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Typical sigma score

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  • #34289

    Kapil krishan
    Participant

    What is the typical sigma level that most companies operate at? What is the source of the answer?
    Thanx

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    #94211

    bev daniels
    Participant

    To my knowledge there are no published results of empirical studies performed by a knowledgable & objective ‘auditor’ or ‘researcher’ of sigma levels of any company let alone a large enough sample to prove an estimate of what ‘most’ companies operate at.  (And I would suppose that a peer reviewed study would be too much to ask?)
    If there are any, I’d love to see the studies.  They would be quite valuable in determining what to do to achieve success. 
    I have heard and read numerous anecdotal accounts of where a particular company thinks (is ‘telling’ people) they are running. 
    I have heard and read numerous educated – and some not so educated – guesses at where certain categories of companie are ‘most likely’ running.  But most of these are based on a subjective analysis of warranty rates and guesses at internal failure rates…not very reliable sources.  
     
    So if anyone knows of such studies in the public domain please let us know.

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    #94215

    Mikel
    Member

    3.2587652 give or take 2

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    #94217

    MN
    Participant

    Most average Companies are operating ca.3 Sigma level.Successful exporting companies can exceed this level and operate at 3,5-4,5 Sigma level.Some few International Companies (such as Motorola,GE,IBM,TOYOTA…etc) operate above 4,5 and sometimes exceed 5 Sigma.My opinion based on my experience and readings. MN

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    #94473

    Amitabha Chattopadhyay
    Participant

    We are a Software Development Company. We have recently initiated some Six Sigma Projects in Support Functional Areas. The typical figures follow
    Sigma level (Recruitment Process) 2.78
    Sigma level (ProcurementProcess) 1.68
    Regards,
    Amitabha Chattopadhyay

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    #94477

    Ian Anderson
    Participant

    My experience with 6 – sigma is only within a transactional environment, although I’m often in contact with manufacturing Black Belts; I would suggest that for large transactional processes with numerous opportunities for errors and time delays (which will be 2 separate sigma measures) that 3 sigma is a goal, 4 is exceptional & 4+ is the “promised land”.

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    #94496

    AzWiz
    Participant

    I did a transactional project.
    As part of the standard process, the work product was audited twice  and corrected each time (twice).Then we did a 100% Sigma audit and Gage R&R.  N circa. 80,000+  (We had some automation to do this.)
    What do you think the Sigma was after two audits & corrections?vvvvvvv
    3.86
    AzWiz
     

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    #94498

    Hambaba
    Participant

    I think those who post a sigma value, could be more helpful to say how they measured it? what formula? did they include shift factor?

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    #94527

    Perryman
    Participant

    Amitabha,
    I am curious to know what your key process metrics were to obtain these sigma values.  What were your defects defined as?  Also, are they short term or long term?
    Thanks,
    Patch

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    #98508

    ALEK DE
    Participant

    Survival industries typically maintain 3 sigma (short term). But , please note there is truly no typical value of sigma level. It’s entirely dependent on the process / product. At Six sigma level (short term) 3.4  defects are allowed in 1 million of opportunities for making defect . Just imagine , can we afford to having aeroplane engines or medical equipements at Six Sigma level ? If yes , then we are virtually accepting 3.4 aeroplane crashes in 1 million of flying opportunities.
    Six Sigma organisations find out the critical processes & according to criticality , sigma level to be maintained for the process / product  is determind. It’s also important to note that simply focussing on sigma level improvement is no way recommended because cost of quality will unncessarily increase.
    Thanks!
     

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    #166515

    JP
    Participant

    north american weighted average via multi industry concludes = 2.1

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    #166516

    Six Sigma Shooter
    Member

    So, if your company is, say . . . at 3 sigma, you still make a lot of junk, but you’re at least better than average!
    For some reason , this reminds me of a quote I once heard from some news type, that went something like this:  “Even after all the money spent on improving education, 50% of the students are still below average!”  Knowing the typical sigma score of companies as an aggregate has about as much meaning to me as this quote, I guess.
    Shooter

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    #166554

    Mikel
    Member

    What BS. There is no way you have data to support such a dumb
    claim.

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    #166556

    Deanb
    Participant

    I agree with Stan. This would be an impossible figure to estimate accurately in a single company, yet alone across all companies.I have had cases where managers hit what they labeled as “six-sigma” perfection in a single process and wanted therefore to back-off on process improvement. After doing a brief exercise where they estimated (roughly) the sigma level of their top 5 supporting processes, the grand sigma average dropped precipitously. When this was expanded to 10 processes, and more, the grand value kept dropping, and in some cases it dropped embarrassingly low. I am yet to find an organization that did not have a lot of room for improvement when the totality is looked at. Anyone can make one process sparkle at the expense of other processes.

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    #166557

    Six Sigma Shooter
    Member

    Deanb,
    You nailed it, amigo!  There’s a nifty little chart I like to use that shows complexity (number of steps or operations in a process) on the left side, sigma level across the top and the resultant First Pass Yield in the matrix.  It tends to dispell the idea of single process excellence to the exclusion of the others.  It also shows how reducing complexity can improve yield and sigma level.  I find it to be a handy little chart.
    Shooter

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    #166558

    Six Sigma Shooter
    Member

    Geez – it’s too early – or maybe just too short a timeframe after yesterday’s festivities?.  The aforementioned chart does not show that reducing complexity will increase yield and sigma level.  It shows how it improves yield for a given sigma level.  Sorry ’bout that, ya’all.
    Shooter
     

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    #166559

    Deanb
    Participant

    Just getting managers to debate what their top 5 or 10 supporting processes are is a neat exercise. Initially they discuss the immediate adjacent processes, but if they debate it long enough they often are amazed how dependent they are on the rest of the org, such as procurement, engineering, marketing, HR, and even customer and vendor processes. It is kind of a Socratic trick, as all roads lead to Deming in a hurry by showing how interconnected everything is.

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    #166560

    Six Sigma Shooter
    Member

    Exactly – they are all part of a system.  That’s why systems thinking is so important.  The one that gets me is when someone touts how they have “optimized” a process, only to find out that they have suboptimized the system and other processes in the value stream.  Usually, by the time the suboptimization has been discovered, the “hero” has been promoted and has left the newbie holding the bag for the consequences.  “What a world! What a world . . .!”
    Shooter

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    #166561

    keyes
    Participant

    Seasons Greetings:
    Just noticed this holistic thinking/concern thread…….very key.
    As a Theory of Constraint certified Jonah, we leverage the socratic method of Questions-of-Discovery all the time. I’m a big proponent of LSS, and our company works with LSS teams all the time, in supply chain, however, many companies and LSS teams have so many projects underway and MANY times their projects are fragmented and NOT connected! Soooo, one way to ensure holistic thinking is to leverage TOC method of holistic thinking(Conflict Cloud)..OR, leverage VSM, Deming or Juran to profile “Cause & Effect” with your management. CHeers
    Greg

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