SIX SIGMA CASE STUDY: GENERAL ELECTRIC.
General Electric is a successful company administering Six Sigma, it has estimated benefits on the order of ten billion dollars during the first few years of administration. Companies around the world have long discovered the benefits of Six Sigma. As a methodology, that follows an orderly approach with the aim to achieve perfection, it’s no surprise Six Sigma has proven to be successful in corporate restructuring, organization, and process improvement. There are several factors to be considered in sustaining or competing in the current turbulent global marketplace such as capturing more market share, establishing branding in the market, acquiring weak competitors, and developing Research & Development. In addition, many world-class manufacturers are continually making possible efforts to improve quality to meet fast-rising business obstacles to enhance operational competence and promote quality across the organisation.
In the early 1990s, the then Chief Executive Officer Jack Welch had an aspiration for General Electric to become a Six Sigma company in the space of five years by adopting the Six Sigma Quality as a part of the company’s culture. What does Six Sigma mean to a company like General Electric? It means measuring the limitations in the company’s processes to systematically figure out how to minimize error and be as competitive as possible. In the statistical formula behind Six Sigma, the process must only have 3.4 defects per million or chances for error. This clearly requires something very close to perfection.
JACK WELCH -GENERAL ELECTRIC CEO
In Jack Welch’s approach in launching the Six Sigma program, Training on concepts and necessities to solve work obstacles was provided to thousands of Green Belts, General Electric’s strength was assigned to lead every initiative, even taking them out of their jobs to become Black Belts. Six Sigma projects were reviewed quarterly at the executive level and training was provided for the leaders of the initiatives. Most project had to tie into the business objectives and the bottom line of General Electric, making an impact to the company’s excellence. Jack Welch’s applied Six Sigma in four ways to a formula for excellence which Training, Mentoring, Leadership and focused implementation.
In training, General Electric required almost all employees to take fourteen days, 100 hours of Six Sigma Training Program after which a project administering methodologies was requested. Mentoring played a vital role in General Electric’s excellence. Employees whose jobs were inherent were mentored and trained by the master black belt experts. Jack Welch’s asked for a commitment to their Six Sigma goals from both executives and the General Electric workforce, ensuring bonuses and promotion to improvement in quality. A Green Belt certification became a minimum requirement for promotion at General Electric and bonuses depended on the excellence in administering a Six Sigma project. Jack Welch and the President attended training sessions. In the Focused Implementation, General Electric used three approaches which is Show Me the Money, this meant that General Implementation focused on cutting down excesses to compete in price-sensitive markets. Everybody Plays meant that even suppliers were expected to be part of the Six Sigma initiative to guarantee quality from start to finish for each product. Specific Techniques meant General Electric used process maps and other Six Sigma tools to examine and associate projects with comprehensive business goals. Quality is not only a tactic to stay relevant in the global market but a way of bringing the company far ahead compare to its competitors.
Globalization and instant access to information, products, and services have changed customers’ scope in handling business. Old business models such, as loyalty is no longer applicable. Today’s competitive environment leaves no room for mistakes. A company such as General Electric must endeavour for their customers to stay happy and pleased and relentlessly look for new ways to exceed the customers’ expectations. Therefore, Quality has become a part of General Electric’s culture. Jack welch played a very huge role in General Electric. He changed the way organization and business handles their operations. He did leave a good legacy for future managers.Our Lean Six Sigma Certification courses will prepare any professional to transform organizational process and performance.
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