Six Sigma

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Date Submitted: 04/09/2013 10:36 PM

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Six Sigma

Definition

"A data-driven method for achieving near perfect quality. Six Sigma analysis can focus on any element of production or service, and has a strong emphasis on statistical analysis in design, manufacturing and customer-oriented activities."

Six Sigma is a quality management methodology. The philosophy behind Six Sigma is that if you measure how many defects are in a process, you can figure out how to systematically eliminate them and get as close to perfection as possible. In order for a company to achieve Six Sigma, it cannot produce more than 3.4 defects per million opportunities, where an opportunity is defined as a chance for nonconformance.

Six Sigma originated as a set of practices designed to improve manufacturing processes and eliminate defects, but its application was subsequently extended to other types of business processes as well. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Champions”, “Black Belts", "Green Belts”, “Orange Belts", etc...) who are experts in these very complex methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction and/or profit increase).

Terminology

The term "Six Sigma" originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Basic general definition for term ‘Six Sigma’ in relations to quality improvement process, is that it's a process that must produce no more than 3.4 defects per million opportunities, or...