Abstract

Purpose To provide a sound discussion on the Six Sigma

methodology and see how it fits in with other quality
initiatives. Design/methodology/approach A conceptual
paper that takes at in-depth look at the origins, pros and
cons of Six Sigma and how it relates to some of the other
quality initiatives in industry. Findings The immediate
goal of Six Sigma is defect reduction. Reduced defects
lead to yield improvement; higher yields improve
customer satisfaction. Six Sigma defect reduction is
intended to lead to cost reduction. It has a process focus
and aims to highlight process improvement opportunities
through systematic measurement. Six Sigma
implementation can have negative consequences if
applied in the wrong project. Six Sigma is a toolset, not a
management system and is best used in conjunction with
other more comprehensive quality standards such as the
Baldrige Criteria for Performance Excellence or the
European Quality Award. Research limitations/implications
This is a conceptual study and hence there are no
hypotheses tested as in an empirical study. It does provide
a good foundation for future research. Practical
implications A very useful source of information and
impartial advice for practitioners and researchers planning
to practice the Six Sigma methodology and/or understand
.its pros and cons
Table of contents

-1
Introduction
1

-1
Introduction
1

-1
Introduction
1

-1
Introduction
1

-1
Introduction
1

-1
Introduction
1
 :Introduction-1

The introduction of Six Sigma into the manufacturing

arena in the early 1980s by Motorola was a step in
revolutionizing the scope and use of quality systems in
business today (Mayor, 2003). To define Six Sigma in
simple terms is not possible because it encompasses the
methodology of problem solving, and focuses on
optimization and cultural change. Six Sigma accomplishes
this goal by utilizing an extensive set of rigorous tools,
uncompromising use of statistical and advanced
mathematical tools, and a well-defined methodology that
produces significant results quickly. The success of this
methodology within an organization has significant
momentum that can only lead to fundamental
organizational cultural transformation. The roots of sigma
as a measurement standard go back to Carl Fredrick
Gauss (1777-1855), who introduced the concept of the
normal curve or distribution. Walter Shewhart introduced
three sigma as a measurement of output variation in
1922, and stated that process intervention was needed
when the output went beyond this limit. The three sigma
concept is related to a process yield of 99.973 per cent
and represented a defect rate of 2,600 per million, which
 was adequate for most manufacturing organizations until
the early 1980s. Two things occurred in the early 1980s
that required a higher-level quality from American
manufacturers. One of these was the introduction of mass
produced miniature electronics, from transistor radios to
televisions, which were produced in large quantities for
mass-market consumption. The second and more
compelling force for domestic quality improvement was
the opening of global markets and subsequent
introduction of Japanese electronics into foreign and
American markets. The lower price and higher quality of
the Japanese goods made these imports attractive to the
.global consumer

Features of Six Sigma

Six Sigma's aim is to eliminate waste and inefficiency, thereby increasing

.customer satisfaction by delivering what the customer is expecting

Six Sigma follows a structured methodology, and has defined roles for
.the participants

Six Sigma is a data driven methodology, and requires accurate data

.collection for the processes being analyzed

. Six Sigma is about putting results on Financial Statements

Six Sigma is a business-driven, multi-dimensional structured approach

:for

o Improving Processes

o Lowering Defects

o Reducing process variability

o Reducing costs

o Increasing customer satisfaction

o Increased profits

The word Sigma is a statistical term that measures how far a given
process deviates from perfection. The central idea behind Six Sigma: If you
can measure how many "defects" you have in a process, you can
 systematically figure out how to eliminate them and get as close to "zero
defects" as possible and specifically it means a failure rate of 3.4 parts per
.million or 99.9997% perfect

: Benefits of Six Sigma

:Six Sigma offers six major benefits that attract companies

Generates sustained success

Sets a performance goal for everyone

Enhances value to customers

Accelerates the rate of improvement

Promotes learning and cross-pollination

Executes strategic change