To get the best results from the process, the discipline sets a benchmark: no more than ‘six sigma,’ or six standard deviations from the mean, is allowed to occur. Each of these standard deviations is called a ‘sigma.’ The more deviations in the data, the more likely the data would include errors. Every data set uses standard deviations to measure variations in the data. The term was originally used in data sets. When Motorola first pioneered the methodology, the phrase ‘six sigma’ described the goal – not the process. Over the last decade, Six Sigma has become so popular that the words ‘six’ and ‘sigma’ have come to represent the methodology itself. Most importantly, these goals are industry agnostic, so they can be effectively applied to a single-employee consulting business or a one million-employee multinational technology company. When they’re achieved, they can lead to improved productivity, higher customer satisfaction, better return on investment, and several other important benefits. In a Six Sigma system, these goals are supported by strong data. Focusing on the customer: The customer is the most critical aspect of any capitalist endeavor, and Six Sigma reinforces the idea that employees aren’t just making products or offering services – they’re doing it to satisfy the needs and expectations of other human beings.Maximizing asset utilization: When employees aren’t constantly second-guessing their work, they’re able to work proactively and solve the problems on the horizon (which, in turn, leads to future efficiency).Reducing rework: Nothing is worse for efficiency than employees moving backward through processes (to rectify errors or double-check their assumptions). Detecting and eliminating the problems that lead to defects and errors: A dysfunctional product or service represents more than a frustrated customer it’s a complete waste of the time and effort that went into its creation.Six Sigma can help improve business processes by pursuing a handful of foundational goals. How Does Six Sigma Make Businesses More Efficient and Effective? It gives practitioners a toolset to overcome a variety of challenges in their day-to-day work – like finding the root cause of a problem, developing practical solutions to problems, minimizing variation, and more. Even industry leaders like Amazon have used it to revolutionize their businesses.įundamentally, Six Sigma provides a data-driven system for improving processes. Today, Six Sigma has been adapted to almost every industry and applied in organizations of all sizes. They used it to improve the operational effectiveness of their factories, and since then, their success in the 1980s has inspired thousands of companies all over the world. The methodology was created nearly 40 years ago at Motorola – which was, at the time, one of the world’s most complex telecommunications companies. By measuring specific aspects of a process – and solving the problems therein – Six Sigma practitioners can significantly increase the consistency and efficiency of their work. Six Sigma is a way of thinking and working that’s predicated on quality control.
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