The name itself is the statistical measure that describes that defect rate.

Specifically, achieving Six Sigma means that no more than 3.4 defects occur per one million “opportunities” to create an acceptable output.

Six Sigma is a production philosophy that uses data, processes, and tools to nearly eliminate defects and bring performance close to perfection. What Is Six Sigma?Įvery manufacturing business, large or small, faces competitive pressures to lower costs and reduce “variability,” or defects. Is it possible to keep the entrepreneurial energy and excitement around a new business concept that resulted in funding? Six Sigma, when properly applied, helps all types of organizations do just that. Opportunities for errors are high, and they increase as the entrepreneur hires more employees and adds multiple shifts. In fact, more and more customers expect and even demand perfect quality, which can be a challenge, especially for a startup.įor a manufacturing startup to be successful, there are a multitude of tasks that need to be completed at the right time and in the right way. However, in a global economy pressure will mount to lower the price without unfavorably impacting the product’s quality or delivery. If the business concept is new to the world, there may be some flexibility in setting the product’s price. The faster they can generate revenue the better. Once entrepreneurs secure the funding necessary for a business startup, they must take their idea from concept to reality.

6 sigma analysis