A Blog for quality professional

Six Sigma in Action

Results achieved over the first two years (1986-1998):

  1. Revenues have risen to $100 billion, up 11%
  2. Earnings have increased to $9.3 billion, up 13%
  3. Earnings per share have grown to $2.80, up 14%
  4. Operating margin has risen to a record 16.7%
  5. Working capital turns have risen sharply to 9.2%, up from 1997’s record of 7.4
  6. Motorola
      -Saved $17 Billion from 1986 to 2004, reflecting hundreds of individual successes in all Motorola business areas including:
      -Sales and Marketing
      -Product design
      -Customer service
      -Transactional processes
      -Supply chain management


      -Saved $750 million by the end of 1998
      -Cut invoice defects and disputes by 98 percent, speeding payment, and creating better productivity
      -Streamlined contract review process, leading to faster completion of deals and annual savings of $1 million

    Allied Signal/Honeywell

      -Initiated Six Sigma efforts in 1992 and saved more then $600 million a year by 1999
      -Reduced time from design to certification of new projects like aircraft engines from 42 to 33 months
      -Increased market value by a compounded 27% per year through fiscal year 1998


      -Added approximately $52 million to the bottom line in 2000, and approximately $300 million in 2001
      -Waste elimination savings of more than $350 million in 2002
      -Was responsible for half of all TGW (“Things Gone Wrong”) improvements

    American Standard

      -Doubled production capacity on one assembly line
      -Reduced energy costs by more than $300,000 at one plant and voided a planned $500,000 expenditure at another plant
      -Cut casting losses on faucets for a $2.1 million savings
      -Saved $35 million in 2001 through increased quality and efficiency

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