Quality Management for General Electric ABOUT GE l

Quality Management for General Electric

ABOUT GE l l HEAD QUARTERS AT Fairfield Pioneered Six sigma Jack Welch former CEO made Quality the job of every employee at GE GE designed five corporate measures: Customer satisfaction; Cost of poor quality; Supplier quality; Internal performance; and Design for manufacturability Source: Wikipedia

GE and SIX SIGMA Six Sigma : “Changing the DNA of the company” Source: "Six Sigma and Business Process Management", Andrew Spanyi, 2004

SIX SIGMA Six Sigma is a long-term, forward-thinking initiative designed to fundamentally change the way corporations do business. It is first and foremost "a business process that enables companies to increase profits dramatically by streamlining operations, improving quality, and eliminating defects or mistakes in everything a company does”.

SIX SIGMA l A Quality Philosophy l A Tool l A Management Strategy or a Business Process. l A Concept or an Idea. l A Process. l A Measurement Source: Operations Management by Gathier

Six sigma Six Sigma tells you: l Your don't know what you don't know l l You can't do what you don't know You don't know until you measure You don't measure what you don't value You don't value what you don't measure

Statistical Implications l Six Sigma tries to reduce the value of this Sigma i. e. , the value of this variation by decreasing the number of original defects in the product. Example if the previous specification limit was X+3 Sigma then now it can be X+-6 Sigma because the value of deviation i. e. , Sigma (variation) has been reduced by decreasing the number of defects in the original product.

Role required by Six Sigma Executive Leadership- Responsible for setting up a vision for Six Sigma implementation. l Champions - responsible for the Six Sigma implementation across the organization in an integrated manner l They devote 100% of their time to Six Sigma. l

Role required by Six Sigma Black Belts operate under Master Black Belts to apply Six Sigma methodology to specific projects. l Green Belts are the employees who take up Six Sigma implementation along with their other job responsibilities. They work under Black Belts l (Source: wikipedia. org) l

Applicability of Six Sigma Process improvements; Product and Services improvement; Supplier improvement; Design Methodology; Training and improvement.

Benefits of Six Sigma l Improvement in Process Flows l Enhanced Productivity l Improvement in Quality l Improvement in Margins and Return on Investment

More Benefits l Improvement in Profitability by reducing process variability l Delighted Customers l Improvement in Quality

Six sigma Impact on GE The difference between Six Sigma and GE's current efficiency is worth up to $12 billion a year ( a mind-boggling 13% of sales), according to Business Week. In the past 17 years, GE has increased its market value from $12 billion to some $280 billion.

Conclusion Quality culture demands: l Organization Deliver Promises l That they do what they say they will do l That the company operates with honesty and integrity l That people who deal with the company be treated with respect

Conclusion l l That the environment is treated with respect That products work the first time and perform their intended function, without hassles for the buyer That products are sold at a reasonable price (not necessarily the lowest price) Quality + Accuracy = Tool to eliminate defects + Increased efficiency by bringing mathematical Precision to process improvement.

References q i. Six. Sigma LLC, (2006). Total Quality Management (TQM). Retrieved October 8, 2006, from Six Sigma Web site: http: //www. isixsigma. com/me/tqm/