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Six Sigma
Managing risks and failure in projects
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• What is Six Sigma?
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What is Six Sigma?
“SIX SIGMA” IS:
A set of techniques and tools for
process improvement.
What are the underlying methods Six Sigma was introduced by American
used to achieve this improvement engineer Bill Smith while working at
in quality? Motorola in 1986.
It was central to the business strategy
at General Electric in 1995.
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How Six Sigma improves Quality
1. Continuous efforts to achieve stable
and predictable process results
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Meaning of Six Sigma
● The term "six sigma" comes from
statistics and is used in statistical
quality control, which evaluates process
capability.
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Six Sigma Methodologies
DMAIC Methodology- DMADV Methodology-
● Define the system, ● Define design goals,
● Measure key aspects of current ● Measure and identify key
processes, characteristics, capabilities and risks,
● Analyze the data to investigate and ● Analyze possible alternatives,
verify cause-and-effect relationships,
● Design improved alternative,
● Improve the current process,
● Verify design, set up test runs, and
● Control the future state process to implement production process.
ensure deviations are dealt with before
resulting in defective products. Used for projects aimed at creating new
product or process designs.
Used for projects aimed at improving
existing business processes.
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Applications of Six Sigma
3. Finance,
4. Supply Chain,
5. Healthcare.
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Manufacturing and Six Sigma
After initial use of six sigma by Motorola in the late
1980s, several firms began using this methodology
for their own setup-
1. Johnson and Johnson, with $600 million of
reported savings,
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Supply Chain
1. For supply chain, products are delivered to
clients at the right time while preserving high-
quality standards from the beginning to the
end of the supply chain,
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Key Takeaways
• Six Sigma is a set of techniques and tools for process improvement. It was introduced by American
engineer Bill Smith while working at Motorola in 1986. Jack Welch made it central to his business
strategy at General Electric in 1995. A six sigma process is one in which 99.99966% of all
opportunities to produce some feature of a part are statistically expected to be free of defects.
• Six Sigma uses a set of quality management methods, mainly empirical, statistical methods, and
creates a special infrastructure of people within the organization who are experts in these methods.
• Six Sigma methodologies, composed of five phases each, bear the acronyms DMAIC and DMADV.
• Six Sigma finds many applications in several fields including- manufacturing, engineering,
construction, finance, supply chain, healthcare.
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