Six Sigma Essay Example | Topics and Well Written Essays - 2500 words

sextet Sigma - Essay ExampleThis is done by distinguishing and correcting faults that occur in the organizational processes and products. In other words, sise sigma is a management concept formulated by Motorola in 1986 which aims are defining high goals, entropy collection and carrying out the analysis of results to a fine degree so as to cut raft the defects that appear in tangible products and services. Therefore, we can say that six sigma is focused on improving the spirit of business processes and end products (Peter S Pande, Robert P. Neuman, Roland E. Cavanagh, 2000). The core aim of six sigma is to give businesses an error free performance. The philosophical system of six sigma is that if an organization is able to measure the number of faults in its business processes, then it can systematically eradicate them and achieve close to perfection operations. The Greek alphabet Sigma is used to represent a loss or variation from a defined archetype. Organizations use sigm a as a scale to measure their performance. The harbor of sigma is indirectly proportional to the number of defects. This means that smaller value of sigma will show less aberrance from the norm that is less faults. For instance, two sigma covers ninety five percent of the bell deform whereas six sigma reaches to a point where there is absolutely no chance of defect. Simply put, six sigma is basically a standard for quality which aims at producing no more than 3.4 defects per million units or procedures. The goal however, is difficult to attain only a number of manufacturing companies such as General Electric, Martin Dow, Johnson & Johnson, Nokia and many others have realized heavy savings with the application of six sigma. Service sector such as healthcare and financial institutions have similarly started benefitting from six sigma (Praveen Gupta, 2004). History Whenever the origin of six sigma is talked about, the first name that strikes our mind is Motorola. It is usually bel ieved that the concept of six sigma was introduced by the employees of Motorola. A deep look into the history will show that the development of the concept began when Carl Frederick Gauss introduced major statistical element of bell curve called normal curve. In 1920s Walter Shewhart analyzed the normal curve thoroughly and came up with his proposal that any business process or product may overtop rectification when the variation from mean is three sigma. After the second world war, Japans deliverance was poorly slashed down. However, with optimal utilization of natural resources and leadership, Japan became world leader in call of quality. Noticing this sudden progress, U.S companies realized how important the role of quality in gaining profits and customer satisfaction is. The railway car industry of U.S was suffering to a great extent because Japanese had grabbed major share of its imports. In 1986, the engineers at Motorola implemented the concept of six sigma in their manuf acturing processes. Bill Smith and team members decided to replace the beat of defects in thousands by millions in order to make more sense out of the concept. Guidelines for addressing problems with six sigma were open and it was also suggested that projects in which six sigma is applied should always give positive outcomes. Therefore, six sigma is officially associated with Motorola. sight Motorolas increased efficiency, Allied Signal began implementing six sigma in its operations.