Motorola – in Pursuit of Six Sigma 1-Page Case Study
Motorola – In Pursuit of Six Sigma
Situation
Internal and External Factors: Motorola is a very large electronics manufacturer based in Schaumburg, Illinois. They were founded in 1928. After founder Paul Galvin died in 1959, his son Robert stepped in as CEO of the company. Motorola was quite successful at that time; however, things changed drastically over the next twenty years.
Statement of the problem: Motorola was in serious trouble by the early 1980’s. Competitors such as Texas Instruments, Toshiba and NEC were knocking Motorola out of the market. Motorola was also losing sales due to their decreasing level of customer satisfaction and poor product quality. These factors created a dilemma for newly appointed CEO Robert Galvin.
Conceptual Analysis
Organization Theory and Concepts: Galvin needed to develop a long term strategy for Motorola. He had already learned the importance of anticipating future markets, a lesson he would never forget.
Assumptions: It did not take long for Galvin to realize the direct link between satisfaction and quality. He decided it was time for Motorola to commit itself to being more responsive to customers and to improving the quality of its products and services. He directed that all functional areas at Motorola were to achieve Six Sigma by 1992, effectively eliminating defects.
Alternatives and Solution
Alternatives:
1. Focus on Motorola’s customer service department to improve overall customer satisfaction.
2. Improve Quality – several Motorola executives had visited numerous factories world-wide and found that the Japanese had plants with quality performance 500 to 1,000 times better than Motorola. This would be a key area to focus on.
3. Introduce and implement Six Sigma strategy
Solution and Rationale: The best alternative for Robert Galvin and Motorola would be number 3. Six Sigma is a comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely
Situation
Internal and External Factors: Motorola is a very large electronics manufacturer based in Schaumburg, Illinois. They were founded in 1928. After founder Paul Galvin died in 1959, his son Robert stepped in as CEO of the company. Motorola was quite successful at that time; however, things changed drastically over the next twenty years.
Statement of the problem: Motorola was in serious trouble by the early 1980’s. Competitors such as Texas Instruments, Toshiba and NEC were knocking Motorola out of the market. Motorola was also losing sales due to their decreasing level of customer satisfaction and poor product quality. These factors created a dilemma for newly appointed CEO Robert Galvin.
Conceptual Analysis
Organization Theory and Concepts: Galvin needed to develop a long term strategy for Motorola. He had already learned the importance of anticipating future markets, a lesson he would never forget.
Assumptions: It did not take long for Galvin to realize the direct link between satisfaction and quality. He decided it was time for Motorola to commit itself to being more responsive to customers and to improving the quality of its products and services. He directed that all functional areas at Motorola were to achieve Six Sigma by 1992, effectively eliminating defects.
Alternatives and Solution
Alternatives:
1. Focus on Motorola’s customer service department to improve overall customer satisfaction.
2. Improve Quality – several Motorola executives had visited numerous factories world-wide and found that the Japanese had plants with quality performance 500 to 1,000 times better than Motorola. This would be a key area to focus on.
3. Introduce and implement Six Sigma strategy
Solution and Rationale: The best alternative for Robert Galvin and Motorola would be number 3. Six Sigma is a comprehensive and flexible system for achieving, sustaining, and maximizing business success. Six Sigma is uniquely