General Electric saved $700 million by implementing the Six Sigma methodology

The Six Sigma method was introduced in the company in the mid-1990s under the leadership of then CEO Jack Welch. Six Sigma is a process methodology focused on improving quality and eliminating errors in production and non-production processes. You can learn more about the benefits in our article The Six Sigma Method and its benefits.

How GE implemented Six Sigma

GE began the implementation with extensive employee training. Each of them had to complete a 13-day (100-hour) training course focused on the use of Six Sigma in the workplace. The training covered various areas, including the use of the DMAIC method. Employees learned to define and identify processes, measure their outputs and analyze the criticality of inputs. They also learned how to suggest improvements by modifying these inputs. They have acquired knowledge of process control through the control of relevant inputs. After completing the course, additional training followed, which was supposed to strengthen the newly acquired skills and help to use them effectively.

In addition to training, the role of Master Black Belt mentors who guided staff and provided professional guidance was a key element of success. The next step was to link the bonuses of senior management with the achieved improvement results, which ensured strong motivation for all involved.

Results and benefits of Six Sigma at GE

Thanks to Six Sigma, General Electric achieved

1) improving the quality of its products,

2) reduction of production costs,

3) an overall revolution in corporate culture.

The result was a reduction in service calls and an increase in product reliability, bringing the company $700 million in corporate benefits in 1997.

Six Sigma in today's GE

General Electric still uses the Six Sigma methodology today, which helps it maintain a competitive advantage and increase customer satisfaction. Although there have been reports of changes in the Six Sigma approach in recent years, the methodology still remains an important company tool and continues to influence the way GE operates.

Become a Six Sigma expert

Our courses prepare you not only for certification but also for the practical application of this method. Sign up today:

Name	Code	Language	Course duration	Form	Event date	Price
Six Sigma Yellow Belt	PU23010126-0002		2 days	virtual classroom Online training with a lecturer at a specific time. virtual classroom	open term	14 000 Kč
Six Sigma Green Belt	PU23010130-0001		5 days	virtual classroom Online training with a lecturer at a specific time. virtual classroom	open term	32 000 Kč