6 Sigma

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Sigma is a term used in statistics to represent standard deviation, an indicator of the degree of variation in a set of a process
Six Sigma is a management philosophy focused on eliminating mistakes, waste and rework. It establishes a measurable status to achieve and embodies a strategic problem-solving method to increase customer satisfaction and dramatically reduce cost and increase profits.
Six Sigma gives you discipline, structure, and a foundation for solid decision-making based on simple statistics. The real power of Six Sigma is simple because it combines people power with process power.

Six Sigma is a Process Improvement Methodology aming -        
    Reducing defects to a rate of 3.4 defects per million defect opportunities.    
    Identifying & eliminating causes of variations in business processes    
    Using statistical processes            
    Focusing of a very clear understanding of customer requirements / voice of customer
Six Sigma Level        
    Sigma means standard deviation    
    So, six sigma means six times the standard deviation.

Sigma Level Defects per million Defect as percent Improvements  
One Sigma 690,000.0 69.0000%   69
Two Sigma 308,000.0 30.8000% 2 times 30.8
Three Sigma 66,800 6.6800% 5 times 6.68
Four Sigma 6,210.0 0.6210% 10 times 0.621
Five Sigma 230.0 0.0230% 30 times 0.023
Six Sigma 3.4 0.0003% 80 times 0.00034

Objective of Six Sigma is only 3.4 defects (errors) out of every million defect opportunities i.e 99.9997% perfection

Difference between 99.0% & 99.9997%    
      99.00% 99.9997%
  Delivery Target 30,000 29700 29999.91
      300 0.0

Six Sigma:  Principles

  •     Customer Focus - Top priority            
  •     Data - and - fact driven             
  •     Process Focus                
    1. Designing of product
    2. Designing of service
    3. Improving ffeciency     
  •     Root cause analysis            
  •     Pro - Active Management            
  1.         Continual improvent            
  2.         Preventive Action            
  •     Boundaryless Collaboration - Cross functional        
  1.         Eliminates competition in groups - working for common cause
  2.         Drive for Perfection, Tolerance for failure        
  3.         Setting of High Targets        

Organization's Culture Change           

  • Six sigma is about people excellence            
  1.         Methodical approach to problem solving        
  2.         Pro-active attitude            

Six Sigma use a five phase improvement Cycle called DMAIC.

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