What is Six Sigma Explain.

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• Operations Management
• Case Studies
• case study (20 Marks)
• By 2001, with revenues of 125.91 billion
  and net earnings of 13.68 billion, the US based
  General Electric Company (GE) was easily the
  largest diversified company in the world. Out of
  the company's 24 different businesses, some were
  so large that they could independently feature in
  the Fortune 500 list of companies. GE operated in
  more than 100 countries and had over 250
  manufacturing plants in 26 countries. The company
  was one of the largest employers in the world
  with strength of around 275,000 employees. GE
  remained the only company listed in the Dow Jones
  Industrial Index that had been included in the
  original index in 1896.

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• Six Sigma is a well structured, data driven
  methodology for eliminating defects, waste, or
  quality control problems in all kinds of business
  activities. It is based on a combination of well
  established statistical quality control
  techniques, simple and advanced data analysis
  methods and the systematic training of all
  personnel at every level in the organization
  involved in the targeted activity or process. It
  is based on the statistical concept that the
  output of most of the physical processes follows
  a normal distribution, with the processes
  centered at the mean Theoretically any process
  would have a natural spread of 3 Sigma (standard
  deviation) from the normal distribution mean on
  either side of the center. Six Sigma is a
  sophisticated quality program that is designed to
  reduce defects to 3.4 per million opportunities.
  The program focuses on streamlining all the
  processes in the organization to improve
  productivity and reduce capital outlays while
  increasing the quality, speed and efficiency of
  the operations.

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• The concept was pioneered by Motorola in the
  early 1980s. Motorola's initiative stemmed from
  its belief that improving quality would reduce
  costs and that the highest quality producer
  should be the lowest cost producer. Six Sigma
  enabled Motorola to achieve defect free
  performance in its manufacturing, designing,
  engineering, and business processes. Six Sigma
  was originally developed to be used for 'physical
  process' those performed in manufacturing and
  easy to observe record, analyze and measure.
  However, in the years to come, it was extended to
  processes that were not as explicit as the
  physical processes. It encompassed some business
  areas like bid and proposal, and procurement and
  contract management. While Six Sigma comprised
  strict measurements for physical processes, it
  involved identifying waste in the form of delays
  for other processes.

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• The primary objective of Six Sigma was to
  increase customer satisfaction through continuous
  improvement in quality. In the 1990s, GE, one of
  the world's largest diversified companies took
  initiatives to implement the Six Sigma quality
  tool.
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• Q1. What is Six Sigma? Explain.

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