Six Sigma: Concepts, tools, and applications

Purpose – To provide a sound discussion on the Six Sigma methodology and see how it fits in with other quality initiatives. Design/methodology/approach – A conceptual paper that takes an in-depth look at the origins, pros and cons of Six Sigma and how it relates to some of the other quality initiatives in industry. Findings – The immediate goal of Six Sigma is defect reduction. Reduced defects lead to yield improvement; higher yields improve customer satisfaction. Six Sigma defect reduction is intended to lead to cost reduction. It has a process focus and aims to highlight process improvement opportunities through systematic measurement. Six Sigma implementation can have negative consequences if applied in the wrong project. Six Sigma is a toolset, not a management system and is best used in conjunction with other more comprehensive quality standards such as the Baldrige Criteria for Performance Excellence or the European Quality Award. Research limitations/implications – This is a conceptual study and hence there are no hypotheses tested as in an empirical study. It does provide a good foundation for future research. Practical implications – A very useful source of information and impartial advice for practitioners and researchers planning to practice the Six Sigma methodology and/or understand its pros and cons. Originality/value – This paper fulfils an identified information/resources need for Six Sigma methodology. It is based on utilizing an extensive set of statistical and advanced mathematical tools, and a well-defined methodology that produces significant results quickly. The success of this methodology within an organization has significant momentum that can only lead to fundamental organizational cultural transformation.