The fast paced economy, constant demand for change, consumers demand for more superior product, and much more has challenged a lot of different companies for years, different management philosophy have been developed in order to cope up with those challenges. And one of these is SIX SIGMA. It was developed by Motorola in 1986 and has been regarded as the most popular management philosophy in history. Currently, Six Sigma is in itself a colossal brand name in the corporate world. Previously Six Sigma has only been used by big industrial companies however; nowadays government offices, armed forces, hospitals and even prison management have incorporated Six Sigma in their management schemes. Six Sigma can be defined as a holistic management program focusing on the alleviation of defects on products and services by producing high objective, collating data and analyzing the data thoroughly.
Motorola Inc. defines SIX SIGMA at three different levels:
1. Metric – the terms Sigma is a Greek letter that is often used as a scale for goodness or quality of a product. In this scale, SIX SIGMA means that 3.4 defects per one million opportunities (DPMO). SIX SIGMA was actually initiated in an effort to reduce defects and was then used in different business processes for the same purpose.
2. Methodology – where in Six Sigma is represented by the acronym DMAIC which means;
a. Defining Opportunity
b. Measuring Performance
c. Analyzing Opportunity
d. Improving Performance
e. Controlling Performance
The acronym is the heart on how SIX SIGMA works in order to understand consumer demand and manage the company’s production to produce highly valuable products and services.
3. Management – after years and years of practicing the SIX SIGMA philosophy, Motorola has learned that in order to be successful, process metrics and a well defined methodology should be applied using improvement opportunities together with the organization’s strategy.
Additional information, SIX SIGMA actually uses statistics and data analysis to realize the situation and find out the root cause of the problem and how to improve it.