Monalene E.

Vasquez
BA-3C
OR written report (Chapter 12)

Sig Sigma Quality

Sig Sigma is a set of techniques developed and used to ensure process improvement and

consistent output in manufacturing. Originally developed by Motorola in 1986, this approach

was first put into practice in General Electric in early 1990s. Bill Smith is the father of six sigma.

Over two decades later, Six Sigma is widely used in a variety of industries.

The goal of Six Sigma method is to ensure the highest quality of manufacturing process

outputs by means of identifying the causes of deviations or defects and removing them. The

approach is based on the goal of minimizing variability in manufacturing and business processes.

The ultimate goal of Six Sigma lies in zero defects within the products or services offered

by an organization. A sigma rating can be used to describe the maturity of manufacturing

processes. This rating indicates the yield or percentage of products the particular process creates

that are defect-free. Over 99.99 percent of the outputs are expected to be defect-free statistically

when it comes to 6 Sigma, or more specifically, less than 3.4 defects per million opportunities.

Defects are defined as any output that does not meet the specifications of customers. By having

such high quality output, a process, and therefore, a company, can meet or exceed the

requirements or specifications of its customers.

The benefit of Six Sigma thinking is that it allows the managers to readily describe the

performance of process and differentiate different processes by using a common metric. This
metric is what they called as DPMO (defects per million opportunities). To calculate this metric

you will need three pieces of data. Unit for the number of items being serve or process, Defect

for the number of items that does not meet the customers requirement and Opportunity for the

chance of error to occur.

defects
dpmo 1M
opportunities units

Another Six Sigma Goal includes reducing variability in business and manufacturing

processes. This is done by ensuring that each project carried out by the organization follows

defined steps in a sequence. This shrinks the process variations dramatically. It also sets financial

targets that are quantified such as profit increase or cost reduction.

Overall Business Improvement

Six Sigma methodology focuses on business improvement, beyond reducing the number

of defects present in any given number of products.

Remedy Defects/Variability

Any business seeking improved numbers must reduce the number of defective products

or services it produces. Defective products can harm customer satisfaction levels.

Reduce Costs
 Reduced costs equal increased profits. A company implementing Six Sigma principles

has to look to reduce costs wherever it possibly can--without reducing quality.

Improve Cycle Time

Any reduction in the amount of time it takes to produce a product or perform a service

means money saved, both in maintenance costs and personnel wages. Additionally, customer

satisfaction improves when both retailers and end users receive products sooner than expected.

Increase Customer Satisfaction

Customer satisfaction depends upon successful resolution of all Six Sigmas other

objectives. But customer satisfaction is an objective all its own.

There are many other Six Sigma goals. The overall objective of this strategy is to expand

a companys top line performance. This enables that company to drive the growth of its bottom

line. The data-driven approach of analyzing the root causes of defects helps to deliver real

improvements to the bottom line of the enterprise. Evidenced by the success attributed to those

enterprises that have used it, it is clear that the techniques and tools the Six Sigma system

provides are effective.