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Difference between TQM & Six Sigma
The Normalized Throughput Yield is a Lean Six Sigma metric that may be used as a baseline for process steps when the Rolled Throughput Yield is established for the final step of the process. The Normalized Throughput Yield is calculated as the nth root of the Rolled Throughput Yield.
For example, if there are six process steps resulting in a Yrt = 73%, then the Normalized Yield for each step of the process is 0.95, since 0.95 raised to the sixth power is approximately equal to 0.73.
The Normalized Throughput Yield provides the minimum Throughput Yield for each step of the process to achieve a given Rolled Throughput Yield. Of course, if some process steps cannot meet this Normalized Yield level then the Rolled Throughput Yield could be less.
Learn more about the Lean Six Sigma principles and tools for process excellence in Six Sigma Demystified (2011, McGraw-Hill) by Paul Keller, in his online Lean Six Sigma DMAIC short course ($249), or his online Green Belt certification course ($499).