Successful Lean Six Sigma application case studies and benefits (Part 2)

Besides the Allied Machine, many other large companies have also been very successful in applying Lean 6 Sigma, typically GE, Motorola, Ford, etc.

At Motorola, the 6 Sigma Program actually started in 1986. After just two years of launching 6 Sigma, Motorola won the Malcolm Baldrige National Quality Award. After about 10 years of application, in 1997, the results of 6 Sigma achieved were: The product consumed increased 5 times with the profit of approximately 20% a year; The accumulated savings are achieved through efforts made; Sigma is stable at 14 billion dollars; Motorola’s stock price increases 21.3% annually.

General Electric (GE) has been adopting 6 Sigma since 1995, when Jack Welch – GE’s senior leader set a goal of becoming 6 Sigma in 2000. GE has applied most of the Motorola’s 6 Sigma concept and method. The application of 6 Sigma has changed the attitude of workers towards quality and transformed it into customer services, increasing product reliability. Efforts to make 6 Sigma contributed $ 700 million to the company’s income in 1997, after only 2 years of program implementation.

Ford Vietnam began to deploy 6 Sigma, making process improvements in all areas of production and business with 200 6 Sigma projects. As a result, in 7 years of implementation, Ford has saved USD 1.2 million and achieved a customer satisfaction index of over 90% per year. Among the 6 Sigma projects that Ford Vietnam carried out, a typical project is the application of 6 Sigma to reduce the number of containers carrying components imported in 2005. It is noticed that the container of car components in the containers is imported. Importing into Vietnam still has a lot of space, Ford has rearranged the space for them. Because saving space is also a way to save costs and contribute to increased profits.

Overall, Lean Six Sigma develops a sense of ownership and accountability of employees. That increases their effectiveness in bringing about the success of the improvement project they are involved in. This benefit is often overlooked by Lean Six Sigma executives, but it is a great advantage that increases the chances of success of the next Lean Six Sigma projects and the whole business.

Productivity and Quality Office