Post on 07-Apr-2018
transcript
8/4/2019 Six Sgma at GE
1/14
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
8/4/2019 Six Sgma at GE
2/14
MaxZ
ornada(20
05) Slide 2
Business Process Improvement throughSix Sigma
8/4/2019 Six Sgma at GE
3/14
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.
8/4/2019 Six Sgma at GE
4/14
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.
8/4/2019 Six Sgma at GE
5/14
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:
8/4/2019 Six Sgma at GE
6/14
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
8/4/2019 Six Sgma at GE
7/14Slide 7
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.
8/4/2019 Six Sgma at GE
8/14Slide 8
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.
8/4/2019 Six Sgma at GE
9/14Slide 9
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
8/4/2019 Six Sgma at GE
10/14
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
8/4/2019 Six Sgma at GE
11/14Slide 11
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
8/4/2019 Six Sgma at GE
12/14Slide 12
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
8/4/2019 Six Sgma at GE
13/14Slide 13
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
8/4/2019 Six Sgma at GE
14/14Slide 14
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.