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Six Sigma in Indian industries
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Six Sigma in Indian industries (MBA System)
Introduction
Six Sigma is a statistical concept that measures a process in terms of defects. Achieving "Six Sigma" means your processes are delivering only 3.4 defects per million opportunities (DPMO) - in other words, they are working nearly perfectly. Sigma (the Greek letter σ) is a term in statistics that measures standard deviation. In its business use, it indicates defects in the outputs of a process, and helps us to understand how far the process deviates from perfection.
A sigma represents 691462.5 defects per million opportunities, which translates to only 30.854% of non-defective outputs. That is obviously a poor performing process. If you have a process functioning at a three sigma level that means you're allowing 66807.2 errors per million opportunities, or delivering 93.319% non-defective outputs. That's much better, but we are still wasting money and disappointing our customers.
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