Statistical Meaning

If the Sigma Level is High:

Process’ defect occurrence is reduced (see COPQ)

Quality level increases, and prevents the onset of quality issues

• methodology that is well rooted in mathematics and statistics
• reduce process output variation
• the variation of the process around the mean value decreases
• sigma value increases from zero to six

6 Sigma Characteristic

Six sigma begins with understanding the process that guarantees systematic improvement.

Most companies and managers have a very weak understanding of the relationship between their own X’s and Y’s.

Success Story

General Electric
“Six Sigma has forever changed GE. Everyone is a true believer in Six Sigma, the way this company now works.” – Jack Welch, CEO.

Motorola
“Six Sigma is really a cultural thing – a behavior.” – Alan Larson (Motorola consultant).
5X growth in sales, with profits climbing nearly 20% per year.
Cumulative savings based on Six Sigma efforts is estimated as $14 billion.
Motorola stock price gains an annual rate of 21.3%.

Six Sigma Innovation Activity

• is a company-wide management innovation activity and a growth strategy to think based on customer’s viewpoint, to remove the possibility of defects occurrence in advance, to create a new business opportunity with epochal improvement in process quality, to supply product and service satisfactory to customer and to maximize business benefits.
• is driven by close understanding of customer needs; disciplined use of facts, data, and statistical analysis; diligent attention in managing, improving, and reinventing business processes.

Understanding Six Sigma Concepts

• Philosophy  : 

Philosophically, Six Sigma is a culture change effort to position a company for greater customer satisfaction, profitability, and competitiveness.

• Vision  :

As a vision, Six Sigma is  a company’s management strategy to direct the superiority of product/service and a near-perfection goal in meeting customer requirements.

• Tool  : 

As a tool, Six Sigma is tools to improve quality by removing process variations and defects.

• Method : 

As a method, Six Sigma is a highly technical method used by engineers and statisticians to fine-tune products and processes.

• Metrics : 

As a metrics, Six Sigma means 3.4 defect probability per 1 million opportunity.