PROFITS AT THE LARGEST DIVISION of an aerospace/industrial company had failed to meet plan for the last several years. Quality problems continued to plague the division, highlighted by the loss of its supplier certification from its biggest customer. To address these cost and quality issues, the division launched a "Six Sigma" program to improve quality, increase customer satisfaction, and generate higher profits. First year objectives were set: 1) reduce the number of defects in delivered products by 60%; 2) regain the supplier certification pulled by the company's largest customer; and 3) break-even on the investment in Six Sigma. The client enlisted PSI to provide a custom blend of Project Success Training, Consulting, and System Development services.
The project was a success, meeting its quality, time, and cost objectives. Other important outcomes included:
- The Company regained its supplier certification within six months through significant improvement in delivered quality and a proven ability to hold and improve upon those gains.
- Delivered 75% quality improvement in 12 months.
- The company generated a net "profit" on its initial Six Sigma investment: tangible project savings less the cost of training, scrap, rework.
- A large multi-national corporation, recognized as a leader in Six Sigma implementation, selected one of the company's black belt projects as a "project of the year," which resulted in a significant sales/marketing opportunity for the company.
- The Project Success MethodSM planning and control techniques learned and practiced on Six Sigma projects were applied to other types of projects for additional benefit.
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