How much profit a business can make having achieved Six Sigma - TopicsExpress

How much profit a business can make having achieved Six Sigma level of performance for its processes ? Taguchi Loss function (TLF) says loss to the society is proportional to the square of the deviation from target. Please view the first image below on your left left to understand the above pictorially. Going by this formula, the percentage loss in sales (turnover) of an organization will be inversely proportional to square of the sigma level of that organization. So if we know the sigma level of an organization, we can estimate the expected gain in turnover. Please view the second image below on your right to understand the above with the help of a simple table. Contributed by Ramesh Chawla, Lean Six Sigma Master Black Belt

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