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We live in a 3.5 sigma world. The bulk of the world operates in, feels comfortable with, and expects about 3.5 sigma. By moving from a 3.5 sigma world to a 6 sigma world, we can make improvements above the industry standard and expectation of 20,000 times. When we improve the consistency of our products, our processes, and our service, we can begin to take actual costs out of the process. When we improve our processes, we can actually measure dollars gained from the cost avoidance. Additionally, as we gain productivity, if there is a market, we can also sell this additional capacity. If no market exists, we can do more with less, and do it better. It takes commitment. It takes time It takes dollars. This has clearly not been a short -term strategy. We are only now starting to truly see big $ savings, big $ sales, and big $ efficiencies due to six sigma. If you have staying power, it can work. Truly, the single biggest cost has been people. But these people improve all of the processes so that in the end, the commitment and the investment has long term potential. Because GE has very good retention of its best people, Six Sigma is an investment in the future. As people roll out of Master Black Belt, and Black Belt positions, they are moved into business leadership positions. These people are the six sigma champions who have seen how six sigma can improve a business. The truly successful employees have changed the way they manage a business. This is something that has been driven from the top. Compensation, promotion, and rewards are clearly tied to Six Sigma. Jack has made it very clear that if you do not gain your Green Belt training, and demonstrate that you can lead and manage in accordance with six sigma, you will not advance at General Electric. The CTQ Flow Down is crucial to the process. By measuring our output, by measuring our capabilities, and by measuring what the customer feels is important, we can begin to understand our capabil
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