Six Sigma

Six Sigma is a quality management methodology that uses different theories and tools to improve upon the processes of a certain business such that greater output is realized with less input. This results in near perfect products and services that meet and/or exceed the expectations of customers or end users, while simultaneously reducing the amount of time, money, and resources put in. In 1980's, the Motorola Corporation first created and implemented this methodology and have profited immensely since then.

Statistically, ‘Sigma’ (σ) is used to represent the statistical term ‘standard deviation’ which measures the deviations from average in a particular business process.
As the deviation from the normal increases, there is an increase in defective products or services. These ‘defects’ require resolution, which costs businesses increased time, money and resources in the long run. It is possible and practical to improve all business processes to 99.9997% perfection with the Six Sigma Methodology. The percentage of defects decreases as the number of sigma increases. The Defects Per Million Opportunities (DPMO) is only 3.4 when 6σ is employed, as opposed to 6,210 using 4σ which is the current industry standard.

Six Sigma = 3.4 DPMO, or 99.99% defect-free
Five Sigma = 233 DPMO, or 99.98% defect-free
Four Sigma = 6,210 DPMO, or 99.4% defect-free
Three Sigma = 66,807 DPMO, or 93.3% defect-free
Two Sigma = 308,538 DPMO, or 69.1% defect-free
One Sigma = 691,462 DPMO, or 30.9% defect-free

One of the most important things to note about the Six Sigma Process is that it does not rely on quick-fix programs to temporarily mask a business problem. It is a systematic methodology of hard work that is fused with a disciplined, factual, data-based and statistical problem-solving method. The amount of guesswork and product testing can be cut to a fraction, saving time and money. Therefore, it affects almost all aspects and levels of a company. Six Sigma can be applied in any field, if there is a process involved, it can be streamlined with Six Sigma.