What Is Six Sigma?
What Is Six Sigma?
What Is Six Sigma?
Sigma (o) is character of the Greek alphabet, which is used in Mathematical Statistics to define
Standard Deviation. Standard Deviation, a measure of dispersion (spread), indicates how far
away a measured result is from the average (the center of data).
Six Sigma is a business concept that answers customers' demand for high quality and defect-free
processes. The customer satisfaction and its improvement is usually assigned with the top
priority of any service activity. In other words, Six Sigma is about abandoning the uncertainty
of goals and forecasts.
Six Sigma is a method for improving quality by removing defects and their causes in
various processes and activities. It concentrates on those outputs, which are important to
customers. The method uses various statistical tools to measure service processes. In technical
terms, Six Sigma means that there are 3.4 defects per million events. The main goal is
continuous improvement. It provides specific methods to recreate the process so that defects and
errors never arise in the first place.
While six sigma is a long term and forward thinking initiative designed to fundamentally change
the way the hospital provide services, it is first and foremost designed to generate immediate
improvements to patient satisfaction as well as to increase profit margins.
Historical perspective
There have always been many statistical methods for measuring and improving quality. The
concept of Six Sigma was developed first by Mikel J.Harry in connection with quality program
at Motorola in 1987. The program gained importance when Motorola won the Malcolm Baldrige
quality award. Further development took place in the turn of the decade in ABB where Harry
worked as a vice-president in-charge of quality systems development.
According to Jack Welch, General Electric's 1996 Annual Meeting - "GE Quality 2000 will be
the biggest, the most personally rewarding, and in the end, the most profitable undertaking in our
history. We have set for ourselves the goal of becoming by the year 2000 a six-sigma quality
company, which means a company virtually, defect-free products, services and transactions".
The various other Companies adopting the concept of Six sigma for continuously improving
their performance include: Texas instruments 1988, Kodak 1995, Sony 1997, Nokia 1997 plus
over 50 companies are sharing the best practices of six sigma.