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From Wikipedia, the free encyclopedia

Not to be confused with Sigma 6 (disambiguation) or 5S (methodology).

Part of a series of articles on

Machine industry

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• Batch production

• Job production

• Flow production

• Lean manufacturing

• Agile manufacturing

Industrial technologies

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• RCM

• TPM

• VDM

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• TOC
 • Six Sigma

• TQM

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• e

Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by
American engineer Bill Smith while working at Motorola in 1986.[1][2]

Six Sigma strategies seek to improve manufacturing quality by identifying and removing the causes of
defects and minimizing variability in manufacturing and business processes. This is done by using
empirical and statistical quality management methods and by hiring people who serve as Six Sigma
experts. Each Six Sigma project follows a defined methodology and has specific value targets, such
as reducing pollution or increasing customer satisfaction.

The term Six Sigma originates from statistical quality control, a reference to the fraction of a normal
curve that lies within six standard deviations of the mean, used to represent a defect rate.

History

[edit]

Motorola pioneered Six Sigma, setting a "six sigma" goal for its manufacturing business. It registered
Six Sigma as a service mark on June 11, 1991 (U.S. Service Mark 1,647,704); on December 28, 1993, it
registered Six Sigma as a trademark. In 2005, Motorola attributed over $17 billion in savings to Six
Sigma.[3]
Honeywell and General Electric were also early adopters of Six Sigma. As GE's CEO, in 1995 Jack
Welch made it central to his business strategy.[4] In 1998, GE announced $350 million in cost savings
thanks to Six Sigma, which was an important factor in the spread of Six Sigma (this figure later grew to
more than $1 billion).[5] By the late 1990s, about two thirds of the Fortune 500 organizations had
begun Six Sigma initiatives with the aim of reducing costs and improving quality.[6]

In recent years, some practitioners have combined Six Sigma ideas with lean manufacturing to create
a methodology named Lean Six Sigma.[7] The Lean Six Sigma methodology views lean manufacturing,
which addresses process flow and waste issues, and Six Sigma, with its focus on variation and
design, as complementary disciplines aimed at promoting "business and operational excellence". [7]

In 2011, the International Organization for Standardization (ISO) published the first standard "ISO
13053:2011" defining a Six Sigma process.[8] Other standards have been created mostly by
universities or companies with Six Sigma first-party certification programs.

Etymology

[edit]

Normal

distribution underlies the statistical assumptions of Six Sigma. At , (mu) marks the mean,
with the horizontal axis showing distance from the mean, denoted in units of standard

deviation (represented as or sigma). The greater the standard deviation, the larger the spread of

values; for the green curve, and . The upper and lower specification limits (USL and LSL)
are at a distance of 6σ from the mean. Normal distribution means that values far away from the mean
are extremely unlikely—approximately 1 in a billion too low, and the same too high. Even if the mean
were to move right or left by 1.5 standard deviations (also known as a 1.5 sigma shift, colored red and
blue), there is still a safety cushion.

The term Six Sigma comes from statistics, specifically from the field of statistical quality control,
which evaluates process capability. Originally, it referred to the ability of manufacturing processes to
produce a very high proportion of output within specification. Processes that operate with "six sigma
quality" over the short term are assumed to produce long-term defect levels below 3.4 defects per
million opportunities (DPMO). The 3.4 dpmo is based on a "shift" of ± 1.5 sigma explained by Mikel
Harry. This figure is based on the tolerance in the height of a stack of discs.[9][10]
Specifically, say that there are six standard deviations—represented by the Greek letter σ (sigma)—
between the mean—represented by μ (mu)—and the nearest specification limit. As process standard
deviation goes up, or the mean of the process moves away from the center of the tolerance, fewer
standard deviations will fit between the mean and the nearest specification limit, decreasing the
sigma number and increasing the likelihood of items outside specification. According to a calculation
method employed in process capability studies, this means that practically no [failed verification] items will
fail to meet specifications.[9]

The calculation of sigma levels for a process data doesn't need normally distributed data. A criticism
of Six Sigma, practitioners using this approach spend a lot of time transforming data from non-normal
to normal. Sigma levels can be determined for process data that has evidence of non-normality.[9]

Doctrine

[edit]

Six Sigma symbol

Six Sigma asserts that:

• Continuous efforts to achieve stable and predictable process results (e.g., by reducing
process variation) are of vital importance to business success.

• Manufacturing and business processes have characteristics that can be defined, measured,
analyzed, improved, and controlled.

• Achieving sustained quality improvement requires commitment from the entire organization,
particularly from top-level management.

Features that set Six Sigma apart from previous quality-improvement initiatives include:

• Focus on achieving measurable and quantifiable financial returns

• Emphasis on management leadership and support

• Commitment to making decisions on the basis of verifiable data and statistical methods
rather than assumptions and guesswork

In fact, lean management and Six Sigma share similar methodologies and tools, including the fact
that both were influenced by Japanese business culture. However, lean management primarily
focuses on eliminating waste through tools that target organizational efficiencies while integrating a
performance improvement system, while Six Sigma focuses on eliminating defects and reducing
variation. Both systems are driven by data, though Six Sigma is much more dependent on accurate
data.[citation needed]

Six Sigma's implicit goal is to improve all processes but not necessarily to the 3.4 DPMO level.
Organizations need to determine an appropriate sigma level for each of their most important
processes and strive to achieve these. As a result of this goal, it is incumbent on management of the
organization to prioritize areas of improvement.
Methodologies

[edit]

Six Sigma projects follow two project methodologies, inspired by W. Edwards Deming's Plan–Do–
Study–Act Cycle, each with five phases.[6]

• DMAIC ("duh-may-ick", /də.ˈmeɪ.ɪk/) is used for projects aimed at improving an existing

• DMADV ("duh-mad-vee", /də.ˈmæd.vi/) is used for projects aimed at creating new product or
process designs

DMAIC

[edit]

DMAIC's five steps

Main article: DMAIC

The DMAIC project methodology has five phases:

• Define the system, the voice of the customer and their requirements, and the project goals,
specifically.

• Measure key aspects of the current process and collect relevant data; calculate the "as-is"
process capability

• Analyze the data to investigate and verify cause and effect. Determine what the relationships
are, and attempt to ensure that all factors have been considered. Seek out the root cause of
the defect under investigation.

• Improve or optimize the current process based upon data analysis using techniques such
as design of experiments, poka yoke or mistake proofing, and standard work to create a new,
future state process. Set up pilot runs to establish process capability.

• Control the future state process to ensure that any deviations from the target are corrected
before they result in defects. Implement control systems such as statistical process control,
production boards, visual workplaces, and continuously monitor the process. This process is
repeated until the desired quality level is obtained.

Some organizations add a Recognize step at the beginning, which is to recognize the right problem to
work on, thus yielding an RDMAIC methodology.[11]

DMADV

[edit]

Main article: Design for Six Sigma

Also known as DFSS ("Design For Six Sigma"), the DMADV methodology's five phases are:[6]

• Define design goals that are consistent with customer demands and the enterprise strategy.

• Measure and identify CTQs (characteristics that are Critical To Quality), measure product
capabilities, production process capability, and measure risks.

• Analyze to develop and design alternatives

• Design an improved alternative, best suited per analysis in the previous step

• Verify the design, set up pilot runs, implement the production process and hand it over to the
process owner(s).

Professionalization

[edit]

One key innovation of Six Sigma involves professionalizing quality management. Prior to Six Sigma,
quality management was largely relegated to the production floor and to statisticians in a separate
quality department. Formal Six Sigma programs adopt an elite ranking terminology similar to martial
arts systems like judo to define a hierarchy (and career path) that spans business functions and
levels.

Six Sigma identifies several roles for successful implementation:[12]

• Executive Leadership includes the CEO and other members of top management. They are
responsible for setting up a vision for Six Sigma implementation. They also empower other
stakeholders with the freedom and resources to transcend departmental barriers and
overcome resistance to change.[13]

• Champions take responsibility for Six Sigma implementation across the organization. The
Executive Leadership draws them from upper management. Champions also act as mentors
to Black Belts.

• Master Black Belts, identified by Champions, act as in-house coaches on Six Sigma. They
devote all of their time to Six Sigma, assisting Champions and guiding Black Belts and Green
Belts. In addition to statistical tasks, they ensure that Six Sigma is applied consistently across
departments and job functions.

• Black Belts operate under Master Black Belts to apply Six Sigma to specific projects. They also
devote all of their time to Six Sigma. They primarily focus on Six Sigma project execution and
special leadership with special tasks, whereas Champions and Master Black Belts focus on
identifying projects/functions for Six Sigma.
 • Green Belts are the employees who take up Six Sigma implementation along with their other
job responsibilities, operating under the guidance of Black Belts.

According to proponents, special training is needed for all of these practitioners to ensure that they
follow the methodology and use the data-driven approach correctly.[14]

Some organizations use additional belt colors, such as "yellow belts", for employees that have basic
training in Six Sigma tools and generally participate in projects, and "white belts" for those locally
trained in the concepts but do not participate in the project team. "Orange belts" are also mentioned
to be used for special cases.[15]

Certification

[edit]

Main article: List of Six Sigma certification organizations

General Electric and Motorola developed certification programs as part of their Six Sigma
implementation. Following this approach, many organizations in the 1990s started offering Six Sigma
certifications to their employees. In 2008 Motorola University later co-developed with Vative and the
Lean Six Sigma Society of Professionals a set of comparable certification standards for Lean
Certification.[6][16] Criteria for Green Belt and Black Belt certification vary; some companies simply
require participation in a course and a Six Sigma project.[16] There is no standard certification body,
and different certifications are offered by various quality associations for a fee.[17][18][self-published
source]
The American Society for Quality, for example, requires Black Belt applicants to pass a written
exam and to provide a signed affidavit stating that they have completed two projects or one project
combined with three years' practical experience in the body of knowledge.[16][19]

Tools and methods

[edit]

Within the individual phases of a DMAIC or DMADV project, Six Sigma uses many established quality-
management tools that are also used outside Six Sigma. The following list shows an overview of the
main methods used.

• 5 Whys

• Statistical and fitting tools

• Analysis of variance

• General linear model

• ANOVA Gauge R&R

• Regression analysis

• Correlation

• Scatter diagram

• Chi-squared test
 • Axiomatic design

• Business Process Mapping/Check sheet

• Cause & effects diagram (also known as fishbone or Ishikawa diagram)

• Control chart/Control plan (also known as a swimlane map)/Run charts

• Cost–benefit analysis

• CTQ tree

• Design of experiments/Stratification

• Histograms/Pareto analysis/Pareto chart

• Pick chart/Process capability/Rolled throughput yield

• Quality Function Deployment (QFD)

• Quantitative marketing research through use of Enterprise Feedback Management (EFM)

• Root cause analysis

• SIPOC analysis (Suppliers, Inputs, Process, Outputs, Customers)

• COPIS analysis (Customer centric version/perspective of SIPOC)

• Taguchi methods/Taguchi Loss Function

• Value stream mapping

• FMEA

• 5S (methodology)

Software

[edit]

Main article: List of Six Sigma software packages

Role of the 1.5 sigma shift

[edit]

Experience has shown that processes usually do not perform as well in the long term as they do in the
short term.[9] As a result, the number of sigmas that will fit between the process mean and the nearest
specification limit may well drop over time, compared to an initial short-term study.[9] To account for
this real-life increase in process variation over time, an empirically based 1.5 sigma shift is
introduced into the calculation.[9][20] Mikel Harry, the creator of Six Sigma, based the 1.5 sigma shift on
the height of a stack of discs. He called this "Benderizing". He claimed that based on his stack, all
processes shift 1.5 sigma every 50 samples. According to this idea, a process that fits 6 sigma
between the process mean and the nearest specification limit in a short-term study will in the long
term fit only 4.5 sigma – either because the process mean will move over time, or because the long-
term standard deviation of the process will be greater than that observed in the short term, or both. [9]

Hence the widely accepted definition of a six sigma process is a process that produces 3.4 defective
parts per million opportunities (DPMO). This is based on the fact that a process that is normally
distributed will have 3.4 parts per million outside the limits, when the limits are six sigma from the
"original" mean of zero and the process mean is then shifted by 1.5 sigma (and therefore, the six
sigma limits are no longer symmetrical about the mean).[9] The former six sigma distribution, when
under the effect of the 1.5 sigma shift, is commonly referred to as a 4.5 sigma process. The failure rate
of a six sigma distribution with the mean shifted 1.5 sigma is not equivalent to the failure rate of a 4.5
sigma process with the mean-centered on zero.[9] This allows for the fact that special causes may
result in a deterioration in process performance over time and is designed to prevent underestimation
of the defect levels likely to be encountered in real-life operation.[9]

The role of the sigma shift is mainly academic. The purpose of six sigma is to generate organizational
performance improvement. It is up to the organization to determine, based on customer
expectations, what the appropriate sigma level of a process is. The purpose of the sigma value is as a
comparative figure to determine whether a process is improving, deteriorating, stagnant or non-
competitive with others in the same business. Six Sigma (3.4 DPMO) is not the goal of all processes.

Sigma levels

[edit]

See also: 68–95–99.7 rule

A control chart showing a process

The table below gives long-term DPMO values corresponding to various short-term sigma levels.[21][22]

These figures assume that the process mean will shift by 1.5 sigma toward the side with the critical
specification limit. In other words, they assume that after the initial study determining the short-term
sigma level, the long-term Cpk value will turn out to be 0.5 less than the short-term Cpk value. So, now
for example, the DPMO figure given for 1 sigma assumes that the long-term process mean will be 0.5
sigma beyond the specification limit (Cpk = −0.17), rather than 1 sigma within it, as it was in the short-
term study (Cpk = 0.33). Note that the defect percentages indicate only defects exceeding the
specification limit to which the process mean is nearest. Defects beyond the far specification limit
are not included in the percentages.

The formula used here to calculate the DPMO is thus

Sigma Sigma (with Percent Percentage Short-term Long-term

1 −0.5 691,462 69% 31% 0.33 −0.17

2 0.5 308,538 31% 69% 0.67 0.17

3 1.5 66,807 6.7% 93.3% 1.00 0.5

4 2.5 6,210 0.62% 99.38% 1.33 0.83

5 3.5 233 0.023% 99.977% 1.67 1.17

6 4.5 3.4 0.00034% 99.99966% 2.00 1.5

7 5.5 0.019 0.0000019% 99.9999981% 2.33 1.83

In practice

[edit]

Main article: List of Six Sigma companies

Six Sigma mostly finds application in large organizations.[5] According to industry consultants
like Thomas Pyzdek and John Kullmann, companies with fewer than 500 employees are less suited to
Six Sigma or need to adapt the standard approach to making it work for them.[5] Six Sigma, however,
contains a large number of tools and techniques that work well in small to mid-size organizations. The
fact that an organization is not big enough to be able to afford black belts does not diminish its ability
to make improvements using this set of tools and techniques. The infrastructure described as
necessary to support Six Sigma is a result of the size of the organization rather than a requirement of
Six Sigma itself.[5]

Manufacturing
[edit]

After its first application at Motorola in the late 1980s, other internationally recognized firms currently
recorded high number of savings after applying Six Sigma. Examples include Johnson & Johnson, with
$600 million of reported savings, Texas Instruments, which saved over $500 million as well
as Telefónica, which reported €30 million in savings in the first 10 months; Sony and Boeing also
reported successfully reducing waste.[23]

Engineering and construction

[edit]

Although companies have considered common quality control and process improvement strategies,
there's still a need for more reasonable and effective methods as all the desired standards and client
satisfaction have not always been reached. There is still a need for an essential analysis that can
control the factors affecting concrete cracks and slippage between concrete and steel. After
conducting a case study on Tinjin Xianyi Construction Technology, it was found that construction time
and construction waste were reduced by 26.2% and 67% accordingly after adopting Six Sigma.
Similarly, Six Sigma implementation was studied at one of the largest engineering and construction
companies in the world: Bechtel Corporation, where after an initial investment of $30 million in a Six
Sigma program that included identifying and preventing rework and defects, over $200 million were
saved.[23]

Finance

[edit]

Six Sigma has played an important role by improving the accuracy of allocation of cash to reduce
bank charges, automatic payments, improving the accuracy of reporting, reducing documentary
credit defects, reducing check collection defects, and reducing variation in collector performance.

For example, Bank of America announced in 2004 that Six Sigma had helped it increase customer
satisfaction by 10.4% and decrease customer issues by 24%; similarly, American Express eliminated
non-received renewal credit cards. Other financial institutions that have adopted Six Sigma
include GE Capital and JPMorgan Chase, where customer satisfaction was the main objective.[23]

Supply chain

[edit]

In the supply-chain field, it is important to ensure that products are delivered to clients at the right
time while preserving high-quality standards. By changing the schematic diagram for the supply
chain, Six Sigma can ensure quality control on products (defect-free) and guarantee delivery
deadlines, the two main issues in the supply chain.[24]

Healthcare

[edit]

This is a sector that has been highly matched with this doctrine for many years because of the nature
of zero tolerance for mistakes and potential for reducing medical errors involved in
healthcare.[25][26] The goal of Six Sigma in healthcare is broad and includes reducing the inventory of
equipment that brings extra costs, altering the process of healthcare delivery in order to make it more
efficient and refining reimbursements. A study at the MD Anderson Cancer Center, which recorded an
increase in examinations with no additional machines of 45% and a reduction in patients' preparation
time of 40 minutes; from 45 minutes to 5 minutes in multiple cases.[23]

Lean Six Sigma was adopted in 2003 at Stanford hospitals and was introduced at Red Cross hospitals
in 2002.[27]

Criticism

[edit]

While there are many advocates for a Six Sigma approach for the reasons stated above, more than
half of projects are unsuccessful: in 2010, the Wall Street Journal reported that more than 60% of
projects fail.[28] A review of academic literature [29] found 34 common failure factors in 56 papers on
Lean, Six Sigma, and LSS from 1995-2013. Among them are (summarized):

• Lack of top management attitude, commitment, and involvement; lack of leadership and
vision

• Lack of training and education; lack of resources (financial, technical, human, etc.)

• Poor project selection and prioritization; weak link to strategic objectives of the organization

• Resistance to culture change; Poor communication; Lack of consideration of the human

• Lack of awareness of the benefits of Lean/Six Sigma; Lack of technical understanding of tools,
techniques, and practices

Others have provided other criticisms.

Lack of originality

[edit]

Quality expert Joseph M. Juran described Six Sigma as "a basic version of quality improvement",
stating that "there is nothing new there. It includes what we used to call facilitators. They've adopted
more flamboyant terms, like belts with different colors. I think that concept has merit to set apart, to
create specialists who can be very helpful. Again, that's not a new idea. The American Society for
Quality long ago established certificates, such as for reliability engineers."[30]