Implementing Six Sigma at Ge Fanuc
Case 6: Implementing Six Sigma at GE Fanuc
Statement of the problem: * How was GE’s corporate-level vision of Six Sigma put into practice at the GE Fanuc manufacturing site? * What is the difference between direct labor savings and labor cost avoidance savings from a managerial perspective?
We come up of different problems regarding the use of testing: They consume much in electricity They have expensive maintenance cost per oven They are paying high labor cost
Objectives Create a practice for GE’s corporate-level vision
Differentiate direct labor saving with labor cost avoidance savings from a managerial perspective.
To use the six sigma effectively
To provide alternative course of action to lower the cost and eliminate ESS
Areas for Consideration: Strength | Weaknesses | Opportunities | Threats | Implementing Six sigma | Employees might find it difficult to adjust | Cost reduction | Other companies can try to mimic their process | Failure setback to improve | | Lessening the percentage of having failures | | | High labor, maintenance and other cost | continuous improvement | costs of the company may still increase | $700 million annual sales | | Lot of improvements can be process | |
Alternative Courses of Action:
For Problem 1:
1. They could use equipment to lower/lessen the consume of electricity 2. Reduce the quantity of the equipment that uses.
3. They can eliminate testing and ESS.
for Problem 2
1.Purchasing high quality ovens can help to lessen the cost of the company
2. Training for employees to use the equipment effectively and properly 3. They could eliminate testing and ESS
for Problem 3
1. They could lower the salary of the employees
2. They could reduce/terminate the number of employees 3. They could eliminate testing and ESS.
Conclusion:
The GE’s corporate-level vision of Six Sigma for GE Fanuc manufacturing site has been in
Statement of the problem: * How was GE’s corporate-level vision of Six Sigma put into practice at the GE Fanuc manufacturing site? * What is the difference between direct labor savings and labor cost avoidance savings from a managerial perspective?
We come up of different problems regarding the use of testing: They consume much in electricity They have expensive maintenance cost per oven They are paying high labor cost
Objectives Create a practice for GE’s corporate-level vision
Differentiate direct labor saving with labor cost avoidance savings from a managerial perspective.
To use the six sigma effectively
To provide alternative course of action to lower the cost and eliminate ESS
Areas for Consideration: Strength | Weaknesses | Opportunities | Threats | Implementing Six sigma | Employees might find it difficult to adjust | Cost reduction | Other companies can try to mimic their process | Failure setback to improve | | Lessening the percentage of having failures | | | High labor, maintenance and other cost | continuous improvement | costs of the company may still increase | $700 million annual sales | | Lot of improvements can be process | |
Alternative Courses of Action:
For Problem 1:
1. They could use equipment to lower/lessen the consume of electricity 2. Reduce the quantity of the equipment that uses.
3. They can eliminate testing and ESS.
for Problem 2
1.Purchasing high quality ovens can help to lessen the cost of the company
2. Training for employees to use the equipment effectively and properly 3. They could eliminate testing and ESS
for Problem 3
1. They could lower the salary of the employees
2. They could reduce/terminate the number of employees 3. They could eliminate testing and ESS.
Conclusion:
The GE’s corporate-level vision of Six Sigma for GE Fanuc manufacturing site has been in