Wednesday, April 8, 2015

Six Sigma

What is Six Sigma?
Six Sigma can be defined as tools and technique to improve business performance. Motorola had developed this technique in 1986. By 1995 in General Electric has completely transformed its business strategy to six sigma techniques. Since then it widely used throughout industrial sectors.

Six Sigma techniques and tools help to improve performance. This in turn lower the cost, improves customer satisfaction, improves revenue, capacity and reduce complexity, errors and defects. Six Sigma defect probability is 3.4 parts per million (PPM).

Following figure shows sigma scale. Each sigma scale is related to defects per million opportunities. The company’s goal should be to reach 6 Sigma thus reducing the defects to 3.4 per million.  

Six Sigma Benefits
1.       Reduce Defects
2.       Reduce Cycle Time
3.       Improves Customer Satisfaction
4.       Reduces Inventory
5.       Improves Quality
6.       Improves Reliability
7.       Reduces Product Cost
8.       Improves JIT (Just in Time) Product delivery to customer. 

No comments:

Post a Comment