Six Sigma backers say commitment is key
Performance problems, employee skepticism remain obstacles
Published: October 11, 2009, 12:30 am
Story tools:
More Photos
Share this story:
ITT Heat Transfer’s Cheektowaga plant was in deep trouble by the time Joe McNamara was named general manager in 2003.
His new job came with a blunt message from ITT Corp.: “fix, close or sell” the business unit within 18 months. It had failed to make budget for at least 13 years, and a series of general managers had come and gone.
As daunting as the directive was, it also created a sense of urgency that Mc- Namara welcomed. “I shared that with everybody,” he said. “We instituted a completely open book with all of our employees.”
McNamara aimed for a turnaround using the business discipline known as Six Sigma, a system he and several of his team members had been trained in.
Six Sigma relies heavily on data to identify trends, implement solutions and track the outcome of changes to produce consistently good results. Six Sigma users launch projects to tackle specific problems — for instance, a high scrap rate—that they determine are too costly or are hurting a company’s performance.
McNamara admits he and his team made some mistakes implementing changes through Six Sigma, and it was not always smooth sailing with the workforce. But they persevered, and the plant, which has about 240 employees, survived. McNamara said the site has made vast improvements in productivity and other performance measures.
In fact, the plant has brought in work that had been performed at ITT sites in Sweden, Mexico and Texas. And McNamara said the plant’s story proves that the system can work in a unionized environment. The hourly work force at the ITT plant is represented by the United Steelworkers union.
McNamara is among a host of speakers scheduled for a Six Sigma conference on Tuesday and Wednesday at the Millennium Airport Hotel in Cheektowaga. About 300 people have registered for the event, organized by the American Society for Quality’s Buffalo section.
Like many companies that use Six Sigma, ITT Heat Transfer also applied the principles of “lean manufacturing,” which aims to eliminate waste. The combination of the two systems is known as Lean Six Sigma.
Using that system often involves changes on the plant floor, like revamping the layout, to ensure materials flow through quickly and equipment is logically organized. But Six Sigma also touches other facets of the business, including human resources and accounting. And to get the most out of it, McNamara said, everyone should participate.
“The leadership has to get involved,” said McNamara, now vice president of global operations for ITT Technologies. “You can’t do this from the front office. You have to be out there in jeans and work boots, moving the machines yourself.”
A growing trend
While Six Sigma was pioneered by a manufacturer, Motorola, it has spread to other industries. A hospital used the system to cut patient waiting times in the emergency room. A bank applied it to reduce robberies at its branches.
Erie County Executive Chris Collins, who came to politics from business, has made Six Sigma a focal point of his administration. Through his high-profile position, he has brought more attention to the system, said John Lupienski, the Six Sigma conference’s co-chairman and a consultant.
“I think it’s always good to have a high-level person who’s really committed to the program,” Lupienski said. “He is a real driver of it. You’ve got to get the culture of the organization in tune and he’s done a good job with that.”
Bill Carey, Erie County’s director of Six Sigma, said the first wave of the county’s Six Sigma projects have generated $4.9 million in savings. Additional projects are under way or being planned.
One such effort involved improving the system for booking picnic shelters in parks. A Buffalo News story last summer recounted how a family picnic at Como Lake Park in Lancaster was nearly ruined by permit-booking problems — just what the revamped system was meant to eradicate. Carey said, aside from “hiccups” such as that one, the new booking system is working much better.
A different Six Sigma project by the county is tackling delinquent property taxes. Yet another project has focused on quicker action on cases handled by Child Protective Services investigators, involving reports of children in distress.
The number of active and overdue cases has fallen, indicating employees are moving through cases more quickly as they use methods to improve the process, Carey said. That higher productivity also reduces spending on overtime.
Carey said the county’s savings through Six Sigma have exceeded expectations, but he believes there is more to do.
“I can’t tell you everybody is totally satisfied, including myself,” he said.
Workers skeptical
Delphi Thermal Systems began using Six Sigma about eight years ago at its Lockport complex. Kelley Hacker, a senior product engineer at Delphi, recalled some initial skepticism among employees.
“At first, people thought it was another quality program of the month,” said Hacker, who is a Six Sigma “master black belt,” which describes an expert in its practice.
But Delphi stuck with it. And as more employees have become familiar with Six Sigma, they have learned how it fits into the workplace, she said. “I think each person is finding out how much easier it’s making their job.”
Delphi has a technical center in Lockport, and its adjacent manufacturing plant was just reacquired by General Motors. Over the past several years, the complex has launched Six Sigma projects that have influenced the design of products, as well as the design of manufacturing equipment.
Work on Six Sigma projects sometimes produces unexpected benefits, such as efficiency gains or patents, Hacker said.
Patience necessary
Six Sigma proponents say the system, when used properly, can yield big improvements. Critics say it simply repackages other quality programs, inhibits creativity, or soaks up too much precious time.
A recent Business Week story described renewed interest in Six Sigma by large companies eager to reduce costs and boost earnings amid slow sales. But many of the new users want quick results, an expectation that Six Sigma advocates caution against.
Lupienski said he hasn’t seen employers lose interest in Six Sigma amid the recession, though some might have cut back on paying outside consultants. “Most of the companies I’m working with are maintaining a good, solid base for their Six Sigma programs,” he said.
The state Labor Department is approving grants for people to obtain Lean Six Sigma training, Lupienski said. For those who are unemployed, adding those skills to a resume can provide an edge in the competition for a job, he said.
The system also suits the goals of top executives, Lupienski said.
“It’s bottom-line driven,” he said. “That’s why top management wants to get involved. The dollars flow to the bottom line, and not because of head count reduction. It’s not a reduced-people program.”
mglynn@buffnews.com
Reader comments
Log into MyBuffalo to post a comment
MyBuffalo is the new social network from Buffalo.com. Your MyBuffalo account lets you comment on and rate stories at buffalonews.com. You can also head over to mybuffalo.com to share your blog posts, stories, photos, and videos with the community. Join now or learn more.
Comments have been disabled.
Due to a high volume of submissions that violate The News’ guidelines, commenting is no longer available on this story. If you’d like to share your thoughts on this story, click here to get information on contributing to The News’ opinion pages.