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COVER STORY
GE's Secret Weapon
Contd...
6 sigma customer focus
The walls of one of the ground-floor
conference rooms at GE Capital's Gurgaon office and almost every hardboard
at the neighbouring GEcis centre are festooned with laser prints of graphs
and dials that look surprisingly like an automobile's dashboard. These are
customer dashboards-there's one for every major customer-which indicate
customer CTQs, and process dashboards, which measure how close, or far,
the process is from meeting them. Your processes could be 6s and the
customer could never know it. At the very core of each of GE's 6s
initiatives are customer CTQs. Pramod Bhasin, the 47-year-old CEO of GE
Capital, is partial to a metaphor that originated, arguably, in GE's
aircraft engines business: wing to wing. The import of this metaphor? The
customer isn't concerned about how fast your engine overhaul process is;
what matters to him is the time that elapses between the time you take the
engine off the wing for maintenance, and the time you re-install it. Avers
Bhasin: ''6s is getting to be the most efficient and the fastest way of
delivering service to the customer.'' Seconds Pradeep Bhargava, 51, the
CEO of the Bangalore-based GE Lighting: ''Six Sigma can make a significant
difference to the 3 things that are important to the customer: quality,
cost, and delivery.'' Last word: 6s @ GE works better because it is
focused on improving business processes to deliver better
customer-service.
6 sigma leadership
Leading a 6s organisation like GE is based on
a simple premise: 6s is an enabling initiative. Explains Bayman: ''When we
adopted Six Sigma, one of the things we decided was that it would not be a
quality initiative, but something that changed the very fabric of the
company-how we worked.'' It isn't easy being the leader of an organisation
that is adopting 6s. The commitment to resources it necessitates could end
up shaking up the most intrepid of CEOs. GE, for instance, gets its best
people to work on Black Belt projects, and finds replacements to handle
their responsibilities. The company benefits in 2 ways from this: one, it
manages to get its best employees involved in creating efficient processes
or rendering existing ones more efficient; and two, when, at the end of 18
months, these people take up a functional role again, the company finds
itself with an employee who looks at every little thing the Six Sigma way.
''We never realised it, but 6s is turning out to be a great employee
development tool,'' boasts Bayman.
The most important role a leader can play in
a company's 6s efforts is to create the ideal setting for it. Concurs Anil
Sharma, 39, Regional Training Manager (India), General Electric
International Operations: ''The leader has to create a culture of
openness. You can't implement Six Sigma in an organisation where there is
a culture of fear. Or where there are too many hierarchies.'' Last word:
6s@GE works better because the company uses the ideal leadership
techniques.
Integral to the 6s practices at GE's
businesses are 6s support tools. Six Sigma is a statistics heavy
technique, but the use of software-enabled tools like Minitab-a package
that performs complex statistical tests on raw data fed in by the
user-makes things easy. All the Black Belt (or the Green Belt) working on
a project needs to know is when to use what test. For instance, to
evaluate the efficiencies (as measured by variations in output), of
alternative processes, CEO M.K.Trisal's team at GE Motors turned to a
statistical technique called anova (Analysis Of Variances). Explains Raj
Thiagarajan, 57, who with his shocking mane of white hair and a bristling
white beard looks every inch what he is-the spirit of GE's 6s initiatives:
''6s is the ideal tool for sharpening the decision-making process in
companies. It helps companies collect data, translate it into information,
and inter-pret this information. One need not know mathematics as software
like minitab helps translate data into information.''
With 4,000 Black Belts and 10,000 Green Belts
across its businesses, and 6s related savings of $2 billion in 1999 alone
(6s-related training costs: $465 million), GE, globally, today is a
comprehensive 6s company. With its 4-pronged approach the company has been
able to emulate this in India too. CEO Bayman expects the 6s culture to
become part of the organisational exoskeleton and impact all the company's
'next-big' initiatives. That includes Jack Welch's fourth objective for
GE, after Globalisation, Services, and Six Sigma: e-Biz.
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