AirTran Teaches Us the Value of Quality
Posted by: meikah | 6 April 2009 | 9:40 pm
Orlando Business Journal reports that Airtran is 2nd in quality report for 2008.
Of the 17 carriers profiled in the annual national airline quality rating, AirTran Airway came in second in 2008.
Orlando-based AirTran Airways was flat in its on-time performance of 76.7 percent in 2008. Its denied boardings performance (0.15 per 10,000 passengers in 2007 compared to 0.34 in 2008) was worse. An increase in customer complaint rate to 1.10 complaints per 100,000 passengers in 2008 was higher than the 2007 rate of 0.83. The mishandled baggage rate of 4.06 per 1,000 passengers in 2007 was improved to 2.87 for 2008 — the best mishandled baggage rate of all airlines. Continue reading…
I’m pretty sure that Airtran is now realizing the cost of waste and the value of quality.
Do you?
Filed under: Airlines, Quality, Services
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Halliburton Goes Lean Six Sigma
Posted by: meikah | 12 March 2009 | 9:05 pm
Halliburton, the Houston-based Oilfield services provider, has seen increased business activity recently. Some companies, especially during this crisis, may slow down a bit and delay investing. Not, Halliburton. It is going in a different direction by investing in Lean Six Sigma. But the company is not worried. It sees the benefits and savings it will get from such investment.
For one, the company sees the value of improving efficiency to meet ever-increasing customer needs and capitalize on the growing demand.
One supply chain strategy Halliburton implemented to help respond to that demand is its Creativity over Capital strategy, which is really a euphemism for Lean Six Sigma, explains Len Cooper, senior vice president of supply chain at Halliburton. When Halliburton began to implement Lean Six Sigma in 2004, it was experiencing extraordinary growth in the oil and gas sector, essentially doubling the size of its business. “As a result, one of the things we wanted to focus on was speed of delivery, especially cycle time reduction.”
As a first step, Halliburton’s supply chain team began to conduct value stream mapping (a Lean tool) and evaluating productive time vs. non-productive time, and examining where it could reduce non-productive time. That, in turn, would shorten the overall delivery cycle of its products and services.
Filed under: Halliburton, Lean Six Sigma, Services, Six Sigma, Six Sigma Organizations
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Harsco Corporation Goes Lean
Posted by: meikah | 22 February 2009 | 7:05 pm
Harsco Corporation serves some of the world’s largest and most essential industries, including non-residential construction, steel and metals, energy, and railways.
To be able to continue doing business and stay on the top of the game, Harsco has decided to be more efficient in their operations. The company goes into Lean Six Sigma.
StreetInsider reports:
Janney Montogomery Scott initiates coverage on Harsco Corporation (NYSE: HSC) with a Neutral. Fair value $30.
Janney analyst says, “Harsco is a major player in the industrial services space, and even though the economy is in a downswing the company has positioned itself to be able to take advantage of the continued infrastructure buildout that is occurring throughout the globe…Furthermore, it has an attractive collection of niche businesses that earn high returns on capital.
The company has just started to implement Lean Manufacturing techniques, which, if sustained, should help the company improve its operating profits that are currently at levels below their potential. Harsco’s balance sheet is in healthy shape, does not have any red flags given the current credit environment, and is currently being put to work in the form of a stock buyback program to take advantage of the depressed stock market.”
Filed under: Lean, Services
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Six Sigma in the Food Service and Hospitality Industries
Posted by: meikah | 18 November 2008 | 11:29 pm
Indeed, Six Sigma is no longer just for the manufacturing industry. It has invaded healthcare, and recently the hospitality business, too.
Over at Food & Drink Magazine, Rudy Miic shares his 6 Sigma concepts as used in the food service and hospitality industries:
Sigma 1: Performing on purpose
Sigma 2: Proactive fiscal systems
Sigma 3: Hiring by choice rather than chance
Sigma 4: Training focused on results
Sigma 5: Effective communication
Sigma 6: Being a learning organization
The 6 Sigmas may just have been culled by Six Sigma concept, still the essence of an organization trying to give the best to its customers is evident. To me that is all that matters.
Filed under: Deployment, Services, Six Sigma
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Lightning Six Sigma at DHL Exel Supply Chain
Posted by: meikah | 10 November 2008 | 7:29 pm
From its name alone, Lightning Six Sigma means speedy resolutions to Six Sigma initiatives. DHL Exel Supply Chain began its Six Sigma about four years ago.
Lightning Six Sigma followed. It is implemented in targeted areas, processes on particular sites and customers within the company’s contract logistics operations. The initiative is viewed as a way of getting quicker results than one would expect with a Six Sigma traditional deployment.
So what is Lightning Six Sigma? Why Lightning Six Sigma? When is Lightning Sigma best deployed? Where to Run Lightning Sigma Events? Who needs to be engaged in Lighting Six Sigma events? How to deploy Lightning Six Sigma?
Get your answers HERE.
Filed under: DHL, Deployment, Lightning Six Sigma, Services, Six Sigma, Supply Chain
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Lean Six Sigma in Hospital Emergency Rooms
Posted by: meikah | 4 November 2008 | 9:03 pm
One of the biggest challenges facing personnel in hospital emergency rooms is waiting time. Often, they find themselves having to deal with wait time for bed availability, long waiting times for specialized tests and radiological services, and even high numbers of non-emergency patients.
Six Sigma’s DMAICÂ and Lean can help hospitals attend to this problem, reduce wait time, and even totally eradicate it.
An article on RedOrbit shares three steps:
- Define the problem – that is wait time and the high number of non-emergency patients
- Develop a solution – in an emergency room situation, this can include adding beds by expanding the department or decreasing the size of current rooms; outsourcing certain testing and radiology services; and/or adding an ‘express care’ program to deal with non-emergency patients
- Form a plan for improving the process, measuring improvements to the process, and reducing deviations from the goal – many hospitals have found that Lean Six Sigma practices are a particularly effective way of identifying and dealing with the challenges and problems inherent to health care
In the end, it is not only the processes that are improved, but the hospital having gotten rid of wastes (wait times) can reduce costs and earn savings.
Filed under: DMAIC, Healthcare, Lean Six Sigma, Services, Six Sigma
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Safelite Auto Glass Goes Lean Six Sigma
Posted by: meikah | 21 October 2008 | 9:30 pm
GlassBytes reports that Safelite Auto Glass aims to become more efficient and lean at its Enfield, N.C., manufacturing plant.
As a result toward this effort, the company recently received a $30,000 grant from the state of North Carolina through the Incumbent Workforce Project for Lean Manufacturing training.
Initially, there would be 55 Safelite employees who received Six Sigma “lean” training.
According to Rich Glover, assistant vice president of manufacturing and distribution for Belron US:
“We plan to continue the Kaizen events in different areas of our operation to further optimize our process. Our mission is continuous improvement and the lean philosophy along with Six Sigma methodology will be used to accomplish further improvements in our operation.”
Filed under: Lean, Lean Six Sigma, Services, Six Sigma, Training
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Six Sigma Inspires the SciHealth of The Hospital of Saint Raphael
Posted by: meikah | 15 October 2008 | 9:44 pm
The Hospital of Saint Raphael implemented Six Sigma in 2004. The purpose then was to help staff in making decisions using some data.
Years later, the process improvement effort of the hospital grew and is now named SciHealth Insight. I’m sure this a Six Sigma-inspired initiative.
With SciHealth, Saint Raphael hospital has improved the amount of time to admit an emergency room patient. It is also used to ensure a smooth flow of patients coming in and out of the hospital.
The result, from decision to admit to when the patient is checked in to their inpatient bed, improved from an average of 327 minutes to an average of 167 minutes by September 2008. That posted a 49% decrease in admit time.
This is a commendable accomplishment. Way to go!
Read:
The Hospital of Saint Raphael Uses SciHealth to Decrease Emergency Room Admission Times
Filed under: Healthcare, Services, Six Sigma, Six Sigma Organizations
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Dominion Resources Goes Six Sigma
Posted by: meikah | 7 October 2008 | 8:59 pm
It’s common knowledge that airlines have their share of problems, and so does the entire travel industry. From ticketing to advance purchases to claiming to refunds, and no-shows, all these incur expenses, and when not managed well, losses.
Thus, an effective process improvement methodology would do the industry a lot of good.
This is the reason why Dominion Resources, Inc. goes into Six Sigma. Led by its director of travel and corporate services Donna Kelliher, Dominion is able to implement a holistic Six Sigma approach to their processes. As Ms. Kelliher puts it:
… “it’s in our DNA”–Six Sigma offers a kind of brand awareness that brings integrity to unpopular policies, support for counterintuitive conclusions and buy-in from frequent travelers.
Based on their Six Sigma practitioners, Dominion has applied Six Sigma to the following:
- analyses of advance purchase and nonrefundable fares
- compliance to preferred hotel policies
- 24/7 travel agency services
- value added tax reclaim
- and considering an “express” project examining airline contracts
How Dominion uses Six Sigma to improve their services as described in the Procurement Travel article is quite commendable.
The article further discusses the cost and losses incurred from tickets purchased in advance. All the while, I thought advance purchases are generally good for airlines. Read more…
Related stories:
Bringing a low-cost airline to town
Rewriting Advance Purchase Policies: Dominion Has a Six-Sigma Revelation
Filed under: Airlines, Deployment, Dominion Resources, Inc., Services, Six Sigma, Six Sigma Organizations, Team Dynamics
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Doesn’t Six Sigma Work for the Movies and TV Shows?
Posted by: meikah | 10 August 2008 | 11:50 pm
GE owns NBC. That’s a fact. NBC not profitting as according to GE’s expectations. That’s a conjecture.
But rumors have it that GE is actually thinking of selling NBC because of the latter’s disappointing performance in the ratings and profits game. CEO Jeff Immelt says otherwise, and insists that GE is not selling NBC.
I was especially struck at this phrase (in bold font) on BusinessWorld Online‘s article:
The media unit is plainly out of place in the massive conglomerate, for which in 2007 it provided just under 9% of revenue. While in ’07 NBC’s profit margins topped all GE segments, its revenue growth lagged that of the overall company in ’06 and ’07 and slowed to 0.1% in the first half of 2008. And no one today forecasts stability for big media companies.
The stock price of GE has more or less stagnated since CEO Jeff Immelt took over in 2001, in part because the notion of bona fide multi-industry titans like GE is considered passe. (Even media conglomerates are now passe.) And the governing narrative of GE is hard to extend to NBC. A key tenet of GE exceptionalism holds that it adds value to anything it touches by obsessing over management and management processes like Six Sigma. But that which debugs, say, making turbines simply won’t work for the woolly and unstandardizable ways in which movies and TV shows are made.
That made me ask: doesn’t Six Sigma work for the movies and TV shows?
Somehow, I’m having a hard time reconciling that. Six Sigma might or should work for these industries, too.
