Case Study: Lean Six Sigma Improves Order Quality at Ingersoll Rand Security Technologies
IR took on the task of improving the order entry process, utilizing the DMAIC approach and Six Sigma tools. As a result of these efforts, defects were reduced dramatically. The process itself is approaching a 70-percent reduction in defects, moving from 0.5 sigma to 3.53 sigma. Customer satisfaction has also improved tremendously.
Improve Pricing Quality with Six Sigma Methods
This article describes a situation faced by a real company–we’ll call it Acme Industries Inc.–in which it was compelled to adapt its Six Sigma manufacturing expertise to improve its pricing processes. The initial goal of generating $500,000 in incremental revenues during the first year was handily exceeded in only three months. More important, a subsequent across-the-board list-price increase was fully reflected in the top line for this product. By contrast, other product lines realized less than half the increase. That list-price increase, together with the tighter controls the Six Sigma team developed and implemented, resulted in $5.8 million in incremental sales in just the first six months following the project’s implementation, all going straight to the bottom line.
Aluminum Trailer Company
Aluminum Trailer Company Merges Lean and Green Principles
Aluminum Trailer Company (ATC) president Steve Brenneman discusses how the recession spurred his company to use Lean techniques in 2009 battle a drop in sales. Through a combination of streamlined material, information and part flows, the establishment of standards, and the communication of said standards through his company, Brenneman was able to cut warehouse space in half while slashing the sales cycle from 7 to 3 weeks. In 2010, Brenneman shifted the focus to greening his company by using Deming’s PDCA (Plan, Do Check, Act) methodology to upgrade to more efficient lights, encourage plastic, wood, wire, and cardboard recycling for line staff, and cut paper use 50% in the office.
Louisiana-Pacific Corp Earnings Call Yields Surprises
Curtis M. Stevens, CEO of Louisiana-Pacific Corp, mentions how Lean Six Sigma assists his company in being more efficient and effective at its manufacturing facilities, which produce building materials, industrial wood products and pulp.
Luvata’s solar operations adopt Toyota’s Lean approach
Solar ribbon manufacturer Luvata’s Pori, Finland facility has been certified as Lean after a successful seven years of implementing process improvement principles. Luvata’s clients include Siemens, CERN, and Toyota.
Plasticard-Locktech International (PLI)
Plasticard-Locktech International (PLI) Invests $4.6 Million, Utilizes Six Sigma For Quality Control
Plasticard-Locktech International (PLI) will be investing $4.6 million in facilities and equipment. This includes 30,000 square feet of production space and 42 new jobs, thanks in part to the adoption of Six Sigma for quality control. Six Sigma has helped PLI develop a system of checks to ensure high quality products and satisfied customers.
General Cable Drives Down Costs Annually Thanks To Lean Six Sigma
Adopting lean and six sigma over a decade ago has allowed General Cable to remain competitive in an extremely price-sensitive and cyclical industry. The company has 6 master black belts, 64 black belts, 211 green belts, 290 lean technicians that enable them to have a consistency of response — in other words, everyone has both the tools and knowledge to handle situations. As a result of this continuous improvement mindset, General Cable is expected to drive down costs by several percentage points annually.
Cummins’ Legal Team Honored For Diversity
The Minority Corporate Counsel Association (MCCA) has named Cummins, Inc. the 2014 Employer of Choice for the Midwest Region. This award honors departments that demonstrate diversity and commitment to creating an inclusive workplace. Diversity is one of Cummins’ core values and their general council department has made tremendous strides in building diversity though Six Sigma.
NRAs 2014: Corporate Recycler of the Year
Cummins, a fortune 500 corporation that designs and manufactures power generation equipment and systems has been named the 2014 Corporate Recycler of the Year. Cummins has a goal of 95% recycling of its waste by 2020 across their 22 facilities and staff of 46,000. By using Six Sigma and Lean manufacturing techniques, Cummins’ sites increased their recycling rate to 97.87% this year!
The Jubach Company
Lean Six Sigma Improves Log Home Construction
Tim Jubach and his family are developers of log homes and land in Hocking Hills since 2002. They custom design through construction and after sale support. In 2003, Tim’s son joined the team and brought Six Sigma innovation to the company. His business experience not only complemented his father’s experience but also brought improvements to reduce waste. The company only has 5 employees and reported $2 million in revenue last year!
GKN Sinter Metals
GKN Sinter Metals Adds Kata to a Lean Journey in Germantown
In 2008, the profit return on sales was below zero for GKN Sinter Metal’s Germantown. The negative numbers started a fire in their shoes and although the fire was slow to start, the momentum began picking up in 2011 and 2012. With the momentum came the lean and kata concept. This was the missing piece at the Germantown facility.
3M and Rush Enterprises to Bring Quality Solutions to CNG Industry
3M and Rush Enterprises are getting ready to purse new design and manufacturing for compressed natural gas (CNG) systems to North America. The tanks to be supplied by 3M will be 30% lighter with 10% more storage than alternate types available. By pairing leading materials, technology, and expertise in Lean Six Sigma, the overall quality and reliability will be brought to a whole new level for customers.
Can 3M Maintain Its Margins In A Low Growth Environment?
Despite a weakened global economy in Europe and China, Trefis.com expects 3M will be able to avoid a sharp decline in operating margins (which are currently at a remarkable 20%) thanks to its use of Lean Six Sigma to maintain productivity.
3M Company Achieves Highest Recognition for Safety and Health
Indiana’s Department of Labor has awarded 3M’s Hartford City location a “Star” site certification in its Voluntary Protection Program (VPP) as of May 2013. This is thanks to an illness and occupational injury rate 40% below the national average over 3 years, thanks to Lean Six Sigma, Kaizen, process hazard analysis, and other safety programs. Less than 60 Indiana workplaces receive VPP status.
Santana Textiles To Train Employees In Lean Practices
What could be better than improving product quality, decreasing production costs and eliminating waste? Try doing all three of those things while simultaneously bringing jobs back to the United States. Santana Textiles, located primarily in Brazil and Argentina, will be working with South Texas College to improve business practices at its 33-acre Edinburg, Texas facility. This Fall, 330 employees will be taught in the finer points of Six Sigma, Lean manufacturing, and supply chain management in an effort to reverse the trend of textile jobs being transferred overseas.
Post-recession, manufacturers utilize robotics to stay lean
Robot vision-guided truck builder Seegrid has helped manufacturers stay lean by automating materials handling using Lean manufacturing principles. At American Packaging Corporation, when material handling labor hours were reduced by 19%, this enabled the company to expand its manufacturing while not only keeping its workforce but requiring the hiring of more workers.
Lean Principles Yield Huge Improvement for Spanbild
New Zealand business Spanbild, which designs and builds residential and commercial buildings, has seen impressive improvements in since the beginning of the year by employing lean manufacturing principles. Spanbild has decreased waste by 44%, improved efficiency by 17.8%, and increased the timber team’s productivity by 20%.
Vermeer Corp. Utilizes Lean To Increase Efficiency, Develop Best Practices, And Reduce Health Care Costs
Vermeer Corp. CEO Mary Andringa, who is also chair of the National Association of Manufacturers (NAM), is using Lean to lower health care costs for her manufacturing company. She does this through regular kaizen events to increase efficiency and develop best practices.