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The research presents the business challenges and potential responses of manufacturing companies in the transition country of Slovenia. The experiences, risks and benefits of Six Sigma use in Slovenia are studied and relations to the Romanian economy are discussed. The use of Six Sigma can present an effective response to challenges in both countries, including some crucial details at its implementation, such as; employing a top-down strategy, top management involvement and participation, employee education and the organisational and cultural aspect supported by an understanding of Six Sigma. These are detected as the key elements of successful implementation of Six Sigma in Slovenia. Based on the experiences from Slovenia and the common transition history of both countries, recommendations for Romania were developed.

JEL Classification: M 11

Keywords: Six Sigma implementation, transition economies, risk management, manufacturing companies, Slovenia, Romania.