1

g

Mark SneeringerCynthia FanningGE AppliancesLouisville, KY

Six Sigma at GE Appliances

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g GE Appliances...

• More than 13,000,000 appliances per year• Hotpoint, GE, GE Profile, Monogram• 50,000 employees, worldwide• Products:

• Refrigerators• Ranges• Dishwashers• Laundry products• Microwave ovens• Air conditioners• Water products• Speed cooking ovens

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g Six Sigma History at GEA...

Late 1995: GE Corporate initiative launched• MBBs trained by Harry, corporate• MBBs train BBs, make business aware

1996: BB driven manufacturing project focus• dpmo and savings driven, “leap of faith”• MAIC methodology• 40% of IC determined by Six Sigma activity

1997: GB driven projects spreading from manufacturing• Huge training effort, all exempt by end of 1998• $ focus

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g

What is the scope of the problem?

What is the frequency of defects?

What variables control the output?

What are the best settings?

How do we keep from backsliding?

Define

Measure

Analyze

Improve

Control

The Six Sigma Process, “DMAIC”

To improve Y, control the key x’s

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g

•

550700

2000

1450

200380 450

170

1500

320

1050

-30

-500

0

500

1000

1500

2000

2500

1996 1997 1998 1999

$ M

illio

n

CostBenefitsNet

Six Sigma Financial Benefits

Significant impact on the bottom line

More important success metric than σ level

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g Six Sigma History at GEA...

Late 1995: GE Corporate initiative launched• MBBs trained by Harry, corporate• MBBs train BBs, make business aware

1996: BB driven manufacturing project focus• dpmo and savings driven, “leap of faith”• MAIC methodology• 40% of IC determined by Six Sigma activity

1997: GB driven projects spreading from manufacturing• Huge training effort, all exempt by end of 1998• $ focus

1998: DFSS introduced, all areas of the business involved• First NPI teams and trainers trained by Berryman

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g

Zst (technology)

“Shi

ft” (c

ontr

ol)*

* Shift = Zst - Zlt

1 5 60

1.5

3

DMAIC

GoalDFSS

DMAICDFSS

Both Essential to Meet GEA’s Quality Goals

Six Sigma Methodologies

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g

DFSS Statistical Analysis

USLLSL

{Range of PossibleInputs

X1

X2

Y=f(X1,X2...)

Y

Xn

NoiseEnv, Variable

DFSS Key Elements

• Hear the Voice of the Consumer

• Systems Engineering

• CTQ Flow Down

• Process Capability Flow Up

• Scorecards

• Robust Design

• Reliability

• Integrated with Rigorous NPI

Single Pilot/Prototype

LSL USLEngineering Selected

Pilot Inputs X1

X2

Y

Xn

NoiseEnv, Variable

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g GE Appliances Spectra Range

The Big Ys

Appearance

Performance

Capacity

Cleanability

Quality/Durability

Meeting Consumer Needs

Seamless Backguard

Glass Touch Electronic Controls

Industry’s Largest Oven

“Most Accurate Oven in America”

Hidden Bake Element

“Great Feeling” Hinge

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Industry’s Largest Oven Capacity• 35% Larger than Previous Product!• 25% Larger than Industry Average!

Before Spectra Spectra

Customer Cue - Capacity

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g Impact of Spectra…

• Consumer Union #1, three years running• Top 4 smooth top, top 3 gas, top 2 coil top

• Total number of ranges sold up slightly• Dollars up 25%, consumers are moving “up”• 2,000,000 sold in 2 years since introduction• Added third line to production facility

• Service Call Rate (SCR) down to 4.5%

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g Six Sigma History at GEA...

Late 1995: GE Corporate initiative launched• MBBs trained by Harry, corporate• MBBs train BBs, make business aware

1996: BB driven manufacturing project focus• dpmo and savings driven, “leap of faith”• MAIC methodology• 40% of IC determined by Six Sigma activity

1997: GB driven projects spreading from manufacturing• Huge training effort, all exempt by end of 1998• $ focus

1998: DFSS introduced, all areas of the business involved• First NPI teams and trainers trained by Berryman

1999: Making the customer feel Six Sigma•Commercial quality emphasis growing•Customer-centric measurements

2000-01: “Fulfillment”•What the customer wants, when they want it•DFSS product introductions in full gear

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g Keys to GE’s Six Sigma Success

• Six Sigma has become a key element of business strategy,directly linked to financial performance and customer satisfaction

• Six Sigma is viewed as more than a toolset for quality; it’s a cultural change, aimed at driving operational excellence and a customer-centric focus

• Six Sigma has been extended to Design for Six Sigma (DFSS) - the design of new products and business processes

• Still a Corporate Focus, 5 years after introduction

“This is the most important initiative this Company has ever undertaken. (It) will fundamentally change our Company forever.”

John F. Welch, Jr.Letter to GE Officers, May 18, 1996