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College of Extended Studies

2005 News Releases

FOR IMMEDIATE RELEASE
TUESDAY, JANUARY 25, 2005

CONTACT: Steve Dolan
(619) 594-5664
sdolan@mail.sdsu.edu

Lean Six Sigma Program Can Save Companies Millions of Dollars

SAN DIEGO, Tuesday, January 25, 2005 - Within the next three years Sanford, a division of Newell Rubbermaid, will save more than $1 million through implementation of Lean Six Sigma.

Gaston Garcia, engineering manager for Sanford, said his company will reduce costs $360,000 annually through methods he learned in the Lean Six Sigma Black Belt Certification program at San Diego State University's College of Extended Studies.

"Lean and Six Sigma are great tools," Garcia said. "They are very practical and easy to understand."

From a small company producing and marketing inks and glue, Sanford has grown to be the leading manufacturer of writing instruments. Today, it offers a wide variety of familiar brands, which are relied upon by kids to professionals, young and old alike, including Sharpie and Paper-Mate.

Just how does Lean Six Sigma maximize shareholder value? By achieving the fastest rate of improvement in customer satisfaction, quality, process speed, and invested capital in both manufacturing and transactional processes. Lean Six Sigma combines the speed and agility of Lean with the statistical predictability of Six Sigma to create solutions for better business practices and dramatic bottom line results.

According to Garcia, his company will save $200,000 of work-in-process inventory and $160,000 in reduced labor each year through the methods he learned under instructor Sally Ulman at SDSU's College of Extended Studies.

Garcia said his company streamlined the former process of products going from assembly to the warehouse to packaging by combining them into an in-line packaging process. "We reduced the work in process," he said. "We send the product directly to packaging; not to the warehouse."

This method thus reduces the labor cost by $160,000 annually at his company's plant in Mexicali, the capitol of Baja California.

Just what are the Lean and Six Sigma methods taught at SDSU's College of Extended Studies?

The Lean approach to continuous improvement reduces the time from your customer request to the delivery of your product or service by eliminating non-value added steps in any work process. Six Sigma uses statistical analysis to identify areas of potential weakness in your processes.

"Six Sigma" got its name from the fact that a sigma of 6 translates into only 3.4 defects per million opportunities. A "sigma rating" identifies the number of defects-per-million in any transactional, service, or manufacturing procedure. Most transactional businesses operate at 2 or 3 sigma, creating serious negative consequences for the business. For example, an organization operating at:

  • 2.5 Sigma would generate 158,655 miscalculated pay stubs for every million processed
  • 4 Sigma would drop 6,210 calls for every million calls to a call center
  • 6 Sigma would allow only 3.4 errors for every million insurance claims processed

Although both Lean and Six Sigma can be taught in independent programs, Lean Six Sigma combines the best practices of each approach, combining the practical tools of Lean with the science of Six Sigma. Lean Six Sigma's goal is to eliminate defects and costs associated with poor quality. Lean makes sure companies are working on the right activities, and Six Sigma makes sure they are doing the right things right the very first time.

"I think this is a very important program," Garcia said. "It gives me the opportunity to improve the quality and productivity in my company."

Ulman, the lead instructor, worked for Chevron as a quality facilitator, corrosion engineer, and industrial water treatment technologist for over 16 years. Since then, she has taught and consulted on the subjects of Lean and Six Sigma for many organizations, including Chevron, Caltex Pacific Indonesia, GlaxoSmithKline, Texaco, Baker Petrolite, National Association of Corrosion Engineers, and Mazda USA. She attained Six Sigma Black Belt certification from the University of Texas and Master Black Belt certification from Air Academy Associates.

"I do this training day in and day out and have trained hundreds in the industry," she said. "The program we offer through the SDSU College of Extended Studies is one of the best out there. The software we teach with is so easy to use, we can spend more time in class showing you how to use the tools themselves."

For more information or to register for this program, call (619) 594-5152 or visit www.NeverStopLearning.net.
SDSU's College of Extended Studies offers a wide variety of lifelong learning classes, seminars, and certificate programs. Career advancement courses are offered in many areas of management, leadership, and quality improvement while self-enrichment courses range from astronomy to web design. Additionally, the College offers over 30 certificate programs, online courses, and many other learning opportunities. To register or for more information, call (619) 594-5152 or log on to www.NeverStopLearning.net.

Last update January 25, 2005

The statements found on this page/site are for informational purposes only. While every effort is made to ensure that this information is up-to-date and accurate, official information can be found in the University publications.
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