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Date: 2024-12-21 Page is: DBtxt001.php txt00001716

Performance, Society and Economy
About Six Sigma

What is Six Sigma: An Overview of Six Sigma Methodology ... a technique that became popular in the corporate world over the last 20 years

COMMENTARY
The 'name' Six Sigma became popular over the last 20 years, but the idea is much older. I associate much of the idea with Michael Deming who started to apply statistical method to process and quality control immediately after the Second World War in 1946 in Japan, and subsequently and belatedly in the USA. I have always used the method, albeit informally, all the way through my career ... with considerable success.

In my view, the reason this is important is that a methodology like this is completely absent in almost every aspect of society and the economy except in the making of corporate profit. Corporate efficiency has improved over the years, while the 'efficiency' of society has 'gone to hell in a handbasket'. It would be interesting to find out how many lawmakers know anything about SixSigma and could apply the ideas as they think about legislation to improve quality of life and the performance of society?
Peter Burgess

What is Six Sigma: An Overview of Six Sigma Methodology

So you’ve heard of Six Sigma training and always wondered what all the fuss was about. Bottom line... it is a business process that allows companies to drastically improve their profitability. How does it manage to achieve this? Well the concept is simple.

Your Company + Better Processes = $$$$
Everyday you go to work and have a process of getting your work done. Everyday, chances are, there are better ways of doing it quicker and more efficiently. Quickness and efficiency equal a better product or service, a happier customer, and higher profits for your company.

Simple right?

Well in theory yes, but in reality it is quite a daunting task. Just imagine all the possible improvements that can be made. From the custodian to the assembly line, millions of processes are waiting to be improved.

Six Sigma is a highly controlled methodology. It demands that you choose only the very best projects that meet your company’s goals. And once they are chosen it demands that the proper resources are dedicated to it. It requires the project be put through an entire process called DMAIC (Define, Measure, Analyze, Improve, & Control).

Is it really worth it?

If given the dedication it deserves, you bet! There is a reason that Six Sigma is a household term nowadays. It’s all about the quality with Six Sigma. Everything that you do opens up the chances for an error to sneak in. The hope of Six Sigma is to lower those chances. Here’s the breakdown:

Defects per million chances/opportunities

  • 2 sigma = 308,537
  • 3 sigma = 67,000
  • 4 sigma = 6,200
  • 5 sigma = 233
  • 6 sigma = 3.4
What does that translate into?

How does 20% profit margin increase sound? And that’s just for starters. Every time you move up a sigma, it can easily mean a 20% increase for each sigma level.

In answer to the question about how long it takes ... the following answer

Well that depends on just how good your quality currently is. With the proper dedication a company can move from 3 Sigma to 4 Sigma within 1 year. However, a good rule of thumb is “the higher your Sigma level is… the longer it will take you to reach the next sigma level.” But as the old adage goes, “the best things come to those who wait”.

Written By: Six Sigma Training Assistant
9-13-2006
The text being discussed is available at http://www.sixsigmaonline.org/six-sigma-training-certification-information/articles/what-is-six-sigma-an-overview-of-six-sigma-methodology.html
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