Understanding A Six Sigma Calculator And How It Relates To Defects

 When engineers at Motorola set forth to devise a new standard for measuring quality control procedures and improving operational efficiencies, they were tasked to come up with a new measuring stick, so to speak. With its new Six Sigma methodology, they needed a Six Sigma calculator that would accurately evaluate the overall product quality process. Considering that running at peak Six Sigma performance, they essentially needed to work backwards from the point of perfection. In developing a Six Sigma calculator, Motorola engineers were not only tasked with solving the mathematical equations, but also putting together a methodology and set of standards whereas the Six Sigma calculator could be used in a variety of industries and businesses, regardless of the scope of the project or the particular company’s own business process. In short, the calculator needed to be fluid and standard for all types of business strategies.

 What Motorola engineers came up with was a solution that invoked a curve, and set standards in the Six Sigma calculator that businesses could review and use to revise business processes to increase operational efficiency. In a perfect world, all businesses would operate at Six Sigma, which meant that only 3.4 defects were found out of a million units, or opportunities. The number is referred to as DPMO, or Defects per Million Opportunities.  3.4 DPMO meant that 99.997% of all units were made without defect, which essentially equates to perfection. While that would be the ideal goal, in practicality no business operates that efficiently. Five Sigma represents 233 DPMO, or approximately 99.98% of units processed perfectly, Four Sigma represents 6,210 DPMO, or 99.4% defect-free, and Three Sigma represents 66,807 DPMO, or 93.3% of units made perfectly. In actuality, most businesses operate between Sigma Five and Sigma Four, but the basis with the new Six Sigma calculator has been set to analyze overall business processes and make necessary adjustments to raise the Sigma level.

 As more and more companies started utilizing Six Sigma methodology, and its standards were applied industries other than manufacturing, the Six Sigma calculator and Six Sigma standards have been used to measure a large number of business strategy methodologies, and is currently in use with businesses in information technology, healthcare, and even in private equity investment firms. It has even been incorporated into use with balanced scorecards. When companies implement Six Sigma strategies and its calculator, they can then implement a sound business approach that maximizes operational performances, cuts down on product defects that take money away from the bottom line, and produces a company culture that places the needs of the customer at the forefront.