perspective mngt

8/7/2019 perspective mngt

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Case studyCase study--Six sigma at G.E.Six sigma at G.E.

GROUP MEMBERS NAME ROLL NO.

V. SHILPA 174

VIDHI SANGHAVI176

VIKRAM ADHYAPAK 178

VINAYAK KULKARNI 180

WASIM BAGWAN 182

YASHODHAN RAJWADE 184

ZAID NOORANI 186


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Introduction of G EIntroduction of G E

General Electric businesses listed in fortune 500.

It operated in more than 100 countries and had

over 250 manufacturing plants in 26 countries.

It had a strong presence in the financial services,consumer durable goods and entertainment

business.

G E had strong focus on R&D and quality since its

inception.

GEs products ranged from small compact discs to

powerful locomotives.


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Role of Jack Welch as C.E.ORole of Jack Welch as C.E.O

Jack Welch was the C.E.O of General Electronic

Co.

Welch was not happy about the earlier

theoretical programs because they were notshowing substantial result.

He implemented six sigma concept in GE during

1995

He transformed old economic giant in to a

competitive and growing company


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Leadership Style of Jack WelchLeadership Style of Jack Welch

Jack Welch adopted Democratic / Participative style of

leadership

He realized that employees are important source for

intellectual power for new and creative ideaHe gave emphases on co-operation and participation to

achieve maximum potential

He made efforts to avoid bureaucracy and create new

culture


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Initiatives taken by JackInitiatives taken by Jack

WelchWelchJack Welch implemented six sigma quality technique atGE

The ground work of the six sigma began in 1988 through

a Work out Program at GE and he decided to implement itin 1995

He started training for every manager, supervisor and

workers at GE through seminars and training programs to

spread awarenessImplemented a tool known as Customer Dash Board


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What is Six SigmaWhat is Six Sigma

Six Sigma is a methodology for eliminating defects, waste andQ.C problems

It is based on statistical control techniques, ND curve and

Data Analyses method

The key concept of Six Sigma are :

Defect

Variation

CTQ

Process Capability

Design for Six Sigma


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ND CurveND Curve


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Sigma quality levelsSigma quality levels

SIGMA LEVELSDEFECTS PER

MILLION COST OF

QUALITY

2 308537 N A

3 66,807 25-40% OF SALES

4 6,200 15-25% OF SALES

5 233 5-15% OF SALES

6 3.4


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Breakthrough StrategyBreakthrough Strategy

This strategy has eight fundamental stages to achieve six

sigma

They are classified as RDMAIC

R- Recognize

D- Define

M- Measure

A Analyze

I Improve C- Control Standardize and Integrate

The RDMAIC is applied at Business, Operations, Process

level


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Use of Belts in Six SigmaUse of Belts in Six Sigma

Different belts were implemented by GE to achieve Six Sigma

1.Champions : They are selected from the ranks of executives and

managers. They select black belts candidates, identifying project areas and

establish rules.

2.Master Black Belts : They serve as a mentor, trainer and guide. The

black belts are expert in six sigma tools and are generally technical and

historical experts.

3.Green Belt : They assist black belt in their functional area, work on

projects on part-time usually in a limited area. They help in collecting data,

run experiments and conduct other important task in projects.


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Six sigma hierarchySix sigma hierarchy


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Success of GESuccess of GE

Within five years of implementation annual

benefits was more than 2.5 billion dollars.

In 1998 companys revenues increased by 11% and

net earnings went up by 13%

GE capital achieved 62% reduction in turnaround

time and was 3 times faster than its competitors.

Six sigma transformed every product and process

at GE


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CONCLUSIONCONCLUSIONWith the objective ofJack Welch to make G E as

six sigma company in 2000 G E became the largest

diversified company in 2001 with the revenues of

$125.91 billion and net earning $ 13.68 billion.

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