What is Six Sigma?
Six Sigma is a business management technique originally developed by Motorola USA in 1986. Six Sigma aims to improve the quality of process performance by isolating and eliminating the causes of defects, thereby minimizing variability in manufacturing and business processes.
Six Sigma applies a group of quality management techniques and creates a special infrastructure of human resources within the organization (such as Black Belts or Orange Belts) who are professional in these techniques. Every Six Sigma project implemented in an organization follows a certain sequence of steps and quantifies financial goals such as cost reduction or profit optimization.
The term Six Sigma comes from expressions associated with industry and the statistical representation of industrial processes.
Six Sigma focuses on process improvement. All customers see of a company are the results of a series of business processes. Indeed, a Six Sigma company could be said to view poor results as symptoms of poorly designed processes that lead to process failures.
Six Sigma methods provide a quantitative understanding of the relationship between process outputs and process inputs. The basic formula is simple: the output of a process is a function of a set of the inputs of a process (Y = f (x's)). An extension of this formula is as follows:
Y = f (x1, x2,…, xk)
Where Y is the output and the Xs are the inputs - in other words, "Y is a function of the Xs".
The main focus of Six Sigma is money. A business can make money in three ways: earnings growth (productivity), sales growth (growth), and the freeing up of cash. Therefore, all Six Sigma projects should be linked to the organizational strategy and geared towards the achievement of growth goals, cash goals and productivity goals.
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