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Six Sigma SWOT
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3.2 OUTLINE OF SIX SIGMA
Six Sigma can be traced back to the 1980s when Motorola, Inc. developed and im-
plemented a new quality program based on the concept of variation management.
Originally, it was a way to improve performance to the theoretical level of 3.4 defects
per million manufactured units or transactions. The program was designed to iden-
tify, measure, reduce, and control the variation found in any realistic environment. Its
application then spread from Motorola to other companies such as General Electric,
Allied Signal and Seagate Technologies. 2
In general, Six Sigma deals with the fact that process and product variation is usu-
ally a strong factor affecting manufacturing lead times, product and process costs,
process yields, product quality, and, ultimately, customer satisfaction. The traditional
Six Sigma process improvement framework is based on a rigorous process improve-
ment methodology that has the following stages: define, measure, analyze, improve,
and control (DMAIC). These key stages are defined as follows:

Define. Define the problem to be solved, including customer impact and potential
benefits.
Measure. Identify the critical-to-quality characteristics (CTQs) of the product or
service. Verify measurement capability, designate the current defect rate as baseline,
and set goals for improvement.
Analyze. Understand the root causes of defects; identify key process input variables
(KPIVs) that cause defects.
Improve. Quantify the influences of the KPIVs on the CTQs, and identify acceptable
limits of these variables; modify the process to stay within these limits, thereby
reducing defect levels in the CTQs.
Control. Ensure that the modified process now keeps the key process output vari-
ables (KPOVs) within acceptable limits, in order to maintain the gains in the long
term.
Successful Six Sigma implementation in any organization is a top-down initiative
implemented by a hierarchy of trained personnel designated as Champions, Master
Black Belts, Black Belts and Green Belts. It is an improvement effort enforced top-down
and not expected to be a bottom-up phenomenon, although buy-in at the grass-roots
level will contribute to its success.
The implementation of Six Sigma in manufacturing is intended to eliminate almost
all defects, rework and scrap. But eventually it should be about more than just de-
livering products without defects. It should bring processes under statistical control
and lead to quality based on design rather than inspecting for defects at the end of
the process. Ultimately it should result in maximizing equipment utilization time and
optimizimg cycle time.

3.3 SWOT ANALYSIS OF SIX SIGMA

An objective analysis will now be made of the various aspects of Six Sigma. The SWOT
format will be used, addressing the strengths, weaknesses, opportunities and threats
associated with the process.