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Supply chain performance: Six-Sigma KOs costs

Professional Knowledge March 2011

When it comes to defects, intolerance is good.It's impossible, these days, to have a conversation about supplier performance measurement without hearing the words Six-Sigma bandied about.Very often, however, the phrase is used only in its narrowest sense, as in: 'Our goal is for suppliers to reach Six-Sigma quality performance, or 3.4 defects per million parts.