Corporate Leadership Profile

Making a Profit from Game-changing Inventions

By Sue ReynardMotorola looks back at how one of its most game-changing inventions, Six Sigma, was developed. During the ensuing 20 years, Six Sigma has moved from just the factory floor to driving innovation and results in every aspect of the business.

Strategy

The Perfect Storm

By James TorokRead about the forces in statistics, process improvement and quality management that culminated in the phenomenon of Six Sigma. Far from slowing down, the methodology appears to be gaining strength on its path. The most notable current trend is Lean.

Methodology

Validating Growth Projects

By Luc Vander BekenProjects aimed at generating revenue are becoming more popular. But how do you know if they actually deliver on the top line? A validation process using Six Sigma tools can wipe away external factors from the statistical lens; what is left is a clear shot of real project results.

Research

Six Sigma Saves a Fortune

By Michael MarxSix Sigma has saved Fortune 500 companies over $400 billion since 1987. Of the top 500 public companies in the United States, 53 percent have deployed Six Sigma to some degree.

More interesting findings:

• Those Fortune 500 companies with the largest revenues are more likely to have a Six Sigma initiative.
  
  
• Eighty-two percent of the top 100 companies use the methodology, whereas only 27 percent of the bottom 100 companies use it.
  
  
• The 47 percent of Fortune 500 companies that have not yet embraced Six Sigma have $500 billion that could potentially be put to their bottom lines.

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"Final Tollgate" Project Example

CT Scan Throughput

By Nancy B. Riebling, Angelo Pellicone, Antz Joseph and Charles Winterfeldt

With a four-day Kaizen event, a Lean Six Sigma team improves patient throughput on two CT scanners at North Shore University Hospital. Project results:

• Reduced average turnaround time from 20.7 hours to 11.6 hours
   
• 200 additional inpatient procedures per month
   
• 60 additional outpatient procedures per month
   
• $375,000 in additional revenue from increased outpatient volume

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