What Is Six Sigma?
Six Sigma – what does it mean?
Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from product to service.
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.
The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction 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 (define, 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.
According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can complete four to 6 projects per year. (Given that the average Black Belt salary is $80,000 in the United States, that is a fantastic return on investment.) 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 then, thousands of companies around the world have discovered the far reaching benefits of Six Sigma.
Many frameworks exist for implementing the Six Sigma methodology. Six Sigma 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.
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Good introduction into the basics of Six Sigma.
Definately worth a read.
it is very useful article because six sigma become the way which all the combany take this way to make money
thank you for your effort
best regards
http://1stquality.blogspot.com
Thank you for giving me the meaning of this word ”SIX SIGMA” cuz i hv faced so many problems for this. Thanks once again
khushbu 6 Sigma . u just knew the meaning but whta is in very rare peoples to understand . i give u 1 suggesion only read and under stand THE GREEN BELT of 6 SIGMA . then you complete about 6 sigma …..
It was great to known about six sigma defination from your link..
Six Sigma is very good concept and this knowledge can help company to reduce the tedious task while implementing any project.
I feel every should know about Six Sigma is very important and this link explains in simply words
In the US it’s call “Six Sigma” in Japan it’s called Kaizen or 5 S. I have worked with kaizen and the 5 S since 1993 and with all due repect, I will use these over Six Sigma. (maybe that’s why I keep getting told I’m over qualified) Look at the last sentence. This isn’t process is not taught/instilled with Six Sigma.
5S is the name of a workplace organization methodology that uses a list of five Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated into English, they all start with the letter “S”. The list describes how items are stored and how the new order is maintained. The decision-making process usually comes from a dialogue about standardization which builds a clear understanding among employees of how work should be done. It also instills ownership of the process in each employee.
I worked under 6-sigma at AT&T. I found it to be an in-humane system that SCRUTINIZES employees way more than what is reasonable. This system treats humans like MACHINES. It puts a computer in command of the person as judge over every move you make. This is like being MICROSCOPED from 50 different parameters… then the boss starts hammering everyone for better efficiency, or accuracy or percent this percent-that. In a highly technical job it is IMPOSSIBLE to attain all the unreasonable goals they push for. It is a RECIPE for someone to go postal… was my experience. I finally had to quit the $32.00 dollar/hr job and go somewhere else that treats me like a human being… for $10.00 per hour! My family is really suffering now. I lost my retirement plans and I am 55 years old! Computers should not be judges of human productivity. Maybe AT&T implemented it wrong or something… I just cant believe all the people commenting on this page sounding like six-sigma is some kind of wonderful thing!!! what is wrong with you people?
spot on!!
you are so right.
i work for TYCO under 6-sigma , and all what you said is so true,…
James, thanks for sharing your honest comment. I work for a very large global company where corporate management is always pushing six sigma, and I couldn’t agree with you more!
Sounds to me like it’s a management issue, not six sigma. It’s entirely possible to implement, and if implemented right, keep the abilities of the employee’s in line. If you focus purely on cost, you get the situation where they nit-pick every thing.
Implemented right you can have both worlds, a better work environment, and a better production throughput and quality.
Sounds like a great system if you’re a drone cranking out millions of widgets. I’m an Computer Systems R&D Engineer where we make anywhere from one to 10 systems. 6-sigma would be a complete waste of time for what I do. The sad thing is that there is lots of managers out there that everything should be done using 6-sigma including R&D. I interviewed with a few of these nut jobs and come to the conclusion it is a big red flag to stay away because idiots are in charge.
s-sigma is a joke!
Right, Hapiness is more important than money.
Amen, it’s poorly executed at AT&T , and empowers certain individuals to to basacially drive subordinates to the brink.l Rewarding these certian individuals, for applying a system, that is only ” Black or White” , with no real alternate variables being taken into consideration! This is an extremely poor way to run a company that USED to be Employee and Family friendly.
David Mundy, I went through the Six Sigma training at AT&T. It was a very good training and could be a huge value to AT&T. The problem is the management has know idea what 6 sigma is and are more concerned with the fire drill of the day. With 6 Sigma if the management is not on board and knowledgable of the process, the system is a nightmare. So you have experienced this nightmare first hand.
As you mentioned sir, it is not some form of business panacea. Nor is it Esperante. Just something that makes sense, if you know what they mean. ERM.
I really feel for you. I know first hand how your life can be turned upside down. My job and my husbands were outsourced. I was employed by a major corp for 14yrs and my husband for 22yrs. Two different firms and now we went from 160 a yr to unemployment and no benefits. Scary times! I hope things have turned around and yes when the hell is the gov’t going to start charging tarifs for work going overseas! America isn’t what it was.
My co had six sigma I guess we were all replaced.
IT SOUNDS LIKE DR. DEMMINGS RETURN FROM JAPAN
STATISTICAL QUALITY CONTROL SOLD UNDER ANOTHER NAME TO ME. I MET DR. DEMMING IN THE 1980′S HE WAS A NICE, KIND, AND GENTLE PERSON
WITH A GOOD APPROACH TO QUALITY IN A MANUFACTURING INDUSTRY.
Deming did return from Japan, after he taught them the six sigma processes. There’s a reason the highest honor for quality in Japan is called the Deming award.
The standard practice of turning numbers of efficiencies with the way the human brain thinks is all in retraining our thought process and our view of what can be humanly achievable, it can be shown to employees on a chalk board daily and that process alone will increase productivity along with ownership from employees.
David Mundy’s response (08 February 2011 02:50) stemming from his plight is understandable and possibly something that all ‘scientific’ management exponents must take into account when using these techniques.
These tools should not become the means for removing people from the job but used to see how human-machine-process interactions can be smoothened to achieve objectives. Unfortunately it is not just the consultants but even short-sighted managements, who are responsible for this mess.
I am a general proponent of efficiency in manufacturing cycles and the use of six sigma techniques. However, in many industries I say a push for the use of six sigma when the number of products produced is one or two. What on earth is the six sigma on a sample of one? Using techniques to improve the production of an item is the normal work of engineers of all disciplines. I would prefer that we all work towards that goal without increasing compartmentalization of the work.
Very nicely explained Six Sigma.
I am a general proponent of efficiency in manufacturing cycles and the use of six sigma techniques. However, in many industries I say a push for the use of six sigma when the number of products produced is one or two.
Just started to Study Six Sigma for my MBA, thanks for all the tips and info on this site…..
Very well written and concise article. I especially like the paragraph about return on investment from a black belt. I am going to point my Belt students towards this page as a quick reference to the definition of Six Sigma. I look forward to reading more articles.
Hi all,
Six sigma is good to adopt in a manufacturing company only when each and every body understands the concept including the higher management staffs. Must be willing to collaborate and work as a team towards it.
Definitely there are benefits in doing it.
But must not replace people because of that.
Thanks.
The article sounds good. The six sigma is to industry what probably OODA(Observe Orient Decide Act) loop is to the military. The basic principles remain the same most of the time. Its just the jargon that changes. People nowadays like to be esoteric and throw high sounding jargon. I think the best thing is the KISS principle(another jargon) Keep It Simple and Stupid. We somehow seem to be in a continuous process of making life more complicated for ourselves.
The six sigma can generate more money for the company . But does that serve any purpose to people in the company. And at what cost?
Six sigma definitely doesn’t survive on the high sounding jargon hype. When we had to keep things simple, shouldn’t we know how to do the same? That is where Six sigma methodology helps.. to keep things simple. Everyone will have their own way of doing things and it will become a challenge at an organization level to manage different approaches at the same time. Six sigma is proven to be an easy to understand, systematic, data driven approach which can be adopted by people at all level in an organization. Will it not become simple to understand and manage when the entire organization speaks of same language? When complex tasks are approached systematically, they become easy to manage and control and Six sigma speaks of the same. Decisions are taken better and quicker when data is there to support and this reduces a lot of effort and waste which can result from gut based decisions and approaches.
Helpful for a beginner as well as a veteran.
An Excellente point to improve production and focus on Management Operation based on the objectives and goals for any company apply it’s rule and it company purpose: the Six Sigma (define, measure, analyze, improve, control). Mr.Ben Ace-MBA. San Juan, Puerto Rico.
Six Sigma is just a tool to be used to help a company produce higher quality products or services at lower costs in order to be competitive. Like any tool, if it is used without regard to the human aspects of the workplace, it can have an overall detremental effect and will not likely be sustainable. I’ve seen it executed well and also poorly. In regards to Mr. Munday’s post above, I would argue that it was not Six Sigma nor was it “computers” that caused the problem, but management that executed a program without fully understanding how to do so while maintaining employee dignity, value and trust. That is indeed unfortunate for all involved.
this is what i needed to learn… i have been reading a lot about this and its a field that is very much interesting that can make your brain think endless possibilities…
“So my mom can understand it” :-) I love it. Oh, and you delivered too. Excellent and concise description of Lean Six Sigma.
Good introduction into the basics of Six Sigma
probably need a little QC on the Cyger Murrow interview – someone needs to check Rick Murrow’s comments: near the 42 second mark: he says to make the customers more competitive, it is to make the businesses more competitive.
Thanks for pointing it out, Dave, so others aren’t confused. It was merely a slip of the tongue. It’s tough to have a conversation for an hour and not mix up a word every once it a while. I’ve just typed three sentences and I’m sure I did it at least once. :)
It seems some people really like sigmasix. But reading the negative comments on this made me cringe. In the stone age I worked in aerospace info tech. Upon occasion I worked on a quality improvements program. I have never heard of sixsigma. But I know that people are not machines. The description calls it a measure of quality that strives for near perfection.
My first thought was, “Humans cannot achieve near perfection easily. That sounds stressful.” Then I wondered, “near perfection at what? Who is tasked with this near perfecting? Who is measuring and ensuring things are nearly perfect?” Perfection is an interesting concept. Is this perfection on a micro level? Or are there sweeping standards of perfection for all?
Someone was talking about how hard it is to work in Info Tech under this system. I believe it. The workflow in certain types of information technology may not be a constant. Your role may be to produce like mad for a while, then hand off your product to another group. Then you are stuck waiting for some other group to finish their part before you get the project back in your lap again. In other words. It’s not that you work every minute. It’s that you are a specialist who does quality work when it is needed. And sometimes you try to look busy while waiting.
A good insight. It seems like this will be perfect in a manufacturing environment where everything is controllable, such as make a bottle of coke. In a service environment which is full of human interaction it might need something else which encourages positive energy from the individual to achieve the best results.