Six Sigma Implementation - Essay Example

A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can complete four to 6 projects per year. General Electric, one of the most successful companies implementing Six Sigma, has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail.

Since then, thousands of companies around the world have discovered the far reaching benefits of Six Sigma. There are two Six Sigma sub-methodologies commonly in use: DMAIC and DMADV. The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels.

It can also be employed if a current process requires more than just incremental improvement. . The Core Team defines and reviews Six Sigma projects progress, and acts as the political leader, removing the barriers for the project teams. The Master Black Belt acts as a technical coach and provides the knowledge of quality tools for the project team. There is typically one Master Black Belt for every 1,000 employees. The Black Belt controls the project. There are typically 10 to 20 Black Belts per 1,000 employees.

The Green Belt supports Black Belt. There are typically 3 to 5 Green Belts on the Project Team with the Black Belt. There are typically 300 Green Belts per 1,000 employees. Yellow Belts are the balance of your population. They provide information and support to the Six Sigma project teams, and are a source for future Green Belts. The MAIC discipline sets up a clear protocol to expedite internal communication. The incentive system facilitates Six Sigma projects to generate results.Situation: Need for Implementation of Six SigmaBy 2001, the US-based General Electric Company (GE) was easily the largest diversified company in the world, with revenues of $ 125.

91 billion and net earnings of $ 13.68 billion. Out of the company's 24 different businesses, some were so large that they could independently feature in the Fortune 500 list of companies. GE had operations in over 100 countries more than 250 manufacturing plants in 26 countries. The company was one of the largest employers in the world with strength of around 275,000 employees. GE remained the only company listed in the Dow Jones Industrial Index that had been included in the original index in 1896.

The aim of implementing Six Sigma at GE was to infuse quality in