Six Sigma

Six Sigma
There are those who will tell you that Six Sigma is radical and new. The fact is that Six Sigma (done properly) is a recognisable evolution of TQM. De Mast (2006) sees it as an on-going phase in the evolution of methods and approaches for quality and efficiency improvement. Six Sigma can be seen as the accumulation of principles and practices developed in management statistics and quality engineering, all of which matured significantly over the course of the Twentieth Century.
The Six Sigma approach was first developed in the late 1980s within a mass manufacturing environment in Motorola (Harry, 1998) as they struggled to meet demanding quality targets on complex manufactured products; and become widely known when GE adopted it in the mid-90s (Folaron and Morgan, 2003; Thawani, 2004) when, arguably, it evolved from being a  process  improvement  methodology  to  a  broader,  companywide  philosophy.  Both  companies  still  consider  Six  Sigma as the basis for their on-going strategic improvement approach. Since the 1980s Six Sigma has become one of the most popular improvement initiatives; widely implemented around the world in a wide range of sectors (by companies such as Boeing, DuPont, Toshiba, Seagate, Allied Signal, Kodak, Honeywell, Texas Instruments, Sony, Bombardier, Lockheed Martin) that all declared considerable financial savings (Harry, 1998; Antony and Banuelas, 2001; Kwak and Anbari, 2006).
Other benefits claimed for Six Sigma include increased stock price, improved processes and products quality, shorter cycle times, improved design and increased customer satisfaction (Lee, 2002; McAdam et al, 2005). Six Sigma has undergone a considerable evolution since the early manifestations (Folaron and Morgan, 2003; Abramowich, 2005). Initially it was a quality measurement approach based on statistical principles. Then it transformed to a disciplined processes improvement technique (based on reducing variation within the system with the help of a number of statistical tools).  For  example,  Snee  (1999)  defined  Six  Sigma  as  an  ‘approach  that  seeks  to  find  and  eliminate  causes  of  mistakes or  defects  in  business  processes  by  focusing  on  outputs  that  are  critical  importance  to  customers’.  The  definition  given in 1999 by Harry and Schroeder (1999) also defines Six Sigma as ‘a disciplined method of using extremely rigorous data gathering and statistical analysis to pinpoint sources of errors and ways of eliminating them’. In  its  current  incarnation  it  is  commonly  presented  as  ‘a  breakthrough  strategy’  and  even  holistic  quality  philosophy (Pande,  2002;  Eckes,  2001).  It  is  now  generally  accepted  that  Six  Sigma  is  applicable  to  various  environments  such  as service, transactions or software industry regardless the size of the business (Pande, 2002; Lee, 2002) and being adapted Six Sigma may lead to nearly perfect products and services. Moreover, Six Sigma is widening its areas of application very rapidly and there are examples of applying Six Sigma to predicting the probability of a company bankruptcy (Neagu and Hoerl, 2005) or finding opportunities for growth (Abramowich, 2005).
In  the  past  five  years,  hundreds  of  organizations  have  indicated  their  interest  in  making  Six  Sigma  their  management philosophy  of  choice.  While  many  of  the  businesses  attempting  to  implement  Six  Sigma   are  well  intentioned  and  want to implement  Six Sigma  properly just as General Electric did, there are also those impatient executives who now look on Six Sigma  in the same way as they look on downsizing. This quick-fix approach to  Six Sigma  is a sure path to the same short-term results that prevent long-term profitability.It  is  worth  noting  that  the  evolution  of  Six  Sigma  is  continuing  with,  for  example,  the  integration  of  Lean  Principles, development of a product/service variant (Design for Six Sigma) amongst others (De Mast, 2006). 

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