Six Sigma methodology can be implemented in every industry. The structure followed five important phases - DMAIC, in which output of one phase is the input of next phase. It is a top driven approach and it needs commitment from top management for the successful implementation and desired results.
Six Sigma professional insist on Z Score during measure phase even though there is well established process performances.
Z Score tell us about errors within the system or in other words we can say that it tells us about the number of standard deviation present between the mean and specification limit.
For any organisation it is very big challenge to define definition of defects as they have different processes and defects changes from process to process. for example in purchase it may be lead time failure, In fiance it may be vendor payment, in sales it may be not achieving sales target, on shop floor it may of not achieving quality objectives. Now the biggest challenge here to compare performance of all these processes as defects are defined in different units. Here comes Z score in picture which is common platform that is used to compare performance of all processes and find out on which process we should work to improve it further.
Higher the Z Score indicates that there are more number of standard deviations within specification limits and the mean value is far away from outlying limit. which means that majority of the results lies nearby average value and process is capable and stable both at the same time.
Lower Z score indicates that there is less number of standard deviation present or there is presence of variance in output. and presence of variance indicates that product or service quality can change or fluctuate from its defined value which leads to dissatisfaction of customer.
Z score helps a company to ensure the quality of its output and enables the organization to workout for the poor processes in case of any undesired result. Z Score is very useful and helps the six sigma professional to make comparison during measure and control phase to highlight where improvements can be made .