The Six Sigma process, named for the Greek letter used in reference to standard deviations in statistics, has permeated the structure of more than two-thirds of Fortune 500 companies. At their core, Six Sigma teams are responsible for reducing "defects," such as customer dissatisfaction or too-high costs.
- Motorola executive Bill Smith developed Six Sigma in 1986 as a method of improving manufacturing efficiency. Over time, the term has evolved to refer to management systems or methodologies to improve any business process, not just manufacturing.
- Six Sigma teams are responsible for defining clear goals for a process improvement, such as improving a profit margin or getting a spotless safety record. Teams develop metrics to measure the process, implement a way to improve the process and monitor it to make sure it works.
- Six Sigma teams consist of all individual employees within a company whose duties include the project to improve efficiency. They are structured from a top-down hierarchy, including a number of leaders with Six Sigma training that earns them "belt" titles, similar to martial arts.
- A CEO or another top executive leads a Six Sigma team, with a quality leader reporting operational effectiveness to him or her directly. The quality manager oversees leaders and "process owners," who monitor specific functions and processes such as billing or legal.
- Six Sigma Black Belts lead specific projects within a company, and the projects are their full-time job. Green Belts are employees who are trained in Six Sigma but still maintain work responsibilities outside of the project.
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