PACCAR - Six Sigma

PACCAR has been truckin’ down the Six Sigma highway for nearly eight years. The arrival of Helene Mawyer, a Master Black Belt from GE, jump-started the corporate initiative which was naturally modeled after AlliedSignal and GE. Today, Six Sigma at PACCAR continues to accelerate and includes Design for Six Sigma (DFSS), supplier training, and “High Impact Kaizen Events” (HIKE), which leverage Six Sigma methods with production flow improvement concepts.

Savings and Benefits

Six Sigma is mentioned in all PACCAR Annual Reports since 1997. There is little variation in the way Paccar reports their Six Sigma progress. Every report since 2000 states the number of employees trained, the number of suppliers introduced to Six Sigma and the number of active projects or total projects since inception. I’ve put together a simple chart to show the numbers:

"The Six Sigma program is responsible for contributing $10 million to PACCAR’s bottom line in 1999, and will net the company upward of $40 million in savings this year, said Helene Mawyer, PACCAR executive director of quality." Black Belt Takes a Whack at Paccar Factory Glitches, Puget Sound Business Journal, February 25, 2000

"Six Sigma contributed over $25 million to operating profit last year." 2000 Annual Report

"PACCAR had the best year in its history, exceeding its previous annual net income record ($584 million in 1999),” noted Mark Pigott. “The consistent, strong earnings growth is a result of the company’s passion for quality excellence, superior product performance and disciplined cost control. PACCAR continues to benchmark excellent companies such as Microsoft, Dell, Toyota and Illinois Tool Works." News Release, February 1, 2005

"PACCAR is utilizing Six Sigma to help suppliers manage their business by focusing on reducing cost by shortening cycle times and simplifying logistic flow. PACCAR has assisted suppliers such as Eaton, Caterpillar, Cummins, WABCO and others as they launch Six Sigma programs in their own companies. Our suppliers participate in Six Sigma training alongside PACCAR employees," added Helene Mawyer, vice president." News Release, January 3, 2002

Articles and Links

The Business Week 50 Ranking: PACCAR #16, Business Week, April 4, 2005

Black Belt Takes a Whack at Paccar Factory Glitches, Puget Sound Business Journal, February 25, 2000