What is the Hidden Factory?

The Hidden Factory is the set of activity (or activities) in the process that result in reduction of quality or efficiency of a business process or manufacturing department, and is not known to managers or others seeking to improve the process. Six Sigma focuses on identifying "hidden factory" activities to eliminate the root-causes.

One of the examples of Hidden Factory will be creating multiple versions of a status update presentation by the Project Management team because all of the requested information was not received by the due date from all the departments.

Six Sigma works effectively to identify the hidden factory situations, questions the status quo, removes it and thus it improves business profits and reduces wastes.

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