Lean Six Sigma

The foundations of the Six Sigma method were laid when Motorola recognised the importance of mapping its various processes and measuring the variations in these processes. Motorola’s success in improving its processes was put down to its management philosophy (Eckes, 2003) which was later dubbed the Six Sigma method. Following numerous discussions between Bob Galvin (CEO Motorola) and Lawrence Bossidy (CEO AlliedSignal) the Six Sigma philosophy was shared with AlliedSignal. With Six Sigma, former General Electric (GE) executive and new CEO of AlliedSignal, Lawrence Bossidy was able to steer the company out of spiralling decline and transform it into a successful organisation. Jack Welch, then CEO of GE, was very enthusiastic about his former colleague’s success formula.

In 1995, Six Sigma was applied throughout GE’s entire organisation, and with visible success. The emphasis on managerial involvement, striving for the Six Sigma level and the focus on efficiency and effectiveness lead to cost savings of $320 mil in two years. In the third year, savings of more than $1 bil were reported (Eckes, 2003). More and more organisations became interested thanks to GE’s successes and the Six Sigma method quickly spread throughout the globe.