The Six Sigma 'Plus' Quality Initiative at Honeywell

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Case Details:

Case Code : OPER024
Case Length : 16 Pages
Period : 2003
Organization : Amazon.com
Pub Date : 2003
Teaching Note : Available
Countries : USA, Global
Industry : Online Retailing

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Integration of Forces Contd...

To reap further benefits from the merger, Honeywell decided to integrate the quality management initiatives of both the companies. Thus, in December 1999, it announced plans to build on AlliedSignal's existing efforts in order to implement a world-renowned quality initiative, known as Six Sigma.³

Commenting on this, Bonsignore said, "We will perpetuate a broad and far-reaching Six Sigma discipline throughout the new Honeywell to create added value for our shareowners and our customers."⁴ The decision to create a broad Six Sigma discipline which was not just confined to processes, but to the various functional areas as well resulted in the creation of the Six Sigma Plus System.

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This unique system was formed by the integration of both AlliedSignal's and Honeywell's quality systems viz. Six Sigma and Honeywell Quality Value (HQV), respectively.

Background Note

Honeywell Inc.

The history of Honeywell dates back to 1886, when one Albert Butz (Butz) established the Thermo-Electric Regulator Co. in Minneapolis. It was set up to market a furnace regulator and alarm invented by Butz. In 1893, The Consolidated Temperature Controlling Co. acquired the Thermo-Electric Regulator Co. and the patent rights to Butz's invention. In the same year, the company changed its name to Electric Heat Regulator Co. In 1898, Electric Heat Regulator Co. was acquired by W.R Sweatt (Sweatt).

In 1912, Electric Heat Regulator Co. changed its name to Minneapolis Heat Regulator Company. By 1916, it expanded its product line to include electric motors, which it patented in the same year. In 1927, the company merged with Honeywell Heating Specialty Co (HHS). HHS had been established by Mark Honeywell in 1906, and specialized in hot water heat generators...

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3] Six Sigma is a well-structured, data-driven methodology for eliminating defects, waste, and quality control problems in all business activities. It is a sophisticated quality program that helps reduce defects to 3.4 per million opportunities. The program focuses on streamlining all the processes in the organization to improve productivity and reduce capital outlays while increasing the quality, speed and efficiency of the operations (See Exhibit I for a note on Six Sigma and the Six Sigma Breakthrough Strategy).

4] AlliedSignal-Honeywell Merger Receives Clearance From European Commission, www.fibersource.com, December 01, 1999.