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

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.

Operations Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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...

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...

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