Ge and Six Sigma

Running head: GE AND SIX SIGMA

MBA 550 / Resource Optimization

University of Phoenix

11/26/2007

Introduction

Six Sigma is a powerful breakthrough improvement business strategy that enables companies such as GE to use simple and powerful statistical methods to define the measures, analyze, improve, and control processes for achievements. Employees at GE are motivated by the Six Sigma program through various reward and recognition schemes. The goal of Six Sigma is to enable others how to understand both a simple and complex business solution and why it‘s the best answer to improve business. In today’s global business environment there is no room for errors which it can lead to customer satisfaction. This is why Six Sigma has become a part of today’s business culture especially for GE. “The best Six Sigma projects begin not inside the business but outside it, focused on answering the questions-how can we make customers more competitive?” (Pande, Neuman & Cavanagh, 2000, pg 6)

What is Six Sigma?

Six Sigma is a management philosophy that is strategic and disciplined, customer and process centric, data-driven, and represents a cross-functional approach to performance improvement aimed at the near-elimination of defects/errors from every product, process, and transaction. Six Sigma can be defined as a “highly technical method used by engineers and statisticians to fine-tune products and process” It can also be a way to measure goals or culture change that is based on business experiences. Six Sigma is highly disciplined process that helps us focuses on developing and delivering near-perfect products and services.

“Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process -- from manufacturing to transactional and from product to service.” (Isixisgma.com, 2007)

Three Key Elements

For GE there are three key elements of quality that they follow customer, process and employee. GE has strived in excellent quality of service that is why they have followed these three steps. First element is customers are the focus of top priority in dealing with GE, which they can also be defined as high quality. GE corporate values are so important to the company, that Jack Welch, the former CEO of the company, had them adorned and distributed to all GE employees, at every level of the company. They expect high performance, reliability, competitive pricing, on-time delivery, services, clear, and correct transaction. For GE this is a major impact on customer satisfaction and values and beliefs. “In every attribute that influences customer perception; we know that just being good is not enough. Delighting our customers is a necessity. Because if we don't do it, someone else will.” (GE.com, 2007)

The second element is the process