Six Sigma: Because Change is Constant

A Short History on Six Sigma

In order to run a business efficiently and effectively, constant improvement is essential. The idea of mass producing a part or product and then inspecting it later doesn’t add quality or value and can be expensive in labor costs. You’re paying someone to verify the work has been done, which wouldn’t improve performance on any level.

The Japanese automakers had an entirely different approach; they were focused on constant improvement of the product and the process* that created the product or part.

*A process in Six Sigma is a series of steps and actions that add value or quality or improves performance.

W. Edwards Deming was a statistician who was helping the Japanese to re-industrialize after the war. He would conduct seminars on his theory on management and analyzing the variances of the processes. He had a great influence on how the Japanese conducted business.

Meanwhile at Motorola…and G.E.

An engineer named Mikel Harry was focusing on the works of Deming and on deleting variances to improve quality, when Motorola’s CEO Bob Galvin caught wind of this theory and its success, eventually making this philosophy a way of life at Motorola.

Bob Galvin, CEO of Motorola, spread the word to all who would listen about the successes at Motorola. Motorola had reduced manufacturing costs by $1.4 billion from 1987-1994.

G.E. was listening and implemented Six Sigma and went on to save $12 billion over five years; today they have gone globally with Six Sigma methodology. They believe in Six Sigma and have made it part of their training culture.

Exceeding the customer’s expectations is the new normal. G.E. always strives towards being as close to zero defects as possible and their numbers show it.

Change is constant and it leads to variances; all activities that are done in a business setting should improve the quality, value or performance. The days of “if it ain’t broke, don’t fix it” are long gone. Many good businesses have gone under because attention to constant improvement wasn’t implemented.

Six Sigma: because change is constant. Learn more about our Six Sigma courses and services.