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Six Sigma

Six Sigma is a set of techniques and tools for process improvement. It was developed by Motorola in 1986. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Champions", "Black Belts", "Green Belts", "Yellow Belts", etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits. These are also core to principles of Total Quality Management (TQM) as described by Peter Drucker and Tom Peters (particularly in his book "In Search of Excellence" in which he refers to the Motorola six sigma principles).

The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defective parts/million), although, as discussed below, this defect level corresponds to only a 4.5 sigma level. Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a by-word for the management and engineering practices used to achieve it.

Benefits of Six Sigma

Those organisations that implement Six Sigma correctly achieve significant benefits that contribute to competitive advantage and to changing the culture in an organisation from reactive problem solving to proactive problem prevention. Specifically the proven benefits include:

For the organisation

  • Bottom line cost savings (5%-20% of turnover per annum)
  • Improved quality of product or service as perceived by the customer (internal and external customers)
  • Reduction in process cycle times
  • Development of staff skills
  • Common language throughout the organisation
  • World class standard

For the individual

  • Improved knowledge and skills
  • Ability to use a wide range of tools and techniques
  • A status that is recognised world wide

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