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General Electrics Quality Gamble

eering (and bottom-line benefits) through the implementation of statistical techniques. If an organization does not apply Six Sigma techniques wisely, it will fail. When this occurs there is the tendency to believe that the statistical techniques are ineffective, when in fact the real problem is how the program was implemented and/or how the techniques were not effectively applied.A good Six Sigma business strategy involves the measurement of how well business processes meet their objectives and offers strategies to make needed improvements. The application of techniques to all functions result in a very high level of quality at reduced costs with a reduction in cycle time, resulting in improved profitability and a competitive advantage. It needs to be emphasized that organizations do not need to use all the measurement units that might be associated with Six Sigma. It is most important to choose the best set of measurements for their situation and focus their emphasis on the wise integration of statistical and other improvement tools.Some companies how tried Six Sigma and have not shares the success as GE and Motorola. GE's success is due largely to the fact that it under went a culture change before implementing Six Sigma. An effort to focus the company, get good employees, a company wide change in thinking (boundaryless), and a change in the management processes, all took place before Six Sigma was inserted into the GE culture. The Benefits of Six Sigma.Corporations implementing Six Sigma experience a breakthrough in profitability. Breakthrough is achieved by reducing direct cost. Direct costs are driven down through Six Sigma projects, which are performed by Black Belts. (quality leaders) Having Black Belts in an organization will produce on an average $230,000 in cost reduction per project. In addition to the material and labor savings which flow directly to the bottom line, a company engaged in Six Sigma can expect to see: red...

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