Six Sigma Implementation in Dell

Overview

Implementation of Six Sigma in Dell is one of the prime and successful examples of a Company using Six Sigma as an enabler to achieve successful results.

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Michael Dell built a successful model using the Lean Six Sigma which has emulated Dell inc to a large extent. Around the year 2000, using the online six sigma methodologies and keeping it as a basis for improvement, one of the key initiatives led by Michael Dell was known as Business Process Improvement (BPI). Even 5 years later, this program is still growing stronger year by year and becoming a model which the companies want to adopt and are trying to follow.

Business Process Improvement is a set of tools and skills that have been employed by Dell to improve, understand and investigate business processes. It is a process in which any employee can get involved easily. If a group of employees face a similar problem then instead of complaining, they collectively take the initiative for Business Process Improvement and it becomes a project in the global database.

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MISSION OF BPI

To empower the knowledge, skills and tools among employees in order to make Dell more efficient through quality improvement, reduced cycle time and reduction in cost.

Pursuing BPI has some inherent benefits as well to all the major stakeholders of the company. For this reason, the company has prioritized it to the maximum owing to its long term success.

Benefits to the Business

It has led to huge cost savings (more than 1.55 Billion USD during FY04) and improvement in quality to a significant extent.

Benefits to the Employees

BPI has led to the empowerment of knowledge among the employees as they know the necessary actions to be taken instead of complaining. It helps in enhancing the career opportunities.

Benefits to the Customers
Better experience for the customers due to cost, quality and cycle time improvements. It has led to improvement in customer satisfaction due to better performance in the organisation.
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STRATEGIC DRIVERS FOR BPI

1. Executive Leadership/Development
2. Measurement Systems
3. Strategic Business Linkage
4. P&L Mapped Financial Results
5. Organizational Development
6. Recognition
7. Communication
8. Winning BPI Culture

These 7 strategic drivers are the key drivers of BPI program which has contributed to various strategies and indicate how the projects regarding BPI are to be taken.

NOTABLE CHANGES FOR CONSUMERS AND SUPPLIERS

Following BPI for quite a number of years, Dell has made significant changes in its way of dealing with customers, thus enhancing customer satisfaction as well as suppliers. Essence of the latest strategy is Lean. Instead of producing big batches of systems like competitors, Dell has decided to follow lean strategy i.e. producing small batches which can be customized as per user’s preference.

Dell’s suppliers also build to order. Dell orders part and places them in production as soon as supplier delivers them. With Dell, one doesn’t have to wait for the latest technology to incorporate them from a batch manufacturer. It can be delivered almost immediately.

CONCLUSION

Dell has emerged as one of the strongest leader in everything they do right from supply chain to customer service to marketing. It is harnessing the power of their employees efficiently and effectively to achieve such big milestones. It has become possible with the BPI strategy followed based on six sigma methodologies.

It’s no wonder that Dell is #1 in Fortune’s America’s Most Admired Companies list since they have earned it.

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Six Sigma approach was first of all developed by Motorola. It was introduced by an American Engineer named Bill Smith who works for the company Motorola in the year 1986. Further in the year 1995, the concept of Six Sigma was implemented as a central business strategy by Jack Welch in his company General Electric.

Learning the Six Sigma Program makes you a valuable employee in any prestigious company. It is so because it makes you learn process development and improvement skills. This quality improvement program was primarily applied in manufacturing industries, but in recent years it has been implemented everywhere, even in service sectors. Six Sigma employees are engaged in Statistics, Financial Analysis, and project management to ensure the smooth functioning of the business.
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Dell’s Six Sigma strategy is a successful business model where this approach act as an enabler to achieve results. The company has included the Six Sigma policy as a measure of process performance and its improvement, with Six Sigma being goal based on defects per million

BPI ( Business Process Improvement) culture in Dell Inc. was introduced in early 2000. This system is still growing stronger and becoming a model that other companies are trying to follow. The BPI model is a corpotate initiative that promotes the various tools and skills which are used to understand, investigate and improve the business. BPI is characterized by: improving quality and cost saving in the product, increased effective teamwork and empowerment among the employees along with their career enhancement. It also ensure better customer experience through cycle time improvement quality and cost.

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