Six Sigma

Six sigma (or 6 sigma) is a quantitative methodology for quality management. These are known as Statistical Process Controlling (SPC) methodologies. This method is developed in Motorola to control their quality in manufacturing. In fact six sigma is a registered trademark of Motorola. Any process has an expected level of performance. Lower the variation from this expected level in day to day operation, it is easier to manage the process. This is the basic principle behind this philosophy.

Naturally every process will have an inherent variation in it. In the ideal process this variation will be zero. But in practice this will happen within a certain range. Identification of maximum and minimum level of this variation is very important in order to keep the processes under control. With the Gauze law of normal distribution this level of variation is arrived at 6 standard deviations (or sigma) from its expected (mean) state. In other words within a tolerance level of six times of sigma we can keep the system running in the expected condition. But if the variation goes beyond this level attention must be placed and the root causes has to be fixed. Although this is explained with the help of statistical terms the basic idea behind this concept is achieving constant manufacturing conditions. In the best operating conditions manufacturers will have 99.9997% of quality level.

Six sigma again is not just a tool. Like lean manufacturing, six sigma is also about the concepts and cultural change. All the managers and shop floor level people must play a critical role in this. Quality movements can certainly improve the overall performance of the organization. Most of the organizations are said to be loosing around 4% to 6% of their revenue due to quality problems. These can be converted in very attractive financial figures to attack.

Few practitioners of six sigma have announced the savings they have made with six sigma. Among them Motorola is the leader. They say that they have saved more than $16 billion with the implementation of six sigma from 1986 to 2001. General Electrics and Ford are some other manufacturers among the six sigma beneficiaries.

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