GE Six Sigma

GE Six Sigma denotes the six strategies implemented by GE in the company for overall improvements in all its divisions. The legendary CEO, Mr. Welch was impressed with the concept and it was his initiative to deploy it in the organization. They followed certain strategies and steps during the process and started it with a workout process in 1988. Final implementation took place in 1995. The employees of the company were assigned specific projects and responsibilities and they were also imparted proper training and were given power to execute the related steps. This was the secret behind the success of GE Six Sigma.

GE Six Sigma is known to the world for its success as an endeavor. The General Electric Company is a US based company, which generated revenues worth $125.91 billion by the year 2001. The company has explored a number of business fields like finance, plastic, compact discs, consumer goods and many more, and emerged as a winner. It aims to achieve ultimate customer contentment and in order to get this, it puts emphasis on research and development tasks. “GE Research and Development Center” is considered as one of the leading and most wide-spread laboratories across the globe. The laboratory features technical experts, engineers and scientists, who invest their time and talent to improve the business and product quality of the company. But, in the 1990’s, quality parameters and customer satisfaction turned to be a major concern for this company.

This was when the then CEO of GE, Mr. Jack Welch, decided to implement Six Sigma in his company, inspired by the remarkable results achieved by Motorola. Though he was slightly dicey about the practical results of Six Sigma, but he was impressed by the concept and strategies and this resulted in Six Sigma implementation in GE in 1995. Following are a few facts about GE Six Sigma:

  • Motive of GE Six Sigma: Six Sigma is a logical methodology that is driven by data. It is essential for controlling the desired quality of product, service or any other factor. As GE is a diversified company, rather group of companies, they needed to implement the methodologies for overall improvement. The data analysis techniques, statistical tools and communicative measures of Six Sigma proved to be really useful for the company. The sophisticated and well-calculated procedures of Six Sigma can effectively reduce the errors and defects up to 3.4 for per million opportunities grabbed and explored by a company. This was a necessity of GE and the objective was accomplished after deployment of Six Sigma.
  • Execution of GE Six Sigma: GE Six Sigma was implemented after estimating the existing processes and outputs of the company. Initially, the company was running with a 3 or 4 Sigma program, where the defect level was as high as 35000 defects per million opportunities. Once it was decided that GE will implement Six Sigma in its infrastructure, the underpinning started in 1988 through a work out program called “WorkOut”. As employees make the foundation of a company, the first step of GE Six Sigma was to influence and prepare them for a successful deployment. The steps and goals set for the Six Sigma implementation were as follows:
    • Building Trust:  The employees of GE were encouraged and inspired to pass judgments on the management policies and strategies. They were assured about the fact that no negative consequences will occur to their position or career because of frank opinions. In fact, this helped significantly to understand and assess the strategies that should yield better results for the company.
    • Assigning Tasks to Skilled Employees: The management of GE took special initiative in selecting and assigning tasks to those employees who had the potential and proficiency for accomplishing that particular job. They were further persuaded and endowed with power to plan and take required steps.
  • Benefits of GE Six Sigma: The Six Sigma analysts felt that GE Six Sigma strategies aided Mr. Jack Welch provide a complete make over to this old-economy business monster and turn it into a spirited and emergent company. The most important fact is that, no other organization has emerged as successful as GE after implementing Six Sigma. GE generated $ 2.5 billion worth benefits and the positive effects were also seen in the increased share value of the company. The main aspects of an organization- employee satisfaction, customer-satisfaction and product-quality, all of the three departments experienced sheer improvement, which is the triumph of GE Six Sigma.

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