Six Sigma, does it still work?

This week I was reading a news release that Motorola has spin-out its mobility division since it is loss making. We all know that Motorola pioneered Six Sigma. The question that comes to mind on this recent transaction is "Does Six Sigma still work?”… It’s a valid question since the pioneer of the business practice has consistently faltered in the past years.

I was going over a due diligence issue the past days and the news get me thinking if Six Sigma practice is the right way. Six Sigma is of course based on a few principles where:
- Results are determined by inputs
- To improve results the inputs must be controlled
- Minimize variations
- Performance indicators create consistent improvements
- Focus on critical inputs that have significant effect on the output

Six Sigma originated in production and manufacturing then trickled down to every imaginable industry. The question in my mind stemmed from the fact that in highly developed economies production and manufacturing is no longer the preferred industry. Maybe that's the source Motorola's problems... it is a high tech company in a highly developed economy employing management practice on a business that does not suit where it is located. The argument is of course not valid since production and manufacturing can now be outsourced to any where in the world.

Do you think Six Sigma still work for industries powered by design and innovations?

The more interesting question to me of course is whether Six Sigma also applies to knowledge-based operations such as software development. Please share your thoughts.

I am an advocate of lean operations, customer driven agile development, continuous integration, continuous improvement and open innovations. Is there a place for such practices in the current information age? Only time will tell...

For a knowledge base, high technology industry which methodology do you think works best?