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Mark Kiemele, President & Co-Founder, Air Academy Associates

Feb 15, 2005

SIX SIGMA SPOTLIGHT
FEBRUARY, 2005

MARK KIEMELE
PRESIDENT & CO-FOUNDER
AIR ACADEMY ASSOCIATES

Six Sigma SpotLight is a regular feature of the e-Zsigma newsletter, and allows us to introduce one of the global six sigma community's superstars.

Mark J. Kiemele, President and Co-founder of Air Academy Associates, (www.airacad.com), has more than 30 years of teaching and consulting experience.  Having trained, consulted, and mentored more than 25,000 leaders, scientists, engineers, managers, trainers, practitioners, and college students from more than 20 countries, he is world-renowned for his Knowledge Based KISS (Keep It Simple Statistically) approach to teaching statistical methods to practitioners.  Mark’s list of global clients include such high-profile companies as Sony, Microsoft, GE, Raytheon, Lockheed-Martin,  Northrop-Grumman, Woodward, Honeywell/AlliedSignal, and Samsung.

 

Mark earned a B.S. and M.S. in Mathematics from North Dakota State University and a Ph.D. in Computer Science from Texas A&M University.  Dr. Kiemele has been involved in the origin and evolution of Six Sigma, as he helped train the first Six Sigma Black Belts at the Six Sigma Research Institute at Motorola and has helped deploy and implement Six Sigma at more than 60 companies worldwide.

 

In addition to many published technical papers, Mark has co-authored the books Basic Statistics: Tools for Continuous Improvement, Knowledge Based Management (KBM), Applied Modeling and Simulation: an Integrated Approach to Development and Operation, the AT&T Bell Labs book entitled Network Modeling, Simulation, and Analysis, and most recently Lean Six Sigma: A Tools Guide.  He is also the editor of the text Understanding Industrial Designed Experiments.

 

We were delighted that Mark was able to take a few moments out of his schedule to share some of his insight and experience with Six Sigma and Lean Manufacturing.

 

1. News: "In April of 2004, you traveled to Beijing's BeiHang University, School of Jet Propulsion, (http://sjp.buaa.edu.cn/english/intro/intro.htm#), to present on the topic of Six Sigma and Design for Six Sigma (DFSS).  With the economic growth that we are seeing in China, and the trend in North America to offshore manufacturing for strategic cost-reduction, can you comment on what role Six Sigma may play in helping North American industry remain competitive in the face of increased globalization.  Are we, in fact, seeing the "Death of Manufacturing", as provocatively offered in an April, 2004 Business Week article for small business, (see http://www.businessweek.com/smallbiz/content/
apr2004/sb20040420_0081_sb002.htm
)”

1. Mark: "Those are tough issues, and I’m going to begin by addressing the “death of manufacturing”, and then I will talk about the role that Six Sigma may play.  First of all, I don’t think we’re seeing the death of manufacturing in North American small business, per se, but what we are seeing is the hastening of the transient nature of jobs – most certainly from manufacturing to other types of jobs, which are most notably knowledge-working kinds of jobs.  The movement of manufacturing-type jobs to the information knowledge sector is really not a new phenomenon… we’ve been seeing this happening for many years.  The transfer of jobs to overseas locations is happening faster today because our world is much smaller on a time domain basis than it ever has been, and it will continue to shrink. 

I think corporations today are under such heavy pressure to produce profits quickly, that they don’t have much choice but to outsource offshore to where the costs are lowest – provided, of course, that they’ve covered their risks in choosing to do so.  The off-shoring of jobs is not all bad, although this may appear to be the case at first glance – especially from a political point of view – but the idea of comparative advantage plays a huge part here. 

For example, if we off-shore the manufacturing of computer components so that we can reduce the price of computers so that every household in North America can afford one, how many more jobs will this create?  Granted, the jobs will be of a different kind, but there will be more and more jobs.  And, this is where, I believe, Six Sigma has played a major role in making North America more competitive.  For one, I’ve seen some of our clients do everything they possibly can to cut the cost of waste and cost of poor quality using Six Sigma so that they can actually save jobs from going off-shore.  These companies really don’t get enough credit – certainly in the news media, at least – for doing what they are doing to prevent jobs from going off-shore.  I see Six Sigma helping North America become more competitive in three major ways. 

Firstly, making companies more productive, that is, more output per person.  Secondly, I see it helping people move from one job to another, where they can help another part of the company become more productive.  The third area, where I think Six Sigma has been very helpful, is in enabling companies to develop more problem-solvers.  I know that may sound trivial, but a true problem-solver will never be without work, and that is what we need to ingrain into our young people from early on – in their early grade school years.

The world is changing rapidly and we need to be able to adapt to that.  Six Sigma has played a huge role in all three of these things, and I believe it will continue to play a big role in the future.”

2. News: "In a recent article for Quality Digest, (see http://www.qualitydigest.com/aug04/departments/lastword.shtml), you made the statement, ‘What’s more apparent is the trend that’s accelerated noticeably during the last two years--the “dumbing down” of Six Sigma.’  Are you really convinced that this is happening, and what is the evidence or metrics to support this point of view?  If this is the trend, then what are some of the things that we can do to turn it around?”

2. Mark: "Well, you are a true Six Sigma guy, Rod – you want the data… In essence, I do believe this phenomenon is happening as Six Sigma becomes more and more commoditized, and I am not talking about the different shirts which show the Six Sigma logos from various companies that you and I see on airplanes when we are traveling.  What data do I have to support this view? 

For example, when we do Master Black Belt (MBB) training with Black Belts (BB) coming in from a variety of companies, from different industries and from around the world, we see huge variation in the knowledge level between these people.  There is variation in the BB curriculum, the certification process, the amount of time they are spending on Six Sigma… in almost every place one looks, there is variability.  We’ve had companies come to us requesting that we make Six Sigma Black Belts out of their people, and we’re given three days to do it.  In a sense, they are saying, “Can you name that tune… in three notes!”  And furthermore, they go on to say they expect these (3-day) BB’s to go on to train their own, internal people.  That’s the blind leading the blind!  It seems that everyone has their own idea as to what Six Sigma is about. 

While I don’t think we will ever see standardized criteria for what a given Six Sigma Belt certification may be, I do think there are some things that organizations can do to mitigate this trend.  One thing many of our clients are doing now is assessing knowledge levels.  About seven years ago, a vice president at GE Lighting asked us to develop a test for his MBB’s.  At that time, I thought this was pretty much non-value added, and I told him that.  Over time, I believe, he has proven to be right and I was wrong… his idea was, indeed, a good one. 

This idea of continually assessing as well as shoring up where we are weak is a step in the right direction.  Another thing I’ve seen some of our clients do is provide Six Sigma questions that managers who interview prospective Black Belt and Green Belt hires can ask so that they can get a better idea as to what kind of knowledge and experience the candidate really has, and if they really know what they are talking about.  Keeping the standards high will be a continuing challenge for Six Sigma and Lean, especially as this commoditization continues.”

3. News: "We have seen a proliferation over the last few years of Six Sigma conferences as well as professional membership organizations that have evolved to provide a Six Sigma "community" and "Learning network" for individuals or companies to participate in... so much so that it seems to have become an industry in of itself.  What are your thoughts on this, and what advice would you give to companies or individuals that are considering attending future conferences or obtaining a professional membership?”

3. Mark: "First of all, there is definitely a need for professional associations and conferences from which people can learn as well as network with others.  You are absolutely right, in that it has become an industry in itself.  There is so much out there today in the way of conferences and professional networking opportunities, that it becomes difficult to choose.  My recommendation for companies or individuals who are considering professional membership or attending conferences is that they actually apply the Six Sigma principles and tools to make the best selection possible – our check books will not allow participation in every event or membership that is available.  The Pugh Matrix for selection may be a good tool to help focus on what is important and evaluate the trade-offs. I do believe the market on Six Sigma conferences and memberships is saturated, and I believe it is inevitable that we will see some falling by the wayside, just as we would expect for some of the existing Six Sigma consulting and training providers in what has truly become a saturated market.”

4. News: "In the past 3-5 years, we have seen the massive swing of Six Sigma into the Finance & Shared Services arena.  Bank of America, Ceridian, American Express, and JP Morgan Chase, to name but a few, have imbedded Six Sigma and Lean Sigma methods, principles and tools into their organizations, and using it to drive process improvement as well as business strategy.  What are your observations regarding this shift of Six Sigma into the non-manufacturing sector, and what are some of the advantages as well as pitfalls these types of companies should be aware of?”

4. Mark: "I think the evolution of Six Sigma into the service sector is wonderful, and couldn’t have happened too soon.  Every where we go, we see the impact of defects and inaccuracies in our daily lives, and the idea of using measurements – even with things that traditionally have been hard to measure--can never be overstated.  One of the biggest pitfalls I see in a transition to a measurement mentality – especially in a services environment – is that it doesn’t happen quickly.  Many companies that are “doing” Six Sigma think they really “are” Six Sigma.  There is a huge difference between doing and being Six Sigma. 

For example, I recently had a new credit card that had been issued to me… my name was spelled wrong, it was originally sent to the wrong address, and the credit amount was also incorrect.  When I contacted this company, the representative was very friendly, and quickly stated that they were a Six Sigma company.  I responded by saying that I did not know what else could have gone wrong with my card, and with three opportunities, (name, address and credit limit), all three were inaccurate, and that if they were indeed Six Sigma, I must be the most unlucky person in the world, because out of the next 999,997 opportunities, they can afford only one more inaccuracy to remain at Six Sigma. 

The idea of being trained in Six Sigma is one thing, but the pursuit and practice of Six Sigma is a tough business, and I think we are seeing a wide gap between doing Six Sigma and being Six Sigma.   We need to keep the faith and continue the fight.”

5. News: "Historically considered "competing" methods, Six Sigma and Lean Manufacturing are now generally accepted as being extremely complimentary - to the point that the lines are blurred... "When am I doing a Lean project and when am I doing a Six Sigma project?"  Six Sigma, Lean, or Lean Sigma?... Can you offer our readers some guidelines in terms of successfully choosing the right process improvement tools and methods?  Like hypothesis testing, is there a "decision tree" out there that they can use that will allow them to navigate in the Six Sigma Lean jungle?”

5. Mark: "Well, I’m not sure if I have a decision tree, but there is no doubt that Lean and Six Sigma are extremely complementary and synergistic.  From a conceptual point of view, it’s important a practitioner remember that Lean is about removing non-value added activity whereas Six Sigma is all about adding value back in to the value-added steps in a process.  From a tools point of view, when we execute projects, if the performance measure to be improved happens to be cycle time or typically any issue to do with timeliness, the lean tools associated with flow and pull (systems) will usually contribute greatly… Tools such as value stream mapping and single minute exchange of dies (SMED), which have its origins in manufacturing but apply equally well in service, Kanban, just-in-time (JIT), 5-S with visual controls, Takt time… all of these work extremely well.  Now, when doing value-added steps better, then the Six Sigma tools come in handy.  When proving improvement – that requires data which must be collected, allowing for analysis of the data… establishing confidence limits, estimating risk… all of these things require the Six Sigma tools. 

I think it is counterproductive to try to partition what is lean and what is Six Sigma.  That’s really for historians to decide – not practitioners.  The completely integrated approach to simplify and perfect, I think, is what is needed and what we call it is immaterial.  Lean and Six Sigma happen to be the terms in vogue today, but if an organization’s embracing of a methodology is dependent upon the name or the label, the momentum they have behind that program will ultimately falter.  It’s the concepts and the tools to implement… the leadership that aligns the implementation and the deployment, and fosters that environment… those are the really important things.

North America is a very label-oriented society, and that also contributes to one of your previous questions, which is the dumbing down of Six Sigma… we become so focused on the label, we forget what it is really all about…and what it is supposed to be doing for us.”

6. News: "Many universities across North America have, or are currently considering, Six Sigma as a part of their post-Graduate programs as well as core curricula.  We were recently asked, ‘When will the need for specialized six sigma training programs end?’, and we responded, ‘When six sigma and lean sigma tools become an integrated part of the formal education system, both secondary as well as post-secondary and graduate’.  What do you see as the future for the Six Sigma ‘industry’, and this increased recognition of the value of Six Sigma tools, methods and principles in mainstream academia?”

6. Mark: "That’s a terrific question… The movement of Six Sigma into our schools and universities, not to mention the business schools, which is a priority of mine, has been extremely slow.  I can’t imagine an MBA student not being exposed to Six Sigma in this day and age.  Six Sigma has been one of the major factors in improving productivity in organizations, but, it is still happening… there are folks coming out of MBA programs that have not heard of Six Sigma. 

I think Six Sigma is getting more of its due, if I might call it that, in academia today, but what these students are really getting is the academic spin on Six Sigma, which tends to be much more theory than practice.  Those practitioners, who have done many, many projects…those who have championed a deployment, for example… If those are the folks who are teaching our courses in academia, then we’re going to be one step ahead.  If someone who has never experienced the financial savings first hand as a result of working and leading a Six Sigma project, never worked with a team on a common (improvement) goal, is teaching the (Six Sigma) course, then I think we will be one step behind. 

I think we will be seeing more and more about Six Sigma in academia, and we are seeing schools coming to Air Academy Associates, asking us to integrate Six Sigma into their curriculum.  Six Sigma, however, is not a spectator sport – you have to be out there doing it, and if we can make that link between the practical and the academic, within our educational institutions, it will work.”

7. News: "Air Academy Associates, formed in 1990, is one of the pillars of the Six Sigma movement.  It is our impression that, while your client list has included some of the largest companies in the world, you have made a decision not to jump on what may be described as the Six Sigma "bandwagon" that has seen many other professional service organizations - some more successfully than others - leverage the growing demand for Six Sigma talent.  If my perceptions are correct, and notwithstanding the respect and notoriety you and your team have garnered over the last decade or more, do you see Air Academy as a "niche" player in this market?  What can we expect to see and hear from Air Academy Associates in the future?”

7. Mark: "Thank you for the kind remarks about Air Academy Associates – we appreciate the detailed research you have done on our company.  Over the years, we have embraced the notion of Six Sigma and Lean because we know they give us the best methods that are out there today for improving processes and driving profitability.  However, we believe there is a dimension that is much deeper than merely applying DMAIC to a project… That dimension is knowledge. 

For example, in each of the five phases, what is the knowledge gain as a result of the application of the tools?  We’ve tried over the years to get more granular than just DMAIC.  We’re trying to get the right knowledge to the right people at the right time, because that is when good decision-making will occur.  We have smart people in organizations… we work with some of the smartest people in the world, and if they have the right knowledge at the right time, they’re going to make the right decisions.  What it really comes down to is that there are two major transformations that must occur for process improvement to happen. 

Firstly, we have to turn data into information.  That’s where the Six Sigma tools and methodology can really help us.  There is also another transformation to a higher dimension that I’m calling knowledge.  Turning information into knowledge requires critical thinking, and that’s the dimension we continue to emphasize, and that has formed the basis for what we call our knowledge-based approach to Six Sigma and Lean.  There are questions that we provide that must be answered in each phase of DMAIC and we use these questions as a “pull” system for the use of the appropriate tools. 

We will continue to be a player on the Six Sigma scene, because we know it is the best there is, but always trying to integrate the goal of generating the right kinds of knowledge, and bringing in new tools whenever we can to make knowledge generation easier for our clients.  We are placing more and more emphasis on knowledge-assessment today, identifying existing gaps in our client’s knowledge-generating capability and then attempting to fill those gaps.  We will continue to bring new tools and cross-pollinate application areas with such tools as high throughput testing, which offers tremendous savings to companies in testing alone.  For people who think that Six Sigma is just a static set of tools and methods, there are new things happening, and they need to think again.  The power of the computer today – better software, better hardware – allows us to expand the capability of Six Sigma and Lean.

Above all, our emphasis at Air Academy will be on continued learning and the application of proven methodologies to gain the knowledge required for companies to sustain leading positions in world-class technology, production and service.

Rod Morgan, e-Zsigma (Canada) Inc.

If you have a Six Sigma "superstar" you would like to have featured in SpotLight, please send your recommendation to news@e-zsigma.com along with:

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2. the reason you are submitting their name

3. a photograph or "action shot" if you have one

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