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What is 6 Sigma?

Six Sigma is widely used in various business fields.
Dec 17th,2024 410 Views
Six Sigma is a tool for process improvement, which aims to achieve customer satisfaction and increase profits by reducing process variation, improving product quality and service level.

It was first proposed by Motorola in 1986 and promoted by General Electric, becoming a widely used business management strategy.

Six Sigma definition
6 Sigma means that the defect rate does not exceed 3.4 times per million operations, that is, the yield rate reaches 99.99966%. This means that in 1 million operations, there are only 3.4 defects at most, which is close to the goal of "zero defects".

Six Sigma Implementation Steps
The process of implementing Six Sigma usually follows the four steps of "M-A-I-C"
1. Measure: Measure the performance indicators of the existing process
2. Analyse: Analyze the causes of variation
3. Improve: Design and implement improvement measures
4. Control: Establish a control mechanism to maintain the improved process

The importance of Six Sigma to corporate management
Improve corporate management capabilities: 6 Sigma management is driven by data and facts, transforming corporate management from verbal and written understanding to practical and effective actions. Through Six Sigma management, companies can better understand and manage business processes.

Save corporate operating costs: Implementing Six Sigma management can significantly reduce the production of defective products, thereby reducing the cost of waste and rework.

Increase customer value: 6 Sigma management improves customer satisfaction by reducing arbitrariness and reducing error rates. Companies achieve a virtuous cycle from understanding customer needs to meeting needs by understanding and meeting customer needs

Form a positive corporate culture: Through the implementation of Six Sigma management, companies can clarify everyone's goals and responsibilities and stimulate the enthusiasm of employees. Employees value quality and service and master standardized and normalized problem-solving methods

Improve corporate performance: The Six Sigma management system continuously improves operational efficiency and product quality through data analysis, process improvement and continuous iterative cycles.

Six Sigma is widely used in various business fields, significantly improving the competitiveness and market share of enterprises.