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DMQ 30262

5.2 Six sigma

INTRODUCTION

Six Sigma, (6σ) stands for Six Standard Deviations (Sigma is the Greek letter used to

represent standard deviation in statistics) from mean. Six Sigma methodologies provide the
techniques and tools to improve the capability by managing variation and reduce the defects
in any processes. Six Sigma is a disciplined, data-driven approach and methodology for

eliminating defects from manufacturing to transactional and from product to service. It was
started in Motorola, in its manufacturing division, where millions of parts are made using the

same process repeatedly. Eventually Six Sigma evolved and applied to other non
manufacturing processes. Today we can apply Six Sigma to many fields such as Services,
Medical and Insurance Procedures, and Call Centers.

5.2.1 DEFINITIONS

Six Sigma is usually related to the magic number of 3.4 defects per million
opportunities. There a few meaning of Six Sigma. There are :

a. From management philosophy view. Six sigma is a customer based approach
realizing that defects are expensive. Fewer defects mean lower costs and improved

customer loyalty. The lowest cost, high value producer is the most competitive
provider of goods and services. Six sigma is a way to achieve strategic business

results.

b. From a statistic view. 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.

c. From a process view. To implement the six sigma management philosophy and
achieve the six sigma level of 3.4 defects per million opportunities or less there is a
process that is used. The six sigma process is Define, Measure, Analyze, Improve

and Control; DMAIC.

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