So why did Jack implement Six Sigma? Larry Bossidy. Why do thousands of other companies use the methodology? They’ve seen it work and they want to emulate successful companies.
Such is the case with Lopez Foods. They are on a quest for growth, and how do they plan to achieve it? They benchmark the best and follow. Ed Snachez, president of Lopez Foods met with Paula Marshall-Chapman, CEO of The Bama Companies, to learn how Six Sigma was working there:
“I was impressed with her results so a group of us went to see her facility. They are now helping us achieve good results in our plants.
“In August, Lopez Foods began its first six sigma project with the goal of improving the yield by one percent on the beef line. The beef line was picked first since they understand it the best. According to Sanchez, a one percent increase on this line represents close to $300,000 to $400,000 in annual savings. ‘We used to do total quality management, but I like six sigma because it focuses on implementation, not theory,’ says Sanchez.”
And here’s the quote of the day, from Snachez, for all the low margin industries out there thinking Six Sigma will not help them:
“You must chase the pennies because you are making pennies.”
Source: A Better Bite, The Manufacturer.com, September 26, 2005