Tuesday, July 17, 2007

“Quality is good. We like quality. Let’s all work toward better quality together.”

Similarly, a strong case for it was made over and over again. Everyone was told that if the company could reduce its shipand- fix mentality there would be enormous market share opportunities and significant cost savings. at’s why it was urgent to install Six Sigma, a statistical approach originally developed at Motorola, which would wring out variation and ensure products were built right the first time and delivered according to expectations. Now, when we say, “everyone was told,” we don’t mean a handful of senior executives stood on a stage once or twice a year and intoned, “Quality is good. We like quality. Let’s all work toward better quality together.” No, we mean managers throughout the company were in something of a little frenzy. Their message was more like, “Six Sigma is all that matters. You can’t get promoted or get a raise or stock options unless you become a true believer.”
Extreme? Of course. And yes, that extreme quality initially intruded on the activities of employees it shouldn’t have, like marketing types, designing an ad campaign. It also spawned more “look-whatwe- can-do!” presentations than were necessary. Indeed, in Six Sigma’s early days, the projected gains put forth in these kinds of presentations were roughly equal to the free world’s gross national product. Six Sigma did end up delivering billions of dollars from market share gains and productivity improvements, but not that much! And yet, if a company has any scale, we’d still make the case that Six Sigma demands a whole-organisation approach.
Yes, sometimes you make more noise (and work) than necessary, but when it comes to radical change, if you want to move the needle even a little, you have to holler a lot.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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