Six Sigma Helps Fenner Hit Record-high Profits

More and more companies are acknowledging the value of a Six Sigma programme. The latest to attribute its record-high profits is Fenner, a world-leader in reinforced polymer technology.

Over at PRWeb, which is linked to iSixSigma, Fenner has announced record profits for the year ended 31 August 2006.

Here are some of the figures:

• Operating profit at £33.7m, an increase of 107%.
• Pre-tax profit was up by 136% from £12.4m to £29.3m.
• Turnover had risen from £303.6m in 2005 to £379.0m, with the conveyor belting division performing strongly and doubling its operating profit to £20.5m.
• At FAST, Fenner Advanced Sealing Technologies, there was a 50% improvement in productivity due to the Six Sigma programme launched across all FAST locations.

Filed under: Benefits and Savings, Manufacturing

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Two Good Resources for Six Sigma Practitioners

True to its principle of continuous improvement, Six Sigma practitioners are constantly coming up with software and references on Six Sigma.

First, there’s the new TRACtion® Lean Six Sigma Project Tracking Software released by MoreSteam.com last week.

According to the press release:

TRACtion, a web-based, interactive project management tool, helps Lean Six Sigma teams reduce project cycle time through enhanced communication, ready access to analytical tools, imbedded project road maps, and automated reporting. TRACtion also integrates with MoreSteam.com’s world-class Lean Six Sigma e-Learning to deliver a seamless support structure for learning, action, and tracking.

Second, there’s the book of Clyde M. Creveling, titled Six Sigma for Technical Processes: An Overview for R&D Executives, Technical Leaders, and Engineering Managers.

Informit.com reports:

Creveling introduces a Six Sigma-enabled workflow that encompasses strategic product/technology portfolio definition and development, research and technology development (R&TD), tactical design engineering processes for commercialization, and operational production and service support. He presents tools, methods, and best practices for selecting the right projects, prioritizing them, and executing them rapidly, consistently, and successfully.

Filed under: Events/Announcements, Six Sigma References, Software/Technology

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Six Sigma and TMAP

Like all projects, you need a solid foundation for them to work out successfully. Such is also the case for Six Sigma projects.

Before you deploy the project, you need to develop first a solid tool, one of which is called the thought process map, sometimes referred to as TMAP or TPM. A TMAP is defined as a visual representation of a Black Belt’s, team leader’s or an entire team’s thoughts, ideas, and questions relative to accomplishing the project goal.

Because of this, having a TMAP early on in the project will bring the following advantages:

• you can monitor all isues and questions you may have during the project,
• you can use it to summarizea data, know the assumptions, what actions were taken, and the latest status of the project, and
• you get the visual map that tracks the development of ideas and issues, as well as the extent of inquisition.

Below you will find the important considerations when using the thought process map for Six Sigma.

Your TMAP should at least have the following:

1. The project goal(s) or problem statement(s)
2. Specific areas/parts of a process to be analyzed
3. Any issues or questions to address
4. What is known about those issues or questions
5. What is not known about those issues or questions
6. Initial assumptions about each issue or question.
7. What data or information is needed
8. Potential barriers reaching the project goal
9. Interconnections between each part/issue/question
10. Potential Six Sigma tools to be used

Here are the ways to create a TMAP.

1. Define the project goal(s)
2. List the knowns and unknowns
3. Ask DMAIC questions and “grouped” questions
4. Sequence and link the questions
5. Identify possible tools to be used

Read more…

Here is a sample TMAP addressing questions from a DMAIC perspective. It’s taken from the iSixSigma article titled “Thought Process Map for Six Sigma: What, Why and How.” Click on the image for a larger version.

Filed under: Deployment, Tools/Toolkits

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How Six Sigma Treats Data Mining to Improve Processes

Time and again, we say that data and data mining is crucial in Six Sigma deployments.

Today, let me share with you five brief case studies of trucking companies that are hitting their numbers right. eTrucker.com features:

Case Study 1
Pitt Ohio Express, Pittsburgh
In 2001, Pitt Ohio Express began building a business intelligence tool named Cube-IT, which gave the less-than-truckload carrier new insights about the profitability of each customer. In the past three years, the company has eliminated $40 million in unprofitable business while significantly growing overall.

“From my view, this whole business intelligence platform allows us to bring together all of our customer information,” says Scott Sullivan, vice president of information technology services. “We are moving to be a more customer-centric organization. We no longer give general rate increases.”

Case Study 2
Bison Transport, Winnipeg, Manitoba, Canada
Bison Transport developed a homegrown program called the “Order Ferret” that provides management an analysis tool to make complex pricing decisions on the spot. Users click on an Order Ferret icon while working in the central dispatch screen to bring up a grid of various pricing and profitability data.

“We can make decisions based on real data, as opposed to estimates or guesses,” says Dave Fulawka, director of business development. “You’re not just eyeing a graph or trend. Your decisions are more precise.”

Case Study 3
B.R. Williams Inc., Oxford, Ala.
Wanting to assess profit on a trip-by-trip basis, B.R. Williams in 2002 developed a database and analysis tool using Microsoft Access that helps it make quick changes in lane pricing due to varying external factors, such as toll expenses, fuel prices and backhaul rate.

“We are soliciting more freight in certain lanes because they are more profitable,” says Greg Brown, president. “We know now where our niches are, and we solicit around those lanes.”

Case Study 4
RayTrans Distribution Services, Matteson, Ill.
By integrating two separate databases — a custom transportation management system and a software-based phone system — RayTrans has identified patterns in how successfully dispatchers in its brokerage division use their phones. The company also monitors profitability by day at multiple levels — by terminal, department, dispatcher and truck.

“Once you get profitability by day, you can really tune your operations,” says Jim Ray, president.

Case Study 5
Shaw Industries Group Inc., Dalton, Ga.
To guide its data mining efforts, fleet managers at Shaw Industries follow Six Sigma methodology, which companies use to analyze the efficiency of any process. Shaw’s analysis begins by converting all cost variables into a common metric — performance per pound of flooring — to help managers identify top and bottom performers.

“Essentially, that’s why we do Six Sigma,” says Randy Black, e-business manager. “Measures fluctuate based on the volume of shipments, but over time you see trends because we unify shipment data to the poundage level.”

*Photo credit: MorgueFile.com

Filed under: Benefits and Savings, Data, Services

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Technology in Lean Six Sigma Lowers Defect Rates

Using technology in Lean Six Sigma deployments help decrease defect rates. Thus concluded the new study, “The Lean Six Sigma Benchmark,” done by Aberdeen Group and sponsored by Hertzler Systems Inc.

What is significant about the study is that it examines the strategies and technologies used by best-in-class Lean Six Sigma manufacturers in their pursuit of perfection. More than 400 companies participated in the study, including Boeing, Glaxo SmithKline, Rexam, Tyco Electronics, EMC, GE, and GM.

Evan Miller, President & CEO of Hertzler Systems, further says that the report takes a hard look at the underlying systems that make Six Sigma deployment successful.

Moreoever, Cindy Jutras, Vice President, Aberdeen Group, offers these recommendations:

• Apply metrics of DPMO (Defects Per Million Opportunities) across all business processes in all industries, not just manufactured products and parts.
• Identify and prioritize business impact projects according to anticipated savings and improved throughput. Look first for low hanging fruit and act now for immediate benefit.
• Integrate data collection with analysis – connect disparate sources of data and alarm users

This is just as well. With technology at our disposal, it will be good for us to take advantage of it.

The study is available for download here.

*Photo credit: MorgueFile.com

Filed under: Lean Six Sigma, Software/Technology, Tools/Toolkits

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Six Sigma Interview: Mike Wroblewski of Got Boondoggle

Mike Wroblewski of Got Boondoggle is the former Continuous Improvement Manager and Quality Manager with Matthews International, and has some previous experiences with lean manufacturing and other quality strategies. He is a certified Six Sigma Black Belt. In 2006, he left the manufacturing corporate world and became a consultant helping others on their lean journey and with Six Sigma.

Below is a preview of the interview where he shared his Six Sigma experience when he was still with Matthews International.

SixSig: What benefits so far are derived from Six Sigma? Could you quantify them, even in terms of percentage?

MW: The first 5 six sigma projects completed in 2003 – 2005 helped us completely eliminate one quality defect present for over 10 years, and dramatically reduce occurances of several other nonconformances. In another case, we experienced a defect in 50% of our units caught in house and improved our first pass yield to 99.9% after improvement using the Six Sigma methodology. The best benefit was getting a better understanding and use of quality improvement tools by both the shop floor employees and management.

Filed under: Benefits and Savings, Interview, Manufacturing

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Six Sigma Interview: Robert Thompson of Qualitas

Finally, my Six Sigma Interviews project will launch! This is actually the second phase of the project, where I will be interviewing Six Sigma practitioners. In the first phase, I interviewed Six Sigma companies, with Samsung being the first company to grant me the interview.

Last week, I e-mailed my questions (a total of 10 questions) to the first batch of interviewees, and the first one to respond is Robert Thompson of Qualitas: all about the ASQ six sigma black belt body of knowledge.

Robert used to work for a high-volume manufacturing company specialising in the manufacture and supply of filters for the clarification, stabilisation and sterilisation of liquids and gases principally in the pharmaceutical, beverage, food and electronics industries, and also in laboratories. He is now into consultancy, an EFQM Business Excellence Assessor, Six Sigma Black Belt, Member of the Institute of Quality Assurance, Institute of Occupational Safety & Health, American Society for Quality, & also the Chartered Institute of Management.

As a preview:

SixSig: What is the most difficult part in the deployment/implementation?
RT: Firstly, convincing senior management that this would work and it was not just a fad. I think that programmes such as TQM did not have a quantifiable $ link into the business and as a result tended to have an unknown benefit. Once senior management understood that financial metrics were a critical part of each project then they began to become interested.

SixSig: How did you overcome them?
RT: Tenacity, commitment and senior management education and backing.

I will be uploading the interview soon, so please check the site from time to time.

Filed under: Interview, Six Sigma References

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