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Saturday, January 31, 2009

ORIGINS OF SIX SIGMA AND ITS GROWTH

While we have seen in brief what Six Sigma is and the concept of Quality, we shall dwell on the Origins of Six Sigma and how it has grown over the years.

ORIGIN OF SIX SIGMA

MOTOROLA is the what you could term as the Birth place for Six Sigma
  • The Term "Six Sigma" was coined by "Bill Smith" an Engineer with MOTOROLA.
  • In the late 1970's - MOTOROLA started experimenting with problem solving through statistical analysis.
  • 1987 - MOTOROLA - officially launched it's Six Sigma Program.
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GROWTH OF SIX SIGMAGE is the Company that gets the credit for perfecting Six Sigma.
  • Jack Welch launched Six Sigma at GE in the year 1996.
  • 1998/1999 - "Six Sigma - Green Belt" certification became the criteria for Management Promotions.
  • 2002/2003 - "Six Sigma - Green Belt" certification became the criteria for promotion to Management Roles.
Over the years more and more companies started applying Six Sigma to solve their problem solving capability, and improvement in performance and turnover. To name just a few of the Esteemed Companies that took advantage of this fantastic Methodology:





















Besides the above reputed Organizations, scores and hundreds of Organizations are now taking to Six Sigma Methodology. A simple basic reason for this can be summarized in a view as to what Companies Experience by making a one Six Sigma shift (A measure or level in Six Sigma denoting the improvement in performance and Quality against a standard mean, which we will read about in detail in subsequent posts).


Companies that expect to make One Sigma Shift Improvement will Experience*

  1. A 20% Margin Improvement.
  2. A 12% to 18% increase in Capacity.
  3. A 12% reduction in Employees.
  4. A 10% to 30% Capital Reduction.
*Figures are given as guidelines, and may vary according to the Company, Product, and the correct application of the Methodology.

No wonder that so many Companies, Big and small are taking to Six Sigma seriously. Especially in the period of Recession, such Methodologies can mean a matter of Life and Death for the Organization.

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More to follow in my next post. Watch out for updates. Subscribe to my Feed to keep abreast of latest updates.

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