Six Sigma was originally formulated by Bill Smith at Motorola in 1986 as a set of practices designed to reduce manufacturing processes variation and eliminate defects. Motorola has reported over US$17 billion in savings from Six Sigma as of 2006. Read about the six sigma savings of Motorala.
Other early adopters of Six Sigma who achieved well-publicized success include Honeywell International (previously known as Allied Signal) and General Electric, where the method was introduced by Jack Welch. Six Sigma was subsequently extended to other types of business processes as well. Read about the six sigma savings of GE.
By the late 1990s, about two-thirds of the Fortune 500 organizations had begun Six Sigma initiatives, in manufacturing plants or offices with transactional processes, with the aim of reducing costs and improving quality.
How Six Sigma works?
Since late 80s, Six Sigma application has evolved and so has its definition. Today, we think about Six Sigma in a holistic way - as a metric, a methodology and as a management system concurrently.
Firstly as a metric, it provides clear measurement in quality performance, expressed in various statistical terms and can be simplified in Sigma Level. It also tells a near perfect target of 3.4 DPMO (Defects per Million Opportunities).
Secondly, it offers a problem solving methodology known as DMAIC. The stepwise approach demands the discipline of the problem solving team, by understanding what is critical to customers and using appropriate tools to solve complicated problems.
DMADV (Define, Measure, Analyze, Develop and Verify) is the methodology for the Design for Six Sigma. It is used during process and product designing stages.
Thirdly, as a management system, Six Sigma demand a formal Project Management structure, starting from the top leadership putting in place an effective Executive Governing Body and appointment of a Champion. It stresses the needs of good governance and resource allocation. Black Belt and Green Belt trainings are the formal channels to equip the workforce with appropriate tools and serve as driving forces to drive changes.
Pamalex Consulting provides six sigma implementation services where we assist to kick start Six Sigma program without lengthy training period. Contact us at enquiry@pamalex.com
