Six Sigma Fundamentals

with Richard Chua, PhD, MBB

Six Sigma Performance

As a metric, a six sigma level of performance means having no more than 3.4 ppm or 3.4 dpmo (Defects
Per Million Opportunities).

Sigma Level DPMO % Good

1 690,000 31.000%

2 308,537 69.1463%

3 66,807 93.3193%

4 6,210 99.379%

5 233 99.9767%

6 3.4 99.99966%

Process Example: Days to Invoice

Example: Invoicing process with mean = 20 days and standard deviation = 2 days.

The process spread is always mean +/ 3 standard deviations.

Six Sigma Fundamentals with Richard Chua, PhD, MBB

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Three Sigma Level of Performance
Lets assume the expectation or specification is that an invoice must be processed between
no earlier than 14 days and no later than 26 days.
Lower specification limit is LSL = 14, and upper specification limit is USL = 26.
The sigma level of this process is three sigma (because there are three standard deviations
that fit between the mean and the nearest specification limit).

Six Sigma Fundamentals with Richard Chua, PhD, MBB

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Six Sigma Performance
Improve the process by reducing the variability of invoice processing from a standard
deviation = 2 days to 1 day. As a result, the process spread is reduced.
The sigma level of the process is now at six sigma (because there are six standard deviations
that fit between the mean and the nearest specification limit).

On Target and Reduced Variation

Improve the process by centering the process (on target) and reducing variation.
The original process is represented by the blue curve.
The improved process represented by the green curve is at a six sigma level of performance,
with no more than 3.4 defects per million opportunities (DPMO).

Target Upper Specification Limit

Lower Specification Limit
USL
LSL
Improved Process

Reduce Variation Reduce Variation

Defects Defects

LSL Target USL

Six Sigma Fundamentals with Richard Chua, PhD, MBB

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