SIX SIGMA

Six Sigma

Six Sigma

Introduction

Six-Sigma means a measure of quality that strives for near perfection. Six-Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service.

Overview of Six Sigma

The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect. Process sigma can easily be calculated using a Six Sigma calculator. (Welbourne 1998, 22)

The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and reduction in anomalies through the application of Six Sigma improvement projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six Sigma DMAIC process (defines, measure, analyze, improve, control) is an improvement system for existing processes falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement. Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by Six Sigma Master Black Belts. (Johnson 1998, 540-555)

According to the Six Sigma Academy, Black Belts save companies approximately $250,000 per project and can complete four to six projects per year. General Electric, one of the most successful companies implementing Six Sigma, has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since them, thousands of companies around the world have discovered the far-reaching benefits of Six Sigma.

Numerous references are in vogue for implementing the Six Sigma methodology. Consultants all over the world have developed proprietary methodologies for implementing Six Sigma quality, based on the similar change management philosophies and applications of tools. (Johnson 1998, 540-555)

The customers that form the base are sending a clear message: produce high-quality products at lower costs with greater responsiveness. Six-Sigma helps an organization achieve these objectives when leveraged with other initiatives as part of a business strategy. (Fenton 1992, 39, 88-95)

"Six Sigma is a disciplined, data-driven approach to process improvement aimed at the near-elimination of defects from every product, process, and transaction. The purpose of Six Sigma is to gain breakthrough knowledge..."

“Some consultants are earning seven figure salaries, CEOs of large companies are claiming billions of dollars saved, conferences, books, and seminars are popping up everywhere, and yet one can argue that there isn't much new about Six Sigma that we didn't have with ...