European Funding to help SMEs improve using six sigma

Authors : Tony Fouweather, Shirley Coleman and Andrew Thomas

This paper shows how SMEs were able to improve key processes by using the six sigma approach during a training programme organised by ISRU and partly funded by the European Social Fund. Six sigma training can be of great benefit as it gives opportunities for any company to become more efficient and competitive. The cost of this training is often too much for SMEs however, leaving them at a severe disadvantage to their larger competitors. ISRU were able to address this problem directly by offering hugely discounted six sigma training to local SMEs.

This paper describes, 2 case studies, showing how statistical techniques can be applied to facilitate improvements in efficiency, reduction in waste and rejects and the general improvement of processes and how this in turn can improve the competitiveness of a SME1. A small local bakery sent a delegate on a training course to learn six sigma techniques. “The Six Sigma training gave us a set of tools which allowed us to improve the efficiency of our packing line for one of our most difficult products.”
Another case study shows how a local chemical company used modelling techniques to increase their profitability. The delegate was able to model their drying process with the tools learnt on the training course and through this predictive model the company was able to produce an extra batch each week representing £6,000 profit for the company and so this had the potential to dramatically increase revenue and improve profitability by £300,000 pa. The need for assistance to SMEs is well documented and in regions such as Cardiff (UK) where heavy industry has declined in recent years similar to what has happened in Newcastle there is a growing need for SMEs to be offered assistance to become more competitive in order to survive. European funding has been obtained by MEC in Cardiff and adapting the programme set up in Newcastle to improve the prospects of Cardiff local SMEs is to be implemented via the IPROMS network of excellence.

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Submitted by kwng on Mon, 03/07/2006 - 11:55am.

Hello. As co-chairman, I would like to start the session with a question to your paper. Correct me if I am wrong, I noted your scatter plot and your initial equation for the second case study is DT = 431 - 60 %W + 0.08 W - 3.9T indicated that when the percentage of water (%W) is high, the drying time is less. I would appreciate if you would elaborate on that i.e. did you find why the drying time is working against normal physics. I would also appreciate very much if you would elaborate how your initial equation DT = 431 - 60 %W + 0.08 W - 3.9T is transform into DT = 114 + 0.07W when T = 85C and percentage of water (%W) = 0.2.

Thank you.

Submitted by tony fouweather on Tue, 04/07/2006 - 12:59pm.

Hello
Thanks very much for the feedback.

The equation in the text in the Analysis phase refers to elapsed drying time, rather than the time taken to dry. Hence, the elapsed drying time is least when the % of water is most. The equation is purely mechanical assuming all points are independent.

Further experiments were carried out in the Improve phase as stated in the text. The elapsed time from a standard % of water to the required 0.2% of water was recorded for different weights all at a temperature of 85 degrees centigrade. Regression of drying time with respect to weight gave the equations in the Improve and Control phases.

Hopefully this will address your concerns

Submitted by Pham on Sun, 09/07/2006 - 9:32pm.

Hello Tony, Shirley and Andrew,
Good to see close collaboration involving I*PROMS partners!
Could you please highlight the key differences between the Six-Sigma Training Programme developed by the Newcastle team and those offered by others? I ask this question as a complete novice (White Belt? No Belt?).
Thank you.

Submitted by tony fouweather on Mon, 10/07/2006 - 9:42am.

Hello Dr Pham
Thanks for the comments.

The main difference with our six sigma training programme is that the organisations attending the course are usually SMEs. This means that the company is not a 'six sigma organisation'. The projects the delgates choose are usually related to a process within their compnay and this generally leads to an added bonus of improving a process at the same time the delegate is learning the techniques. This has advantages of showing management the benifits of the tools at the same time as building the confidence of the delegates to see that they can make a positive difference to the organisation by applying the tools learnt on the programme.

Other advantages (possibly not unique to our programme) are flexibility of learning. Training sessions arranged to suit SMEs, ususally 1 day per week or similar. We also offer the training on or off site depending on what suits the orgnaisation. We were able to offer SMEs discounts for the training (from both the University and EU) which allowed them to learn tools and techniques that they would not normally be able to afford which allows them to be more competitive with larger organisations who have access to six sigma through consultants or in house specialists.

Thank you

Submitted by Pham on Mon, 10/07/2006 - 9:30pm.

Hello Tony,
Many thanks for this. I have come across someone interested in Six-Sigma training and shall direct him to you.
Best wishes.

Submitted by Thomas on Wed, 12/07/2006 - 8:22pm.

Hi Tony

In your opinion where do you see the development of Six Sigma going in the UK?.

It is my impression it is starting to lose its bite with many companies or is it a case that many companies are still not fully aware of its real strength?.

What do you think will follow SS

Submitted by tony fouweather on Thu, 13/07/2006 - 10:49am.

Hello Thomas

I think its possibly the same everywhere, not just in the UK. But the organisations who first adopted the six sigma strategy felt quite strongly about it and believed in the philosophy and could see the benefits it could bring. The organisations that came later thought they should get in on it as they were missing out when they heard the positive stories from the 'pioneers'. These later organisations are often not as 'passionate' about six sigma and consequently they don't put the same effort in to its application. They have heard that it can bring all the benefits but are often not willing to implement it properly and just expect the improvements to happen by themselves or with minimum effort.

Six sigma promotes continuous improvement and often organisations think that a one off six sigma project will help them. To be successful the whole company outlook should change to accommodate the six sigma philosophy and this should be throughout the organisation from management right down to the shop floor. Its a big commitment to take if its to be successful and should not be taken up just because you have heard it helps profits/competitiveness/etc.

Six sigma is not actually that new. Its been around since the 1980s and many of the techniques used under the six sigma umbrella have been around much longer.

The future for six sigma looks promising. It can evolve with more statistical techniques and greater understanding of industrial engineering and lean sigma is trying to expand on six sigma by incorporating other management tools into the strategy. Six sigma can bring real benefits to a business by applying the DMAIC strategy to a wide range of problems. Its evolution is essential for continuing the successes seen so far. Most people would not argue that when its done right it can definitely benefit the organisation and give them a competitive edge. The next step is to expand and improve on the strategy and this can only be done by organisations with management that value the philosophy and are willing to embrace the next step.

Thankyou
tony

Submitted by kwng on Thu, 13/07/2006 - 5:44pm.

Is there any chance of hearing your presentation in audio
as your ppt presentation is very interesting and impressive?

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