What is Six Sigma in Business

What is Six Sigma in Business?

Six sigma is a set of quality measures that companies can use to eliminate defects and improve processes. It was invented by Bill Smith while working at Motorola on the US Air Force’s Minuteman missile program in the early 1980s. In the content of our blog post, “What is six sigma? How does it apply to business life? You will find answers to your questions.

Definition of 6 Sigma

Six Sigma is a method that aims to improve the capacity of business processes of enterprises. A positive increase in business performance and a decrease in the variety in business processes lead to a decrease in defects, an increase in profitability, an increase in employee motivation and product / service quality.

What are the Basic Principles of Six Sigma?

There are 5 principles that fundamental sigma promotes. These principles are as follows;

  • Being customer oriented,
  • Using data,
  • Continuous improvement,
  • Involving employees
  • and encourages inclusiveness.

How to Apply Six Sigma?

Six Sigma is a methodology that enables companies to improve their internal processes through abbreviation, definition, measurement, analysis, improvement and control steps. The first step to implement this approach within the business is to understand the potential benefits of Six Sigma. You can then apply the approach to improve your business processes by following these steps:

  1. A commissioned team determines the company’s goals and needs, identifying a project to focus on. This project summarizes the problems, objectives and outputs in business processes.
  2. Next, the team measures the initial performance of the process. From the metrics the team has obtained, it creates a list of potential inputs that cause problems and provide insight into benchmark performance.
  3. In the third stage, it sorts out the cause of each failure and analyzes the root of the problem.
  4. Works to improve system performance.
  5. In the last stage, the team continues its controls so that the processes do not regress and become ineffective again.

What is the Difference Between Six Sigma and Lean Six Sigma?

Six Sigma focuses on reducing the diversity and fluctuations in business processes and improving the quality of processes by solving problems.

The focus of Lean Six Sigma is to eliminate unnecessary waste, improve workflow and improve existing processes.

What are the Benefits of Six Sigma?

  • Increases operational efficiency.
  • It saves money.
  • Increases customer satisfaction.
  • Improves business processes.
  • It encourages teamwork.