Introduction Six Sigma is adopted by organizations so that they can increase their revenue. The method of Six Sigma tends to use quality management, i. e. it is a process that helps an organization to improve is operations along with its performance in a timely manner. The process of Six Sigma is a combination of total quality management, zero defects and quality control. Company Background The organization chosen for this paper is General Electric (GE). GE is a multinational conglomerate.
GE operates in four segments; consumer & industrial, capital finance, energy and technology infrastructure. GE has been ranked as the 6th largest organization in US in 2011 by Fortune 500 in terms of gross revenue. The revenue of the company as of 2012 is $147. 3 billion. The number of people employed by the company is 301,000 all over the world. (GE, 2013) Selection of Six Sigma Methodology for GE The quality program Six Sigma was selected for GE, because the company believes that there should not be any kinds of defects present within the operations.
Therefore with the implementation of the Six Sigma method the company would be able to find out how many defects are present within the organization’s processes and it would help them to eliminate the errors so that it reaches almost to zero defects. (Daft, 2008) Organization’s Performance Enhanced by Six Sigma Six Sigma methods can be considered as an organizational approach that tends to improve the services, products and operations of the company in a continuous manner by decreasing deficiency.
Six Sigma can also be considered as a business strategy, why because it tends to focus on improving customer satisfaction, productivity levels, financial performance and the business systems of the company. With the implementation of the method an organization like GE will be able to prolong its competitive advantage within the industry by incorporating Six Sigma with the company’s engineering, project management and statistics. With the implementation of Six Sigma to the business model of the company, GE will be able to capitalize on opportunities that come towards the organization.
There are several benefits that a company can find attractive, when the method is applied, some of the benefits are a follows; •Success; i. e. it can be said that the success which generated with the application of Six Sigma is sustainable. And the only way through which a company like GE can sustain a high level of growth is through innovation. The process of Six Sigma tends to create culture and skills that help with continuous improvement cycle. •Performance Goal Standards;
Six Sigma tends to set a performance target for all the employees within GE, i. e. it tends to provide a common goal for all the departments and employees to achieve in regards to perfection, i. e. zero defects. •Customer Value; the customer value is enhanced, i. e. with the help of the method the GE will is able to understand the wants and needs of the customers and them providing them with a product or service that is beyond their expectations. (Basu & Wright, 2012)
•Learning; learning is promoted within the organization with the help of Six Sigma. GE can use this method as a learning tool to manage the operations and consider it as a critical factor for its success within the industry.
•Improvement in Performance; with the implementation of Six Sigma, GE will be able to stay ahead from its competitors. This is done by identifying the defects and taking corrective actions before they take place along with updating the requirements of the organization in a continuous manner. (Basu & Wright, 2012) References Basu, R & Wright, J. N, (2012), Quality beyond Six Sigma. Great Britain: Routledge Daft, R L. (2008), New Era of Management. USA: Cengage Learning General Electric, (2013), Official Website – Our Company.