CASE NO. 59
Value creation with Six Sigma
INITIAL SITUATION
A high-technology engineering and manufacturing company intended to increase shareholder value with a global six-sigma initiative. From its five business units in Europe substantial value contributions were expected. All projects were to feed an economic value added scheme. The corporation required support to introduce the six-sigma methodology and bring about the expected value contributions.
CHALLENGE
A company-wide improvement process was an entirely new concept to the organisation. The new objectives within a value-based management framework and working in international projects were personally challenging for many employees.
SOLUTION
An international competence team was formed together with our consultants. Experts from this team visited every location in Europe to identify improvement opportunities on-site and build value hypotheses. These hypotheses were verified in deeper analyses and workshops. All value creation efforts were cast in manageable black-belt projects, prioritised and aligned with site management.
RESULT
The European business units contributed 100 black-belt projects with an annual value added of about 30 million USD to the initiative. All projects were represented in the EVA scheme. Close to 200 black and green belts were implementing the improvement projects.
