I the late 1990s were all about expanding services

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i. The late 1990s were all about expanding services and globalization
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j. The made the largest deal in 1999 by purchasing the leasing business of Japan Leasing Corporation with $7 billion bid, the largest acquisition k. Had little time value for old ways of doing business or bureaucracy l. Company went from $14 million to more than $410 billion during Jack Welch’s tenure vi. Known as “Manager of the Century” vii. Credited for bringing Six-Sigma to GE E. Six-Sigma i. Business management strategy started by Motorola in 1981 and adopted by GE in 1995 under Jack Welch’s leadership ii. Focuses on total quality management 1. “…managing the entire organization so that it excels on all dimensions of products and services that are important to the customers.” (Aquilano, Chase, and Jacobs 308) 2. Two fundamental operational goals a. Careful design of the product or services b. Ensuring that the organization’s systems can consistently produce the design iii. Analytical and statistical tool to reduce the number of defects 1. Insert The Goals of Six Sigma diagram to further demonstrate 2. There are many tools being used by different companies iv. “When we launched Six-Sigma in 1995, for example, we asked employees if they agreed or disagreed with the statement, “Actions taken by this business clearly show that quality is a top priority.” Some 19 percent of our top 700 senior executive disagreed. In 2000, that dropped to 8 percent. In 1995, in our 3,000-person executive band population, a quarter disagreed. Five years later, that number was down to 9 percent.” (Welch 299)
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v. Welch appointed Gary Reiner as the permanent head of Six-Sigma to transform GE from a great company to the best (Welch 330) vi. Six-Sigma initiated the idea of “span” which is to ask the customer what they want when they want it 1. It made GE leave their previous calculations of averages and focus on variations 2. Customers felt the improvement directly a. Example – Plastic Business reduced span from 50 days to 5 days b. Example – Aircraft Engines were reduced from 80 to 5 days c. Example – Mortgage insurance were reduced from 54 to 1 day vii. Need for improvement in the quality of how processes are outputted viii. Need for less errors and less variability in manufacturing and business process ix. Currently, Six-Sigma certification available 1. Master Black Belt 2. Black Belt 3. Green Belt II. The Implementation of Six-Sigma at GE A. Six-Sigma DMAIC Cycle i. Insert Six Sigma Quality DMAIC Cycle diagram ii. DMAIC 1. Define 2. Measure 3. Analyze 4. Improve
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5. Control B. Six-Sigma started with Jack Welch i. Jack Welch became CEO of GE in 1981 ii. Jack Welch’s strategy 1. Wanted to be a product leader - #1 or #2 iii. The actions leading up to Six-Sigma 1. Expected higher productivity from the employees 2. Cut inventories & closed down factories 3. Break down the bureaucracy – took away the nine layers of hierarchy 4. Cut back payroll 5. Fired low performers –bottom 10% of the managers 6. Rewarded top 20% iv. Became known as “Neutron Jack” v. Reputation for firing employees vi.
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