How It's Used

Jack Welch, chairman and chief executive officer of General Electric Co., “wrote that the company has invested more than $1 billion in Sigma Six since launching it in 1995 and has received ‘exponential’ gains in productivity and the development of new products.”

“To be sure, Ford managers have also had to endure a barrage of improvement efforts through the years, from the quality-focused teachings of Dr. W. Edwards Deming, to Six Sigma quality-control methodologies to globalization plans. Hoping to avoid the flavor-of-the-month trap, Mr. Ford says he is examining all aspects of the way Ford operates, 'everything from small things like how we’re going to treat each other in meetings to very big things like what about the trappings of our job?’”

“Developed at Motorola Inc. in 1986 and licensed by that company for corporate use, Six Sigma was one of several so-called process-management techniques that took off at U.S. manufacturing companies facing challenges from higher-quality Japanese products.  These techniques—aimed at increasing efficiency and cutting costs—have since been widely applied across industries from retailing to financial services…

“The Six Sigma system trains selected employees in its techniques to monitor, measure and improve processes, and to identify and eliminate waste and defects.  These employees are distinguished by a colored-belt system, much as karate students are ranked.  The highest Six Sigma rank is a Master Black Belt.  Regular black and green belts work under these masters.”

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