Management Review · No. 25 · October 2026

Six Sigma and variation

Where Six Sigma came from, what 3.4 defects per million really means, Shewhart's two kinds of variation, whether Six Sigma pays, and a card for DMAIC.

No.
25
Pages
10
Sources
8
Topics
Operations
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Management Review · No. 25

The figures of the issue

The charts of the printed pages, with their sources.

The numbersDefects per million opportunities, by sigma level, with the 1.5 sigma shift
66,8073σ6,2104σ2335σ3.46σ
66,8073σ6,2104σ2335σ3.46σ

Source: iSixSigma, 2026

The model
94%

94% of troubles and possibilities for improvement belong to the system, by Deming's estimate from experience; 6% are special.

Source: W. Edwards Deming, MIT Center for Advanced Engineering Study, 1986

The whole text Read the issue as text For reading on a small screen, searching or a screen reader. The same words, without the page design.

In this issue

Every process varies: the same task takes eight minutes one day and twelve the next. This issue is about telling the variation that belongs to the process from the variation that has a cause you can find, and about Six Sigma, the programme built to reduce it.

Motorola dates Six Sigma to 1986. Its 3.4 defects per million opportunities assumes that a process drifts by 1.5 sigma over time. The idea behind it is older: in 1924 Walter Shewhart proposed the control chart to separate two sources of variation, and Deming estimated that 94% of troubles belong to the system. Two studies of 200 and 84 firms found that adopting Six Sigma went with better performance.

Stiven Janaqi, Editor

Cover story

3.4 per million

Motorola dates the invention of Six Sigma to 1986. The term is credited to its engineer Bill Smith; chairman Bob Galvin launched the programme across the company in 1987.

Six Sigma sets out to reduce the variation of processes, because defects come from it. A process at six sigma gives 3.4 defects per million opportunities: not per million products, since one product can fail in many places.

  • 3.4 defects per million opportunities, with the 1.5 sigma shift
  • ≈0.002 per million at ±6 sigma without the shift

The 3.4 rests on a convention. Over time, the mean of a process is assumed to drift by up to 1.5 sigma, so a six-sigma process behaves in the long run like a 4.5-sigma one. The shift is Motorola's choice, not a law of statistics, and it has been criticised in the literature.

Our reading

Six Sigma is less a number than a habit: measuring variation before arguing about it.

Sources: Motorola Solutions, 2026; iSixSigma, 2026

The numbers

From three to six sigma

With the 1.5 sigma convention, each step up the scale cuts the defects per million opportunities sharply.

Defects per million opportunities, by sigma level, with the 1.5 sigma shift: 3σ 66,807, 4σ 6,210, 5σ 233, 6σ 3.4.

  • 93.32% of opportunities without a defect at three sigma
  • 99.99966% at six sigma

Our reading

The table is arithmetic on a convention, not measurements from factories. Its value is in showing how far apart three and six sigma are.

Calculated with the 1.5 sigma shift; some tables round three sigma to 66,810 or 66,800.

Source: iSixSigma, 2026

The model

Two kinds of variation

In an internal memo of 16 May 1924, Walter Shewhart of Western Electric proposed the control chart to his superiors. He separated two sources of variation.

Common causes

  • Part of the process itself
  • Reduced only by changing the process

Special causes

  • Appear now and then
  • Can be found and removed

94% of troubles and possibilities for improvement belong to the system, by Deming's estimate from experience; 6% are special.

Our reading

Blaming a person for what the system produces changes nothing. Treating a special cause as normal lets it come back.

Shewhart called them chance and assignable causes; Deming named them common and special. The 94% is Deming's estimate, not a measurement.

Sources: ASQ, Honorary Members, 2026; W. Edwards Deming, MIT Center for Advanced Engineering Study, 1986

More in the essay: A good SOP is not a document

What the research says

Does Six Sigma pay?

Two studies in the Journal of Operations Management in 2012 compared firms that adopted Six Sigma with similar firms that did not.

  • 200 firms. Morgan Swink and Brian Jacobs matched each firm with control firms of similar return on assets before adoption, industry and size. Six Sigma had a positive effect on return on assets, mainly through significant cuts in indirect costs.
  • 84 firms, ten years. Scott Shafer and Sara Moeller followed firms from three years before adoption to six years after, against control groups. Overall, adopting Six Sigma went with better firm performance.

Our reading

Both studies look at firms that announced adoption. They show what tended to follow, not what Six Sigma guarantees.

Associations, not full proof of cause; we could not see the effect sizes of the second study.

Sources: Morgan Swink & Brian W. Jacobs, Journal of Operations Management, 2012; Scott M. Shafer & Sara B. Moeller, Journal of Operations Management, 2012

How it is measured

Reading a control chart

A control chart plots one measure over time, with limits three standard deviations from the mean. In a stable process a point falls outside them with a probability of 0.27%: about one false alarm in 370 points.

  • Plot one measure in time order. Per day, shift or batch, always counted the same way.
  • Draw the mean and the limits. Three standard deviations above and below the mean.
  • Act on signals. A point outside the limits points to a special cause: look for it.
  • Improve the process for the rest. Inside the limits, work on the process as a whole, not on single points.

Hypothetical example, minutes to load a truck

  • Mean: 42 minutes
  • Limits: 30 to 54 minutes
  • Day 17: 61 minutes: outside, a forklift was down

Only day 17 calls for a search for a cause; the rest is the process. The numbers are invented.

The steps and the example are the editors'; the limits and the false-alarm rate follow NIST.

Source: NIST & SEMATECH, 2026

Open the tool: Sigma & Control Chart

Tool of the week

The DMAIC card

DMAIC is ASQ's structured way to improve an existing process that falls short of its standard or of what the customer expects. One card per project.

  1. Define the problem, the customer and the goal, on one page
  2. Measure the baseline, and whether the measurement itself can be trusted
  3. Analyze the main causes, shown with data
  4. Improve the change, tested before it is rolled out
  5. Control the control plan and the chart that keeps the gain
  6. For a new process DMADV instead: define, measure, analyze, design, verify

The five phases follow ASQ; the card is the editors'.

Source: ASQ, 2026

Open the tool: Six Sigma in the Warehouse

Sources and method

Every figure has a source.

The figures in this issue come from the sources below. The year shows how recent each one is.

Editorial method

Each figure was checked for its year, its publisher and what exactly it measures. Where the publisher's page could not be opened, the figure was checked against independent summaries and is marked “via”. The editors' interpretation is marked “Our reading”. Figures that could not be confirmed are not in the issue.

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