Six-Sigma Milestone: An Overall Sigma Level of an Organization

Abstract

In the literature of six sigma, one can see that an organization is classified as either 'world-class' or 'industry average' or 'non-competitive' based on the sigma level -the milestoneit achieves at a given point of time. It is well known that, in an organization, many critical processes exist. When an organization is termed as a 'six sigma organization', there exists a question whether all critical processes are at six-sigma level. If all such processes are not at six sigma level then how an overall sigma level is obtained needs further study. Hence, it is attempted to assign weights to all critical processes based on their importance and this information is used along with the defects per million (dpm) units produced by the respective process to determine the overall sigma level, called as 'weight-based sigma level' of an organization at a given point of time. As weights are assigned to the dpm's of the respective critical processes, the resulting dpm's are considered equally likely. The approach is described in detail and studied numerically to illustrate the effectiveness of the approach using various arbitrary values of weights and sigma levels.

Six sigma, absorptive capacity and organisational learning orientation

“…Six Sigma practitioners "identify and clarify the core processes whose improvement will yield the most dramatic changes and benefits for customers and the organization" (Lloréns et al, 2006, p.487). Process management orientation to continuous improvement requires that Six Sigma members are trained intensely in abilities, group dynamics and statistical methods and tools (Gitlow, 2005;Lee et al, 2006;Ravichandran, 2006;Zu et al, 2008). For example, the DMAIC cycle (define, measure, analyze, improve and control) is also present in Six Sigma, as a tool for process improvement (Kanji, 2008;Kaushik and Khanduja, 2009;Schroeder et al, 2008).…”

Quality Measurement in the Wood Products Supply Chain

“…In the case of product quality, it is clear in Figure 7-10 that the defect rate at the door plant is the highest among the supply chain entities. Overall, the supply chain performed at a 2.91 sigma level during the year of analysis, which according to some authors (Harry, 1998;Ravichandran, 2006), it is in the U.S. "industry average" range. No benchmark data is available about other companies in the same industry sector.…”

“…Weights could be determined, for example, by estimating the importance of each component on customer satisfaction or based on quality costs. Ravichandran (2006Ravichandran ( , 2007 provides some guidelines to use this approach. World-class (Harry, 1998;Ravichandran, 2006Ravichandran, , 2007 Industrial average 1-3…”

Six Sigma and the Malaysian Hotel Industry

“…On the other hand, Six Sigma team members are trained to improve employees' abilities, teamwork, statistical methods and tools [43][44][45]. Six`Sigma offers a solid statistical methodology for experimentation and research [46].…”