Meritphase|What is Six Sigma and why is it important?
Meritphase|What is Six Sigma and why is it important?
Meritphase - Simply
put, Six Sigma is an approach to reduce variation (and consequently reduce
defects) in a process to the extent that it produces less than 3.4 defects per
million opportunities.
Let us say we are
manufacturing soft drinks. Ideally, every bottle should have exactly 750 ml in
it. This is the ideal scenario which is most often not true since some
variation always exists. So we decide a range, say 748 to 752 ml. If volume of
the liquid in the bottle exceeds this range, we consider it to be defective.
Before we move forward,
there are a few things about statistics we need to know. Every process can be
denoted by two parameters: Mean and Standard Deviation.
Mean shows the central
value (average) of the data and Standard Deviation (denoted by Greek
letter sigma σ) shows variation in the data from the mean. Higher
the σ, higher the variation in the data from the mean.
Now in order to
achieve six sigma level, we must reduce the standard deviation to the extent
that the difference between the process mean and either limit of the range is
more than six times the standard deviation. Since
standard deviation is denoted by the Greek letter sigma (σ), this concept
became known as Six Sigma
In our soft drinks example, we can say
that the process mean is 750 ml. The range is 748 to 752 ml. If it were a six
sigma process, the difference between 750 and each limit (748–750=-2 and
752–750=2) should be more than six times σ i.e. σ should be one sixth of 2,
which is 0.33 ml.
This means that if the
standard deviation of the process is reduced to 0.33, the process will produce
less than 3.4 defective pieces in a million bottles produced.
Industries normally use this
figure as a target and try to achieve it through various data-driven approaches.
The most well-known approach is the DMAIC Approach, which stands for
Define-Measure-Analyze-Improve-Control.
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