The Six Sigma Business Model and Its Relationship to Statistics

Introduction

The traditional method for improving corporate earnings generally has been to reduce costs. Six Sigma is a business model which states that the key to higher profits in the final results does not lie in reducing costs but on improving quality, is based on customer focus on efficient data management and methodologies and robust design, which eliminates the variability in processes and achieve a level of defects or less 3.4 defects per million (Jean, 97).

Six Sigma is an approach to improving the business, which seeks to find and eliminate causes of errors or defects in business processes by focusing on the output parameters which are critical to the consumer. "Six Sigma is a strategic approaches that running for all processes, products and industries (George, 112). This approach was first developed by" Motorola ", whose registered trademark and is reflected in the title. Recently, this approach is receiving increasing attention that, in the first place, due, apparently, the impressive economic achievements of those companies that declare their commitment to this area. This model of the external appreciation and shared with the leaders in charge of the processes in order to evaluate the various disturbances that can result in low yields and low quality of finished products, inefficient or ineffective processes of a company.

Principles of Six Sigma

Focus on the customer genuine: The main focus is to give priority to the customer. Six Sigma improvements are evaluated by the increase in levels of satisfaction and creating customer value.

Management based on data and facts: Six Sigma process begins by establishing what are the key measures to be measured, then going to the collection of data for further analysis. So problems can be defined, analyzed and resolved in a more effective and permanent, attacking the root causes or fundamental that originate, and not its symptoms.

The processes are where the action is: Six Sigma focuses on the processes, so they dominate achieve significant competitive advantages for the company.

Address proactive: This means adopting habits such as defining ambitious goals and review them frequently, setting clear priorities, focus on prevention of problems and question why things are done the way they do.

Collaboration without boundaries: Special care should be on breaking down barriers to teamwork between members of the organization. Achieving such improved communication and better work flow.

Seek perfection: Companies that have implemented Six Sigma quality goal of achieving a more perfect every day, being willing to accept and deal with occasional setbacks.

Get 3.4 defects per million opportunities are a very ambitious but achievable goal. One can classify the efficiency of a process based on their level of sigma (George, 7):

= 690,000 DPMO 1sigma = 31% efficiency

2sigma = 308,538 DPMO = 69% efficiency

3sigma = 66,807 DPMO = 93.3% efficiency

4sigma = 6210 DPMO = 99.38% efficiency

5sigma = 233 DPMO = 99.977% efficiency

6sigma = 3.4 DPMO = 99.99966% efficiency

The Six Sigma focuses on linking together all parts of the process to create a logical flow and continuous. The information is passed from one ...