Six Sigma Blog

Six Sigma yields many positives at Tyco International

It is well known how Motorola brought in Six Sigma principles almost two decades earlier to improve its performance. It was from Motorola that Ed Breen brought in the Six Sigma practice when he joined Tyco International in 2002. While Six Sigma was initially used in the 1980s as a means to improve quality, today the principle is utilized to augment revenue flow and cut costs. Ed Breen has also implemented Six Sigma at Tyco to increase the company's revenue and cut costs. In the period leading up to 2005, Tyco has been able to reap the benefits of Six Sigma to the tune of $800 million.

Chmiel, vice president of operational excellence for the Boca Raton-based division, Tyco Fire & Security, views Six Sigma as a system that enables the management and streamlining of processes, leading to improved efficiency and reduced costs. The training in Six Sigma at Tyco has also improved the chances of employees to move ahead in their career path within the company. Sun-Sentinel reports:

At Tyco Fire & Security, Six Sigma has been applied to better measure its ADT Security Systems call centers' response to customers. In manufacturing, Tyco employed Six Sigma to reduce cycle time and increase the product output each day. Six Sigma also has been a career path for people who want to move up at Tyco, which now has 263 black belts, full-time project managers, and 870 green belts, who work part-time on projects, often within their departments.

Read More: Six Sigma propels workers in project-minded firms

Six Sigma implementation: the methodology

There are several instances where an organization has failed to meet set deadlines and quality expectations. Real-world examples from the Indian city of Bangalore have shown that even companies who have received quality certification fail to live up to client expectations. The major problems faced by these organizations include inadequate project planning, defects that are not detected before the product is handed over to the client, and rework required to fulfill the expectations of the client. An answer to such recurring problems is Six Sigma methodology.

Express Computer reports that the companies based in Bangalore accepted the services of a consultant who provided training on the Six Sigma principles and their implementation. Following such training, the companies were able to enhance their performance and clear the problem areas they faced earlier. These case studies show that Six Sigma delivers several advantages, such as lessening the amount of rework, adhering to preset schedules, and enhancing revenue for the company. There are various means of implementing Six Sigma, but the most popular is the DMAIC method, which can be implemented in various phases. Express Computer reports:

Application of Six Sigma methodology improves the efficiency and effectiveness of the processes resulting in customer satisfaction. Satisfying customers by delivering a better product and services without time and cost overrun contributes to increase in volume of business.

Read More: Business improvement with Six Sigma

SigmaQuest’s products based on Lean Six Sigma principles to be sold by Customer Service Associates Inc.

SigmaQuest Inc. and Customer Service Associates Inc. (CSA) have signed a distribution agreement, under which CSA will sell SigmaQuest's software products throughout North America. The product range includes SigmaSure Enterprise Edition, which enables OEMs to ensure quality and performance, and the hosted on-demand service called SigmaExpress. SigmaQuest offers solutions that are in keeping with Lean and Six Sigma principles.

The products are also in line with CSA's portfolio of professional services. This was stated by Greg Schuster, vice president of CSA. CSA will act as part of the direct sales team of SigmaQuest, and make sure that the customers get the best of service. TMCnet.com quotes Nader Fathi, CEO of SigmaQuest, who further elaborates on the partnership:

CSA is an ideal partner for SigmaQuest. It has extensive knowledge about the types of products and support that OEMs require during the manufacturing process through its representation of technology leaders such as Agilent Technologies (NYSE:A). As SigmaQuest's software seamlessly collects data from Agilent test platforms, having one organization represent both companies' products will give OEMs with globally distributed supply chains the advantage of working with a single expert provider across the extended enterprise.

Read More: SigmaQuest and Customer Service Associates Announce Distribution Agreement

Six Sigma processes help Secured Funding redefine goal statements

Secured Funding, a mortgage banker with a focus towards the future, has called on its employees to take initiatives towards becoming the next generation home equity specialists. With its new S2 strategy in place, the company is making serious headway towards an unmatched customer experience. This strategy is combined with the implementation of Six Sigma processes to make sure that lean and efficient procedures are established.

The Six Sigma principles have begun showing positive results, and there is a definite reduction in funding times for ongoing projects. The use of Six Sigma principles by Secured Funding has enabled the company to have a defined goal regarding the transition from the home equity lending culture. Business Wire reports:

Through constant innovation, Secured Funding redefines home equity expectations, providing industry expertise to deliver a consultative approach and an unsurpassed customer experience.... Employees receive a focused education on home equity lending practices, and are empowered to look for opportunities to innovate products, procedures, and service. In turn, Secured Funding's brokers and borrowers benefit from the elevated level of home equity lending knowledge and expertise. To supplement this, managers are utilizing Six Sigma processes to ensure lean and efficient procedures. Six Sigma methodology has already yielded results and ongoing projects aim to cut deviations in funding times by half.

Read More: Secured Funding Empowers Employees to Strengthen Retail, Wholesale Divisions with SF2; Home Equity Specialist Unveils New Home Equity Lending Initiative

Defense Department to implement Lean and Six Sigma

The Defense Department is implementing a new customer-centric approach towards acquisitions, technology and logistics. The Department also acknowledged changes in the business processes within the Department, which required the enforcement of new principles that will guide business practices. The Business practice itself will be focused around the areas of supply chain, medical readiness and performance, acquisitions, and process assimilation. The intention is to provide the stakeholders with the best value.

The Department aims to implement Lean Six Sigma principles as a business strategy to help manage business practices. With the introduction of Lean and Six Sigma, it is expected that business processes will improve and be more focused towards speedy implementation and efficiency. Blackanthem.com quotes Kenneth J. Krieg of the Defense Department:

I intend to use its principles to consider the effectiveness and efficiency of the administrative processes of acquisition documentation, allowing our staff to streamline their procedures and free their time to focus on other customer needs.... In an era where people are devoting more and more hours to their work, it's not sensible to further increase the time...we spend. Instead, we must increase the efficiency of our business products.

Read More: DoD Adopts New Business Practices to Manage Supply Chain

Report on a Six Sigma Kaizen event

In August this year, contract specialist and NAVAIR AIRSpeed Black Belt Joan Devlin hosted a Kaizen event with members from AIR-2.0/AIR-1.0 and a content expert from the V-22 program office. Navy Reservist Lt. Cmdr. Chris Camacho, who was also with Devlin, mentions that it is important to lessen the changes within a process, so that Lean Six Sigma is implemented effectively. In course of the event, the Justification and Approval to Limit Competition process was spelt out in the form of a "value stream map.”

This showed that the J&A process had 26 steps and 17 rework loops, and the cycle ranged between 27.5 and 129 days. To get around the rework loops, it was decided to prepare a fresh template for the instruction. This template enabled the removal of irrelevant data, and the number of steps was reduced to 11-13 steps. dcmilitary.com reports:

According to Camacho, the J&A future-state value stream will save a minimum of two man-years within the 2.0 competency. "I suspect there will also be additional savings in workload reduction in other functional areas that were not taken into account in this measurement," he said.

Read More: AIR-2.0 Lean Six Sigma Kaizen event a success

Best Practices, LLC reports on Lean, Six Sigma, and TQM implementation by leading companies

Best Practices, LLC, a research and consulting company, has prepared a report on Lean and Six Sigma processes. The report gives examples of large organizations that have implemented Lean and Six Sigma principles and gained positive results. The report mentions case studies of General Electric and Bank of America, the important techniques for bringing about Six Sigma change, and the tools for specifying problem areas which have scope for improvement.

The report further elaborates on the important Six Sigma implantation techniques: leading companies advocate starting with Lean Sigma; in some situations, it may be better to start with few small projects and encouraging their success; the use of DMAIC, DFSS, or DMADV;  and a team of consultants to help implement Six Sigma. The last suggestion evoked a mixed response regarding its utility. PR Newswire reports:

Lean Sigma and Six Sigma are the most frequently used productivity approaches for numerous top-tier firms. More than half (55%) of benchmarked companies expect to receive between 1-7% of savings/revenue enhancement through Lean or Six Sigma.

Read More: Lean, Six Sigma & TQM: Top Companies Document Their Success

The 2nd Annual Six Sigma Summit: Taking Six Sigma to the next level

The 2nd annual Six Sigma summit is being organized by WCBF. According to PR Newswire, leading industrialists have confirmed their participation at the meeting. Projected as an event larger than the first summit, the meeting will introduce new features such as the Executive Roundtable for leading participants, and the New User and Advanced User Forums to go with the workshops held prior to the conference. The summit will be opened by Tom McCarty, Executive Vice President at Strategic Consulting. McCarty will speak about quality and excellence in service and transactional environments.

The summit presents an excellent opportunity for participants to interact with exponents of Six Sigma, and gain first-hand knowledge of the latest projects that have been launched with Six Sigma deployment. The meeting will highlight issues such as Lean Six Sigma implementation, keeping the Six Sigma concept in a constant forward movement, and adapting design for Six Sigma. PR Newswire provides details of the participants at the meet:

Following the sell-out 1st annual conference in 2004 with over 175 senior level attendees, this event is set to be the largest of its kind for this industry. This is the place to benchmark and learn from detailed, practical case studies including presentations from Jones Lang LaSalle Americas, Valeant Pharmaceuticals, Johnson & Johnson, Starwood Hotels and Resorts, AIG Insurance, New York Presbyterian Hospital, Sterling Savings Bank, Apogee Enterprises, GE Capital International Services, UnitedHealth Group, DTE Energy, Wells Fargo, Motorola, Microsoft and Holley High End Performance.

Read More: WCBF Announces the Speaker Panel for the 2nd Annual Six Sigma in Service & Transactional Environments Summit   

Fort Wayne Mayor moots idea of a disaster communication response system

Inside INdiana Business reports an announcement made by Fort Wayne Mayor Graham Richard that the community should develop a disaster response system. This announcement came as part of the Mayor's presentation at the Six Sigma meeting. The mayor is examining methods of improving communications in an unforeseen eventuality, and has selected a team to look into this aspect. This team will specify the requirements of an effective disaster communications system, and then put forward a schedule and the estimated budget for building the system.

Past experience has shown that in case of an emergency, it is the local backup system that works first, before the state machinery is able to reach the disaster-hit area. This further accentuates the importance of an effective communications system that can manage unforeseen calamities. Inside INdiana Business elaborates on the Mayor's plans:

To help meet the challenge, Mayor Richard has created a Disaster Communication Response BEST Team (Building Excellent Systems through Teams) to explore ways to enhance communication systems in a major, community wide emergency. Lou Dollive, president and general manager at ITT Industries and Wayne Iurillo, site executive at Raytheon will co-chair the team.

Read More: Fort Wayne to Establish Enhanced Communication System

Lean kaizen and Six Sigma principles help Solectron win Best Plants Award

IndustryWeek Magazine has recognized Solectron Corporation's manufacturing plant in West Columbia, S.C., as one of North America's top ten plants. Solectron is a provider of management services, including materials management, product manufacturing, and product warranty. The company has attributed its success to the successful implementation of Lean kaizen and Six Sigma principles. Through such implementations, the company has been able to cater to customer requirements and expectations.

According to John Petta, general manager at Solectron, the company is combining the Six Sigma principle with Lean processes, thereby providing a cost-effective, responsive, and error-free business process. The criteria which guided IndustryWeek in deciding the winners included management strategy, community development, productivity, and relationship of the management with the employee, customer, and supplier. TMCnet quotes Marc Onetto, executive vice president, Operations, at Solectron:

This world class performance is a direct result of empowered people applying the Solectron Production System(TM) (SPS)—our own winning combination of Lean kaizen and Six Sigma principles. In our view, what makes Solectron stand out as a winner is our dedication to meeting and even exceeding our customers' expectations.

Read More: Solectron Receives 2005 IndustryWeek Best Plants Award; Annual Award Program Recognizes the 10 Best Manufacturing Facilities in North America