Chapter 21, Six Sigma and Beyond Summary and Analysis

Jack avoids the quality movement for years. By April 1995, employee surveys indicate quality is a main concern. Because of Jack's recent heart bypass, his colleague, Larry Bossidy, presents Six Sigma at the CEC meeting. Six Sigma requires fewer than 3.4 defects per million operations in a manufacturing or services environment. For GE, Six Sigma's quality increase will potentially save $7--$10 billion and increase sales 10 to 15 percent. A permanent head of Six Sigma is brought in. Jack gets positive feedback and weighs the elements: employees want it, the team loves it, Larry is enthusiastic about it, and the cost/benefits analysis cannot be ignored.

The program begins January 1996, changing the company's culture. "Black Belt" projects include improving call centers, increasing factory capacity, and reducing billing errors and inventory. "Green Belts" are trained to improve everyday...