Explain how the Six Sigma process of define, measure, analyze, improve, and control (DMAIC) works. Provide at least two examples of companies that have adopted Six Sigma.
What will be an ideal response?
The Six Sigma process of define, measure, analyze, improve, and control (DMAIC, pronounced "de-may-ic") is an improvement system for existing processes falling below specification and needing incremental improvement. The DMAIC process is a particularly good vehicle for improving performance when there are wide variations in how well an activity is performed. For instance, airlines striving to improve the on-time performance of their flights have more to gain from actions to curtail the number of flights that are late by more than 30 minutes than from actions to reduce the number of flights that are late by less than 5 minutes.
Examples include:
Motorola, General Electric (GE), Ford, and Honeywell (Allied Signal), where the cost savings as a percentage of revenue varied from 1.2 to 4.5 percent, according to data analysis conducted by iSixSigma (an organization that provides free articles, tools, and resources concerning Six Sigma).
Six Sigma at Bank of America helped the bank reap about $2 billion in revenue gains and cost savings.
Pfizer embarked on 85 Six Sigma projects to streamline its R&D process and lower the cost of delivering medicines to patients in its pharmaceutical sciences division.
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