The origin of Jacobs theorem

Jacobs' theorem - origin.

From the 70s to the 80s of the 20th century, Motorola lost the market for radios and televisions, and later the market for semiconductors, in competition with Japan. In 1985, the company faced bankruptcy. When summing up the lessons learned, Motorola found that a Motorola TV production company that had been acquired by a Japanese company was quickly put into production after being transformed by the Japanese, and the product defect rate was only 1 20 when Motorola was in charge.

Obviously, Motorola's problem lies in quality management. In the midst of market competition, the company's top management accepted the conclusion: "Our quality stinks."

To save the day, Motorola, under the leadership of Dr. Steve Kingclogh, embarked on the famous "6" (Six Sigma) quality path. As it turned out, Motorola's strategy of revamping the company with quality in mind was correct. It has not only enabled Motorola to survive tenaciously and become a world telecommunications giant with excellent quality, but also contributed a huge fortune to other enterprises - "Six Sigma" quality management method.

As a result, Motorola is revered as the "Godfather of Six Sigma".

(sigma) is a Greek letter, pronounced sigma, which is a statistical term that stands for standard deviation. 3sigma means that there are products (in a broad sense, including services, etc.) that meet the requirements of users; 6SIGMA requires only 3-4 defective products per 1 million products.

Six Sigma management concepts were put into practice during Motorola's crisis and achieved immediate results. At Motorola, from 1987 to 1999, when the company began implementing the Six Sigma Management Act, the company increased its productivity on average per year, with a defective rate of only 1,20 in the previous year. Manufacturing savings totaled more than $11 billion due to an 84% reduction in cost consumption due to quality defects and a reduction in manufacturing process errors.

The combined return on the company's business, profit and value increased by an average of 17% per year.

Excellent quality comes from excellent quality management, and from the reform of Motorola, General Electric Company (GE) of the United States realized this. Beginning in 1996, GE officially implemented the Six Sigma Management Act. Since 1997, sales and profits have been growing rapidly at double-digit percentages every year.

For example, in 1999, total revenues of $111.6 billion and profits of $10.7 billion, up 11 percent and 15 percent, respectively, from 1998, were underpinned by GE's four corporate strategies, one of which was Six Sigma management. It is precisely because of the successful practice of General Electric that the Six Sigma management method has become a model for other companies in the world to learn and imitate. It was at GE that Six Sigma management was promoted.

There are a lot of definitions copied downstairs. But in the end, its origin is a theorem that has been verified by many companies, just like an empirical formula.