Six Sigma
Six Sigma concept ( )
Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used
to represent standard deviation in statistics) from mean. Six Sigma methodology
provides the techniques and tools to improve the capability and reduce the defects
in any process.
Six Sigma as a Metric
The term "Sigma" is often used as a scale for levels of "goodness" or quality.
Using this scale, "Six Sigma" equates to 3.4 Defects Per Million Opportunities
(DPMO). Six Sigma started as a defect reduction effort in manufacturing and then
applied to other business processes for the same purpose. Taking the 1.5 sigma
shift into account, short-term sigma levels correspond to the following long-term
DPMO values (one-sided):
o One Sigma = 690,000 DPMO => efficiency 31%
o Two Sigma = 308,000 DPMO => efficiency 69.2%
o Three Sigma = 66,800 DPMO => efficiency 93.32%
o Four Sigma = 6,210 DPMO => efficiency 99.379%
o Five Sigma = 230 DPMO => efficiency 99.977%
o Six Sigma = 3.4 DPMO => efficiency 99.9997%
Six Sigma as a Methodology
As Six Sigma has evolved, there has been less emphasis on the literal
definition of 3.4 DPMO, or counting defects in products and processes. Six Sigma is
a business improvement methodology that focuses an organization on:
o Understanding and managing customer requirements
o Aligning key business processes to achieve those require
o Utilizing rigorous data analysis to minimize variation in those processes
o Driving rapid and sustainable improvement to business processes
At the heart of the methodology is the DMAIC model for process improvement.
DMAIC is commonly used by Six Sigma project teams and is an acronym for:
DMAIC - The basic methodology consists of the following five steps:
o Define process improvement goals that are consistent with customer
demands and the enterprise strategy.
o Measure key aspects of the current process and collect relevant data.
o Analyze the data to verify cause-and-effect relationships. Determine what the
relationships are, and attempt to ensure that all factors have been
considered.
o Improve or optimize the process based upon data analysis using techniques
like Design of Experiments.
o Control to ensure that any deviations from target are corrected before they
result in defects. Set up pilot runs to establish process capability, move on to
production, set up control mechanisms and continuously monitor the process.
Benefits of SIX Sigma:
SIX Sigma Methodology:
DMADV Methodology