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Six Sigma: A Breakthrough Strategy for Profitability

Six Sigma: A Breakthrough Strategy for Profitability

Publication:
Quality Progress
Date:
May 1998
Issue:
Volume 31 Issue 5
Pages:
pp. 60-64
Author(s):
Harry, Mikel J.
The copyright of this article is not held by ASQ.

Abstract

Statistical tools and interventions can lead to major cost reductions and quality improvements. The six sigma strategy is a key to such breakthrough improvements. It involves measuring the capability of processes to produce services or products that are defect free. At any given time, a process typically deviates 1.5 standard deviations from its natural centering state. It then follows that short-term performance data can be used to predict long-term process capability. Therefore, if short-term capability of a critical-to-quality (CTQ) characteristic is ±6.0σ, then the approximate long-term capability is 4.5σ or 3.4 defects per million. This kind of analysis applies concepts such as opportunities for defects, defects per opportunity, and defects per million opportunities. Six sigma concepts evolved out of work done by Bob Galvin and Bill Smith in the 1980s at Motorola. Eventually Motorola established the Six Sigma Institute, and today the major provider of six sigma training and implementation is the Six Sigma Academy. To deploy the six sigma strategy, experts known as black belts use a four-step approach: measurement of CTQ characteristics; analysis, via benchmarking and gap studies; improvement; and control. The strategy can save an organization an average of $175,000 per project. The ideal ratio of one full-time black belt per 100 employees may lead to as many as six such projects per year, for a potential savings of $1 million.

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