The extraordinary breakthrough management program—heralded
by GE, Motorola, and AlliedSignal—that is sweeping corporate America with its
unprecedented ability to achieve superior financial results.
Six Sigma is the most powerful breakthrough management tool
ever devised, promising increased market share, cost reductions, and dramatic
improvements in bottom-line profitability for companies of any size. The
darling of Wall Street, it has become the mantra of Fortune 500 boardrooms
around the world because it works.
What is Six Sigma? It is first and foremost a business
process that enables companies to increase profits dramatically by streamlining
operations, improving quality, and eliminating defects or mistakes in
everything a company does, from filling out purchase orders to manufacturing
airplane engines. While traditional quality programs have focused on detecting
and correcting defects, Six Sigma encompasses something broader: It provides
specific methods to recreate the process itself so that defects are never
produced in the first place.
Most companies operate at a three- to four-sigma level,
where the cost of defects is roughly 20 to 30 percent of revenues. By
approaching Six Sigma—fewer than one defect per 3.4 million opportunities—the
cost of quality drops to less than 1 percent of sales.
This is because the highest quality also results in the
lowest costs. When GE reduced its costs from 20 percent to less than 10
percent, it saved a billion dollars in just two years--money that goes directly
to the bottom line. This is the reason Wall Street and corporations as diverse
as Sony, Ford, Nokia, Texas Instruments, Canon, Hitachi, Lockheed Martin,
American Express, Toshiba, DuPont, and Polaroid have embarked on corporate-wide
Six Sigma programs.
Six Sigma should be of paramount importance to every
forward-thinking executive and manager determined to make their company
world-class in their industry. Download and start listening now!