Also known as: 6σ, 6Sigma
Sigma (Σ, σ)[2][3] is the Greek letter for the statistical unit of measurement of the standard error in a total number.
The meaning of this is derived to mean that the defect rate of an average company is about 3 to 4 sigma, and in terms of 4 sigma, this corresponds to 6,210 errors per million opportunities. If a company continually pursues quality improvement to the extent that it reaches 6 sigma, its performance will be nearly perfect in terms of meeting customer requirements, with only 3.4 defective items found out of a million opportunities.
The Six Sigma (6σ) concept, as a quality management concept, was first proposed by Bill Smith of Motorola in 1986, with the aim of designing a goal: to reduce the number of defects in products and processes during the production process, to prevent product variation, and to improve quality.
With the accumulation of practical experience, it has been derived from a mere concept of process optimization into a management philosophy idea. It is not just a measure of business process capability, not just a set of methods for continuous optimization of business processes.
The Origin of Six Sigma
Six Sigma began to evolve in the mid-1990s by GE from a total quality management approach to a highly effective technology for designing, improving, and optimizing corporate processes and providing a range of new product development tools equally applicable to design, production, and service. It then went hand in hand with GE's globalization, servitization, and e-commerce strategies, becoming the most important strategic initiative for companies seeking management excellence around the world. Six Sigma has gradually developed into a customer-oriented to determine the enterprise's strategic objectives and product development and design criteria, the pursuit of continuous progress of a management philosophy.
The real popularity and development, is in the practice of General Electric, that is, the 1990s developed 6σ (sigma) management is summarized in the successful experience of total quality management, distilled the essence of the process management skills and the most effective methods, to become a way to improve corporate performance and competitiveness of the management model. The management method in Motorola, General Electric, Dell, Hewlett-Packard, Siemens, Sony, Toshiba and many other multinational enterprises has proved to be fruitful. For this reason, some domestic departments and organizations are vigorously pushing 6σ management in domestic enterprises and guiding them to carry out 6σ management.
What is 6σ quality management method
6σ management method is a statistical evaluation method, the core is the pursuit of zero-defect production, to prevent the risk of product liability, reduce costs, increase productivity and market share, and improve customer satisfaction and loyalty. 6σ management focuses on the quality of the product, the service, and also focus on the improvement of the process. "σ" is a Greek letter used statistically to denote a standard deviation value to describe the degree to which individuals in a population deviate from the mean, and the measured σ characterizes the probability of, for example, unit defects, millions of defects, or errors, with the greater the value of σ, the fewer the defects or errors. 6σ is a goal, and this level of quality means that This level of quality means that 99.99966% of all processes and results are defect-free, i.e., only 3.4 out of 1 million things done are defective, which is almost as close as human beings can get to perfection. 6σ management focuses on processes, especially the core processes by which an organization delivers value to its markets and customers. Because after the process capability is measured by σ, the larger the σ, the smaller the fluctuation of the process, and the stronger the ability of the process to satisfy the customer's requirements with the lowest cost loss and the shortest time period. 6σ theory holds that most enterprises operate between 3σ and 4σ, that is to say, between 6,210 and 66,800 per million operational errors, and that these defects require operators to make up or correct them after the fact with 15% to 30% of the sales. These defects require operators to spend 15% to 30% of sales on making up or correcting them after the fact, whereas with 6σ, the amount of money spent on making up for them after the fact would be reduced to about 5% of sales.
In order to achieve 6σ, the first step is to set the standard, in the management of tracking and evaluation of the operation at any time with the deviation of the standard, continuous improvement, and ultimately to achieve the 6 σ. Has formed a set of continuous improvement of each link of the simple process model: define, measure, analyze, improve, control.
Definition: Determine the goal of the need to improve and its progress, the senior leadership of the enterprise is to determine the strategic objectives of the enterprise, the middle level of operations may be the goal of the manufacturing sector to improve production, the project level may be the goal of the reduction of defective products and improve efficiency. Before defining, the process needs to be identified and mapped out.
Measurement: Existing systems and data are measured and weighed against flexible and effective metrics to understand the current level of quality.
Analyze: Analyze the entire system using statistical tools to find the few key factors that affect quality.
Improvement: Use project management and other management tools to establish the best improvement program for the key factors.
Control: Monitor the new system processes and take steps to sustain the improvements so that the entire process is fully effective.
Characteristics of 6σ management
As a continuous quality improvement methodology, 6σ management has the following characteristics:
(a) A high degree of attention to customer needs
6σ management takes a broader view, focusing on all the aspects that affect customer satisfaction. 6σ management's performance evaluation begins with the customer, and the degree of improvement is measured by the impact on customer satisfaction and value. 6σ quality represents a very high level of compliance with customer requirements and a very low defect rate. It sets customer expectations as its goal and continually exceeds them. Enterprises start with 3σ, then 4σ, 5σ, and eventually 6σ.
(ii) High dependence on statistics
Statistical data is an important tool for the implementation of 6σ management, which explains everything in numbers, and quantifies all production performance, execution capabilities, etc. into specific data, with the results being clear at a glance. Decision makers and managers can find out where the problems are from various statistical reports, and get a true picture of product failures and customer complaints, etc. The results of improvements, such as cost savings and profit increases, are also based on statistics and financial data.
(C) emphasis on improving business processes
Traditional quality management theories and methods tend to focus on results, through the end of production to strengthen the inspection and after-sales service to ensure product quality. However, the production process has produced scrap for the enterprise has caused losses, after-sales maintenance requires additional costs of the enterprise. Worse still, because it has become commonplace to allow a certain percentage of scrap, people are losing their sense of initiative to improve.
6σ management focuses on the root causes of defects, arguing that quality is achieved through process optimization rather than through rigorous inspection of the final product. Companies should focus their resources on recognizing, improving and controlling the causes rather than on activities such as quality inspections and after-sales service. Quality is not the business of a certain department and a certain person within the enterprise, but the work of each department and each person, and the pursuit of perfection becomes the behavior of every member of the enterprise. 6σ management has a set of rigorous tools and methods to help enterprises promote the implementation of process optimization work, identify and eliminate the cost of those who can not bring value to the customer's cost of waste, eliminating the non-value-added activities, and shorten the cycle of production and business cycle.
(D) Active Improvement Management
Mastering the 6σ management methodology is like finding a magnifying glass to re-observe the enterprise. People are surprised to find that defects are like dust, existing in all corners of the enterprise. This makes managers and employees feel uneasy. It is necessary to change passivity into initiative and try to do something for the enterprise. Employees will constantly ask themselves: how many σ have been reached now, where is the problem? What level can be achieved? Have they improved through their efforts? In this way, the enterprise is always in a process of continuous improvement.
(E) Advocating the enterprise culture of cooperation without boundaries and diligent learning
6σ management expands the opportunities for cooperation. When people do realize the importance of process improvement for improving product quality, they will realize the interdependence of each department and each link in the workflow, and strengthen the cooperation and coordination between departments and between upper and lower links. Since the quality improvement pursued by 6σ management is a never-ending process, and this continuous improvement must be conditioned by the continuous improvement of staff quality, it helps to form an enterprise atmosphere of diligent learning. As a matter of fact, the process of introducing 6σ management is itself a process of continuous training and learning. Through the formation of a backbone team for the implementation of 6σ management and the hierarchical training of the whole staff, all of them can understand and master the key points of 6σ management, give full play to the enthusiasm and creativity of the staff, and make continuous progress in practice.
Benefits of 6σ management
The benefits of implementing 6σ management are obvious, and in a nutshell, they are mainly manifested in the following aspects:
(a) It can improve the ability of enterprise management
6σ management is driven by data and facts. In the past, the enterprise's understanding of management and the understanding of management theory stayed more in the oral and written, while 6σ transformed all this into practical and effective actions. 6σ management method became synonymous with the pursuit of flawless management style.
As Welch pointed out in GE's 2000 annual report, "The high quality created by 6σ management has miraculously reduced the waste, streamlined management processes, and lowered material costs that GE had experienced in the past with its complex management processes.The implementation of 6σ management has become a necessary strategy for introducing and committing to high-quality innovative products and one of the hallmarks."
6σ management gave Motorola more incentive to pursue what at the time seemed almost impossible to achieve. the company's quality goal in the early 1980s was to improve by a factor of 10 every five years, which was changed to a factor of 10 every two years after the implementation of 6σ management, creating a miracle of a 100-fold improvement in four years.
Statistics of successful experiences abroad show that if a company fully implements 6σ innovation, it can improve a σ level every year until it reaches 4.7σ without big capital investment. During this period, the improvement of profitability is very significant. When 4.8σ is reached, however, further improvement is required. The level requires process redesign and increased capital investment, but at this time the competitiveness of products and services increases, and the market share increases accordingly.
(ii) can save business operating costs
For the enterprise, all the bad crystals are either discarded, or need to rework, or at the customer site need to be repaired, replaced, all of these need to spend the cost of the enterprise. U.S. statistics show that a company implementing 3σ management standards has costs directly related to quality issues that account for 10 to 15 percent of its sales revenue. From the implementation of 6σ management in 1987 to 1997, 10 years, Motorola due to the implementation of 6σ management cost savings has reached 14 billion U.S. dollars. 6σ management, the implementation of the Honeywell company in 1999 a year cost savings of 600 million U.S. dollars.
(3) Increase customer value
Implementation of 6σ management can make the enterprise from understanding and meeting customer needs to realize the maximum profit between the various links to achieve a virtuous cycle: the company first to understand, grasp the customer's needs, and then through the use of 6σ management principles to reduce the arbitrariness and reduce the error rate, so as to improve customer satisfaction.
General Electric's medical equipment division created a new technology after introducing 6σ management, bringing about a revolution in medical testing technology. Whereas it used to take three minutes for a patient to undergo a full-body examination, it now takes only one minute. As a result, the hospital has increased equipment utilization and reduced examination costs. In this way, a result that satisfies the company, the hospital, and the patient has emerged.
(4) Improvement of service levels
As 6σ management can be used to improve not only the quality of products, but also the service process, the level of customer service can also be greatly improved.
General Electric lighting department of a 6σ management team successfully improved with its largest customer Wal-Mart payment relationship, so that the bill error and the two sides of the dispute reduced by 98%, both to speed up the payment of speed, but also melted the two sides of the mutually beneficial relationship.
(E) The ability to form a positive corporate culture
In the traditional management style, people often feel overwhelmed, do not know their goals, and work in a passive state. Through the implementation of 6σ management, everyone knows what they should do and how they should do it, and the whole enterprise is full of enthusiasm and efficiency. Employees attach great importance to quality and customer requirements, and strive to do their best, and through participation in training, master standardized and standardized problem solving methods, work efficiency has been significantly improved. With strong management support, employees are able to focus on their work, reducing and eliminating fire-fighting activities at work.
6σ management staff organization structure
6σ management requires a reasonable and efficient staff organization structure to ensure the smooth realization of improvement activities. In the past, 80% of Total Quality Management (TQM) implementers failed, the biggest reason is the lack of such a personnel organizational structure.
(A) 6σ Management Committee
6σ Management Committee is the highest leading organization for the implementation of 6σ management. The main members of the committee are members of the company's leadership, and its main responsibilities are: to set up various positions for the initial stage of 6σ management; to determine the specific improvement projects and the order of improvement, and to allocate resources; to assess the progress of each project on a regular basis and to provide guidance; to help the project teams to solve their problems when they encounter difficulties or obstacles, and so on.
Successful 6σ management is characterized by the full support of business leaders, and the success of 6σ management lies in its unwavering implementation from top to bottom. Leaders must have a deep understanding of the benefits of 6σ management to the organization and the goals to be achieved by the implementation of the program, so that they can be confident in the change and promote a climate of change for continuous improvement within the organization.
(ii) Executive Leader
The executive leader of 6σ management is a senior leader at the level of vice president or above. This is a critical position that requires a person with strong overall coordination skills. Its specific responsibilities are: to set goals, direction and scope for the project; to coordinate the resources needed for the project; to deal with overlaps and disputes between project teams, and to enhance communication between project teams.
(C) Master Black Belt
This is the highest level of 6σ management expert, who is generally an expert in statistics and is responsible for providing technical guidance in 6σ management. They must be familiar with the knowledge that all black belts possess, have a deep understanding of those management theories and mathematical calculations that are based on statistical methods, and be able to ensure that the black belts are correct in the implementation of the application process. Training in statistics must be conducted by Master Black Belts. The number of Master Black Belts is very small, only l/10 of the number of Black Belts.
(3-4) Black Belt
Black Belt (Black Belt) is derived from martial arts and refers to those who have excellent skills and abilities. Black Belts are the backbone of 6σ change. The certification of black belts is usually done by an external consulting firm in cooperation with the internal departments of the company. Black Belts are selected from within the organization to implement 6σ management on a full-time basis, and after receiving training and obtaining certification, they are awarded the title of Black Belt, serve as the project team leader, lead the project team to implement process changes, and are also responsible for training Green Belts. Candidates for Black Belt should have a university knowledge base in math and quantitative analysis and need to have more extensive work experience. They must complete 160 hours of theoretical training, with one-on-one project training and mentoring by Master Black Belts. Trained Black Belts should be able to operate a computer with proficiency in at least one advanced statistical software. Companies that have successfully implemented 6σ management have only about 1 percent of their employees trained as black belts.
(E) Green Belt
Green Belt (Green Belt) work on a part-time basis, and they are trained to be responsible for less difficult project teams or to be members of other project teams. Green Belt training is generally combined with 6σ specific projects for about 5 days of classroom professional learning, including project management, quality management tools, quality control tools, problem solving methods and information data analysis. Typically, the Black Belt is responsible for determining the content of the Green Belt training and assisting and supervising during and after the training.
Implementation Procedures for 6σ Management
(I) Identify Core Processes and Key Customers
With the expansion of enterprise scale, increasing customer segmentation, and multiple standardization of products and services, people's understanding of the actual workflow is becoming more and more ambiguous. Gaining a clear understanding of existing processes is the first step in implementing 6σ management.
1. Identify core processes. The core process is to create customer value is the most important department or operation links, such as attracting customers, order management, loading, customer service and support, development of new products or new services, invoicing and collection process, they are directly related to the degree of customer satisfaction. In contrast, processes such as financing, budgeting, human resource management, information systems and other processes are auxiliary processes that support the core processes, and they have an indirect relationship with improving customer satisfaction. The core processes vary from company to company. Answering the following questions will help to identify the core processes:
(1) What are the main activities through which the company provides products and services to customers?
(2) How exactly can these processes be defined or named?
(3) What are the primary outputs used to evaluate the performance or capabilities of these processes?
2. Define the key outputs and customer objects of the business processes. In this process, as far as possible, should avoid stacking too many projects and work products under the "outputs" column, so as not to obscure the main content, the focus of the work. For the key customers, not necessarily external customers, for a process, its key customers may be the next process, such as product development process is the key customer of the production process.
3. Draw the core process map. In the core process of identifying the main activities based on the core process, the main activities of the core process into a flow chart, so that the entire process at a glance.
(2) Defining customer needs
1. Collecting customer data and developing a customer feedback strategy. Lacking a clear understanding of customer needs is no way to successfully implement 6σ management. Even internal auxiliary departments, such as the Human Resources Department, must have a clear understanding of the state of the needs of their internal customers - the employees of the organization. The key to establishing a customer feedback system is to:
(1) View the customer feedback system as an ongoing activity, as something that should be prioritized or centralized in the long term.
(2) Listen to the different reflections of different customers, and not to generalize and form a one-sided view because of a few special cases that are particularly impressive.
(3) In addition to conventional customer feedback methods such as market surveys, interviews, and formalized complaint systems, actively adopt new customer feedback methods such as customer scorecards, database analysis, and customer audits.
(4) Keeping abreast of trends in the development of customer needs.
(5) For the customer demand information that has been collected, in-depth summarization and analysis, and conveyed to the appropriate senior management.
2. Develop performance indicators and demand statements. Customer demand includes product demand, service demand or a combination of both. For different needs, should be developed separately performance indicators, such as in the packaged food ordering process, service needs mainly include interface-friendly ordering procedures, pre-notification service after the completion of shipment, customer satisfaction after receipt of monitoring, etc., product needs mainly include the delivery of goods in accordance with the requirements of the time, the use of the specified means of transportation, to ensure the integrity of the product, etc.. A statement of requirements is a concise and comprehensive description of the product and service performance standards for a given process.
3. Analyze and rank the various customer needs. Identify which are the basic needs of the customer, these needs must be satisfied, otherwise the customer will never produce a sense of satisfaction; which are the variable needs of the customer, the better in this type of demand, the higher the customer's evaluation rating; which are the potential needs of the customer, if some features of the product or service exceeds the customer's expectations, the customer will be in a state of euphoria.
(C) Evaluating Current Behavioral Performance in Response to Customer Needs
If a company has strong resources, it can evaluate the performance of all core processes. If the company's resources are relatively limited, it should start with one or a few core processes to carry out performance assessment activities. The assessment steps are as follows:
Select assessment indicators. There are two criteria: ①These assessment indicators are available and the data can be obtained. ②These assessment indicators are valuable and of interest to customers.
Define the assessment indicators in an operational way to avoid misunderstanding.
Define the sources of information for the assessment metrics.
Prepare to collect information. For performance assessment that requires sampling, a sample sampling program needs to be developed.
Implement the performance assessment and test the accuracy of the results to confirm their value.
Identify possible improvement opportunities by analyzing quantitatively and causally the errors reflected in the assessment results, such as the rate of defective products and the cost of defective products.
(4) Prioritize and Implement Process Improvement
Differentiate between processes that need to be improved, identify high-potential improvement opportunities, and prioritize them for improvement. If you don't prioritize, you may be distracted from the implementation of 6σ management if you are not prioritized. Business process improvement follows a five-step cycle of improvement, the DMAIC model:
Define (Define). The definition stage is mainly to clarify the issues, goals and processes, need to answer the following questions: what problems or opportunities should be focused on? What outcome should be achieved? When will this result be achieved? What process is being investigated? Which customers does it primarily serve and impact?
Measurement. The assessment phase is about analyzing what the problem is, narrowing it down with the help of key data, finding the key causes of the problem, and getting to the heart of the problem.
Analyze. Through the use of logical analysis, observation, interviews and other methods, the assessment of the causes of the problem to further analyze, to confirm whether there is a causal relationship between them.
Improve. Develop several options for improvement, and through discussion and consultation, select the most desirable improvement program for implementation. The implementation of 6σ improvement, can be the original process for localized improvement; in the original process more problems or inertia, but also can be re-designed process, the introduction of new business processes.
Control (Control). According to the improvement program in the pre-determined control standards, in the process of improvement, timely resolution of various issues, so that the improvement process does not deviate from the pre-determined track, the occurrence of large errors.
(V) Expanding and integrating the 6σ management system
After a particular 6σ management improvement program achieves the goal of reducing defects, it becomes critical to consolidate and expand this victory.
Provide continuous assessment to support the improvement. Widely publicize and promote the improvement program within the enterprise to obtain wide recognition from the management and staff and reduce the resistance to further improvement; put the improvement program into easy-to-understand textual materials to facilitate implementation; implement continuous evaluation so that the management and staff can gain encouragement and confidence from the evaluation results; any improvement program may have areas that need further improvement, and for possible problems, strategies should be developed in advance to deal with them and to support the improvement. The company should develop strategies in advance and be prepared to make further improvements.
Define process owners and their corresponding management responsibilities. The adoption of the 6σ management method means breaking down the cross-border barriers of the original departmental functions. In order to ensure the efficiency and smooth flow of each business process, it is necessary to designate process owners and define their management responsibilities, including: maintaining process documentation records, evaluating and monitoring process performance, identifying possible process problems and opportunities, and initiating and supporting new process improvement programs.
Implementation of closed-loop management, constantly advancing to the 6σ performance level. 6σ improvement is a process of repeated improvement, and the five-step cycle of improvement methodology also needs to be used repeatedly in practice to form a benign development of a closed-loop system to continuously improve the level of quality management, and reduce the defect rate. In addition, the implementation of 6σ management from some of the core links, there is also a point to point gradually push the results of the improvement, expand the scope of improvement process.
The role of Six Sigma quality management methodology on business management
6 Sigma quality management on business performance improvement
Inside the enterprise, the standardized 6 Sigma model project is generally by the executive committee known as the "6 Sigma Model Elite Group" (Six Sigma Champion) to select a 6 Sigma model. Champion, a group whose responsibility is, among other things, to select the right projects and allocate resources. A typical Six Sigma project for a company could be correcting a key customer's ticket problem or changing a work process to improve productivity. The leadership team assigns the task to black belt managers, who in turn organize a team to execute the project according to the 6 Sigma model. The team members closely monitor the 6 Sigma project on a regular basis. 6 Sigma management is a comprehensive management system and development strategy for obtaining and maintaining business success and maximizing business performance, and is a business approach that enables companies to achieve rapid growth.
Improvements in business performance include:
Increase in market share
Improvement in customer repeat business
Cost reductions
Lower cycle times
Defect rate reductions
Accelerated product/service development
Corporate culture change
The role of six sigma management in building corporate culture The role of
6 Sigma management will have a great effect on the construction or improvement of corporate culture. In analyzing the lessons learned in building corporate culture of some successful enterprises, especially those at the top position, it is found that the successful enterprises have gone one step further than others in implementing their quality strategy, that is, while they are committed to the quality improvement of their products and services, they are willing to spend a lot of effort to transform their corporate culture which is not compatible with 6 sigma quality, so as to make the beliefs, attitudes, values and expectations of all the employees compatible with the 6 sigma quality. Expectations and 6 sigma quality to maintain synchronization, so as to create a good corporate quality culture, to ensure the success of the 6 sigma quality strategy.
The process of the sigma quality management methodology
The 6 Sigma model is a top-down approach to innovation, which is led and driven by the top managers of an organization, with top management proposing an improvement or innovation goal (which is closely related to the strategy and vision for the development of the organization), resources, and a time frame. The 6 Sigma model can be implemented using an improvement process consisting of Define, Measure, Analyze, Improve, and Control (DMAIC).
The DMAIC process can be used for three basic improvement programs:
6 Sigma Product and Service Realization Process Improvement.
6 Sigma Business Process Improvement.
6 Sigma Product Design Process Improvement.
This innovative approach emphasizes the use of quantitative methods and tools, emphasizing the detailed definition of customer satisfaction and quantitative expression, each stage has a clear goal and is supported by the appropriate tools or methods.
The implementation of the 6 sigma model requires companies from top to bottom must change the "I've always done it this way, and do it well" inertia. Maybe you've been doing it well, but it's not even close to the goal of the 6 Sigma model, which focuses not only on continuous improvement, but also on the goal, which is the bottom-line profitability of the organization. Assuming that a large organization has 1,000 base units, and that each base unit saves $100 per day with the 6 Sigma model, for 300 days a year, the organization will save $30 million a year. Through the implementation of the model, the enterprise can also clearly know its own level, the amount of improvement to improve the distance from the target, and so on.
The typical 6 sigma management model solution to the DMAIC process as the core, which covers the 6 sigma management planning, organization, human resources preparation and training, the implementation process and evaluation, the relevant technical methods (including hard and soft tools) the application of the development and use of management information systems and other aspects.
6 Sigma management strategy is the enterprise to obtain competitive advantage and business success of the golden key, in the implementation of 6 Sigma management and success of the enterprise list, you can find Motorola, Surekam, American Express, DuPont, Ford, such as the "world's giants". Today, more and more companies to join the "6 Sigma practitioners" in the ranks, perhaps there are you and me now or future competitors.
Sigma Levels
6 Sigma = 3.4 Misses/Million Opportunities-means excellent management, strong competitiveness, and loyal customers
5 Sigma = 230 Misses/Million Opportunities-excellent management, strong competitiveness, and loyal customers
Four Sigma = 3.4 Misses/Million Opportunities-excellent management, strong competitiveness, and loyal customers
This is a good example of how a company can achieve a 6 Sigma level, but it's not the only one.
4 sigma = 6,210 failures/million chances-means better management and operations, satisfied customers
3 sigma = 66,800 failures/million chances-means mediocre management, lack of competitiveness
2 sigma = 308,000 failures/ Million Opportunities-means that one-third of corporate resources are wasted every day
1 Sigma = 690,000 errors/million opportunities-enterprises that get two-thirds of everything wrong every day can't survive
6SIGMA management's core livestock characteristics: win-win for both customers and organization, and reduction of business risks. and the reduction of business risk.
A survey has shown that the impact of traditional quality activities on financial performance is not as pronounced as might be expected, and that winners of the Portledge National Quality Award do not outperform other companies. Some companies that did well in quality improvement did not necessarily see improvements in key financial metrics. This has caused many company executives to question their motivation for quality activities. The current business environment calls for an improved understanding of quality and a clearer definition. A definition that enables a company's quality activities to simultaneously create value and economic benefits for customers, employees, owners, and the company as a whole.6 SIGMA is just such a quality practice, which focuses on the economics of quality. When we invest in improving defective processes, the high costs associated with poor quality fall, and rising customer satisfaction recovers some of the previously disappointed customers. Similarly, it encourages customers to buy its products, which in turn leads to increased revenues.
Thus, the core features of 6SIGMA management are: a win-win situation for both the customer and the organization, and a reduction in business risk.