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six sigma theory notes for mba students
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Six Sigma is a quality-control methodology developed in 1986 by Motorola, Inc. The method uses a data-driven review to limit mistakes or defects in and process. Six Sigma emphasizes cycle-time improvement while at the same time reducing manufacturing defects to a level of no more than 3.4 occurrences per million units or events. In other words, the system is a method to work faster with fewer mistakes.
Six Sigma points to the fact that, mathematically, it would take a six-standard-deviation event from the mean for an error to happen. Because only 3.4 out of a million randomly (and normally) distributed, events along a bell curve would fall outside of six-standard-deviations (where sigma stands in for "standard deviation").
In recent years, Six Sigma has evolved into a more general business-management philosophy,
focused on meeting customer requirements, improving customer retention, and improving and
sustaining business products and services. Six Sigma applies to all industries. Many vendors,
including Motorola itself, offer Six Sigma training with the special certifications carrying the
names of yellow belt, green belt and black belt.
Six Sigma represents a management ideology which focuses on statistical improvements to a business process. It advocates for qualitative measurements of success over qualitative markers. Therefore, practitioners of Six Sigma are those business people who use statistics, financial analysis and project management to achieve improved business functionality.
Six Sigma evolved to define numerous ideas within the business sphere and is sometimes confusing. First, it's a statistical benchmark. Any business process which produces less than 3.4 defects per 1 million chances is considered efficient. A defect is anything produced outside of consumer satisfaction. Second, it is a training and certification program which teaches the core principles of Six Sigma. Practitioners may achieve the Six Sigma certification belt levels, ranging from white belt to black belt. Finally, it's a philosophy which promotes the idea that all business processes can be measured and optimized.
True believers and practitioners in the Six Sigma method follow an approach called DMAIC which stands for define, measure, analyze, improve and control. It is a statistically driven methodology that companies implement as a mental framework for business process improvement. The ideology behind DMAIC is that a business may solve any seemingly unsolvable problem by following the DMAIC steps.
through an analysis of company goals and requirements. This definition outlines the problem, goals and deliverables for the project.
of potential inputs which may cause the problem and help the team understand the process's benchmark performance.
testing it as the root of the problem. Through analysis, the team identifies the reason for process error.
once again.