Six Sigma at Motorola
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Case Details:
Case Code : OPER050
Case Length : 13 Pages
Period : 1988-2005
Organization : Motorola
Pub Date : 2005
Teaching Note :Not Available
Countries : US
Industry : Telecom
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Thrust on Quality Contd...
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After Motorola's success, various other corporates6 across the world implemented
Six Sigma in their organizations. Motorola acquired the reputation of being the
quality leader, not just in manufacturing but in every process including
customer relations.
Between 1986 and 1988 alone, Motorola received 50 quality awards. Six Sigma was
not just a quality standard at Motorola but the guiding force of Motorola's work
philosophy. Commenting on Six Sigma, Dennis Sester, Motorola's senior corporate
Vice President and Quality Director, said, "Six Sigma is not a product you can
buy. It's a commitment."7
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The Six Sigma Initiative
The term 'Six Sigma' comes from the field of Statistics. Its origin as a
measurement standard can be traced back to Carl Frederick Gauss (1777-1855)
who introduced the concept of the normal curve. Six Sigma as a measurement
standard in product variation could be traced back to the 1920s. Bill Smith
(Smith), a Motorola engineer, was responsible for linking the term with the
company's quality initiatives.
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The US economy was experiencing a downtrend in the 1980s. As a
technology-based company, Motorola faced several problems. Competition was
intense and a few products like semiconductor chips were being sold at half
their manufacturing cost in 1981. Motorola's financial performance was under
pressure.
Most worrying of all, the company started receiving an increasing number of
complaints from its sales department about warranty claims for defective
products. Despite its reputation as market leader, Motorola started losing
market share to foreign competitors that sold products of better quality at
lower prices. |
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