What is Six Sigma?
1104 reads · Last updated: December 5, 2024
Six Sigma is a methodology for process improvement developed by a scientist at Motorola in the 1980s. Six Sigma practitioners use statistics, financial analysis, and project management to achieve improved business functionality and better quality control by identifying and then correcting mistakes or defects in existing processes. The five phases of the Six Sigma method, known as DMAIC, are defining, measuring, analyzing, improving, and controlling.
Definition
Six Sigma is a process improvement method aimed at reducing defects in products or services through statistical analysis. Its goal is to achieve only 3.4 defects per million operations, reaching six standard deviations.
Origin
Six Sigma originated in the 1980s, developed by scientists at Motorola. It combines statistics, financial analysis, and project management to identify and correct errors in processes.
Categories and Features
The Six Sigma method includes five phases known as DMAIC: Define, Measure, Analyze, Improve, and Control. Each phase has specific tools and techniques to identify and reduce defects.
Case Studies
General Electric (GE) is a notable success story of Six Sigma. By implementing Six Sigma, GE saved billions of dollars in the 1990s. Another example is Honeywell, which improved its production processes and product quality through Six Sigma.
Common Issues
Investors may encounter issues such as misunderstanding statistical tools and having unrealistic expectations of process improvements when applying Six Sigma. It is crucial to understand that Six Sigma requires ongoing effort and comprehensive organizational support.
