SIX SIGMA- REVOLUTIONISING INDUSTRIES

written by: ANURAG SAHOO

As a B-SCHOOL student, I came across many technical terms like SIX-SIGMA. I couldn’t get anything about 6 sigma when our faculty tells about it. When I made a relentless pursuit about that term I came to realize the importance of that term in modern day business.

SIX SIGMA is actually the improvisation of the process output by eliminating the root causes of the errors in the production process and thrives on achieving stability in the business process. Six sigma was first used by mobile giant MOTOROLA and by 2006, it had saved a whooping 17 BILLION USD. Furthermore, it’s early users include HONEYWELL, the engineering and consumer goods giant and it also helped in achieving massive profits for GENERAL ELECTRIC and for GE it was adapted by JACK WELCH which made him an international sensation. Six sigma is done through DMAIC and DMADV which involves many quality management tools and they should be utilized within the parameters of DMAIC and DMADV.

Numerically and technically speaking, six sigma is the process where the chance of defective parts is 3.4 per million opportunities. Six sigma refers that if six standard deviations between the process mean and the nearest specification limit is achieved, then there is no chance of an item of failing to meet its specification. In India, MUMBAI DABBAWALA has adapted this method to achieve accuracy. But not every time six sigma has rosy pictures. A FORTUNE RESEARCH suggests that out of 59 large companies adapting six sigma, 91% of the companies are lagging behind in the financial performance as indicated in S&P 500. But still six sigma is a very coveted process which global industries respect and trust.