Six Sigma Operational Definition
Six Sigma, perhaps the most popular management methodology in business today, was pioneered by Motorola Inc. in the USA in 1986. Originally devised as a statistical tool aimed at reducing variation in manufacturing, Six Sigma is now used for process optimization in all types of businesses. Six Sigma focuses is a disciplined method and places particular importance on customer needs, focusing primarily on facts and data.
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Concept
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Sigma is a Greek alphabet that is used to denote standard deviation in statistics. A data-driven approach Six Sigma strives to eliminate defects, and is achieved only if a process produces 3.4 (or less) defects per million outputs. In businesses, Six Sigma concepts are implemented for quality-control that aims for near perfection. Six Sigma concepts are useful in management scenarios when the root cause of a problem is undefined or vague.
Application
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In businesses, Six Sigma concepts are implemented for quality-control that aims for near perfection. Six Sigma concepts are useful in management scenarios when the root cause of a problem is undefined or vague.
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Methodologies
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DMAIC is an acronym for Define, Measure, Analyze, Improve and Control, and is a Six Sigma concept that tries to improve continuing processes that may fall below desired levels. DMADV, an acronym for Define, Measure, Analyze, Design, Verify, is an optimization system for new processes to be undertaken. These operations are supervised by Six Sigma Green Belts and Six Sigma Black Belts.
Implementations
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General Electric is a shining example of the success of Six Sigma-during the first five years of implementation, the corporate giant realized benefits worth over $10 billion. 3M, Boeing, Caterpillar, Dell and a host of other successful corporations all employ six sigma methodologies.
Future
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Six Sigma is only growing in importance and stature in businesses around the world. The future looks bright as smaller enterprises are realizing the potential benefits of applying six sigma methodologies in their operations.
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References
Resources
- Photo Credit Image by Flickr.com, courtesy of Ludovic Bertron
