Six Sigma

Topics: Six Sigma, Process capability, Defects per million opportunities Pages: 7 (1791 words) Published: January 3, 2013
-Quality Improvement Program

Six Sigma is a smarter way to manage business or department. It is a vision of quality that equates with only 3.4 defects for million opportunities for each product or service transactions. Strives for perfection. We believe that defects free product can be in any organization implementing six sigma. In this paper, we presented an overview of the process which explains how six sigma increase the overall quality improvement task into a series of project management stages: Define, Measure, Analyses, Innovation, Improve and Control. We will describe dependence of six sigma on Normal Distribution theory and also process capability. It gives a small note on the assumptions made in six sigma methodology of problem solving and the key elements involved .A brief view on Defects Per Million Opportunities (DPMO) Analysis is given. Ultimate objectives of the methodology to solve problems, improve the quality, profitability and customers satisfaction.

The main objective of any business is to make profit. For increasing the profit, the selling price should increase and/or the manufacturing cost should come down. Since the price is decided by the competition in the market, hence the only the way to increase the profit is to cut down the manufacturing cost which can be achieved only through continuous improvement in the company’s operation. Six sigma quality programs provide an overall framework for continuous improvement in the process of an organization. Six sigma uses facts, data and root cause to solve problems. EVOLUTION OF SIXSIGMA:

Six sigma background stretches back eighty plus years, from management science concepts developed in the United States to Japanese management breakthroughs to “TOTAL QUALITY “ efforts in 1970s and 1980s. But the real impacts can be seen in the waves of change and positive results sweeping such companies as GE, MOTOROLA, JOHNSON &JOHNSON and AMERICAN EXPRESS.

Six sigma is defined a customer oriented, structured, systematic, proactive and quantitative company wide approach for continuous improvement of manufacturing, services, engineering, suppliers and other business process. It is a statistical measure of the performance of a process or a product. It measures the degree to which the process deviates from the goals and then takes efforts to improve the process to achieve total customer satisfaction. Six sigma efforts target three main areas:

• Improving customer satisfaction.
• Reducing cycle time.
• Reducing defects.
Three key characteristics separates six sigma from quality programs of the past: 1. Six Sigma is a customer focused.
2. Six sigma projects produce major returns on investments.
3. Six sigma changes how management operates.

6 SIGMA= 3.4 defects per million

Six Sigma equates 3.4 defects for every million parts made or process transactions carried out. This quality equates to 99.99966% defect free products or transactions. High quality standards do make sense but the cost required to pursue such high standards have to be balanced with benefits gained. The six sigma processes exposes the root causes and then focuses on the improvements to achieve the highest level of quality at acceptable cost. This is essential to achieve and maintain a competitive advantage and high levels of customer satisfaction and loyalty. When we say that a process is at six sigma level, such a process is normally yield two instances of non-conformances out of every million opportunities for non-conformances, provided there is no shift in the process average. The same will yield 3.4 instances of non-conformances out of every million opportunities with an expected of 1.5 sigma in the process average. This is considered to be...
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