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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Excerpts
Marrying Two Quality Initiatives
- Six Sigma at Alliedsignal
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According to industry observers, AlliedSignal's growth owed much to the top
management's focus on improving operational efficiency. Foremost among such
initiatives was the Six Sigma initiative introduced by Bossidy in 1994.
AlliedSignal implemented the Six Sigma Breakthrough Strategy, aimed at
increasing productivity by 6% every year in its industrial sectors.
As the company began realizing the benefits of Six Sigma implementation in
manufacturing processes, it decided to broad-base the Six Sigma implementation
exercise by applying it to other processes such as product development and
innovation.
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According to Barry Siadat (Siadat), AlliedSignal's Chief Growth Officer, Six
Sigma greatly increased the efficiency of the product development process.
The application of Six Sigma tools helped the company identify potential
risks and their impact, define the probability of occurrence, evaluate the
independent variables, reduce variability and maximize results. Thus, the
initiative enabled the company to make much more accurate product
development decisions...
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Developing and Implementing Six Sigma Plus
After the merger, Honeywell decided to integrate the best of
both Six Sigma and HQV and form a new, comprehensive quality management system.
According to company sources, the integration of these strong set of quality
disciplines was expected to result in huge cost savings and in creation of a
customer centric culture. This new quality management system created from
combining Six Sigma and HQV was referred to as Six Sigma Plus. Six Sigma Plus
was identified as a strategy aimed at measuring quality, improving growth and
productivity and achieving performance breakthroughs... |
Results & Problems
According to Honeywell sources, the most significant benefit of the Six Sigma
Plus initiative was that it enabled the company to understand the needs and
requirements of its customers. For instance, a tool named 'Voice of Customer'
helped gain feedback from customers, which helped the company design a new
customer relationship management system in 2000...
Excerpts Contd...>>
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