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The importance of quality has now been recognized by businesses for decades. However, there are many philosophies and programs that have been proposed and used in the elusive quest for increased quality. One of the more recent (and more successful) attempts at formalizing the approach to quality improvement is the Six Sigma initiative that was developed at Motorola (and later adopted in many other companies).
Identify a company that uses the Six Sigma quality improvement program other than the ones discussed in the textbook or the lecture pages (also, do not use the same company that you analyzed in W1 project, and that you will be discussing again in W3 project). For this company, answer the following questions:
What element of the organization’s activities did they use Six Sigma to improve?
What caused the company to undertake the Six Sigma initiative?
What were the positive results caused by the implementation of Six Sigma improvement processes?
Were there any problems associated with attempting to implement Six Sigma within the organization (this does not occur in every organization)?
Based on your research about this company and the readings for this week, would you say that Six Sigma is an important area of quality management? If so, why? If not, why not? +600 words
One example of a company that uses the Six Sigma quality improvement program is General Electric (GE). GE implemented Six Sigma as part of its overall effort to improve customer satisfaction and reduce costs. The element of the organization’s activities that they used Six Sigma to improve was their product design and manufacturing processes. This involved improving product quality, maximizing efficiency, reducing defects, and eliminating waste in production.
The main cause for GE to undertake their Six Sigma initiative was to ensure that their products met customer expectations while also saving money by reducing waste and increasing efficiency in their process. In addition, they wanted to increase employee involvement in solving problems within the organization. By encouraging employees to take ownership over projects related to quality improvement, it allowed them not only to make changes but also feel empowered within the company.
The positive results caused by implementing Six Sigma were significant cost savings for GE through improved productivity, fewer returns/refunds from customers due to increased product reliability and reduced defects in production processes, as well as better client service due to faster response times for queries about products or orders placed with GE. They also reported an estimated $1 billion dollars saved each year thanks to this system-wide approach towards improving quality across all aspects of operations at the company.
While there were some challenges associated with attempting implement Six Sigma within an organization such as GE (which has a large number of complex functions), they were mostly related logistical issues rather than conceptual ones since many people had difficulty understanding what exactly needed doing or how best it should be done. Additionally, some departments found themselves resistant towards change attempts that came along with introducing these new systems since they felt comfortable with existing methods even if those weren’t necessarily efficient or effective when compared against more modern approaches like those offered by Six Sigma initiatives.
Overall I would say that six sigma is an important area of quality management because it allows organizations like General Electric who are committed towards implementing continuous improvements in their operations and delivering high-quality services/products for customers are able utilize this system which provides both structure and direction for making sure any changes made actually result into tangible benefits rather than being just costly efforts without long-term impact on performance metrics across different aspects of business activities from sales & marketing all the way through production & shipping cycle stages too . As demonstrated by successful case studies such as those available from companies like Motorola & GE where teams could identify how specific process adjustments could bring quantifiable results it becomes clear why following 6Sigma principles must be considered essential practice when striving towards excellence especially during periods transitioning between various growth phases throughout commercial lifespan today!