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WHAT IS SIX SIGMA?
Daniel L. Quinn
At the end of the day, Six Sigma is much less of a technical program,
although it has a lot of technical tools, than it is a leadership and cul-
tural change program. 1
Interview with Dave Cote, President and CEO, Honeywell International
We are doing Six Sigma as part of our process improvement initiative. I
see Six Sigma, indeed, as the natural next step in how we get process
improvement done. Six Sigma is a more high-powered set of tools than
our previous methods, plus its basic philosophy forces people like
myself, the leaders of the business, to think beyond our existing manage-
ment techniques and perhaps our existing management philosophy. 2
Interview with Stephen J. Senkowski, President and CEO,
Armstrong Building Products
Six Sigma is a management framework that, in the past 15 years, has
evolved from a focus on process improvement using statistical tools to a com-
prehensive framework for managing a business. The results that world-class
companies such as General Electric, Johnson & Johnson, Honeywell,
Motorola, and many others have accomplished speak for themselves. Six
Sigma has become a synonym for improving quality, reducing cost, improv-
ing customer loyalty, and achieving bottom-line results.
HISTORICAL PERSPECTIVE ON SIX SIGMA
We quickly learned if we could control variation, we could get all the
parts and processes to work and get to an end result of 3.4 defects per
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WHAT IS SIX SIGMA?
million opportunities, or a Six Sigma level. Our people coined the term
and it stuck. It was shorthand for people to understand that if you can
control the variation, you can achieve remarkable results. 3
Interview with Robert W. Galvin, Chairman Emeritus of Motorola, Inc.
In the mid-1980s, Motorola, under the leadership of Robert W. Galvin,
was the initial developer of Six Sigma. Most credit the late Bill Smith for
inventing Six Sigma; Smith, a senior engineer and scientist within Motorola’s
Communications Division, had noted that its final product tests had not pre-
dicted the high level of system failure rates Motorola was experiencing. He
suggested that the increasing level of complexity of the system and the result-
ing high number of opportunities for failure could be possible causes for this.
He came to the conclusion that Motorola needed to require a higher level of
internal quality, and he brought this idea to then-CEO Bob Galvin’s attention,
persuading him that Six Sigma should be set as a quality goal. This high goal
for quality was new, as was Smith’s way of viewing reliability of a whole
process (as measured by mean time to failure) and quality (as measured by
process variability and defect rates).
Motorola had always been a pioneer in the areas of productivity and qual-
ity. In the 1980s, Motorola had been the site for presentations of quality and
productivity improvement programs by a number of experts, including
Joseph M. Juran, Dorian Shainin (our colleague at Rath & Strong), Genichi
Taguchi, and Eliyahu Goldratt. Mikel Harry, now president of the Six Sigma
Academy and coauthor of Six Sigma: The Breakthrough Management Strat-
egy Revolutionizing the World’s Top Corporations, was an attendee of some
of these programs; inspired in part by their thinking, he developed a program
for the Government Electronics Division of Motorola that included Juran’s
quality journey, Statistical Process Control (SPC), and Shainin’s advanced
diagnostic tools (ADT) and planned experimentation (PE).
Harry then worked with Smith on the Six Sigma initiative. Harry led
Motorola’s Six Sigma Institute and later formed his own firm specializing in
the subject. Smith and Harry’s initial Six Sigma umbrella included SPC,
ADT, and PE. Later, they added Design for Manufacturability (product capa-
bility and product complexity), accomplishing quality through projects and
linking quality to business performance. 4
Meeting the challenge Galvin had set in 1981 to improve quality by ten-
fold and developing Six Sigma helped Motorola to win the first Malcolm
Baldrige National Quality Award in 1989. In line with Galvin’s policy of
openness and in response to the interest generated by the Baldrige Award,
Motorola shared the details of its Six Sigma framework widely.
In the mid-1990s, AlliedSignal’s Larry Bossidy and GE’s Jack Welch saw
in Six Sigma a way to lead their organizations’ cultural change through Six
Sigma initiatives and also achieve significant cost savings. In 1998, Business
Week reported that GE had saved $330 million through Six Sigma, double
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ANTECEDENTS OF SIX SIGMA
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Welch’s previous prediction. Interest in Six Sigma really took off after that
article appeared, an interest that was fed by GE’s continued success with Six
Sigma and Jack Welch’s speeches and books.
SIX SIGMA DEFINED
The Six Sigma of today speaks the language of management: bottom-line
results. It institutionalizes a rigorous, disciplined, fact-based way to deliver
more money to the bottom line through process improvement and process
design projects—selected by the top leadership and led by high potentials
trained as Black Belts or Master Black Belts in Six Sigma—that aim to cre-
ate near-perfect processes, products, and services all aligned to delivering
what the customer wants. In successful implementations, the majority of Six
Sigma projects are selected for measurable bottom-line or customer impact
that is completed within two to six months. The projects deliver through the
application of a well-defined set of statistical tools and process improvement
techniques by well-trained people in an organization that has made it clear
that Six Sigma is a career accelerator.
In our practice, we see companies viewing Six Sigma in two ways: as a set
of powerful tools for improving processes and products and as an approach
for improving both the process- and people-related aspects of business per-
formance. Six Sigma is used as a hands-on approach to developing leadership
and change management skills. The companies that achieve the greatest ben-
efits from Six Sigma leverage the linkages between people, processes, cus-
tomer, and culture. In its 2000 annual report, GE describes the changes
brought by Six Sigma this way: “Six Sigma has turned the Company’s focus
from inside to outside, changed the way we think and train our future leaders
and moved us toward becoming a truly customer-focused organization.” 5
ANTECEDENTS OF SIX SIGMA
While Six Sigma was invented at Motorola in the late 1980s, Six Sigma has
had antecedents over the past 100 years. In this section we highlight some of
the important developments, methodologies, and lessons learned that Six
Sigma integrates.
As far back as 1776, in The Wealth of Nations, Adam Smith identified the
economies of scale made possible with specialization in manufacturing. Dur-
ing the early years of the twentieth century, systems were developed for dis-
aggregating manufacturing work processes into subsystems and components
in the effort to increase efficiency. Modern organizations are still based on the
specialization of labor and the fragmentation of processes into simpler tasks.
These principles are generally thought of as starting with Frederick W. Tay-
lor and the scientific theory of management. We’ll start our look backward
with Taylor.
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How Companies Define Six Sigma
It is enlightening to compare how various companies—including leading
proponents of Six Sigma—define it for their employees and their customers.
General Electric: What Is Six Sigma?
The Road Map to Customer Impact
“First, what it is not. It is not a secret society, a slogan, or a cliché. Six Sigma
is a highly disciplined process that helps us focus on developing and deliv-
ering near-perfect products and services. Why ‘Sigma’? The word is a sta-
tistical term that measures how far a given process deviates from perfection.
The central idea behind Six Sigma is that if you can measure how many
‘defects’ you have in a process, you can systematically figure out how to
eliminate them and get as close to ‘zero defects’ as possible. Six Sigma has
changed the DNA at GE—it is now the way we work—in everything we do
and in every product we design.” 6
TRW: What Is Six Sigma?
“Six Sigma is a structured and disciplined, data-driven process for improv-
ing business. TRW is committed to the implementation of Six Sigma
focusing on how we can dramatically improve our competitiveness by
increasing customer focus, enhancing employee involvement, instilling
positive change into our culture and ultimately creating bottom and top
line growth. At the highest level, Six Sigma is all about satisfying customer
needs profitably. It is a highly disciplined methodology that helps develop
and effectively deliver near-perfect products and services. It will help
TRW in all of our operations, engineering, manufacturing and staff areas.” 7
Honeywell: Six Sigma Plus
“Six Sigma is one of the most potent strategies ever developed to acceler-
ate improvements in processes, products, and services, and to radically
reduce manufacturing and/or administrative costs and improve quality. It
achieves this by relentlessly focusing on eliminating waste and reducing
defects and variations.
“Leading-edge companies are applying this bottom-line enhancing
strategy to every function in their organizations—from design and engi-
neering to manufacturing to sales and marketing to supply management—
for dramatic savings.
“Now, Honeywell has developed a new generation of Six Sigma...Six
Sigma Plus is Morris Township, NJ–headquartered Honeywell’s principal
engine for driving growth and productivity across all its businesses, including
aerospace, performance polymers, chemicals, automation and control, trans-
portation, and power systems, among others. In addition to manufacturing,
Honeywell applies Six Sigma Plus to all of its administrative functions.” 8
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ANTECEDENTS OF SIX SIGMA
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Was Six Sigma Part of the Natural
Progression of Quality, or Was It a Totally
New Event and a New Thrust?
BOB GALVIN : I think it was both. You could lean either way in terms of the
natural intelligence that finally emerged. Was it a great discovery or just
remarkably good mathematics and common sense? You can interpret it
either way. 9
MIKEL HARRY : I think Six Sigma is now squarely focused on quality of
business, where TQM is concerned with the business of quality. That is,
when you adopt TQM, you become involved in the business of doing qual-
ity, and when you adopt Six Sigma, you’re concerned about the quality of
business. In a nutshell, TQM is a defect-focused quality improvement ini-
tiative, whereas Six Sigma is an economics-based strategic business man-
agement system. Didn’t start off that way, but it has evolved that way.
So I see Six Sigma as a vector change. As I look across the history of
quality from the era of craftsmanship, it’s fairly continuous; each step is a
logical continuance of the preceding step, built off the same fundamental
core beliefs and principles, whereas Six Sigma represents a radical depar-
ture from that continuum. It’s actually a reassessment of quality from a
whole new perspective and frame of reference. It’s a reinvention of the his-
tory, if you will, but it’s a birth of a new history, and that’s the way to say
it. It’s been the evolution of a business management revolution. 10
1900 to 1920s: Scientific Management and Statistics
Taylor and Scientific Management. Frederick W. Taylor’s techniques,
which became known as scientific management, made work tangible and
measurable through analyzing manufacturing processes and turning them
into a set of tasks that could be standardized and made repetitive. With work
fragmented into a multitude of tasks, a managerial system was then required
to control work. The concept of the separation of planning and execution was
central to Taylor’s system. Taylor advocated planning departments staffed by
engineers with the following responsibilities:
• Developing scientific methods for doing work
• Establishing goals for productivity
• Establishing systems of rewards for meeting the goals
• Training the personnel in how to use the methods and thereby meet
the goals
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