Total Quality Management or Six Research Proposal

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Jack Welsh, former chief executive officer at General Electric stated that the Six Sigma was "the most challenging and potentially rewarding initiative we have ever undertaken at General Electric." His beliefs are supported by the financial results. The annual report for the fiscal year ended on the 31st of December 1997 pointed out an increase in operating revenues larger than $300 million. The subsequent reports also reveal significant increases in income for the following years (Breyfogle, 2003).

5. Conclusions

The highly competitive business environment of today forces entrepreneurs to implement a wide series of strategies which help them achieve differentiation and customer loyalty. A rather useful means of achieving this is through the implementation of the Six Sigma model. The concept was first used by Motorola and since then, it has proved its application in numerous fields and for the benefits of numerous organizations and their stakeholders.

The theoretical model is based on statistical calculi and strives to reduce or even eliminate if possible, the errors from the processes or products.

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The main feature which differentiates Six Sigma from other theoretical approaches to business quality is the fact that it is based on empirical evidence. Otherwise put, the process has been observed and improved throughout the years, to now reach its actual status.

General Electric is a conglomerate organization and one of the first to implement the methodology. They based it on the principles of the learning organization and in time managed to retrieve the most desirable outcomes - customer satisfaction and loyalty, increased operational efficiency, product and process quality, as well as profits.

A final specification that must be made is that despite its successes, the simple implementation of the Six Sigma will not guarantee the organizational manager increased quality, customer loyalty and profits. These can only be achieved through a customization of the methodology to the unique needs of the respective company. General Electric has understood this and proof of it stand the significant triumphs achieved......

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