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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.
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