What Is Six Sigma

By Author: Utkarsh Bhatt
Total Articles: 1
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The Greek letter sigma is used in statistical analysis to represent a standard deviation from the mean. The father of statistical process control, Walter Shewhart, suggested that three sigma from the mean is the tipping point in lean manufacturing, showing that there are too many failures and that process change is required.

Until Bill Smith recommended collecting and analysing data at a more granular level and making six sigma the point at which a process had to be fixed, this was the accepted norm for many years.

A business using Six Sigma methodology employs statistics to produce a baseline sigma after the required data has been acquired. The baseline acts as a measure of future improvement and shows how near or how remote the business is from reaching six sigma.
Six Sigma advocates believe that benefits of their business strategy include a reduction in process costs of up to 50%, quicker cycle times, less material waste, a better understanding of customer requirements, higher customer satisfaction and value stream, and more dependable goods and services.

The federal trademark term Six Sigma is ...
... owned by Motorola, and it is commonly recognized that Six Sigma may be expensive to execute and that it can take years before a company starts to show financial rewards.

Businesses outside of manufacturing were able to better understand how Six Sigma approaches might be applied to increase customer satisfaction in any industry thanks to General Electric CEO Jack Welch’s very public endorsement of the methodology in 1995.