GE and Motorola belt up for Six Sigma success

Citation

(2002), "GE and Motorola belt up for Six Sigma success", Measuring Business Excellence, Vol. 6 No. 3. https://doi.org/10.1108/mbe.2002.26706cab.006

GE and Motorola belt up for Six Sigma success

In technical terms, Six Sigma means a product defect rate of 3.4 parts per million, but these days the introduction of a Six Sigma quality program means much more than just measuring failure rates. It includes incorporating a wide range of tools and methodologies into an organization in order to improve performance and, ultimately, significantly improve profits.

Mention the words Six Sigma and the organizations that immediately spring to mind are GE and Motorola. These two businesses are synonymous with Six Sigma and have ensured success at every level through this quality program. Critical to both initiatives is the role of the black belt. We look at how the differences between Motorola and General Electric in terms of how their respective Six Sigma Black Belt programs are implemented.

Six Sigma implementation strategies

There are three general strategies of Six Sigma deployment:

1. 1.

   Six Sigma organization. All individuals are trained in all areas, in the fundamental concepts and tools involved in the application of Six Sigma. This ensures a high level of awareness throughout the organization and creates a common language and problem-solving approach.

2. 2.

   Six Sigma engineering organization. In contrast, this strategy focuses on training and development within the design and manufacturing engineering departments of a firm. This means that resources are more focussed and there is an emphasis on project applications.

3. 3.

   Strategically selected projects and individuals. As it implies, this strategy refers to the development of strategically-selected employees who are assigned complex projects identified by the needs of the organization. This approach creates a great amount of flexibility in training in comparison to the previous two approaches.

Just like any initiative, definitions of Six Sigma vary between organizations. For some firms, implementing Six Sigma means solely using the specific problem-solving stages involved; others use one or more of the strategies outlined above, while other companies may have different ways of deploying Six Sigma concepts and tools.

What is a Six Sigma black belt?

The term Six Sigma black belt was first introduced by the Motorola Corporation to describe employees who are trained and experienced in applying statistical techniques to business processes and procedures so that they can make major positive contributions to the bottom line. Other companies that have followed Motorola's lead in the development of black belt individuals include GE, Allied Signal and Texas Instruments. Motorola has had savings of almost one billion dollars in three years using this program while GE saved over one billion dollars in 1998 and two billion in 1999.

Training to become a black belt includes a rigorous learning schedule of statistical techniques, as well as the practice of applying these tools in real-life business situations. Allied to these criteria, before being awarded black belt status, the person must demonstrate problem-solving, project management and team leadership skills.

Black belts use the five-step approach to instigate cost-saving projects as follows:

1. 1.

   definition of problem;

2. 2.

   measurement of characteristics that are critical-to-quality (CTQ);

3. 3.

   analysis using benchmarking and gap studies;

4. 4.

   improvement; and

5. 5.

   control.

As with the introduction of TQM and other projects involving major change, the way in which Six Sigma black belts are trained and utilized has important repercussions for the success or otherwise of the initiative.

Meaning and importance of Six Sigma and black belts

Six Sigma is very important to the Motorola Corporation, and many internal and external observers believe that it has ensured the survival of the firm. One estimate puts the actual monetary value of Six Sigma programs at US$16 billion between 1986 and 1998. Central to the methodology is an emphasis on numerical methods for both solving problems and for obtaining 3.4 parts per million opportunities.

The Six Sigma black belt program is also important to Motorola as it can facilitate comparisons between diverse products and services. This initiative is seen as a competitive advantage throughout the organization. Black belt trained employees in Motorola are viewed as subject matter experts and skilled data analysts. They play important roles of mentors, team leaders, facilitators and trainers.

Six Sigma in GE is a major strategic initiative. There have been multi-million dollars of cost savings made as a result of its implementation, and its popularity in the firm does not appear to be waning. In GE, Six Sigma is viewed as the corporation's overall quality improvement program. It is driven throughout the organization from top down. It is also implemented in all sectors of the organization, not just in manufacturing.

The black belt aspect of Six Sigma in GE is a critical success factor of the program. This is because of the cost savings and quality improvements that can be obtained as a result of the successful completion of black belt projects. The role of black belts in GE is mainly that of project leaders and analyzers of data. They are respected team players and come from differing backgrounds including engineering, general management, quality and finance.

Levels of black belt

There are three basic levels: green belt, black belt and master black belt:

1. 1.

   Green belt:

2. 2.
   • •

     Motorola – trained and experienced in using Six Sigma tools and techniques. Not required to have the same level of experience in the use of statistics or leadership skills.

   • •

     GE – has a similar skill set to a black belt and assists in the completion of black belt projects.

3. 3.

   Black belt:

4. 4.
   • •

     Motorola – a specialist in the use of Six Sigma problem solving and prevention tools and techniques (usually, but not necessarily, statistical or numerical). Has extensive experience in the use of tools suitable to the area of business in which they are employed. Also has leadership and team-building skills. There are approximately 120 black belts in a corporate population of about 100,000 employees. The number of candidates is at present growing due to the corporate decision taken in 1999 to "renew" the scheme. Successful candidates are given substantial once-off payments which are percentages of salary based on the particular belt level.

   • •

     GE – methodically trained in the 12 elements of the measure, analyze, improve and control methodology. Will have utilized the different parts of this methodology during the design and completion of two major projects. These projects are carried out in parallel with their training. There are approximately 4,000 black belts in a corporate population of 340,000. There are no special payments or bonuses following qualification, although time off normal work is allowed to employees to complete the program. In some parts of the organization, senior jobs require black belt accreditation to qualify for consideration.

5. 5.

   Master black belt:

6. 6.
   • •

     Motorola – has practiced as a black belt for at least five years. Will be a full-time practitioner in Six Sigma tools and a mentor to at least five successful black belt candidates. A master black belt needs the recommendation of upper management from their own and one other Motorola business unit.

   • •

     GE – a leader in the implementation of Six Sigma methodologies, and usually trained directly by the Six Sigma Institute. Will have completed a number of projects and be working full-time on Six Sigma and black belt cost-saving programs.

The overall leadership for Six Sigma in GE is provided by black belts and master black belts. Selection of candidates for such roles is thus crucial to the development of the Six Sigma initiative. However, the kind of person being selected to receive such in-depth training has changed over the last few years. Technical knowledge is no longer a prime consideration and management and organizational skills are becoming increasingly important.

This means that in GE these individuals are being identified as a primary source for future top leaders in the organization. Very often they are expected only to spend a limited amount of time in a black belt role before moving up the corporate ladder.

Training and accreditation of black belts

Motorola has specific knowledge requirements for black belts in terms of a list of techniques that must be assimilated and demonstrated. More demonstrations are required for a black belt than a green belt. The application of tools is, however, clearly defined. The knowledge requirement may be acquired in a number of ways including formal training and through project work. A series of courses can be taken to provide the candidate with the necessary skills. Only one of these formal courses is mandatory.

Training at Motorola usually takes a minimum of one year to complete. It can often be a longer period depending on the availability of training courses and the potential in the candidate's site for demonstrating tools. In order to be accredited, candidates complete an application form to show how they have met the requirements in both training and practice. They need a letter of support from their mentor, who must be a black belt, and one from their sponsor (usually their boss, or head of site) showing the impact on the business. The three documents are reviewed by and voted on by a sector black belt committee or the corporate black belt committee where there is no sector committee. Being an accredited black belt in Motorola does not necessarily help with promotional opportunities. As with other qualifications it may be beneficial, depending on the type of promotion sought.

In GE, training requirements are very specific. They include the use of statistical software as well as detailed modules in the areas of measure, analyze, improve and control. There is also a clearly defined training structure that is fairly rigid in its nature. The length of training is approximately 16-20 weeks. This varies very little because of the way the training is structured. For example, there will often be one week of formal training then three to four weeks spent applying the modules studied. Final accreditation is mainly carried out by the Six Sigma Academy. Qualification as a black belt is very important when employees are being considered for promotion.

Black belt savings for GE and Motorola

In general it appears that GE has a more structured approach to training black belts than does Motorola. Candidates are led very carefully along the training route, even down to being told what projects they are doing. The training in GE is more intensive, takes a shorter time and therefore results in a greater number of accredited black belts. On the other hand, the Motorola training is more flexible and potentially should result in a greater depth and breadth of expertise. Motorola candidates can also choose the projects they will work on depending on the particular technologies and focus of the site where they are employed.

In both organizations the initial emphasis was solely on manufacturing quality, but Six Sigma methodologies are now being applied in many other areas of activity. For example, in GE there is special attention being paid to introducing Six Sigma to commercial transactions and product servicing, as these are both key strategic areas within the organization. Motorola's emphasis is more general, even though it too has begun to encompass areas other than quality in manufacturing.

In terms of the specific strategies outlined earlier, it appears that Motorola has mainly been using a broad "Six Sigma organization" approach as it trains most people in the organization in the relevant tools and concepts. GE did start out in this way but now tends to utilize the "strategic selection" approach where specific individuals are selected for training and development and earmarked for progressing up through the organization.

Management implications

With black belts typically saving an average of US$230,000 direct cost reduction per project, at a rate of four to six projects per year, the more effective the individual can be, the better the financial result to the organization. If Six Sigma programs continue to provide substantial financial rewards then many other firms will begin to utilize the techniques involved. Getting the training methodology right continues to be the essential ingredient in increasing an organization's chances of success.

Some people also believe that a Six Sigma black belt has no more training than a certified quality engineer. This may be true in theory, but the difference and motivation of the Six Sigma approach is the way the training is utilized and applied. The other areas that differentiate Six Sigma from traditional quality change programs are the focused approach to problem-solving projects, the attention to bottom-line results and the sustainment of positive performance outcomes over time.

If these improvements can be sustained then Six Sigma looks set to be an important strategy for organizations in the twenty-first century. This is a shortened version of "Six Sigma black belt implementation."

Ingle, S. and Roe, W. (2001), "Six Sigma black belt implementation", The TQM Magazine, Vol. 13 No. 4, pp. 273-80, ISSN 0954-478x.