Six Sigma and Defect Rates

Six Sigma is a term used to describe processes operating at the highest quality level with minimum variation while producing less than four defects per one million opportunities (Johnston, 2003). This extremely low defect rate is generally achieved through the application of statistical techniques and other quality improvement tools in a formalized manner. As Johnston (2003) has noted, the term was coined by the Motorola Corporation over a decade ago to identify the target capabilities for processes, a standard set of quality tools to use in pursuit of the goal and the ways in which these tools should be applied.

Today, many manufacturers use Six Sigma as key measures in production, though relatively few companies use them to measure the day-to-day performance of business processes (Johnston, 2003). To succeed and to achieve Six Sigma quality, the establishment of strong relationship between product defects and yields, reliability, cycle time, inventory, schedule and costs must be maintained (Rencher, 2003). Products must first be designed so that manufacturing processes are capable of yielding 99.99966 percent in the product. Thus, the Six Sigma design process translates into perfecting the process so that 99.99966 percent of the products made are defect free. As a result, the Six Sigma design process also decreases design and manufacturing cycle time, decreases inventory, scrap, and rework, and increases profitabili

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a concept driving the new economy and a concept that is associated with business ethics as well. Sciarelli (2002) suggested that the quality movement has the potential to shape a new managerial, corporate commitment to ethical behavior. Bhote (2002, 2003) agrees, and notes that Six Sigma has significantly advanced the fundamental quality orientation of TQM and created opportunities for quality to become the linchpin of an organization's culture. Various awards are given for quality efforts. The Baldrige Award was authorized by U.S. Public Law 1000-17 for the purpose of recognizing firms that are leaders in providing increased quality and value to their customers in an internationally competitive era (Mahoney & Thor, 1994; Sashkin & Kiser, 1993; Stahl, 1995). The U.S. Department of Commerce (1991) identified the various criteria for this award and stated that these seven categories were designed to reflect all of the aspects of the efforts that must go into reducing product or service defects, enhancing the overall quality and concomitant value of products or services, and, most significantly, enhancing the competitive position of an organization. A review of Baldrige Award winners in the Harvard Business Review (Does the B

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