Six Sigma Courses Focus on Efficiency

Six Sigma, a methodology corporations have used to save billions of dollars, is being offered for a second year by Northwest Arkansas Community College.
Use of the discipline, both in practice and as an overarching business culture focused on increasing profits by nearly eliminating defects, is becoming an indispensable part of business and industry.
Motorola employed the Six Sigma method in 1985 with the goal of reducing process defects to a rate of 3.4 per million and has documented $16 billion in savings during the past 20 years. Former General Electric CEO Jack Welsh was also a leading proponent of the method, which saved GE more than $4 billion after 1986.
One “sigma” is defined as a degree of variance and Six Sigma refers to the acceptable range of variance from a desired output. It was introduced as a concept and the name was coined by Motorola engineer Bill Smith in 1984. (Six Sigma was later trademarked by the company.)
Jim Corbin, associate vice president of the Continuing Education program at NWACC, estimated up to 100 companies in Northwest Arkansas use Six Sigma to some degree, a group that includes Wal-Mart Stores Inc.
The program consists of real-world projects that have resulted in an average annual savings of $59,000 for participating companies, Corbin said. That figure does not include the savings companies realize from further Six Sigma projects, potentially in the millions.
Some course projects have saved hundreds of thousands, such as Superior Industries’ process improvement on wheel welds. Smaller efforts like Fuji Film’s effort to reduce paper waste netted $8,400 in annual savings.
Other local companies to send employees through the program include McKee Foods in Gentry, Rockline Industries in Springdale, and Baekart Corp. and RTW Kennametal, both in Rogers.
There are two main levels of Six Sigma, both offered at NWACC. The Green Belt level costs $1,095 and qualifies employees to participate in Six Sigma projects.
The Black Belt level course costs $6,165, certifying graduates to lead Six Sigma projects with higher levels of problem identification and solution expertise. Tuition costs for the companies are returned directly from the projects employees complete while in the program. Applicants to the Black Belt course must show a previous Six Sigma project resulting in either $75,000 in annual savings or a tenfold reduction in defects.
Employees also see the benefits. A salary survey from iSixSigma magazine during 2005-06 showed those at the Black Belt level earned an average of $75,000 while those at the Master and Champion level average $101,000 and more.
“We have some very pleased customers,” Corbin said.
Corbin said 91 students have either completed the course or are currently enrolled. Ten students are now in the Black Belt course and 18 will begin the next Green Belt course. Corbin had to turn away some applicants for the current Green Belt class and registration will begin soon for the next one, which starts Jan. 4.
“We will expand our capacity to accommodate the need,” Corbin said.