Six Sigma is a data-driven organizational strategy originally developed by Motorola. It is used to assess quality and aims to improve the business management sector of any industry.
By using data to analyze and interprets defects in an organization, the Six Sigma method can identify errors and properly correct them.
This method uses quality management and statistical data to determine the individuals most suited for a particular field in a particular industry.
Six Sigma follows a specific approach in meeting specific targets, may it be reducing costs or increasing the organization’s profits.
The use of statistic is a concrete way of quantitatively studying the different processes performed in an organization. There is, in fact, a Six Sigma calculator. In Six Sigma, a process is considered efficient if there are not more than 3.4 defects for one million opportunities. The term defects means anything that does not satisfy a customer.
Six Sigma Levels
For a better understanding of how efficiency is calculated, here are the various levels of Sigma as compared to the DPMO (defects per million opportunities):
- One Sigma – 690,000 DPMO = efficiency 31%
- Two Sigma – 308,000 DPMO = efficiency 69.2%
- Three Sigma – 66,800 DPMO = efficiency 93.32%
- Four Sigma – 6,210 DPMO = efficiency 99.379%
- Five Sigma – 230 DPMO = efficiency 99.977%
- Six Sigma – 3.4 DPMO = efficiency 99.9997%
There are two methods used in Six Sigma. DMAIC is used for improving the current business processes, while DMADV is useful when creating new designs or products.
D – Define processes responding to customer’s needs.
M – Measure relevant aspects of the current business and data gathering.
A – Analyze the data to evaluate results and determine if there is a need for improvement.
I – Improve processes based on data gathered and result of evaluation.
C – Control any variables so that results are according to what you have planned.
D – Define goals to meet customer demands and make perfect business opportunity.
M – Measure and identify elements to contribute to better quality.
A – Analyze specific areas of the design to determine risks and find alternatives.
D – Design and make specific steps to enable you to determine each phase of the process.
V – Verify your plan to make sure it has satisfying returns.