Six Sigma
11 Pages 2709 Words
Overview of Six Sigma
Today¡¦s technology improvements are reducing cycle times, increasing productivity, and lowering costs. Consistency and defect-free workmanship are expected, and total quality product plus services is becoming the major, competitive discriminator.
In this environment, goals, expectations, and performance must be advanced exponentially; yearly improvements of 5% to 10% are no longer competitive. Overall customer experiences and perceptions have to be thought of in a multiplier context- the product of multiple ¡§moment of truth¡¨. These moments occur in various products life cycle phases ¡V phases that have different effects and values.
Old business models no longer work because globalizations and instant access to information, products and services have change the way customers conduct business. The competitive environment leaves no room for error. We must delight our costumers and relentlessly look for new ways to exceed their expectations. That is why in 1981 Motorola launched an initiative calling for a 5-years, ten times improvement in quality. In 1987 Motorola created its six sigma Quality initiative, with the goal of no more than 3.4 defective parts per million (ppm) across the company.
Six sigma is basically a process quality goal by minimizing defects and variation in the outputs of business process by focusing on customer satisfaction. A 4 year 100 X quality improvement goal was set. But in 1988, Motorola Corp. became one of the first companies to receive the Malcolm Baldrige National Quality Award. The award strives to identify those excellent firms that are worthy role models for other businesses. One of Motorola's innovations that attracted a great deal of attention was its Six Sigma program.
Motorola then shared its six-sigma approach with other companies. In 1989, Motorola chairman, Bob Galvin asked Mikel Harry to head the six¡¦s sigma Research Institute, an organization that received fu...