Six Sigma

About the Author

Mikel Harry, Ph.D. is the founder and CEO of the Six Sigma Academy, Inc. He is widely recognized for his work in developing the Six Sigma methodology and implementing it across various corporations. Richard Schroeder is the president of the Six Sigma Academy. Together, they have been instrumental in bringing Six Sigma strategies to major corporations worldwide, helping them achieve significant improvements in quality and efficiency.

Main Idea

Six Sigma is a breakthrough management strategy aimed at revolutionizing the way corporations operate by achieving a high level of quality—3.4 defects per million opportunities. The methodology focuses on business processes, breaking them down into their elemental components to identify and correct errors, thus improving overall efficiency and profitability. The strategy is compelling due to its structured approach to process improvement, which includes detailed metrics and benchmarks to measure progress.

Table of Contents

1. Introduction
2. Why Six Sigma?
3. What is Six Sigma?
4. The Players in Six Sigma
5. The Six Sigma Breakthrough Strategy
6. The Three Levels of Breakthrough: Business, Operations, and Process
7. Implementation and Deployment of the Strategy
8. Preparing an Organization for Six Sigma

Why Six Sigma?

Companies implement Six Sigma not just to improve quality but to significantly enhance profitability. By reducing defects and improving processes, each sigma shift can provide a 10 percent improvement in net income, a 20 percent margin improvement, and a 10 to 30 percent capital reduction. Six Sigma sets new standards of economic value and practical utility, making it a process-oriented approach that focuses on both industrial and commercial processes.

"Quality alone is not the most important motivating factor. Six Sigma is about improving profitability." - Mikel Harry and Richard Schroeder

For instance, companies like Motorola and General Electric have reported significant financial gains after implementing Six Sigma, attributing their success to the reduction of costs associated with poor quality and the improvement of customer satisfaction.

What is Six Sigma?

Six Sigma is a business process improvement strategy that aims to reduce defects to 3.4 per million opportunities by designing and monitoring activities in ways that minimize waste and resources while maximizing customer satisfaction. It involves detailed analysis and control of processes to eliminate errors at the earliest occurrence.

"It guides companies into making fewer mistakes in everything they do, from filling out purchase orders to manufacturing airplane engines." - Mikel Harry and Richard Schroeder

Examples include improving the quality of manufacturing processes at companies like AlliedSignal, which saved $1.5 billion through Six Sigma initiatives. The methodology doesn't merely detect and correct errors; it provides specific methods to recreate processes so that errors never arise in the first place. This proactive approach ensures that companies maintain high quality and efficiency in all aspects of their operations.

The Players in Six Sigma

Successful Six Sigma implementation requires the involvement of various roles within an organization: