Six Sigma is a process that helps companies to focus on developing and delivering near-perfect products and services, reducing the percentages of errors to near zero. The idea behind Six Sigma is that by measuring the number of "defects" in a process, we can systematically figure out how to eliminate them and get as close to "zero defects" as possible. In the process the company saves the costs associated with rejected goods or bad customer experience.
Six Sigma is a management tool that was originally developed by Motorola. It was used by General Electric (GE) with remarkable savings, and now it has widespread application in many manufacturing and service organizations. It is based on statistical methods and generating data for defects at various stages of delivery and then helps to eliminate those defects.
The term “Six Sigma” stands for getting rid of defects, striving towards six standard deviations between the mean and the nearest specification limit in any process. Thus the level of defects is reduced to almost zero. A process will achieve Six Sigma if it does not produce more than 3.4 defects per million opportunities. A defect is defined as anything outside of customer specifications, while a Six Sigma opportunity is the total quantity of chances for a defect.
As one strives for near perfection, the work place benefits and soon becomes one of the excellent organizations. This is the benefit of following a Six Sigma strategy.
Through Six Sigma method, we can improve the quality of outputs by identifying and removing the causes of errors. Variable factors are brought under control, whether it is a manufacturing, transactional or service organization. Specified experts in their fields are labeled as "Black Belts" and "Green Belts, and so on. They are trained in following the sequence of steps to achieve perfection. Each activity has quantified financial targets.
The objective of the Six Sigma method is the implementation of a measurement-based process improvement and variation reduction system. There are two Six Sigma sub-methodologies: DMAIC and DMADV. The DMAIC process is an abbreviation for: define, measure, analyze, improve, control. Through DMAIC, we can implement a system to identify existing processes falling below specification and thereby trying for incremental improvement. The DMADV process is: define, measure, analyze, design, verify. This system used to develop new processes or products. These processes are executed by Six Sigma Green Belts and Six Sigma Black Belts. It is overseen by Six Sigma Master Black Belts.
The implementation of Six Sigma results in significant savings. For example, it is estimated that General Electric has earned benefits of about $10 billion during the first five years of implementation of Six Sigma.
Today, thousands of companies use the Six Sigma strategy. By controlling errors at various stages of a process, companies reduce the wastage of resources and thus get sizeable benefits. A company striving for excellence must follow and implement the Six Sigma strategy.
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