![]() ![]() Measures such as Cp and Cpk are used to describe the performance of your process against your specifications, whether they be internal or customer-focused. Six Sigma is used in the calculations of process capability. Since your goal is to reduce the variation of your processes, you will need to understand the causes of variation and strive to mitigate or eliminate those so you can reduce your process variation. The standard deviation is a measure of your process variation. It is the understanding of the statistical definition of Six Sigma that will be important. Why is Six Sigma important to understand? Referring to the two benefits above, it’s easy to see how reducing waste, defects, and variation will make your customers happier - especially if you can translate that into a lower price based on your own lower costs. Jack Welch of GE used to say, “Variation is evil.” What he meant was that a customer wants predictability when it comes to your product quality, delivery, and all other aspects of your business relationship. Reduces waste and defectsīy applying the tools of DMAIC, you will be able to measure, analyze, and improve your process to eliminate waste and defects regardless of your organizational function. The primary benefits of Six Sigma come from the implementation of the methodology. The philosophy is based on the principles that all work can be defined as a process, all processes can be improved, variation should be reduced, and decisions should be fact-based and data-driven. While we have already defined Six Sigma as a measurement (or metric) as well as a methodology, it also can be defined as a continuous improvement management philosophy. These roles are typically referred to as Green Belts, Black Belts, and Master Black Belts. The process utilizes specialized and certified professionals who are trained in the DMAIC methodology. ![]() The deployment of Six Sigma can range from a simple problem-solving approach to an organization-wide transformation. The foundation of the Six Sigma methodology is based on a five-step process referred to as DMAIC (Define-Measure-Analyze-Improve-Control). More recently, Six Sigma was combined with the concept and tools of lean manufacturing to form the Lean Six Sigma (LSS) approach to organizational improvement. Many of the world’s best-known companies have tried or are currently implementing some version of Six Sigma. Subsequently, the methodology and concepts were adopted by Honeywell, Allied Signal, and GE. The Six Sigma methodology was developed in 1986 by Bill Smith, an engineer at Motorola. That means they’re trying to improve their organizational processes to achieve a high level of quality and performance. You often hear of a company deploying a Six Sigma effort. This can also be defined as a process having only 3.4 defects per million opportunities, or DPMO. In this situation, a six sigma process is defined as one where the closest specification is six standard deviations away from the mean. In the context of a normal distribution, it would be the width of a normal distribution consisting of the mean plus and minus three standard deviations, which would encompass 99.73% of the data.ĦS is also frequently used when talking about process capability. Six Sigma would then be six standard deviations. Sigma can be defined as the standard deviation of a set of continuous data. Let’s dive a little deeper into each of those. Six Sigma has been defined in three ways: The benefits of Six Sigma will be presented along with how it can be used in your organization and some best practices when applying the varying definitions. In this article, we will define what is Six Sigma from a variety of perspectives. ![]()
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