Six Sigma

Six Sigma is a set of techniques and tools for process improvement, developed by Motorola in the 1980s. It aims to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.

Six Sigma uses a statistical approach, often represented as a method for reducing defects to a rate of fewer than 3.4 defects per million opportunities. The methodology typically follows a five-phase process known as DMAIC: Define, Measure, Analyze, Improve, and Control.

Examples:

• Motorola: Motorola first implemented Six Sigma in the 1980s, leading to significant cost savings and product quality improvements.
• General Electric: GE adopted Six Sigma in the 1990s under CEO Jack Welch, resulting in billions of dollars in savings and improved operational efficiency.

Cases:

• Bank of America: The bank utilized Six Sigma to streamline its mortgage application process, reducing the Turnaround time significantly.
• Honeywell: Implemented Six Sigma to enhance product reLiability and reduce manufacturing costs, achieving substantial financial benefits.