How Business and Employees Can Both Win: Motorola
by Dr. David I. Levine
Motorola is recognized as a world leader in quality. Its quality improvement system is based on a program of Management by Measurement. Using the Statistical Process Measurement to keep track of defect rates, Motorola has set ambitious goals of Six Sigma level quality (3.4 defects/million possibilities for occurrence) and drastic total cycle time reduction. To achieve these goals, Motorola benchmarks production practices from a wide array of manufacturers and trains every employee, regardless of assignment, in statistical techniques. The company also promotes teamwork. For instance, simultaneous engineering is used in product design and development. Defects at Motorola are down 80 percent. Based on two systematic studies, Motorola estimates that it saved $962 million in inspection and rework costs. The company also estimates that it earns $30 for every $1 invested in quality training.
Note: This example is drawn from Department of Labor, Office of the American Workplace, Road to High-Performance Workplaces (1994).
Reinventing the Workplace Home