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Six Sigma - Quality Consulting

What the enthusiasm is all about...

The hottest ticket in quality and business these days is Six Sigma. It is being promoted every- where, advocates exhort its virtues and companies in general are rushing to learn about it -- as much as they can, as quickly as they can. But, what is it, really?

At its most basic level, Six Sigma refers to a measure of quality that strives for near perfection. It is a disciplined, data-driven approach, a methodology for eliminating defects in a process, product or transaction, yielding tangible results (i.e. cost savings) that directly impact the bottom line.

From a statistical standpoint, Six Sigma offers a quantitative description of how a process is performing. To achieve Six Sigma, a process must produce no more than 3.4 defects per million opportunities (DPMO). A defect is defined as anything outside the customer specifications and an opportunity is then the total quantity of chances for a defect.

The fundamental objective of the Six Sigma methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction through the application of Six Sigma improvement projects. Such projects employ either of two Six Sigma methodologies -- DMAIC or DMADV.

The DMAIC process (define, measure, analyze, improve, control) is an improvement system for existing processes falling outside specification and looking for incremental improvement.
The DMADV process (define, measure, analyze, design, verify) is an improvement system used to develop new processes or products at Six Sigma quality levels. It can also be employed if a current process requires more than just incremental improvement
The two processes are implemented by trained Six Sigma experts (Green Belts, Black Belts or Master Black Belts), with a heavy emphasis on management involvement and project champions.

Companies pursuing Six Sigma projects typically record annualized savings of $100,000 or more. According to data compiled by the Six Sigma Academy, Black Belts save companies approximately $230,000 per project and can complete four to six projects per year. General Electric, among the most visible and vocal advocates of the Six Sigma approach, reports having achieved financial benefits of roughly $10 billion during the first five years of implementation. Not every company can achieve Six Sigma quality, but in virtually all cases improvements are attainable.