Six Sigma and Its Impact in Business Management

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Quality of the end products in any business organization is very critical for generating considerable amount of profit in the business. William Edwards Deming first introduced quality of products conceptualization during 1950s when the quality of Japanese products was unsatisfactory. In the similar respect, on January 15 1987, the CEO of the Motorola launched a long-term quality program, called “The Six Sigma Quality Program”. The program was a corporate program, which established Six Sigma as the required capability level to approach the standard of 3.4 DPMO. This new standard was to be used in everything, that is, in products, processes, services and administration. (“The Evolution of Six Sigma,” 2010) This report presents a brief statistical details that led to the discovery of Six Sigma and how Six Sigma has impacted different organizations’ managements. Six Sigma derives its statistical analysis using normal distribution. The standard deviation shows the deviation (rate of defects) from the statistical mean. The “six” in sigma refers to the highest possible sigma rating, which indicates that a product or service meets all the customers’ time and quality criteria (delivery “on-time and at-quality”) 99.966% of the time. This scale recognizes that no process can deliver 100% quality at all times, so 6 is the highest possible sigma rating. These time and quality criteria can be applied to virtually any product or service, so Six Sigma tools can be used in any type of organization that has customers. Six Sigma provides a methodology and a set of tools that help organizations to assess their current level of quality and then improve delivery to customers incrementally, one sigma level at a time. (Pande and Holpp, 2002) Pande and Hopll (2002) indicated that “Sigma” refers to a statistical measure of variance, which is measured on a scale as presented in Table 1. ∑(Sigma ) RatingDefect RateOn-time at-quality rate

093.32%6.68%
169.15%30.85%
230.85%69.15%...
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