Six sigma is comprehensive and flexible system for achieving, sustaining and

maximizing business success. Six sigma is uniquely driven by close understanding

of customer needs, disciplined use of facts, data and statistical analysis and diligent
attention to managing, improving and reinventing business process.
For years six sigma has been a popular management philosophy. In 1980s
Motorola first made six sigma popular. AlliedSignal embraced it in the early 1990s
and then General Electric made it the most popular management philosophy in
history.
All of six sigma begins with one equation Y= f(X) + e also called
determinism.
In this expression Y=f(X) +e:
Y stands for outcome or results of a process. F stands for a transformation
process. X stands for input variables of the process. E represents the error or
potential for variation in each process.
In simple language if we have X input and transform it with process we will
get Y outcome. No matter how hard we try there will be degree of
uncertainty or variation in the outcome, those variation is represented by
Greek letter Epsilon or e.
All outcomes are the result of inputs and process that acts on them, plus the
error that creates variation. A process simply operates on the inputs to give
us outcomes and its the fundamental action in changing from one condition
to another, in making improvement, in adding value for our customers and
our company. By looking behind carefully every output and examining the
inputs, the process and the error that combined to produce it, we can try to
understand what cause outcome. After we know the cause form next time we
can control the outcome. First step to control outcomes is to understand to
root cause.
Many organization and companies want to improve their performance. They
all know that their performance result are the outcome of all their business
and work processes. So in order to improve their outcomes the organization
and company has to change the way they do business. By changing
processes, the function and combining the business inputs they can produce
a better outcome.
Determinism is the principle that we can create a desired outcome by
configuring and controlling the inputs in a specific manner. In six sigma we

can achieve our objective by analyzing the inputs, the process and the
variation, and then implementing the best possible combination. By doing so
we are directly controlling our environment rather than allowing
environment controlling us.
More we understand the relationship between inputs and outputs the better
we can predict, determine and control the results.
Of all the issues that an engineer has to resolve, dealing with variation is
the most difficult. (Davies, Ford)
All variation is caused by something, if we have to control the outcome, we
have to control the cause. If we have to control variation we have to
understand whats causing it.
There are two source of variation
i. Common Cause Variation
Common Cause variation is created by many factors that are
commonly part of the process, and are acting totally at random and
independent of each other. Their origin can usually be traced to the
key elements of the system in which the process operates. (Materials,
Equipment, People, Environment, Methods). If only common causes
of variation are present, the output of a process forms a distribution
that is stable over time.
ii. Special Cause Variation
Special Cause variation is created by a non-random event leading to
an unexpected change in the process output. The effects are
intermittent and unpredictable. These special causes are specific
things we can identify and do something about.
Its always best to work on reducing special cause variation before trying to
reduce common cause variation because the process is not stable or
predictable in special cause variation and we cant be sure of what is
happening. But after eliminating special cause variation out of system we
can then only improve its common cause variation.
Principle of measurement is one of the fundamental tenets of six sigma. We
may work hard and even bring significant resources to a performance
problem or improvement goal, but without measuring Ys and Xs, our ability
to improve will only be meager and unsatisfactory. Taking measurements is
a matter of using information and data to quantify the relationship between
inputs, outputs and error in a given system, process or operating model.

Measurement is the practice of collecting the data that relates to the inputs
(X) and the given outcome (Y) which results from our process function f.
Measurement enables us to gain a quantitative grasp on the characteristics of
our various inputs and how they relate to our desired outcome. Measuring
the inputs gives us profile of the way our process is playing out relative to a
goal. Let say there is a guy name A his goal is to save Rs 5000 in a month
Ys= Rs 5000, he works hard each day to achieve his goal but he kept
spending on taxes, petrol, foods, necessities comes under Xs. In order to
achieve his goal he has to start measure and control the performance of the
Xs, he can spend less or earn more.
Measuring Ys and Xs is first step towards greater efficiency and
effectiveness. Its first step toward citizenship in the six sigma world of data
oriented thinking.
Leverage means the ability to apply the critical few Xs that have the greatest
impact on our desired Y in six sigma terms. We have to expend a little effort
to find leverage when we do so it help us to overcome our problems and
through the obstacles that stand between us and our goal. In creating any
desired outcome vast majority of leverage surprisingly comes from small
number of contributors. It applies in both simplest of goals as well as for the
most complex systems. By finding those few critical inputs that give us
leverage we can improve the outcomes. These vital few enable us to move
the boulders in our life, our process or our organization.
The law of the critical few versus the trivial many comes from the work of
early 20th century Italian sociologist and economist Vilfredo Pareto. We may
also know this law as the 80-20 rule where 20 percent of the inputs in any
system account for 80 percent of the influence on that system. He
determined mathematically that although many factors are connected to a
given outcome, only a few carry the weight to change that outcome in a
significant way. In a process, a few key variables are the cause of most
problems or defects. This holds true even when you analyze the impact of
dozens of variables involved in assemblies with hundreds of separate parts.
When you look for leverage in business, you search for the minority of
variables that provide the majority of power in solving problems in
manufacturing, assembly, distribution, procurement, accounting, finance,
customer service, so on.
Leverage may not exist where we think it does its similar to illusion of
cause and effect, we have to look closely, apply tests and challenge our

assumptions to find true source of leverage. Factors that represent leverage

in one situation may not represent leverage in another situation. Each
process has its own unique dynamics and interactions.