Friday, December 31, 2004

What is Six Sigma ?

Six Sigma is a problem solving methodology that uses your company's human assets, data, measurements, and statistics to identify the vital few factors that can decrease waste and defects while increasing customer satisfaction, profit and shareholder value.

A sigma is a term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of measurements or a process.

A sigma represents 691,462.5 defects per million opportunities (DPMO), which translates to a percentage of nondefective outputs of only 30.854%.

Six Sigma represents 3.4 DPMO, which translates to a percentage of nondefective outputs of 99.9997%--close to perfection.

The Six Sigma methodology uses statistical tools to identify the vital few factors that matter most for improving the quality of process and generating bottom-line results. It consists of four or five phases:

Define the projects, the goals, and the deliverables to customers (internal and external).

Measure the current performance of the process.

Analyze and determine the root cause(s) of the defects.

Improve the process to eliminate defects.

Control the performance of the process.

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