Six Sigma
Key Concepts
Sigma Level
Process Management
Key Concept of Six Sigma

Six Sigma is made up of essential components that combine to drive improved business performance. Successful business management rely on "Close-loop System" in which internal and external sorts of information (feedback or stimuli) tell the manager how to correct development, stay upright and navigate successfully. A good close-loop system should work even in unfaithful business environment.

Six Sigma is based on creating a close loop business system that is sensitive enough to reduce the company's variations and keep it safe on the irregular path of performance and success. These bad variations or defects may create negative effect on customers. The internal stimuli in business are the measure of activity inside the processes followed by the company and the external feedback elements reveals whether the company has met its goals and is still on the right path of meeting the profits, customer satisfaction and other parameters.

Six Sigma uses the new approaches to create, monitor and improve that closed loop business system "Process Management", "Process Improvement" and "Process design/redesign".

Alignment of Systems

Let's consider a business model where "X" represent input to the system and process followed by company to provide the desire outcome based on the inputs. "Y" represent the final results of the process undergone i.e. end product, profit earned and customer satisfactions.

Mathematical representation of the above text will be,

Y = F(X)

Mean inputs and process (X) of the system largely determines the final score(Y). Six Sigma helps in determining the Xs in the business process that have great influence on Y.

For example,

Y can be

  • Strategic goal

  • Customer Requirement

  • Profits

  • Customer Satisfaction

  • Overall business efficiency

X can be

  • Essential actions to achieve strategic goals

  • Quality of work done by the business

  • Key influences on customer satisfaction

  • Staffing, cycle time, amount of technology

  • Quality of the inputs to the process

Copyright 2011, All Right Reserved. is for educational purposes only. We do not guarantee the correctness of the content. The risk of using this content remains with the user.