Six Sigma Deployment

Chapter 13: Enhancing Six Sigma to Deliver Highest Performance at Lowest Cost

Even though Motorola saved over $2 billion in operational costs through Six Sigma, it is struggling today. Polaroid, another major corporation that derived significant benefits from Six Sigma, has filed for bankruptcy. So, why is the promise of significant benefits not delivering long-term results in some organizations? The authors' review of this issue has led to an enhanced approach that provides sustained performance improvement by combining a regular strategic planning cycle with the use of Six Sigma as a methodology to achieve the strategic objectives of the organization.

The Traditional Approach to Six Sigma Is a Bottom-Up Approach

Since their innovation by the late Bill Smith of Motorola (Schaumburg, IL), Six Sigma concepts have been widely utilized in electronics and other industries. Having worked with Bill Smith in 1987 88, we can safely say that Bill probably never dreamed that one day his idea of measuring products and services would become an industry in itself. He would be proud of the publicity his innovative thinking is receiving. But, at the same time, he would be amazed to know how the scope of Six Sigma has changed over time. Corporations such as GE, Motorola, Allied Signal, ABB, DuPont, Dow Chemical, and others have used Six Sigma as the primary tool to achieve their profitability improvement objectives.

Six Sigma is a measure of the effectiveness with which products and services are delivered. It encompasses the entire supply chain, ensuring quality at every step of the process. Higher sigma means better quality, and lower...

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