e what is six sigma?. ge six sigma what is six sigma? measure of quality process for continuous...
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bWhat Is Six Sigma?What Is Six Sigma?
GE Six Sigma
What Is Six Sigma?What Is Six Sigma? MeasureMeasure of Quality of Quality
ProcessProcess For Continuous ImprovementFor Continuous Improvement
EnablerEnabler for Culture Change for Culture Change
GE Six Sigma
MeasureMeasure of Qualityof Quality
6 Sigma is a Statistically based Quality Program.
It is a rigorous methodology to improveprocess control.
6 Sigma is a Statistically based Quality Program.
It is a rigorous methodology to improveprocess control.
What Is Six Sigma? What Is Six Sigma?
GE Six Sigma
Process Capability needs to be Better than you think !
ActivityActivity Defects @ 99% Defects @ 99% Defects @ Defects @ 99.9997%99.9997%
( 3.8 Sigma ) ( 3.8 Sigma ) ( 6 Sigma ( 6 Sigma )) MailMail 20,000 lost articles20,000 lost articles 7 lost 7 lost articlesarticles DeliveryDelivery of mail per hourof mail per hour of mail per of mail per hourhour DrinkingDrinking Unsafe drinking waterUnsafe drinking water Unsafe Unsafe drinking waterdrinking water WaterWater for 15 mins per dayfor 15 mins per day for 2 mins per for 2 mins per yearyear HospitalHospital 5000 incorrect5000 incorrect 2 2 incorrectincorrect SurgerySurgery procedures per weekprocedures per week procedures per procedures per weekweek AirAir 2 abnormal landings2 abnormal landings 1 abnormal 1 abnormal landing landing TravelTravel at most airports each dayat most airports each day every 5 every 5 yearsyears
Sometimes 99% is just not good enoughSometimes 99% is just not good enough
MeasureMeasure of Quality of Quality
GE Six Sigma
What Is Six Sigma?What Is Six Sigma?
ProcessProcess For Continuous ImprovementFor Continuous Improvement
6 Sigma provides a process based approach to continuous improvement.
It is independent of the measurement involved & can be used to improve any business process
6 Sigma provides a process based approach to continuous improvement.
It is independent of the measurement involved & can be used to improve any business process
GE Six Sigma
Three Routes to choose from :
1) Improved Control
DefineDefine
DDMeasureMeasure
MMAnalyzeAnalyze
AAImproveImprove
IIControlControl
CC
ProcessProcess for Improvementfor Improvement
On Average the Process is great - the Issues lie with the Variation On Average the Process is great
- the Issues lie with the Variation
GE Six Sigma
Three Routes to choose from :
DefineDefine
DDMeasureMeasure
MMAnalyzeAnalyze
AAre-Designre-Design
DDVerifyVerify
VV
The Average needs to Improve - Structural Problem with the Process
The Average needs to Improve - Structural Problem with the Process
2) Process Redesign
ProcessProcess for Improvementfor Improvement
GE Six Sigma
Design For Six SigmaDesign For Six Sigma
Three Routes to choose from :
New Process Development -Creating 6 Sigma Process Capability
New Process Development -Creating 6 Sigma Process Capability
DDFFSSSS3) New Process
ProcessProcess for Improvementfor Improvement
GE Six Sigma
Improving an Existing Process
Define
Measure
Analyze
Improve
Control
DMAIC
Six Sigma Project Methodology
Designing and Implementing a
New Process
Define
Measure
Analyze
Design
Verify
DMADV/DFSS
GE Six Sigma
What Is Six Sigma?What Is Six Sigma?
EnablerEnabler For Cultural ChangeFor Cultural Change
To be successful, 6 Sigma requires a radical change in the way an organization works.
Business Leadership and 6 Sigma can together transform a company
To be successful, 6 Sigma requires a radical change in the way an organization works.
Business Leadership and 6 Sigma can together transform a company
GE Six Sigma
Fundamentally Different Approach
EnablerEnabler for Changefor Change
Before6 Sigma:
1) Inspect the product2) Pareto the symptoms perceived as being the cause of out of spec material3) Initiate action to mitigate / eliminate the symptoms
With6 Sigma :
1) Measure the process output & analyze the data2) Discover quantitative relationships between the output & in-process variables3) Develop & implement control plan
Tough to achieve long-term sustainable improvement
Sustainable via In-process Control - no Product Inspection
GE Six SigmaSix Sigma Leadership
Team Members: Individuals who receive specific Six Sigma training and who support projects in their areas
Champions: Fully-trained business leaders who lead the deployment of Six Sigma in a significant area of the business
Black Belts: Fully -trained Six Sigma experts who lead improvement teams, work projects across the business and mentor Green Belts
Green Belts: Fully-trained individuals who apply Six Sigma skills to projects in their job areas
Master Black Belts: Fully-trained quality leaders responsible for Six Sigma strategy, training, mentoring, deployment and results
Leadership for Quality
MBB & BB Roles are Key
Leadership Development
Positions
MBB & BB Roles are Key
Leadership Development
Positions
GE Six Sigma
Champions (Part-Time) All Business
Leaders
Master Black Belts (MBB) 500
Black Belts (BB) 5,000
Green Belts (GB) 100,000
Six Sigma Associates 100%
Huge Resource shift - Only the Best chosen It’s like a MBA - Vital to your Career!
Huge Resource shift - Only the Best chosen It’s like a MBA - Vital to your Career!
Six Sigma Functions Resource Deployment @ GE ( # employees )
EnablerEnabler for Changefor Change
GE Six Sigma
Significantly Higher Net Income
Simpler Processes - Speed everywhere
True Focus on What the Customer Wants
Improved Employee Satisfaction
What isWhat is 6 Sigma6 Sigma
It’s all about Getting ResultsIt’s all about Getting ResultsIt’s all about Getting ResultsIt’s all about Getting Results
So What’s it Done for GE?So What’s it Done for GE? So What’s it Done for GE?So What’s it Done for GE?
GE Six Sigma
Six SigmaSix Sigma - Evolution in GE- Evolution in GE
Six SigmaSix Sigma - Results & Examples in GE- Results & Examples in GE
Six SigmaSix Sigma - Enabling GE e-Business- Enabling GE e-Business
What Does Six Sigma Do For GE? What Does Six Sigma Do For GE?
GE Six Sigma
7EvolutionEvolution in GEin GE
g 1995 Headlines
Six Sigma Evolution
1995 PRODUCTIVITY1995 PRODUCTIVITY
1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 2000 2001 2001+2001 2001+19951995TimeliTimeli
nene
GE Launches Six SigmaGE Launches Six SigmaThroughout CompanyThroughout Company
Focus :Focus :
Core ActivitiesCore Activities
Objective :Objective :
Productivity & AssetProductivity & AssetUtilizationUtilization
GE Six Sigma
7GE Turns to Six SigmaGE Turns to Six Sigma
For New ProductsFor New Products
Focus :Focus :
New Product DesignNew Product Design
Objective :Objective :
World Class CapabilityWorld Class Capabilityin the Market Placein the Market Place
g1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 2000 2001 2001+2001 2001+
Timeline
19971997
EvolutionEvolution in GEin GE
1997 Headlines
Six Sigma Evolution
GE Six Sigma
7GE Turns Six SigmaGE Turns Six Sigma
Loose at the CustomerLoose at the Customer
Focus :Focus :
Customer ProductivityCustomer Productivity& Value Add Services& Value Add Services
Objective :Objective :
Revenue GrowthRevenue Growth& Share Shift& Share Shift
g1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 2000 2001 2001+2001 2001+
Timeline
19981998
EvolutionEvolution in GEin GE
1998 Headlines
Six Sigma Evolution
GE Six Sigma
7Fulfillment ProcessesFulfillment Processesget Six Sigma Focusget Six Sigma Focus
Focus :Focus :
Meeting Customer RequestMeeting Customer Request
Objective :Objective :
e-Enabling our Businesse-Enabling our BusinessTransaction ProcessesTransaction Processes
g1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 2000 2001 2001+2001 2001+
Timeline
19991999
EvolutionEvolution in GEin GE
1999 Headlines
Six Sigma Evolution
GE Six Sigma
1995 1996 1997 1998 1999 2000 1995 1996 1997 1998 1999 2000
20012001Timeline
7Digitization at GE needsDigitization at GE needs
Six Sigma ExecutionSix Sigma Execution
Focus :Focus :
Automating Business Automating Business ProcessesProcesses
Objective :Objective :
Speed & Reliability on theSpeed & Reliability on theWeb @ Far Lower CostWeb @ Far Lower Cost
gEvolutionEvolution in GEin GE
2000 Headlines
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
$600$500$450$380$200
$2.5B
$1.2B
$700
$170
CostBenefit
1996
CostBenefit
1997
CostBenefit
1998
CostBenefit
1999
CostBenefit
2000
6 Sigma Cost6 Sigma ProductivityDelighting Customers
Results Results from 6 Sigmafrom 6 Sigma
$3.4 Billion in 2001 … Customers & Shareholders Love It!$3.4 Billion in 2001 … Customers & Shareholders Love It!$3.4 Billion in 2001 … Customers & Shareholders Love It!$3.4 Billion in 2001 … Customers & Shareholders Love It!
$3.5B
$500$500
$3.0B$3.0B
$600
$2.5B$2.5B
$900$900
$3.4B
Cost Benefit
2001
GE Six SigmaTying Six Sigma to the Bottom
Line
Six Sigma Projects
Impact on Operations
Data
Impact on Performance
Cost of FailurePremium Dollars
Investment Capital Dollars
Customer Contact
Binder Defect Data
Impact on Customers
SurveysScorecards
Dashboards
Reduce variationin processes, products &
services
ProjectSelection
ProjectSelection
•Volume•Pric
e
Productivity
CTQs Results
• Cycletime• Cash Flow• DPMO
• # Binders • Suppliers• Certs/$$
Summary
GE Six Sigma
Resources integrated in the BusinessesResources integrated in the Businesses
Global Database & Best Practice SharingGlobal Database & Best Practice Sharing
Common Approach / ToolsCommon Approach / Tools
Training & Certification on 6 Sigma skillsTraining & Certification on 6 Sigma skills
On-line Self Tutoring & ReferenceOn-line Self Tutoring & Reference
Technical & Financial Sign off on Quality Technical & Financial Sign off on Quality
All Projects Measured with the same RigorAll Projects Measured with the same Rigor
Institutionalized Process Delivering Quality EarningsInstitutionalized Process Delivering Quality EarningsInstitutionalized Process Delivering Quality EarningsInstitutionalized Process Delivering Quality Earnings
Six Sigma Infrastructure:
Results Results from 6 Sigmafrom 6 Sigma
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 1997 PRODUCT DESIGNPRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma Products Products from 6 Sigmafrom 6 Sigma
Abdomen: liver, spine, kidneyHead: skull, brain
GEMS LightSpeed CT ScannerGEMS LightSpeed CT Scanner 1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 1997 PRODUCT DESIGNPRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Unparalleled Resolution in a Fraction of the TimeUnparalleled Resolution in a Fraction of the TimeUnparalleled Resolution in a Fraction of the TimeUnparalleled Resolution in a Fraction of the Time
Abdomen: liver, spine, kidney
Head: skull, brain
Image Speeds Image Speeds
HEAD
SPINE
CHESTABDOMEN
PELVIS
LIVER
1 minute 19 seconds
9 million
2 minutes 15 seconds
1 million
3 minutes 17 seconds
4 million
20 seconds 06 seconds
6 million
Exam TimeBefore
Exam TimeAfter
Proceduresper Year
Products Products from 6 Sigmafrom 6 Sigma
GEMS LightSpeed CT ScannerGEMS LightSpeed CT Scanner
Before Before Before Before After After After After
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 1997 PRODUCT DESIGNPRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
• Hospitals Love ItHospitals Love ItBetter QualityBetter Quality - 10x more reliableHigher RevenuesHigher Revenues - more throughputNew technology firstNew technology first - better image quality
• Patients Love ItPatients Love It More Reliable & Earlier diagnosisMore Reliable & Earlier diagnosis Improved comfortImproved comfort - shorter exam time
• GE ShareholdersGE Shareholders Love ItLove It Higher RevenuesHigher Revenues - up more than 50%
GEMS LightSpeed CT ScannerGEMS LightSpeed CT Scanner
Exceeding All of the Customers’ ExpectationsExceeding All of the Customers’ ExpectationsExceeding All of the Customers’ ExpectationsExceeding All of the Customers’ Expectations
Products Products from 6 Sigmafrom 6 Sigma
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 1997 PRODUCT DESIGNPRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
1997Performix™ X-ray Tube
1998LightSpeed™ CTSmall Motor productsUltem 1285 Spectra™ Gas Range
1999 Spectra™ Electric RangeAdvantium™ Speed OvenTriton DishwasherCeramic Metal Halide LampsT5 Fluorescent LampSigna OpenSpeed™ MROQ 1050C for Compact DiscAC6000 Locomotive
2001 or later New Designs
5000 Projects focused on
New 6 Sigma Technology
&
New Processes to the GE
Businesses
All of GE Products Designed for Six SigmaAll of GE Products Designed for Six SigmaAll of GE Products Designed for Six SigmaAll of GE Products Designed for Six Sigma
Products Products from 6 Sigmafrom 6 Sigma
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 1997 PRODUCT DESIGNPRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma6 Sigma6 Sigma @ the Customer@ the Customer
200+ Black Belts Co-located at the Customer
Customer Determines Project Scope
Customer Determines & Verifies $ Benefits
Learn future needs ahead of Competition
6000 projects already completed
GE Share @ Customer grows as a result
Six Sigma Process :Six Sigma Process :
Helping Customers feel 6 Sigma….A Win-Win StrategyHelping Customers feel 6 Sigma….A Win-Win StrategyHelping Customers feel 6 Sigma….A Win-Win StrategyHelping Customers feel 6 Sigma….A Win-Win Strategy
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
19981998 @ THE CUSTOMER @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six SigmaCustomer CTQ Cycle
Customer visits•Issues collected from all levels ofcustomer organization
Miss-labeling from Bloomington
Poor packaging for resale
Damaged Goods from Mebane Small Pack
Damaged Goods from LA Warehouse
Issues prioritized•Mapped to current projects•Ranked by customer impact andease of implementation
Fix issues with Work-Outs•Relay customer feedback to ERCemployees & improve process together
Communicate successes •Monitor the fixes/process changes
for effectiveness
The Customer
Focused on Continuous ImprovementFocused on Continuous Improvement
GE Six Sigma
Floor Care Manufacturer
– Plastics
Airlines– Engines
Builders– Appliances
Hospitals– Medical
Retailers– Lighting– Appliances
OEMs– Vendor– CEF
Utilities– Power Sys.– Industrial Sys..
6 Sigma6 Sigma @ the Customer@ the Customer
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 1998 @ THE CUSTOMER @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Customer Issue• Assembly Line
Efficiency
Floor Care Floor Care ManufacturerManufacturer
– Plastics
Airlines– Engines
Builders– AppliancesHospitals
– Medical
Retailers– Lighting– Appliances
OEMs– Vendor– CEF
Utilities– Power Sys.– Industrial Sys..
6 Sigma6 Sigma @ the Customer@ the Customer
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
19981998 @ THE CUSTOMER @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Customer Issue• Assembly Line
Efficiency
Floor Care Floor Care ManufacturerManufacturer
– Plastics
Airlines– Engines
Builders– AppliancesHospitals
– Medical
Retailers– Lighting– Appliances
OEMs– Vendor– CEF
Utilities– Power Sys.– Industrial Sys..
Six Sigma @ the Customer• Six Sigma Approach identifies Factors impacting Work Flow
6 Sigma6 Sigma @ the Customer@ the Customer
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 1998 @ THE CUSTOMER@ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Customer Issue• Assembly Line
Efficiency
Floor Care Floor Care ManufacturerManufacturer
– Plastics
Airlines– Engines
Builders– AppliancesHospitals
– Medical
Retailers– Lighting– Appliances
OEMs– Vendor– CEF
Utilities– Power Sys.– Industrial Sys..
Customer Results• Output from 450 800 Units/Day• WIP 85%• $1MM Cost Out
Six Sigma @ the Customer• Six Sigma Approach identifies Factors impacting Work Flow
6 Sigma6 Sigma @ the Customer@ the Customer
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
19981998 @ THE CUSTOMER @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Customer Issue• Assembly Line
Efficiency
Customer Results• Output from 450 800 Units/Day• WIP 85%• $1MM Cost Out
Floor Care Floor Care ManufacturerManufacturer
– Plastics
Airlines– Engines
Builders– AppliancesHospitals
– Medical
Retailers– Lighting– Appliances
OEMs– Vendor– CEF
Utilities– Power Sys.– Industrial Sys..
Six Sigma @ the Customer• Six Sigma Approach identifies Factors impacting Work Flow
GE Results• 2MM lb. Share Shift• $1.5MM Growth Program
6 Sigma6 Sigma @ the Customer@ the Customer
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 1998 @ THE CUSTOMER @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Customer Results
GE Results
Output from 450 800 Units/Day
WIP 85%$1MM Cost Out
Floor Care Floor Care ManufacturerManufacturer
– Plastics
Airlines– Engines
Builders– AppliancesHospitals
– Medical
Retailers– Lighting– Appliances
OEMs– Vendor– CEF
Utilities– Power Sys.– Industrial Sys..
2MM lb. Share Shift$1.5MM Growth Program
Customers Gain Productivity….GE Rewarded with ShareCustomers Gain Productivity….GE Rewarded with ShareCustomers Gain Productivity….GE Rewarded with ShareCustomers Gain Productivity….GE Rewarded with Share
6 Sigma6 Sigma @ the Customer@ the Customer
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 1998 @ THE CUSTOMER @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Give CUSTOMERS What They Want
When They Want It
6 Sigma6 Sigma Fulfillment Fulfillment
“The fact that we’ve done Six Sigma for seven years is irrelevant to the customer, but if we can bring Six Sigma to life at a customer, it’s the whole game. “
Chairman and CEO, Jeff Immelt
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 1998 @ THE CUSTOMER@ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Delivery to Customer Want DateDelivery to Customer Want DateDelivery to Customer Want DateDelivery to Customer Want Date
But how early?h
But how early ?But how early ?
And how late?
On TimeOn Time
6 Sigma6 Sigma Fulfillment Fulfillment
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
19991999 FULFILLMENT FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
On TimeOn Time
Reducing Variation to Meet Customer RequestReducing Variation to Meet Customer RequestReducing Variation to Meet Customer RequestReducing Variation to Meet Customer Request
h
6 Sigma6 Sigma Fulfillment Fulfillment
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
19991999 FULFILLMENT FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Vari
ati
on
fro
m R
eq
uest
2/99 10/99 Today
17 Days 4 Days 2 Days
GE SiliconesGE Silicones - Delivery to Request
Sales Sales Double Digit Volume GrowthDouble Digit Volume GrowthInternet Internet Web Sales BoomingWeb Sales BoomingSales Force Sales Force More Time to Sell vs. Chasing Order StatusMore Time to Sell vs. Chasing Order StatusOp Margin Op Margin Up 20+%Up 20+%
Sales Sales Double Digit Volume GrowthDouble Digit Volume GrowthInternet Internet Web Sales BoomingWeb Sales BoomingSales Force Sales Force More Time to Sell vs. Chasing Order StatusMore Time to Sell vs. Chasing Order StatusOp Margin Op Margin Up 20+%Up 20+%
6 Sigma6 Sigma Fulfillment Fulfillment
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
19991999 FULFILLMENT FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Customer Power Plant
On-Time Operation Date
'98Baseline
2Q'99 3Q'99 4Q'99 2000Target
On-time Reliability gives Customer 100 days more Electricity SalesOn-time Reliability gives Customer 100 days more Electricity SalesOn-time Reliability gives Customer 100 days more Electricity SalesOn-time Reliability gives Customer 100 days more Electricity Sales
GE Power SystemsGE Power Systems - Delivery to Request
Customers’ Revenue Impacted
By Variation
230
133
48
350 Days
5 Days5 Days
302 Day Variation Reduction
302 Day Variation Reduction
6 Sigma6 Sigma Fulfillment Fulfillment
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
19991999 FULFILLMENT FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
• No Visibility to Business Processes
• Lots of Buffers– Salespeople, Order Service
• Cost of Poor Fulfillment – Inventory/ Expediting
Before Internet
• Internet Provides Visibility
• Differentiates Those Who Can and Those Who Can’t
• Highlights Internal Waste (Buffers)
• Cost of Failure – Fatal
Sell Make Service
Order Deliver
Internet World
Transactional Business Processes
Variation Reduction Key To Success In e-World Variation Reduction Key To Success In e-World Variation Reduction Key To Success In e-World Variation Reduction Key To Success In e-World
6 Sigma6 Sigma Fulfillment Fulfillment
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
19991999 FULFILLMENT FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
Meet Customer Request - Never be outdone
No Variation - “Must have” in e-World
Company Wide Goal - Always within 5 days
Drives Customer Satisfaction & Growth
Customer focused Internal Processes
Drives Speed & Simplicity
Six Sigma Fulfillment :
Enormous Rewards for 6 Sigma Fulfillment Enormous Rewards for 6 Sigma Fulfillment Enormous Rewards for 6 Sigma Fulfillment Enormous Rewards for 6 Sigma Fulfillment
6 Sigma6 Sigma Fulfillment Fulfillment
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma DigitizingDigitizing GE GE
Digitization at GEDigitization at GE
Focus :Focus :
Automating all Business Automating all Business ProcessesProcesses
Objective :Objective :
Speed, Reliability & ServiceSpeed, Reliability & Serviceon the Web at Much Lower Coston the Web at Much Lower Cost
Digitization - The Next Step In Customer Centricity & ProductivityDigitization - The Next Step In Customer Centricity & ProductivityDigitization - The Next Step In Customer Centricity & ProductivityDigitization - The Next Step In Customer Centricity & Productivity
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
GE Six Sigma
What Does Six SigmaSix Sigma Do For GE?
Six Sigma - Changing the Company DNASix Sigma - Changing the Company DNASix Sigma - Changing the Company DNASix Sigma - Changing the Company DNA
Drives Customer Centricity
Improves Product/Service Capability
Reduces Costs
Improves Performance Reliability
Foundation for e-Business/Digitization
EvolutionEvolution in GEin GE
1995 PRODUCTIVITY1995 PRODUCTIVITY
1997 PRODUCT DESIGN1997 PRODUCT DESIGN
1998 @ THE CUSTOMER1998 @ THE CUSTOMER
1999 FULFILLMENT1999 FULFILLMENT
2000 DIGITIZATION2000 DIGITIZATION
Six Sigma Evolution
2001 CERTIFICATION2001 CERTIFICATION
bSix SigmaSix Sigma