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The scientific approach to operations performance improvement
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MISSION
Help manufacturing companies & service organizations achieve a
competitive advantage by raising the efficiency & quality of their
business transactions & processes
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CONTENTS
ABOUT US
4
WHAT IS WASTE?
5
EXAMPLES OF WASTE
6-7
WHAT ARE DEFECTS?
8
EXAMPLES OF DEFECTS
THE COST OF WASTE & DEFECTS
9-10
APPENDIX I
SKILLS
32-33
EXPERIENCE
34-36
BIOS
37-40
11
PROBLEM
12-13
SOLUTION
14-18
REWARDS FOR IMPROVEMENT
19-20
SUCCESS STORIES
21-28
SUMMARY
29
CONTACT US
30
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ABOUT US
Six Sigma Solutions LLC is owned & managed by certified Lean Six Sigma
experts.
We design, develop & execute operations improvement plans using Lean
Six Sigma tools & methodologies to minimize waste (non value-added work)
& defects (variations) in business transactions & processes.
Our clients benefit from:

Reduced costs

Better quality products & services

Satisfied customers
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WHAT IS WASTE?
Any activity which absorbs resources BUT adds no value to the
service or product from the customer’s perspective

Non value-added work is called waste

Waste is caused by inefficiencies

Inefficiencies incur costs
CUSTOMERS ARE UNWILLING TO PAY FOR
WASTE
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EXAMPLES OF WASTE
SERVICES

Overproduction: work done but not required today

Unnecessary motion: walking, searching, fetching

Inventory: obsolete files, excessive data, extra supplies

Transport: moving information, passing around data or materials

Extra processing: excessive detail, bureaucracy

Rejects: missing data, wrong information, incorrect order

Waiting: waiting for instructions, waiting in line
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EXAMPLES OF WASTE
MANUFACTURING

Overproduction: more parts made than required today

Unnecessary motion: searching, fetching, reaching, walking

Inventory: too many stored parts, excessive WIP

Transport: moving WIP & inventories around

Extra processing: unnecessary inspection, testing

Rejects: scrap, rework, customer returns

Waiting: waiting for next cycle, waiting for help
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WHAT ARE DEFECTS?

Defects are variations in transactions & processes that
reduce the quality of products & services

Defects require rework, consume resources, create
instability, generate delays & cause scrap

Defects are frequently & mistakenly accepted as an
unavoidable part of doing business
CUSTOMERS ARE UNWILLING TO PAY FOR
DEFECTS
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EXAMPLES OF DEFECTS
SERVICES

Data entry inaccuracies

Incorrect or incomplete orders

Insufficient or excessive inventories

Accounting errors

Billing inaccuracies

Missing or misfiled paperwork

Loss of critical data

Improper or incorrect instructions
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EXAMPLES OF DEFECTS cont’d
MANUFACTURING

Parts/components/ingredients made out of tolerance

Broken or poorly functioning products

Damaged packaging

Incorrect machine set ups

Incomplete drawings specifications

Processes set too hot, too cold, too fast, too slow etc.

Incorrect bulk materials co-mingled or mixed

Missing data & information
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THE COST OF WASTE & DEFECTS

Delays in transactions & processes

Lower quality products & services

Consumption of scarce resources

Customer dissatisfaction
WASTE & DEFECTS REDUCE EBITDA
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PROBLEM
Even the best managed organizations are impaired by waste &
defects

Waste is accepted as a necessary part of
getting the job done

Defects are assumed to be inevitable

Costs have to be absorbed because the
customer is unwilling to pay for it
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PROBLEM cont’d

The effects of waste & defects on products &
services may not be communicated or fully
understood

There is a lack of analytical & statistical tools
needed to select, define & execute operations
improvement solutions

Resources are too busy managing day to day
challenges rather than working to systematically
reduce waste & defects
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SOLUTION
Use Lean Six Sigma tools & methodologies as part a four step
operations improvement strategy
1. Identify & quantify opportunities to reduce
waste & defects
2. Create an operations improvement plan
3. Lead & execute the plan
4. Adopt a culture of continuous improvement
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SOLUTION cont’d
1. Identify & quantify opportunities to reduce waste & defects

Map the “Order to Cash” process

Define, measure & compare waste & defects

Prioritize opportunities according to their
financial impact & importance
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SOLUTION cont’d
2. Create an operations improvement plan

Establish & agree on achievable targets
(key performance indicators)

Identify required resources

Create Process Action Teams

Integrate bottom line metrics into the plan

Measure & broadcast progress
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SOLUTION cont’d
3. Lead & execute the plan

Clearly communicate goals &
objectives

Define measurement standards

Train people to become technically
competent

Enable & empower recommenders
& decision makers

Make employees accountable

Celebrate & reward
achievements
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SOLUTION cont’d
4. Adopt a culture of continuous improvement

Create forums (cross functional teams) to create & develop
suggestions

Integrate concepts into management meetings

Act upon simple, low cost solutions first

Implement solutions quickly to gain
momentum

Acknowledge, celebrate & reward
accomplishments

Involve customers
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REWARDS FOR IMPROVEMENT

Reduced costs

Increased margins

Lower inventories

Reduced DSO

Better cash flow

Less debt
INCREASED
EBITDA
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REWARDS FOR IMPROVEMENT cont’d

Faster transactions & processes

Higher quality products & services

Satisfied customers
COMPETITIVE
ADVANTAGE
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SUCCESS STORY 2
CLIENT
$650 million iron & aluminum casting firm
with 17 foundries emerging from bankruptcy
CHALLENGE
For XRoads Solutions improve the
performance of the five least efficient plants
TASKS
 Increase core making productivity
RESPONSE
1. Eliminated bottlenecks in the core making
lines
2. Corrected root causes of core scrap
3. Fixed defective molding operations
4. Identified & corrected root causes of
casting scrap
5. Redesigned grinding operations & process
flow
 Reduce core scrap
COSTS REDUCED
$4.7M
 Minimize defective castings
 Raise molding line productivity
 Increase grinding room productivity
ROI
7 MONTHS
 Reduce WIP & inventory
 Reduce costs
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SUCCESS STORY 5
CLIENT
Vought Aircraft - Manufacturer of aircraft
components, assemblies & structures for
commercial & military applications
CHALLENGE
RESPONSE
1.
Modified material handling layouts
2.
Changed manufacturing processes
3.
Implemented Lean Six Sigma tools &
methodologies
Improve manufacturing processes & reduce
non conformance issues with wing skins
TASKS
 Improve full up wing assembly
manufacturing efficiency
 Improve the efficiency of machining for
wing skin panels
 Decreased total materials handling duration 40%
 Non conformances reduced 49%
 Make general operations improvements
 Productivity improved 21%
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SUCCESS STORY 6
CLIENT
United Technologies - Advanced System
Division: Space & Defense Design &
Manufacturing
CHALLENGE
RESPONSE
1.
Implemented Lean Six Sigma tools &
methodologies
2.
Implemented TQM program
3.
Rolled out SPC program
Implement cost savings for complete
Tomahawk Cruise Missile Program from
project start up through production
TASKS
 Implement cost reduction program
 Costs reduced 60%
 Improve total quality
 Make improvements to manufacturing
operations
 Defects reduced 30%
 Cultural shift towards continuous improvement
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SUCCESS STORY 8
CLIENT
RESPONSE
MTSI - Engineering Services Automotive &
Aerospace
1.
Developed & implemented Sales &
Revenue business plan
2.
Rolled out full Catia & Unigraphics
CAD/CAM system
CHALLENGE
Improve gross revenues & raise productivity
while controlling costs (no additional
overhead)
 Gross revenues to $6.6 million from $1.5 million in 3 years
TASKS
 Start up Business Development
Department
 Income up 53%
 Productivity up 66%
 Upgrade Engineering Department
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SUCCESS STORY 9
CLIENT
RESPONSE
SUMMA Technology Inc. - Manufacturer of
aircraft components, assemblies &
structures for commercial & military
applications
CHALLENGE
1.
Created cross functional teams:
engineering/procurement/costing &
pricing
2.
Implemented Lean Six Sigma tools &
methodologies
Start up Estimating Group Business
Development supporting manufacturing
operations
 Demand up: sales backlog to $150 million
TASKS
 Start up the Estimating Group for
manufacturing operations
 Revenues to $35 million from 6.7 million in 3 years
 Productivity up 28%
 Improve customer experience
 Make operations improvements in
machining & assembly
 Defects reduced 30%
 Cultural shift towards continuous improvement
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SUMMARY
Typical bottom line impact of a successful operations improvement
implementation

Higher quality products & services

Improved cash flow

Efficient use of resources

Increased EBITDA

Reduced costs

Satisfied customers
SAVINGS TYPICALLY FROM 1% TO 5% OF
REVENUES
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CONTACT US
OFFICE
PARTNERS
PO Box 3375
Huntsville
Al 35810
Carl E. Watson Jr. BSc, Master Lean, Six Sigma Master Black Belt
Cell: 256-337-9811
cwatson@sixsigmasolutionsllc.com
info@sixsigmasolutionsllc.com
http://www.sixsigmasolutionsllc.com
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APPENDIX I
QUALIFICATIONS
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SKILLS

Expertise: Certified Lean Six Sigma professionals

Science: Proven tools & methodologies

Communication: Promoted through the ranks - able to convey information
at all managerial & functional levels

Seniority: C-Level executive experience in small, medium & large
companies
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SKILLS cont’d

Execution: Operations improvement plans driven by aggressive ROI
& bottom line results

Flexibility: Operations improvement plans designed, scaled & timed
to fulfill client’s objectives & organizational dynamics

Urgency: Experienced in finding improvements fast for financially
distressed companies

Balance: Understand needs of creditor & debtor communities in
financially distressed situations
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EXPERIENCE
FUNCTIONS

Administration

AR/AP

Design & fabrication

Engineering

Operations

Project management

Payroll

Quality systems management

Scheduling & production management

Supply chain

Logistics, distribution & warehousing
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EXPERIENCE cont’d
SERVICES

Administrative

Healthcare

Staffing

Supply Chain Management

Interim Management
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EXPERIENCE cont’d
MANUFACTURING
MANUFACTURING

Aerospace/defense

Automotive parts

Composites

Contract manufacturing

Injection molding

Cosmetics/personal care

Machining & fabrication

Electronics/Technology

Pharmaceuticals

Food & beverage

Printing & publishing

Foundries & metals

Pulp & paper

Rubber
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BIOS cont’d
CARL E. WATSON Jr.
Carl has a Master Lean Certificate, a Six Sigma - Master Black Belt Certificate and a Six Sigma Green Belt Certificate from Villanova University, PA.
He earned his Bachelor of Science Degree in Technical Business from Athens State College,
Alabama. He also has a Machine Shop and Tool and Die Certificate from John C. Calhoun State
Community College, Alabama and a CNC Machine Technology Certificate from Drake Community
College, Alabama.
As Vice President for MTSI in Huntsville, AL he grew the firm’s revenues from $1 million to $6.6
million in four years by meeting tough defense contract specifications and exceeded expectations
by winning contracts for programs such as Bell Helicopter: 609 Program Tooling, PPG Bombardier:
Aircraft Windshields Design and Modeling, and General Motors: Saturn Manufacturing Tooling. He
also led hardware implementations for Operations Support and Engineering Personnel for the
International Space Station.
On behalf of Vought Aircraft Industries, Carl served as a Member of their Corrective Action Board to
implement Lean Manufacturing for key programs such as Airbus, Gulfstream GIV, GV Wing
Assembly and the revolutionary V22 Osprey. This resulted in reduced costs, improved quality,
retention and extensions of various defense and commercial contracts.
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BIOS cont’d
CARL E. WATSON Jr. cont’d
At GKN Aerospace Services, he worked with Industrial Engineering Estimating and Lean
Manufacturing Optimization where he helped them retain and win new defense and commercial
contracts by developing highly efficient methods of manufacturing.
At Pratt and Whitney, he was the Lead Senior Manufacturing Engineer in the Advanced Systems
Division where he worked on the Advanced Cruise Missile and the Tomahawk Cruise Missile. He
was also a member of their Material Review Board for Manufacturing and as SPC Team Captain, he
conducted statistical process control training classes and wrote SPC procedural policies for their
operations personnel to improve the quality and efficiency of their manufacturing operations.
During work on various defense contracts, he completed a Government Compliance Seminar,
Federal Acquisition Regulation and Total Quality Management training.
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END
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