Six Sigma – what does it mean?

Six Sigma at many organizations simply means a measure of quality that strives for near perfection. Six Sigma is a
disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations
between the mean and the nearest specification limit) in any process – from manufacturing to transactional and from
product to service

The statistical representation of Six Sigma describes quantitatively how a process is performing. To achieve Six
Sigma, a process must not produce more than 3.4 defects per million opportunities. A Six Sigma defect is defined as
anything outside of customer specifications. A Six Sigma opportunity is then the total quantity of chances for a defect.
Process sigma can easily be calculated using a Six Sigma calculator.
The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy
that focuses on process improvement and variation reduction through the application of Six Sigma improvement
projects. This is accomplished through the use of two Six Sigma sub-methodologies: DMAIC and DMADV. The Six
Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes
falling below specification and looking for incremental improvement. The Six Sigma DMADV process (define,
measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six
Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement.
Both Six Sigma processes are executed by Six Sigma Green Belts and Six Sigma Black Belts, and are overseen by
Six Sigma Master Black Belts.
According to the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can
complete four to 6 projects per year. (Given that the average Black Belt salary is $80,000 in the United States, that
is a fantastic return on investment.) General Electric, one of the most successful companies implementing Six Sigma,
has estimated benefits on the order of $10 billion during the first five years of implementation. GE first began Six
Sigma in 1995 after Motorola and Allied Signal blazed the Six Sigma trail. Since then, thousands of companies
around the world have discovered the far reaching benefits of Six Sigma.
Many frameworks exist for implementing the Six Sigma methodology. Six Sigma Consultants all over the world
have developed proprietary methodologies for implementing Six Sigma quality, based on the similar change
management philosophies and applications of tools.

What Makes Six Sigma Work?

Kim Niles February 26, 2010 1

Some consultants are earning seven figure salaries, CEOs of large companies are claiming billions of dollars saved,
conferences, books, and seminars are popping up everywhere, and yet one can argue that there isn’t much new
about Six Sigma that we didn’t have with TQM. Is Six Sigma just the latest management buzzword or is Six Sigma
a Quality Management program that really works?
Six Sigma does have a few new twists. These new twists make Six Sigma different enough to exist on its own and
are what makes Six Sigma work much better than any other quality methodology of the past.

Six Sigma only appears to be a little different than TQM in terms of Quality tools, techniques, and principles, but from
a global perspective it’s a whole new animal for the following reasons (in order of importance):
Global Perspective Of What Makes Six Sigma Work
1. A New Type of Top Level Support
Past GE CEO Jack Welch is quoted for telling employees that if they wanted to get promoted, they’d better be Black
Belts. Universal cost oriented metrics and the new level of competition that Six Sigma provides easily acquires top
level support. Some argue that the only new addition that Six Sigma provides is the way top management is treating
it. What’s really important is that CEOs are seriously supporting large improvement projects run by highly trained
business super stars.
2. Problem Solving and Team Leading Super Stars
Executive Champion, Deployment Champions, Project Champions, Master Black Belts, Black Belts, and Green Belts
(see structure below).
3. Training Like Never Before
Much more training for all involved. The training is heavily statistical, project management, and problem solving
oriented. Training costs of approximately $15,000-$25,000 per Black Belt are well justified by the savings per project.
4. New Metrics
Use of metrics unlike anything ever used before. These metrics not only tie in customer Critical to Quality
(CTQ) needs with what is measured by the company, but they also allow processes within the company to be
compared with each other using a single scale called DPMO (Defects Per Million Opportunities).
5. Much Better Use of Teams 
Very efficient use of highly trained, cross-functional, and empowered teams to locate and make improvements. Black
Belts are also trained team efficiency experts.
6. A New Level of Process Comparison 
The use of opportunity divisible defect metrics (DPMO) allows comparisons from division to division, department to
department, process to process, etc. within the company.
7. A New Corporate Attitude / Culture 
Implementation of Six Sigma creates a new environment that naturally promotes the creation of continuous
improvement efforts.
8. A Closer Look at Old Metrics
PDCA becomes a more detail oriented DMAIC and all those Quality tools that never get used are thrown out. If we
don’t need them, why spend time learning how to use them.