six sgma at ge

8/4/2019 Six Sgma at GE

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S.No.

Name RollNo.

Role

1 Rajat Khullar 63 Group Leader &Member

2 Nitin Nangia 52 Member

3 Rashu Bhalla 66 Member

4 Nitin Mathur 51 Member

5 Neeraj Shukla 48 Member

INDIAN INSTITUTE OF FOREIGN TRADE (IIFT)

Presented By: Group 8Section B

MBA (IB) | 2010

13

SIX SIGMA AT GE


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MaxZ

ornada(20

05) Slide 2

Business Process Improvement throughSix Sigma


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Slide 3

In 2001, GE known as General Electrics is the largest diversifiedcompany. The nature of diversification can be seen- 24 business in 100 countries and over 250 manufacturing plants

in 26 countries with about 275000 employees.- The organization is into manufacturing of various/ diversified

products likea) Plastic for compact discs,

b) Powerful locomotives,c) Medical imaging equipmente) Financial servicesf) consumer durablesg) Entertainment business

GE is the world leader in Lights Bulbs power generationequipments.

It is well known for strong focus on R&D. In 1990s it had about1100 scientist & 1600 technicians.

The era of 1990s saw strong shift of focus on quality of products &

in 1995, they decided to introduce Six Sigma.


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Slide 4

Rationale behind Jack Welchs decision to implement Six

Sigma at GE.

Operations carried out between 3-4 Sigma i.e. 35000 defects/million opportunities.

Expenditure of 7-10 billion in remarking of scrap, correction oferrors.

Main objective was to improve customer satisfaction & provide

best quality at lowest possible cost.

Implementation of Six Sigma at GE considering its benefits insome other companies.


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Slide 5

What is Six Sigma

- Structured data driven methodology based on well-established statistical quality control technique, simple &advanced data analysis methods & systematic training of

manpower.

- It is the outcome of statistical analysis on physical process.

- Based on 3 Sigma deviation from normal distribution curve.The Sigma Quality levels can be seen as below:


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Slide 6

Customer target

Lower SpecificationLimit

Upper Specification Limit

6s6s

.00034% of points will be outside of the specification limits ie

defects(= 3.4 parts per million out of spec.)

= 99.7966% of data inside the limits (Cp = 2)

0.00017%1.7 ppm

0.00017%1.7 ppm


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Streamline all process in organization

Improve productivity

Reduce capital outlays

Increase quality, speed & efficiency of operations

The primary objective is to increase customer

satisfaction and improve quality.


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Offers specific methods of redesign the process to removeerror and defects.

Optimal results in comparisons to conventional methods.

It is a proactive measure to quality improvement problem and

not a reactive.


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ANSWER 2

Method of data collection and statistical analysis to find thecause of error and how to rectify them.

The methodology use trained manpower with requisite skills andare trained as:

I) CHAMPIONS

- Individuals who lead within specific organization & ensure allkey function are linked up. Two types are:

a) Deployment Champion: Role similar to that played by CEO,

VP

b) Project Champion:Improvement Six Sigma at Project Level.-

II) MASTER BLACK BELT

- They are selected by champions


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III) BLACK BELTS

Play role of in-house experts as they are responsible forspreading knowledge of Six Sigma throughoutorganization.

IV) GREEN BELTS

- Employees through out organization.

- Execute Six-Sigma in organization.

- They attribute to success of Six Sigma techniques &

lead small scale improvement project.

Slide 10


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Breakthrough strategy has eight fundamental stages to achieve sixsigma performance in a company. These are :

Define,Measure,Analyse,Improve,Control (DMAIC)

Strategy is applied to 3 levels in organization

- Business level : increase profitability, market share & ensure longterm viability

- Operation level : increase productivity , reduce labor and material

cost

- Process level : reduce defects and increase process capability


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Define the problem oropportunity.

Measure the currentperformance andcapability

Analyse to identifyroot causes.

Improve byimplementing

potential solutions.

Control bystandardising solution

and monitoringperformance. Define

Measure

Analyse

Improve

Control

6s


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ANSWER 3I) Starting workout program. It had 4 goals:

- Built trust

- Empower Employees- Eliminate unnecessary work

- Create a new paradigm for GE

II) Work culture & management style were changed.

III) Training in Six Sigma quality program for all the employeesIV) Each Business Unit to identify & develop champion, Master

Black Belts, Green Belts.

V) CustomerDashboard Started by GE to get feedback from Keycustomers


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Six Sigma transformed every product & process at GE. Revenues increased by 11% to $ 100 billion.

Net earning up by 13% to 9.3 billion.

Earnings per share up to 14%

Operating margin up to 16.7%

Working capital turnover increased to 9.2%

II) Improvement in services

GE achieved 62% reduction in turnaround time for its rail carleasing business.

Productivity gain for rail road & shipping customers.

Business became 2 3 times faster than competitors

GE Aircraft Engineer (Canada) Green Belts reduced delays by50% apart from reducing customer cost.

GE measured dead air-time.

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