The document discusses Six Sigma fundamentals including definitions of Six Sigma performance levels and examples of processes at different sigma levels. A Six Sigma level of performance means having no more than 3.4 defects per million opportunities. The document provides an example of an invoicing process initially at a three sigma level and improved to a six sigma level by reducing variability. It emphasizes that achieving higher sigma levels involves centering processes on target and reducing variation.
The document discusses Six Sigma fundamentals including definitions of Six Sigma performance levels and examples of processes at different sigma levels. A Six Sigma level of performance means having no more than 3.4 defects per million opportunities. The document provides an example of an invoicing process initially at a three sigma level and improved to a six sigma level by reducing variability. It emphasizes that achieving higher sigma levels involves centering processes on target and reducing variation.
The document discusses Six Sigma fundamentals including definitions of Six Sigma performance levels and examples of processes at different sigma levels. A Six Sigma level of performance means having no more than 3.4 defects per million opportunities. The document provides an example of an invoicing process initially at a three sigma level and improved to a six sigma level by reducing variability. It emphasizes that achieving higher sigma levels involves centering processes on target and reducing variation.
The document discusses Six Sigma fundamentals including definitions of Six Sigma performance levels and examples of processes at different sigma levels. A Six Sigma level of performance means having no more than 3.4 defects per million opportunities. The document provides an example of an invoicing process initially at a three sigma level and improved to a six sigma level by reducing variability. It emphasizes that achieving higher sigma levels involves centering processes on target and reducing variation.
As a metric, a “six sigma” level of performance means having no more than 3.4 ppm or 3.4 dpmo (Defects Per Million Opportunities).
Sigma Level DPMO % Good
1 690,000 31.000%
2 308,537 69.1463%
3 66,807 93.3193%
4 6,210 99.379%
5 233 99.9767%
6 3.4 99.99966%
Process Example: Days to Invoice
• Example: Invoicing process with mean = 20 days and standard deviation = 2 days.
• The process spread is always mean +/– 3 standard deviations.
Six Sigma Fundamentals with Richard Chua, PhD, MBB
1 of 3 Three Sigma Level of Performance • Let’s assume the expectation or specification is that an invoice must be processed between no earlier than 14 days and no later than 26 days. • Lower specification limit is LSL = 14, and upper specification limit is USL = 26. • The sigma level of this process is three sigma (because there are three standard deviations that fit between the mean and the nearest specification limit).
Six Sigma Fundamentals with Richard Chua, PhD, MBB
2 of 3 Six Sigma Performance • Improve the process by reducing the variability of invoice processing from a standard deviation = 2 days to 1 day. As a result, the process spread is reduced. • The sigma level of the process is now at six sigma (because there are six standard deviations that fit between the mean and the nearest specification limit).
On Target and Reduced Variation
• Improve the process by centering the process (on target) and reducing variation. • The original process is represented by the blue curve. • The improved process represented by the green curve is at a six sigma level of performance, with no more than 3.4 defects per million opportunities (DPMO).
Target Upper Specification Limit
Lower Specification Limit USL LSL Improved Process
Reduce Variation Reduce Variation
Defects Defects
LSL Target USL
Six Sigma Fundamentals with Richard Chua, PhD, MBB
