Six Sigma

DEFINITION of 'Six Sigma'

A quality-control program developed in 1986 by Motorola. Initially, it emphasized cycle-time improvement and reducing manufacturing defects to a level of no more than 3.4 per million. Since then, Six Sigma has evolved into a more general business-management philosophy focused on meeting customer requirements, improving customer retention, and improving and sustaining business products and services. Six Sigma is applicable to all industries.

BREAKING DOWN 'Six Sigma'

A number of vendors, including Motorola itself, offer Six Sigma training. Special certifications include yellow belt, green belt and black belt. According to Motorola, companies that have used Six Sigma include Bank of America, Texas Instruments, Toshiba, American Express and Fidelity, among hundreds of others.

RELATED TERMS
  1. Total Quality Management - TQM

    The continuous process of reducing or eliminating errors in manufacturing, ...
  2. Quality Control

    A process through which a business seeks to ensure that product ...
  3. Acceptable Quality Level - AQL

    A statistical measurement of the maximum number of defective ...
  4. Flight To Quality

    The action of investors moving their capital away from riskier ...
  5. Supply Management

    A broad term describing the various acts of identifying, acquiring ...
  6. Master Of Business Administration ...

    A graduate degree achieved at a university or college that provides ...
Related Articles
  1. Active Trading Fundamentals

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!
  2. Options & Futures

    Putting Management Under The Microscope

    We tell you where to find the telltale signs of corporate misdeeds.
  3. Bonds & Fixed Income

    Trademarks Of A Takeover Target

    These tips can lead you to little companies with big prospects.
  4. Investing

    3 Healthy Financial Habits for 2016

    ”Winning” investors don't just set it and forget it. They consistently take steps to adapt their investment plan in the face of changing markets.
  5. Investing

    How to Ballast a Portfolio with Bonds

    If January and early February performance is any guide, there’s a new normal in financial markets today: Heightened volatility.
  6. Economics

    The Truth about Productivity

    Why has labor market productivity slowed sharply around the world in recent years? One of the greatest economic mysteries out there.
  7. Investing Basics

    Inside IPO Roadshows

    Understand more about IPO road shows. Learn the reasons why an IPO road show is important for the success of a company's public offering.
  8. Term

    The History and Purpose of TQM

    Total quality management explores processes to enhance quality and productivity.
  9. Term

    How Market Segments Work

    A market segment is a group of people who share similar qualities.
  10. Active Trading

    Market Efficiency Basics

    Market efficiency theory states that a stock’s price will fully reflect all available and relevant information at any given time.
RELATED FAQS
  1. How historically valid is the 80-20 rule?

    While there is a lack of scientifically stringent statistical analysis either proving or disproving the validity of the 8 ... Read Full Answer >>
  2. What is operations management theory and how can it help a business?

    Operations management is concerned with controlling the production process and business operations in the most efficient ... Read Full Answer >>
  3. What is the difference between Lean Six Sigma and Six Sigma?

    Six Sigma and Lean Six Sigma are two forms of business process and production inspired by Kaizen philosophies to improve ... Read Full Answer >>
  4. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  5. What is the difference between positive and normative economics?

    Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic ... Read Full Answer >>
  6. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center