Posts Tagged ‘stock prices’

Six Sigma Overkill

Thursday, July 16th, 2009

Six Sigma Economics | Product Design and Development.

I’m all for spreading the word about Six Sigma, but some authors get a little bit silly about it. This article is a case in point. The article is a very interesting analysis of the news that the stock market, as measured by various indexes, has improved a great deal in recent weeks. The stock prices of most leading manufacturers has risen markedly in such industries as automotive, aerospace, electronics and medical devices. In some instances, the improvements are quite remarkable. Since March 10 Ford’s stock price has doubled and Radio Shack has nearly doubled. More significantly, leading indicators such as the Purchasing Manager’s Index,  employment, order backlogs and inventories have also improved. In short, things are looking up, at least at the moment.

My argument is not with the good news, which I welcome. It’s with the headline. What does any of this have to do with Six Sigma? As far as I can tell, nothing at all. In a world full of people who find Six Sigma to be abstruse and difficult to comprehend, headlines like this one can only add to the confusion.

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What is Six Sigma?

By Thomas Pyzdek, Author of The Six Sigma Handbook

For Motorola, the originator of Six Sigma, the answer to the question "Why Six Sigma?" was simple: survival. Motorola came to Six Sigma because it was being consistently beaten in the competitive marketplace by foreign firms that were able to produce higher quality products at a lower cost. When a Japanese firm took over a Motorola factory that manufactured Quasar television sets in the United States in the 1970s, they promptly set about making drastic changes in the way the factory operated. Under Japanese management, the factory was soon producing TV sets with 1/20th the number of defects they had produced under Motorola management. They did this using the same workforce, technology, and designs, making it clear that the problem was Motorola's management. Eventually, even Motorola's own executives had to admit "our quality stinks." Read More...