As with the rest of GE, Six Sigma was based on deceptive mathematics. Four Point Five Sigma was due to the “Sigma Shift,” Six Sigma was just the packaging as we covered in the article Six Sigma is for Losers, Seven Sigma Sweeping the Nation. Six Sigma is, in a way, a test for critical thinking skills if you accept the precepts of Six Sigma or they seem reasonable or explain a logical set of goals, the listener does not have them (critical thinking skills, that is). “A six sigma process is one in which 99.9999998027% of all opportunities to produce some feature of a part are statistically expected to be free of defects. If you think one defect out of 3.4 million observations is a reasonable and cost-effective defect rate for any process, then congratulations, Six Sigma is for you. It is a philosophy for those who cannot see the forest for the trees and is most appealing to those with obsessive-compulsive disorder. It describes a state of affairs that never happened and never will happen. Six Sigma is the “clean coal” of management trends. Six Sigma is a type of innumeracy, as actual Six Sigma quality levels are unattainable in nearly all manufacturing realms. When the financial crisis hit, GE Capital was so undercapitalized that the company needed what was billed as an investment, but was more of a bailout, from Warren Buffett.” – USA Today Six Sigma as a Ridiculous Proposal on its Face “In reality, these profits came by shortchanging capital investments, a move that would hurt the company later, and by tweaking the numbers in the financial unit known as GE Capital. The degree to which superstar CEO Jack Welch had built a house of cards was explained in the following quotation. That is, GE’s “model” was not based upon manufacturing excellence or anything to do with “Six Sigma” but with marketing to Wall Street, cost-cutting, and with shenanigans at GE Capital. That is, they marketed their “brand” and then used that brand to attract capital and make purchases that they did not have any justification for owning. Now GE turns out to have been primarily a scheme to continually gain enhanced market capitalization by making acquisitions for which Wall Street would pay a higher multiple. For a philosophy that was, according to its followers so integral to corporate success, why would this be the case? GE’s Continual Acquisitions This was a significant drop from the late 1990s when 2/3rds of the Fortune 500 had Six Sigma initiatives, and Six Sigma consultants were scamming companies left and right. (another one being Motorola, another company currently in the dustbin) Six Sigma has seen a steady decline in interest over the past decade and a half. For years GE was held up as a model company because of its use of Six Sigma. So much that they were ridiculed on the TV show 30 Rock (which was produced by NBC and owned by GE at the time) for their slavish infatuation with Six Sigma. Curiously, GE was a major proponent of Six Sigma. GE was a major proponent of Six Sigma, should it decline also.Ĭurrently, something is essential and exciting is happening, the company GE is in a severe nosedive.GE is such a decline that it calls into question why GE and Jack Welch scammed Wall Street.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |