Project description
Suggesting how quality improvement programmes have the potential to counteract a customer complaint or quality-related issue.
Noting similarities and differences between your quality improvement programmes with that of a classmate.
Offering contributions based upon the literature and your prior experience about the value and impact of continuous improvement.
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Hi Jack,
Thanks for the example of your company- let me add some more aspects from their Six Sigma implementations for GE.
Jack Welch, CEO of GE launched Six Sigma in mid 1990s and labelled it as the most ambitious task the company had ever taken (Welch, 2001 cited in Black & Revere, 2006). The process started by nominating a team of Master Black Belts who were to lead changes. Training was required to measure process output, to analyse process inputs, to enhance processes by altering inputs and to control processes by controlling inputs (Hendricks & Kelbaugh, 1998). Welch (1996 b cited in Henderson & Evans, 2000) remarked that GE chose doable performance targets and within companys capabilities but raised sights up to the next level towards higher goals.
By implementing Six Sigma, GE has achieved remarkable results:
Improved performance and financials after investing $ 380 in Six Sigma, majority was for training, benefits have resulted from increased productivity ($ 700 million), (Paul, 1999 cited in Henderson & Evans, 2000). Also, in 1997, GE Medical System saved $ 40 million (Conlin, 1998 cited in Henderson & Evans, 2000). GE operating margin went up to 15% from 10 %.
Improved customer satisfaction which was evident in shipping of 20 energy management systems 100% and on targeted date as compared to shipping six systems per year and poor delivery on time before 1997 (Bolze, 1998 cited in Henderson & Evans, 2000).
Improved product development which was evident in increasing lifespan of tubers in CAT scanners to four times as compared to earlier lifespan (Conlin, 1998 cited in Henderson & Evans, 2000). Product development cycles improved and within three months (as compared to one year), new internet-based management information products were introduced (Bolze, 1998 cited in Henderson & Evans, 2000).
Hendricks, C. A., Kelbaugh, R.L. (1998), Implementing Six Sigma at GE, Journal for Quality & Participation, Jul/Aug, 21 (4)
Henderson, K. M.; Evans, J. R. (2000), Successful implementation of Six Sigma: benchmarking General Electric Company, Benchmarking An International Journal, 7 (4), pp. 260-282
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