Question

Which of the following statements regarding "Six Sigma" is TRUE?

A. The Six Sigma program was developed by Toyota in the 1970s.

B. Six Sigma means that about 94 percent of a firm's output is free of defects.

C. The Six Sigma program is for manufacturing firms and is not applicable to services.

D. Six Sigma certification is granted by the International Standards Organization (ISO).

E. The term has two distinct meanings - one is statistical; the other is a comprehensive quality system.

Answer 1

The correct answer is option E.

Six Sigma is an important methodology consisting of various tools and techniques for process improvement. It focus on improving the quality of output of a process. This is done by proper identification and elimination of the defects and minimizing the manufacturing and business processes variability. There are companies that have implemented six sigma in their business process for years. They are Johnson and Johnson and General Electric. Six sigma identifies key roles so that it can be implemented successfully. They are executive leadership, Champions, Master black belts, Black belts and Green belts. The statistical representation of Six Sigma gives clear picture about the performance of the process. In order to meet six Sigma, the process should not produce more than 3.4 defects per million opportunities. This Six Sigma defect is something that is against customer specifications and the Six sigma opportunity is the total quantity of defects that can take place.