Six Sigma

Essay by bobbiemUniversity, Master'sA+, January 2005

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Six Sigma is defined as a statistical term that refers to 3.4 defects only per million processes undertaken by, or products made by, a company. This focus on product quality leads to lowered costs of operation for the company. Lower costs ultimately lead to higher profit margins. Six Sigma is the benchmark-Four Sigma is average.

A successful Six Sigma program must start with the CEO of a corporation. The CEO must express their personal vision, provide steady and enthusiastic leadership, and assess results and reward participants. Management must have a vision of where the company is going that is clearly communicated to every employee at all levels of the organization. A small number of key objectives must be defined in order for the company to realize its vision. These key objectives must then be clearly communicated to the entire organization so that each person knows how their performance will help to achieve the overall goal.

I think the main theme of the article is how a Six Sigma program can ultimately benefit the corporation's bottom line. The article also stresses the importance of the role that the CEO must take in the process. The CEO must:

(1) Set up and serve on the Six Sigma management council.

(2) Establish goals for the process.

(3) Lead the deployment process.

(4) Allocate needed resources.

(5) Assign responsibilities for review and measurement.

(6) Lead the employee recognition ceremonies.

(7) Revise the company's reward system.

The Six Sigma process can improve every part of a company, from production to the structure of the company. DeFeo writes that "people, companies, industries, economies and nations will maintain leadership and a competitive edge only if they have a consistent mental attitude and a thirst for more effective ways to produce state-of-the-art products and services." And considering that...