Six Sigma refers to a philosophy, goal, or methodology used to reduce waste and improve the quality, cost and time performance of any business. Sigma is a Greek letter used to indicate the amount of variation or defect level in a product.
A typical company today might be performing at the three sigma level, meaning they are experiencing one defect out of 16 opportunities. This would equate to about 67,000 defects per million opportunities. A better company might be at the four sigma level or one defect per 160 opportunities. Not bad, but still over 6,000 errors per million.
A performance level of six sigma is equal to 3.4 defects per million opportunities
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