Introduction
Sigma, commonly represented by the Greek symbol Σ, is a statistical measure that helps businesses and organizations improve their processes by identifying and reducing variability. This article will explore the definition of sigma, its significance, examples, case studies, and statistics.
What is Sigma?
Sigma is a measure of how much a process deviates from perfection. It is used to assess the quality of products or services and identify areas for improvement. The higher the sigma level, the fewer defects there are in a process.
Six Sigma
Six Sigma is a methodology that aims to achieve near-perfection in processes by reducing defects to less than 3.4 per million opportunities. Companies like Motorola and General Electric have successfully implemented Six Sigma to improve efficiency and customer satisfaction.
Examples of Sigma
For example, a manufacturing company producing smartphones may use sigma to measure the number of defective units in a batch. If the sigma level is low, it indicates a high defect rate that needs to be addressed.
Case Studies
One famous case study is Motorola, which saved millions of dollars by implementing Six Sigma. By improving processes and reducing defects, Motorola increased customer satisfaction and market share.
Statistics
According to research, companies that implement Six Sigma see an average of $430,000 in savings per project. Additionally, Six Sigma has been shown to increase overall customer satisfaction and reduce time-to-market for products.
