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E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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Page 1: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

bWhat Is Six Sigma?What Is Six Sigma?

Page 2: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 3: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler 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?

Page 4: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 5: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 6: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 7: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 8: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 9: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 10: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 11: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 12: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 13: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 14: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture 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?

Page 15: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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?

Page 16: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 17: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 18: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 19: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 20: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 21: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 22: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 23: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 24: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 25: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 26: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 27: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 28: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 29: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 30: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 31: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 32: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 33: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 34: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 35: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 36: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 37: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 38: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 39: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 40: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 41: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 42: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 43: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 44: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

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

Page 45: E What Is Six Sigma?. GE Six Sigma What Is Six Sigma? Measure of Quality Process For Continuous Improvement Enabler for Culture Change.

bSix SigmaSix Sigma