
1 Misspelled Word in all
of the Books in a Small
Library
$570 Indebtedness per $1 Billion in Assets
$2 Indebtedness per $1 Billion in Assets
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
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
? Includes Manufacturing & Service (close to customer) and Provides Bridge to Design for Quality Concepts It Works!!!
? Has Support and Commitment of Top Management
6? Overview
Sigma: A Measure of Quality
Sigma 3?
Spelling
1.5 Misspelled Words per Page in a Book
Money
$2.7 Million Indebtedness per $1 Billion in Assets
4?
? 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.
1 Misspelled Word
per 30 Pages in a Book
$63,000 Indebtedness per $1 Billion in Assets
Time
3 1/2 Months per Century
2 1/2 Days per Century
5?
1 Misspelled Word in
“...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
? 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.
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 ~ $10.5 Billion per Year!
Why “Six Sigma”?
A Rigorous Method for Measuring & Controlling Our Quality
6? Oபைடு நூலகம்erview
What Does “Sigma” Mean?
Sigma is a Measure of the Consistency of a Process
It (? ??is Also the 18th Letter in the Greek Alphabet!
30 Minutes per Century
6 Seconds per Century
? Proven Successful in “Qualit-yDemanding” Industries e.g., Motorola, Texas Instruments (many process steps in series)
? Proven Method to Reduce Costs
? Highly Quantitative Method – Science and Logic Instead of Gut Feel
? “Shi-pand-fix” Approach no Longer Tolerated in the Market
? Aim to Speed Past Traditional Competitors in 5 Years
W?WeGhNeoeraeeldwCaeoMAnrsaeijsototreIWnnitthiawetriievthewRteoeWMdaounvcetetFodrboTemotal Costs