Six Sigma Quality Program Of Motorola Accounting Essay

Motorola is the innovator in presenting the Six Sigma quality plan. The company has won the Malcolm Baldrige National Quality Award twice in 1988 and 2002. The instance discusses the fortunes that led to the development of Six Sigma in Motorola. It explains in item how Six Sigma was implemented at Motorola and the consequences achieved by the company after its execution.

The instance besides throws visible radiation on the recent developments in the Six Sigma concept including Motorola ‘s ‘New Generation Six Sigma ‘ plan and explains how the company intends to utilize it for bottomline betterment and better concern public presentation.

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Issues:

A» The fortunes behind the development of Six Sigma plan at Motorola

A» The attack, methodological analysis and procedure of execution of Six Sigma by Motorola

A» The benefits reaped from Six Sigma and its part to the company ‘s sustained superior fiscal public presentation and competitory advantage

A» Motorola ‘s attempts to give a new form to the Six Sigma construct to accomplish better fiscal public presentation in the new millenary

“ In 1981, we developed, as one of the top 10 ends of the company, the Five Year, Tenfold Improvement Program. This meant that, no affair the operation you were in or your present degree of quality public presentation, or whether you were a service organisation or a fabrication arm, direction ‘s end was to hold you better that degree by an order of magnitude in five old ages. Today, we carry this forward with a plan called Six Sigmaaˆ¦It ‘s the following major measure toward 100-percent-perfect public presentation, which is the lone acceptable end. “ 1

– William J. Weisz, CEO of Motorola 1993-1997.

“ In 1986 Motorola invented Six Sigma, a quality and concern betterment methodological analysis that is revolutionising industry. Two decennaries and two Malcolm Baldridge Quality Awards subsequently, Motorola is still happening new ways to reinvent itself utilizing this technique. “ 2

– Dan Tegel, Global Director, Digital Six Sigma Business Improvement, Motorola and Rick Kriva, Vice President, Product Management, Motorola.

Push on Quality

In 2002, the US based Motorola Inc. ( Motorola ) 3 achieved the alone differentiation of having the Malcolm Baldrige National Quality Award4 for the 2nd clip. Motorola became the lone company in the universe to hold received this award twice, holding won it earlier in 1988.

Commenting on Motorola ‘s quality criterions, the Baldrige National Quality Program had stated in 1988, “ Like an Olympic jock seeking to hit better than determined universe challengers, Motorola Inc. seeks gross revenues triumphs in universe markets for electronic constituents and equipment by bettering the quality of its ain public presentation. For Motorola, quality betterment taking to entire client satisfaction is the key. “ 5

Motorola had earned awards and acknowledgment from the corporate universe for its ‘Six Sigma ‘ enterprises, which had its beginning in the quality thrust launched by the company in the early 1980s ( Refer Exhibit I for a brief note on the Six Sigma construct ) .

In 1981, the company launched an ambitious and advanced quality thrust for a tenfold betterment in the quality of its merchandises and services, after the company lost concern to its Nipponese rivals.

Motorola ‘s Six Sigma quality mark aimed at accomplishing non more than 3.4 defects per million merchandises. The company aimed to accomplish entire client satisfaction by supplying the best quality merchandises and services.

These attempts were rewarded with the Malcolm Baldrige Award and important addition in company ‘s gross revenues.

Push on Quality Contd…

After Motorola ‘s success, assorted other corporates6 across the universe implemented Six Sigma in their organisations. Motorola acquired the repute of being the quality leader, non merely in fabricating but in every procedure including client dealingss.

Between 1986 and 1988 entirely, Motorola received 50 quality awards. Six Sigma was non merely a choice criterion at Motorola but the guiding force of Motorola ‘s work doctrine. Commenting on Six Sigma, Dennis Sester, Motorola ‘s senior corporate Vice President and Quality Director, said, “ Six Sigma is non a merchandise you can purchase. It ‘s a committedness. “ 7

The Six Sigma Initiative

The term ‘Six Sigma ‘ comes from the field of Statistics. Its beginning as a measurement criterion can be traced back to Carl Frederick Gauss ( 1777-1855 ) who introduced the construct of the normal curve. Six Sigma as a measurement criterion in merchandise fluctuation could be traced back to the 1920s. Bill Smith ( Smith ) , a Motorola applied scientist, was responsible for associating the term with the company ‘s quality enterprises.

The US economic system was sing a downtrend in the eightiess. As a technology-based company, Motorola faced several jobs. Competition was intense and a few merchandises like semiconducting material french friess were being sold at half their fabrication cost in 1981. Motorola ‘s fiscal public presentation was under force per unit area.

Most badgering of all, the company started having an increasing figure of ailments from its gross revenues section about guarantee claims for faulty merchandises. Despite its repute as market leader, Motorola started losing market portion to foreign rivals that sold merchandises of better quality at lower monetary values.

Excerpts

The Execution

On January 15, 1987, Galvin launched a long term quality plan, called “ The Six Sigma Quality Program, ” with the end of accomplishing no more than 3.4 faulty parts per million. The Corporate Policy Committee of Motorola updated its quality end to “ Improve merchandise and service quality ten times by 1989, and at least one hundred crease by 1991. ” It aimed at accomplishing Six Sigma quality by 1992. Galvin initiated steps to develop a civilization that focused on uninterrupted betterment to guarantee entire client satisfaction. He said, “ There is merely one ultimate end: nothing defects in everything we do. ” The new quality criterion was used in all merchandises, procedures, services and disposal.

The Benefits

The first five old ages of Six Sigma execution were extremely honoring for Motorola as gross revenues grew dramatically and merchandises of better quality were introduced. The company regained its repute of developing high quality merchandises…

Following Generation Six Sigma

Six Sigma was originally created as a uninterrupted quality direction and quality betterment technique ( Refer Table IV for differences between Six Sigma and Quality Management ) but over a period of clip, it evolved into a new manner of making concern. In the 15 old ages after its launch, Motorola transformed its initial attack of numbering defects in merchandise fabrication to pull offing fluctuation and consistently bettering non merely fabricating but all its concern procedures. Most significantly, by 2002, Motorola transformed Six Sigma from a tool for bettering merchandise quality to an overall concern betterment methodological analysis…

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