Six Sigma Calculation

Before discussing Six Sigma Calculation, let’s try to understand the concept and its need. We know, Six sigma is based on the formula for the normal distribution, invited by C.F. Gauss. Six Sigma Calculation value depends on certain requirements and environmental boundary conditions, which have to be considered. More important than the Six Sigma Calculation values is the application of the six sigma method to improve the business processes of a company and increase the customer satisfaction.

Six Sigma Calculation is based on the normal distribution theorem by Carl-Friedrich Gauss with this formula: Calculating Six Sigma formula describes a curve whose form is defined by two parameters, the mean average value, and the standard deviation sigma. Six Sigma is the tool used to help design highly capable parts that meet set specifications, namely customer specifications.  These specifications are +/- six standard deviations from the process mean, which is the center line.

As you can see, +/-6 deviations (6 sigma) contains 99.9999% of all values.  It can never reach 100% though.  This means that there will always be room for improvement.  Requirements and environmental boundaries must be considered when calculating Six Sigma Calculation values as well. The Six Sigma Calculation value is based on one single process step.

A calculation used in Six Sigma Calculation Improvement initiatives indicating the amount of defects in a process per one million opportunities; that is, the number of defects divided by (the number of units times the number of opportunities) = DPO, times 1 million = DPMO. There are numerous Six Sigma Calculation techniques that can be used to scrutinize cost, schedule, and quality (project-level and personal-level) data as a project proceeds. This simple to use and basic calculator allows you to enter some values into cells and see the equivalent Six Sigma result.

The Basic Mode of the Sigma Calculator automatically adds a 1.5 Sigma shift to the process Sigma value that is calculated in every Six Sigma Calculation. It's done because it is the "standard" way that Sigma is reported (note: this may be different in your company, but it is done in this manner by Motorola, GE and many other companies). By doing so, the calculator result assumes that you are providing long-term data and it is providing short-term Sigma. The 1.5 Sigma shift is based on the assumption that over time, and with a sufficiently large number of samples, a realistic Sigma value is 1.5 Sigma less than that calculated to show the success of your project.