High Tech; Biotech; Telecommunications; Financial Services; Banking; Medical Device; Utilities; Manufacturing; Aerospace; Energy; Computer Hardware; Computers; Pharmaceutical; Consumer Products; Automobile; Diversified; Health Care; Chemical; Technology; Diagnostic; Insurance; Defense; Retail; Research; Internet; Electronics; Professional Services; Government
Agilent Technologies; Allergan; Avaya; Bank of America; Baxter Healthcare; Bechtel; Bell Helicopter; Boeing; Bombardier Aerospace; British Telecom; ConocoPhillips; Dell Computer; Dow Corning; DSM Pharmaceutical; DuPont Pharmaceuticals; Eastman Kodak; Eaton Corp; Entergy; First Data Corporation; Ford Motor Company; GE; GE Consumer Finance; Hewlett-Packard; Honeywell; Johnson & Johnson Healthcare Systems; Johnson Controls; JP Morgan Chase; Kodak; Korry Electronics; Medtronic; Motorola; NCR; Northrop Grumman; PerkinElmer; Pfizer; Raytheon; Rockwell Automation; Saint-Gobain; Siemens; Sony; Home Depot; US Army; Verizon
With these companies' results, targets and lessons learned known, executives can confidently plan and execute an improvement project or program. Key benchmarks that will help you along this path include: amount of cycle time/cost reduction, typical scope and average duration of improvement project, average annual dollar value contribution expected for the productivity approach, average dollar amount of a business unit’s revenue saved through productivity initiatives annually, the function that primarily benefits from productivity approaches by percentage and a self-rating of how effective productivity approaches were across various functions.
To best plan and execute a productivity project or program, executives search for examples, best practices and advice on which approach to use and how it's best structured and executed. This study is a must starting point as it offers an outline of the experiences of 30 companies that recently performed improvement projects using lean, six sigma or TQM, complete with benchmark metrics, actual results and a description of lessons learned.
Augmenting these case studies are results from a survey of 84 companies. These results show the most popular types of productivity approaches used, depending on the improvement sought, how the approaches are carried out, including project scope, revenue target and staffing level, and the types of results to expect.
Benchmark metrics include:
- Black Belt Contribution/Productivity Annual Thresholds
- Most Popular Productivity Approaches
- Average Cycle Time Per Productivity Initiative
- Average Targeted Savings/Revenue Goals
Sample Case Study
The report contains 15 case studies. An excerpt appears below:
Bank of America
Using Six Sigma in Banking
Bank of America is a large, complex organization with high goals to be #1 in customer satisfaction, the world’s most admired company and the world’s largest bank. To achieve these goals, the Bank recognized the need for an enterprise-wide quality system that focused on customer needs and key business strategies. To execute its quality system, Bank of America favored rapid deployment across the company for complete enculturation.
Bank of America’s Three-Point Plan
Bank of America’s three-point plan called for the company to focus its efforts, enable high quality and generate results. To execute its plan, the Bank took the following steps:
In its first two years, Bank of America’s quality system has achieved the following results:
- Focused the company on the customer by organizing around customer segments and aligned the company top to bottom, linking performance plans to strategic goals.
- Developed business process excellence by applying voice of the customer to identify and engineer the critical few business processes.
- Built a capable workforce by hiring more than 225 external Six Sigma master Black Belts and Black Belts, using Six Sigma across businesses, eliminating waste and variation/errors in core processes, and driving revenue growth by expanding Six Sigma into sales environments.
Sample of Survey Results
The report contains 20 graphics of survey results. One appears below, showing an average annual financial target set for black belt contribution to meet performance objectives:
- The CEO and executive team contributed $75 million in Six Sigma annualized productivity benefits.
- Customer delight was improved by 20%, and the Bank added 2.3 million customer households.
- 1.3 million fewer customer households experienced problems – down 29%.
- Stock value increased by 52%.
- Bank of America has had ten quarters of increasing earnings per share – up 29% since 2002.
- 2002: Bank of America named Best Bank in the US and Euromoney’s World’s Most Improved Bank.