Six Sigma
Companies
In the world of
Six Sigma Companies, the term sigma has come to signify how well a
business process, product, or service is meeting the requirements of
the market-place. One
of the most important learning’s of Six Sigma Companies over the
past five-years has been that a strong support system, often
referred to as an organizational infrastructure or management
system, is a critical element of Six Sigma success.
While hundreds
of companies currently employ Six Sigma Black Belts, fewer than
two-dozen have put in place the support systems necessary to achieve
true breakthrough improvement. Without the supporting
infrastructure, Six Sigma becomes a contributor to better continuous
improvement, but not breakthrough improvement. Six Sigma Companies
typically spend less than 5 percent of their revenues addressing and
repairing quality problems.
Six Sigma
Companies have become more consistent and efficient producers or
service providers. Six Sigma Companies can achieve radical
improvements in their cost structure and ultimate
profitability.
The ultimate
goal is to create Six Sigma Companies—companies whose systems and
processes are as perfect as possible, functioning at their best
performance level. Successful Six Sigma Companies install a steering
committee—often called a “Quality Council”—to make decisions about
projects, especially about tying their selection to business
strategy and customer needs, implementing improvements, and reward
and recognition.
Not only in US,
but within the UK, thousands of
companies are aware of Six Sigma and are planning to introduce it to
their businesses; some have already adopted it to great effect. The
most advanced companies are three years or more into their programs
with the culture well and truly in place. They have absorbed the Six
Sigma philosophy completely into their operations and are already
reaping the rewards. One of the major thrusts in Six Sigma Companies
has been to create highly-trained experts, assigned full-time (for
an extended period) to organize teams for improvement projects. For
Six Sigma Companies, process improvement needs to be included in
every business practice, including those jobs that are considered
indirect labor or non-revenue
producing.
Six Sigma has
been launched all over the world and many companies testify to its
pivotal role in their success. Well-known examples of Six Sigma
companies include: Motorola, General Electric, AlliedSignal (now
Honeywell), ABB, Lockheed Martin, Polaroid, Sony, Honda, American
Express, Ford, Lear Corporation and
Solectron.
Six Sigma
Companies mean that they consistently produce their
products/services less than 3.4 defects per million opportunities.
Six Sigma Companies look for problems and then define, measure,
analyze, improve and control defects.
As a result of
the Six Sigma program, companies can save on materials and labor.
Six Sigma Companies are enjoying other benefits such
as:
- Decreased
work-in-progress
- Improved
capacity and output
- Improved
customer satisfaction and process flow
- Improved
inventory turns
- Increased
productivity
- Reduced cycle
times
When executed
correctly, the Six Sigma program can result in financial payoffs to
a company within a short period of
time.