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  • 1. Advanced Manufacturing News Volume2, Issue 22 October 31, 2003 management commitment. But unlike some, Six Sigma In This Issue: does not require buy-in by the entire workplace to make it work. Six Sigma Primer Page 1 The biggest reason Six Sigma is successful where Six Manitoba Companies…Top Employers Page 3 other initiatives have not been is that there is a direct Rising Loonie-the Good, the Bad, the Ugly Page 3 correlation to the bottom line. Jim Markey, of Gretag New in the ITC Library Page 4 Imaging says “ISO 9000 is the rules, and Six Sigma is the Events & Learning Opportunities Page 4 tools.” (CONTINUED on Page 2) Six Sigma Primer Here is a high-quality How reasonable is it to assure total perfection in professional development opportunity what is produced? What is an acceptable number of at a bargain of a price, defects? Would you be happy with 99.9% (one defect in never offered before in Winnipeg! a thousand)? According to Garry Conner*, most people Register Now! feel that 99.9% is pretty good. Here are some examples Gary provides to show what would happen if there were 3D Modeling & Visualization more than 1 defect per 1000 opportunities: 22,000 checks deducted from the wrong checking Conference account in one hour 12 babies given to the wrong parents every day Winnipeg Convention Centre 291 pacemaker implants performed incorrectly each November 5, 2003 year Virtual Reality Centre 114,500 mismatched pairs of shoes shipped each year November 6, 2003 What is Six Sigma? Using a simple definition, Six Sigma is a problem World-Renowned Speakers! solving method that identifies root causes and helps determine permanent solutions. Dr. Carolina Cruz-Neira Sigma is a letter from the Greek alphabet – σ – and is Associate Director used in formulas to indicate variability. Sigma quality Virtual Reality Applications Center, Iowa State levels indicate how often defects are likely to occur. The University basic Six Sigma philosophy is that “all processes show some variation, which can result in product defects that Bill Buxton cost time and money.” Designing experiments to Principal methodically and systematically identify the real cause of Buxton Design Gallery the problem can reduce these variations. Controlling the William H. Jepson variations can result in reducing waste, defects, and Director repairs, optimizing repeatability and efficiency. “Six Urban Simulation Laboratory Sigma quality” is a term used to indicate that a process is UCLA controlling defects or errors to parts-per-million levels. This event is being held in conjunction with the What makes Six Sigma different from any Data Networking Symposium, beginning other quality initiatives? November 4th at the Convention Centre. The difference seems to be in the organization and For details and registration information, application of the many tools used in other quality visit initiatives, the limited staffing requirement for its utilization, and its emphasis on specific fixed-length or call (204) 945-6000. projects. As with other improvement initiatives, Six Sigma involves workforce empowerment and requires Industrial Technology Centre Unit 12, 1329 Niakwa Road East, Winnipeg MB R2J 3T4 Ph: (204) 945-6000 Fax: (204) 945-1784 E-Mail: Web:
  • 2. Advanced Manufacturing News Volume 2, Issue 22 October 31, 2003 Page 2 (Six Sigma Primer Continued from Page 1) to answer are WHY the errors are occurring and HOW to fix them. Then you can compare your data to the How does it work? competition’s performance. Again, there are various Six Sigma started in the methods and techniques for analysis. Some are very 1980’s at Motorola as a way simple and others more complex. But often the simple of reducing defects and tools can be very powerful. Experts say one of the production cycle time. biggest mistakes is focusing on the symptoms of the Since then it has improved problem and not getting to the root causes. the bottom line for a number of companies. What began Improve – Responding to the analysis should lead you to as a manufacturing tool has been applied to all areas of improvement. This is where the rubber meets the road. the company – sales, service, shipping, purchasing, Once you have determined which processes are not information technology, and others. working, you then state what is a reasonable goal for a Six Sigma implementation begins with the training of particular process. Establishing a numerical standard will a management leadership team. Key people are trained allow you to calculate the tolerances that need to be in Six Sigma methodology and designated as green belts tightened. Again, there are a number of tools and or black belts depending on the level of training they techniques that can be used to ensure improvement receive. Completion of an actual project is a requirement takes place. Successful Six Sigma is not a one-time of training. The training involves learning both analysis, but a continuous analysis of the entire value observational and scientific techniques. The curriculum stream to identify new opportunities for improvement. also includes the design of experiments, graphic methods Control – Once the process is in place, the Master Black of analysis, and statistical process control. Belt makes sure the team monitors the process, measures results, and confirms that the plan is working. The DMAIC process is the heart of Six Sigma Subir Chowdhury, in The Power of Six Sigma, has Define – Define what the problems are, but focus on the another definition for DMAIC – “Dumb Managers process that creates the product or service not the Always Ignore Customers.” Six Sigma is all about outcome. Map the process so that the links between the “delighting the customer, really understanding what the steps can be easily recognized. That is often where the needs of the customer are and what it’s going to take to problems are – in the gaps. Pick the problem that is make them happy.” (Oenick in Manufacturing Insights: Six giving you the most trouble, starting with the one that’s Sigma) making the customers unhappy, the one that’s costing the How do you know if you’ve succeeded with Six company the most money, the one that will bring about Sigma? Ask the customer. the greatest reward when it’s fixed. To learn more, check out some of the resources listed Measure – “Where nothing is measured, nothing can be below available in the ITC Library: improved.” This is where statistics is your best friend – not something to be feared. Statistics convert elements Resources: that are hard to see into something visual and more understandable. They add weight to what otherwise • Cause and effect lean : lean operations, Six Sigma and supply chain might simply be opinion or observation. There are a essentials / John Bicheno. • Implementing Six Sigma : smarter solutions using statistical methods number of measurement tools and techniques available, / Forrest W. Breyfogle III. (Advanced) some of which you may have already used as part of lean • The lean extended enterprise : moving beyond the four walls to value manufacturing. Once the right mechanisms are set up, stream excellence / Terence T. Burton, Steven M. Boeder. the measurements that take place include such things as (Introductory) measuring the capability of a given process – how many • The Power of Six Sigma / Subir Chowdhury. (Introductory - Reads like a story) opportunities for defects a certain process or operation • Rath & Strong's Six Sigma team pocket guide. (Advanced) presents; and, benchmarking the competition on the • *Six Sigma and Other Continuous Improvement Tools for the Small same problem. Shop / Garry Connor. (NEW! Introductory – includes a CD-ROM with Analyze – To make the right decision, you must evaluate some Six Sigma tools) • Six Sigma (video) from the SME Manufacturing Insights series. the process data. Data is analyzed to determine how well (Introductory) or how poorly the processes are working. The questions Custom Data Acquisition Machine & Product Design Custom Engineering Mechanical Testing Library & Technical Information Noise Measurement & Control Dimensional Calibration Vibration Measurement & Control Dimensional Inspection Virtual Reality Centre Document Examination
  • 3. Advanced Manufacturing News Volume 2, Issue 22 October 31, 2003 Page 3 Six Manitoba Companies Make Top Employers The Ugly: List Many companies have already reported significant losses and some economists predict that the loonie is not Mediacorp Canada Inc. released its annual list of the going to come down any time soon, and, in fact, may 100 Top Canadian Employers last week and six Manitoba continue to increase into 2004. The Bank of Canada companies were on that list. What makes them special? admits that though strong economies abroad should Ceridian Canada Ltd. – They provide training over the increase demand for Canadian goods, the higher value of Internet so all employees have equal opportunities for our currency pretty much dampens this effect. training. Employees also get the “windows” while If you’ve been reading the Winnipeg Free Press bosses are on the “inside” office. recently, or any other major Canadian newspaper for that Great-West Life Assurance Co. – Provide a great matter, the rising Canadian dollar is a hot topic. But benefits plan and “heart-smart” meals in their employee you’ve heard all this before – in fact several times within cafeteria. the pages of this newsletter. What follows is a recap of Murray Auto Group – Primarily unheard of in this facts and comments being made recently about the industry, this organization provides great benefits: loonie. pension plan, opportunities to move up, paid training of It’s not likely that there’s anything that can be done any kind, paid time off for employees who donate time about the currency. Some suggest the Bank of Canada to community projects. should drop the interest rate to narrow the 1.75-point Qunara Inc. – Provides family-friendly benefits, such as difference between the Canadian and U.S. rates. It’s not maternity leave top-up and excellent vacation likely to happen, since inflation is under control – for now. allowances. Most manufacturers are accustomed to adjusting to Standard Aero Ltd. – A great all-around employer, fluctuating currency rates. But the Canadian currency is Standard Aero gives a turkey to each employee at changing faster than the economy, and companies are Christmas. An active social committee encourages a not having enough time to change their practices to good social atmosphere. compensate. The end result may mean job losses. Wardrop Engineering – Allows accumulation of over- The manufacturing sector in Manitoba saw great time up to four weeks in addition to paid vacation. growth in the past 10 years but has been unable to Way to go! As Mr. Soubry, president of Standard Aero, sustain its peak of 74,000+ jobs in 2001. The textile told the Winnipeg Free Press, the real test will be whether industry is outsourcing more processes overseas. these companies can stay on the list year after year! Furniture manufacturing has pretty much followed the The Rising Loonie – The Good, The Bad, the slump in the U.S. furniture industry. And many Ugly manufacturers have been cutting back their staffing. So, no quick fixes. The Good: As Martin Cash said in his Winnipeg Free Press The Bank of Canada says that the rise in the value of the article (10/26/03), “it is impossible for local Canadian dollar will not prevent a healthy growth in the manufacturers to remain complacent.” economy in the foreseeable future – at least into next One thing Manitoba companies have going for them year. is that most are small to medium-sized and can react to The Bad: change much more quickly than larger companies. Another thing going for Manitoba is the diversity of But major business groups are not thinking so positively. industrial sectors contributing to our economy. Our rising currency makes Canadian goods more The Canadian Manufacturers & Exporters and other expensive in the U.S. Perrin Beatty, president of local organizations have been encouraging companies to Canadian Manufacturers and Exporters says it is improve their productivity and stop using the currency to dragging down economic and employment growth, and is guarantee sales. Lean manufacturing principles and hurting the bottom line of Canadian companies. advanced manufacturing are touted as being the key to future success. The Canadian and Manitoba Governments are encouraging increased innovation. New and improved Custom Data Acquisition Machine & Product Design Custom Engineering Mechanical Testing Library & Technical Information Noise Measurement & Control Dimensional Calibration Vibration Measurement & Control Dimensional Inspection Virtual Reality Centre Document Examination
  • 4. Advanced Manufacturing News Volume 2, Issue 22 October 31, 2003 Page 4 products and processes are key to increasing the lower cost and with faster response times. The results include improved profit margins and increased market share. The author also provides a competitiveness of Canadian companies. Customers toolbox of techniques for problem-solving, continuous improvement, and want value for their dollar, no matter where they are in the operating a lean manufacturing facility on a day-to-day basis after the world. Innovation is often the result of the customer’s initial line design is completed. demands and needs. Innovation may require investment in technology, training, services, or products, all of which Events & Learning Opportunities increase productivity and make companies more MEIA Breakfast Session competitive. November 13, 2003, 7:30 – 9:00 a.m. Seeing the Good Norwood Hotel Stephen Poloz, Export Development Canada’s chief Speaker: Hon. Steve Ashton, Minister of Conservation economist, suggests that although the high Canadian Manitoba Environmental Industries Association dollar takes a chunk out of an exporter’s profits, it also Details: Email to or fax to 783-650 increases a company’s buying power when it comes to Teamwork – Developing a Strategy for Productivity purchasing from U.S. suppliers. In addition, because the November 14, 2003, 8:00 a.m. to 4:30 p.m. Chinese currency is closely tied to the U.S. dollar, a high Manitoba Quality Network Canadian dollar reduces the cost of setting up Details: partnerships in the Chinese market. And lastly, Poloz says that the rise in the Canadian dollar is indicative of Balanced Scorecard: Linking Strategy to Results the general improvement in economic conditions globally. November 18, 2003, 8:00 a.m. to 4:30 p.m. This means that there will be a growing demand for Manitoba Quality Network Details: goods and services, including those Canadian-made. Poloz’s advice to manufacturers is to invest in new Energy And Cost Savings: machinery to increase productivity, reduce operating Targeting Energy Efficiency Opportunities In Industrial costs, and shift some manufacturing to off-shore Operations companies. November 19, 2003, 7:30 - 11:00 am (Free Breakfast Buffet) Greenwood Inn, Winnipeg, Manitoba New in the ITC Library NRCan, MB Hydro, CME Manitoba Registration: The lean extended enterprise : moving beyond the four walls to value stream excellence / Terence T. Innovation Insights Burton, Steven M. Boeder. Boca Raton, Fla. : J. Ross Standard Aero Ltd. Pub., c2003. November 20, 2003, 9 am – 1:30 pm NRC and Canadian Manufacturers & Exporters This unique and cutting-edge book takes lean beyond your four walls to the end-to-end supply chain. The author discusses how to Details: integrate the total value stream—vertically, horizontally, and laterally— Lean Thinking For Service and achieve success through empowered people and teams; cultural transformation; and an integration of lean, six sigma, kaizen, and December 1 & 2 - 8:00 a.m. to 4:30 p.m. (both days) enabling technologies such as ERP, SCM, APS, CRM, PLM, networks, Manitoba Quality Network exchangers, and portals. Using the lean extended enterprise reference Details: model (LEERM), the author demonstrates that by deploying the right methodologies and technologies to the right situation, you can achieve huge breakthroughs in performance Innovation Insights Duha Color Services Lean manufacturing implementation : a complete December 9, 2003, 10 am – 2 pm execution manual for any size manufacturer / by NRC and Canadian Manufacturers & Exporters Dennis P. Hobbs. Boca Raton, FL : J. Ross Pub., 2003. Details: This project management approach to lean manufacturing implementation does not require help from expensive consultants. The The Advanced Manufacturing News is an electronic publication of the book contains a proven, objective, standard, and complete 'how to' Industrial Technology Centre. If you wish to subscribe or unsubscribe, send sequential series of progressive steps that are easy to understand and e-mail to We welcome your comments and suggestions use to effect factory transformation to lean. This manual illustrates the for articles and event information. Please forward to methodologies that will help you produce higher quality products at a Custom Data Acquisition Machine & Product Design Custom Engineering Mechanical Testing Library & Technical Information Noise Measurement & Control Dimensional Calibration Vibration Measurement & Control Dimensional Inspection Virtual Reality Centre Document Examination