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Literature Study On Six Sigma

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Literature Study

Six Sigma
Six Sigma is a household name in the world of industry. Six Sigma is a union of of methods and instruments that are created for one sole purpose—process improvement. An engineer named Bill Smith, who worked at the cellphone company, Motorola, in 1986, first initiated this principle. 9 years later, Jack Welch from General Electric made Six Sigma central to his business strategy.
The name Six Sigma was originated from the Greek letter sigma, which has a function of denoting variation from a certain standard. In statistics, the word sigma measures how much is the distance of a certain process with perfection. The main idea of Six Sigma is that if the “defects” or flaws of a certain process can be defined, then it is certain that the aforementioned “defects” and flaws can be eliminated in order to achieve perfection or the stage of “zero defects”. In order to achieve the aforementioned goal, a process must be able to produce no more than 3.4 defects per million opportunities. An “opportunity” in this case is defined as a moment of …show more content…

The meaning behind the 80/20 rule is that 20% of the problems in a certain process hold the key to 80% of the impact. The manager and the team of a certain company use Pareto Analysis in order to achieve the perfect, “no defect” production process. Pareto Analysis is efficient to use because Pareto Analysis quickly directs the focus of the analysts on the key causes of certain problem. Therefore, Pareto Analysis is the right tool to use when the company has limited resources, because the resources will not be allocated to means with less significant meaning. However, Pareto Analysis requires trained personnel and data, because without those, Pareto Analysis will not be able to be conducted. In a nutshell, Pareto Analysis is an analytical tool that allows analysts to focus on the “vital few” factors in order to gain massive improvement in the

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