Six Sigma

• Six Sigma is a data-driven approach and

methodology for eliminating defects in any
process.
• 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.
• The Six sigma was founded by Motorola in the 1970s.
• They founded a connection between increase in
quality and decrease in costs of production.
• Bill Smith, “Father of six sigma” introduce this quality
improvement Methodology to Motorola.
• Quality management program developed by
Motorola in the 1980s.
• Management philosophy focused on business
process improvements to:
Eliminate waste, rework, and mistakes
Increase customer satisfaction
Increase profitability and competitiveness
 Six Sigma is. . .
• A performance goal, representing 3.4 defects for every million
opportunities to make one.

• A series of tools and methods used to improve or design

products, processes, and/or services.

• A statistical measure indicating the number of standard

deviations within customer expectations.

• A disciplined, fact-based approach to managing a business

and its processes.

• A means to promote greater awareness of customer needs,

performance measurement, and business improvement.
 What’s in a name?
• Sigma is the Greek letter representing the standard
deviation of a population of data.

• Sigma is a measure
of variation
(the data spread)
σ

μ
Between -1 and +1 68.3% (about two
Standard Deviation thirds)
Between -2 and +2
95.5% (about 95%)
Standard Deviation
Between -3 and +3
99.7%
Standard Deviation
Managing Up the Sigma Scale
DPMO: Defects per millions of output

Sigma % Good % Bad DPMO

1 30.9% 69.1% 691,462
2 69.1% 30.9% 308,538
3 93.3% 6.7% 66,807
4 99.38% 0.62% 6,210
5 99.977% 0.023% 233
6 99.9997% 0.00034% 3.4
Examples of the Sigma Scale
In a world at 3 sigma. . . In a world at 6 sigma. . .

• There are 964 U.S. flight • 1 U.S. flight is cancelled every 3

cancellations per day. weeks.

• The police make 7 false arrests • There are fewer than 4 false
every 4 minutes. arrests per month.

• In one hour, 47,283 • It would take more than

international long distance calls 2 years to see the same
are accidentally disconnected. number of dropped
international calls.
Six Sigma Companies
Six Sigma and Financial Services
 DMAIC DMADV

• Define • Define
• Measure • Measure
• Analyze • Analyze
• Improve • Design
• Control • Verify
Define : company must identify the customer
requirements and which type of a product they expect
from company.

Measure : company will collect the baseline data to

determine where the process stands as compared to
where it needs to be. And also see the critical quality
characteristics (an estimate current process capability).
Then find out the current sigma level according to those
identified characteristic.
DMAIC cont….
Analyze : The amount of improvement necessary to
make the Critical quality characteristics the best in the
industry. For this phase company use some descriptive
statistical methods like mean, mode, median…etc.

Improve : Implement the suggested improvements in

this phase and also test possible solutions to the
process problem. Collect data from the all
possible solutions and test them on a small scale
and run a cost/benefit analysis of implementing
the solution. Then choose the best solution and
create a plan for implement the solution.
 DMAIC cont….
Control : measures are implemented to ensure
improvements are maintained. To monitor the process
improvements, use tools like statistically process
control charts. These charts have two limits and the
center line for the average. Monitor the process to
ensure that the process is in the control limits.
This method is also called DFSS (Design For
Six Sigma)
And have five phases,

Define design goals that are consistent with

customer demands and the enterprise strategy.

Measure and identify CTQs (characteristics that

are Critical To Quality), product capabilities,
production process capability, and risks.

Analyze to develop and design alternatives, create

a high-level design and evaluate design capability
to select the best design.
 DMADV cont….

• Design details, optimize the design, and plan for design

verification. This phase may require simulations.
• Verify the design, set up pilot runs, implement the production
process and hand it over to the process owner(s).