[...]... between Six Sigma – the statistical model, on the one hand, and Six Sigma – the improvement process, on the other The statistical model comprises three principal constituents: the standard sigma statistic, the Six Sigma metric (measure) and the Six Sigma performance benchmark The Six Sigma improvement process is also made up of three essential elements: its project-by-project approach, Six Sigma organizational... relative complexity; a world-class performance benchmark; and the marketing name Project-byproject approach Sigma statistic Sigma measure Statistical model Six Sigma initiative Improvement process Performance benchmark Figure 1.1 Principal facets of the Six Sigma business initiative Organizational infrastructure Core competencies What is Six Sigma? 3 for the Six Sigma improvement initiative The statistical... an infrastructure based on martial arts judo belts that: G G provides the driving force for all Six Sigma activities; ensures a business orientation by focusing efforts on ‘bottom line’ results; 12 Six Sigma: Continual Improvement for Businesses Table 1.4 Similarity of concepts between Judo and Six Sigma Concept Judo Six Sigma Marketing New disciplined way of life Applicable to all and sundry Disciplined... discussion The statistical model provides the marketing name for the Six Sigma improvement initiative The originators of the Six Sigma initiative use a unit of measurement, a Sigma , to measure performance, the higher the number of Sigma the better the performance For example, a 6 Sigma process is rated better than a 5 Sigma one An advantage of the Sigma measure is its simplicity and practicality This appeals... quotes are made to appeal in the emotive sense to emphasize the need for improvement in the Sigma value from current values to world-class values Two examples are given in Table 1.2 4 Six Sigma: Continual Improvement for Businesses Table 1.1 Relationship between Sigma value and faults per million opportunities and equivalent yield Six- Sigma Sigma value Faults (or events) per million opportunities Yield... profiles are used to develop performance-based learning objectives A consequence to this is that it is standard practice for all persons 14 Six Sigma: Continual Improvement for Businesses engaged in Six Sigma activities to go through a set training and development programme This would normally also involve project work that culminates in certification as a particular kind of Six Sigma belt Such programmes... 1 What is Six Sigma? Six Sigma is the most important initiative General Electric has ever taken Jack Welch Six Sigma in perspective Six Sigma focuses on establishing world-class business-performance benchmarks and on providing an organizational structure and road-map by which these can be realized This is achieved mainly on a project-by-project team basis, using a workforce trained in performance-enhancement... G G G Sigma statistic This refers to the universally used statistic, the statistical measure of variability, termed standard deviation, and called sigma It forms the basis of the statistical model Sigma measure This Sigma is not the same as, but is indirectly related to, sigma and provides a numerical performance measuring scale Performance benchmark A Sigma value of 6, as used by many Six Sigma. .. statistical model and the continual improvement process The Six Sigma statistical model provides a universal measure of process performance called a Sigma measure The higher the value of Sigma the better the performance A value of 6 Sigma corresponds with 3.4 adverse events (e.g faults) per million opportunities 6 Sigma is generally considered to be world class This world-class standard of 6 Sigma provides the... inventory and the number of suppliers and the formation of stronger strategic partnerships Its long-term objective is a 1–2 point in overall Group margin 20 Six Sigma: Continual Improvement for Businesses Systematically transform the business Create project-based company-wide programme deploying performance -improvement teams Having established the focus areas, performance metrics and overall benchmark criteria,