Hi folks

Emails huh …. what a pain they can be.

Rather than adding to your already heavy workload, we are strictly limiting the emails we send to our customers. The best way for us to do that is to provide only value adding information using the most relevant mediums.

So …

We will only use Email …

1. To Inform relevant Managers of the training schedule to assist with forward planning

2. To inform course students of attendance details and provide access to downloads (tools, software etc)

3. To inform course students of changes that relate to certification and ongoing course participation

We will use Social Networking Media …

1. Let you know about our upcoming leadership and Lean Six Sigma training (about 3 month and 1 month notice)

2. To advise of important information related to you generating greater value in your business

3. To advise of the release of new business articles and videos

4. To release the new books we have published

5. To upload and share course pictures and videos

Most importantly, we never spam, nor will we upload or communicate anything we do not consider to be important or value adding to your work and career.

What’s Your Preferred Media?

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George Lee Sye Harry Sinko	Soarent Vision George Lee Sye Harry Sinko
Facebook	Google+
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Please note that George, Harry and the rest of the Soarent Vision team use Facebook for fun and lifestyle purposes. You are welcome to connect with any of us.

See you online.

George

Published by SigmaXL on 3 May 2012

SigmaXL have indicated that as of June 1, 2012, they will not provide support to systems running Microsoft Excel XP.

Acknowledging that some people are still using Excel XP, SigmaXL state they have to ensure compatibility with the latest versions of Excel. Unfortunately, the differences between Excel XP and the more recent versions have become too significant to accommodate.

Microsoft has concluded its Extended Support phase for Office XP as of July 12, 2011, more information can be obtained from Microsoft.

If you have any questions, please contact SigmaXL directly - http://www.sigmaxl.com/

Effective from 1st of May, 2012, the LATEST SCHEDULE OF COURSE RATES reflects savings as great as $2,500 for some of the most valuable qualifications and education in the business improvement / Lean Six Sigma world today.

Greater savings are also available for volume participation in this AQF accredited Lean Six Sigma program.

Quotation

For a Quotation or to discuss how Soarent Vision can reduce your BI costs and increase returns ….

• Call us on 61 – 7 – 3377 0824, or
• Email us at home@soarent.com.au

——————————————–

Soarent Vision arguably provides the most advanced and business relevant Lean Six Sigma and Master Black Belt training in the world today for Mining and Energy.

Soarent Vision’s AQF accredited Lean Six Sigma program for Green Belts and Black Belts integrates perfectly with the MBB program and prepares participants to become the most influential and high performance leaders on the planet.

Soarent Vision’s nationally accredited Lean Six Sigma Green and Black Belt (Diploma and Advanced Diploma in Business Improvement Leadership) training program for Mining and Energy companies continues to add enormous value to host companies (BHP Billiton, Rio Tinto, Anglo American, Fortescue Metals Group, Goldfields, Woodside Energy).

On the back of it’s consistent success in generating tangible and quantifiable returns through competency certification of course participants, the program has grown from strength to strength since it’s first delivery in Queensland during 2002.

The second 2012 cycle is now locked in for public delivery in Brisbane, the sunny capital of Queensland.

The Next Training Cycle

The next cycle of training begins in July 2012 and some places are still available.

GREEN BELT / DIPLOMA

• Module GB1 – Lean Thinking Foundations (4 days)
• Module GB2 – Six Sigma Fundamentals (4 days)
• Module GB3 – Diploma Bridging Course (self paced component)

BLACK BELT / ADVANCED DIPLOMA

• Module BB1 – Quantitative Decision Making (5 days)
• Module BB2 – Quality Function Deployment (self paced)

Training Schedule and Registration Options

• Online – visit here www.soarent.com.au/courses
• Phone – Call us on 1300 551 294 (Australia only)  or  61-7-3377 0824

NOTE: If you are registering for the full Diploma in BIL or Advanced Diploma in BIL qualifications, call us first to enrol.

—————————————

Soarent Vision is the provider of AQF accredited Lean Six Sigma Training in Australia. Under the governance of its Academy of Process Mastery and the Australian Qualifications Framework (AQF), this is arguably the most effective Lean Six Sigma skills development program in the world for Mining and Energy Companies.

For more information about this world-class training visit here - http://www.soarent.com.au/apm

Since the first delivery in Perth (Western Australia) in 2010, attendance at Soarent Vision’s AQF accredited Lean Six Sigma Green Belt (Diploma) and Black Belt (Advanced Diploma) program has grown beyond expectations.

As arguably the best Lean Six Sigma training program for Mining and Energy companies in the world, it is now a part of the Business Improvement staff development strategy for a number of major companies including Fortescue Metals Group, Anglo American, Woodside Energy, Citic Pacific Mining and Goldfields. BHP Billiton and Rio Tinto also place employees on the program.

Why so popular?

The main expectation of industry is to receive content that can be applied immediately after training has been delivered to generate tangible and quantifiable value. The fact that Soarent Vision meets this expectation and the qualifications are AQF accredited  at the Diploma and Advanced Diploma levels has been the biggest differentiator.

The Next Cycle of Training

Registrations are now open for the next cycle of training which begins in Perth during July 2012.

GREEN BELT / DIPLOMA

• Module GB1 – Lean Thinking Foundations (4 days)
• Module GB2 – Six Sigma Fundamentals (4 days)
• Module GB3 – Diploma Bridging Course (self paced component)

BLACK BELT / ADVANCED DIPLOMA

• Module BB1 – Quantitative Decision Making (5 days)
• Module BB2 – Quality Function Deployment (self paced component)

Training Schedule and Registration Options

• Online – visit here www.soarent.com.au/courses
• Phone – Call us on 1300 551 294 (Australia only)  or  61-7-3377 0824

NOTE: If you are registering for the full Diploma in BIL or Advanced Diploma in BIL qualifications, call us first to enrol.

—————————————

Soarent Vision is the provider of nationally accredited Lean Six Sigma Training for Mining and Energy in Australia. Under the governance of its Academy of Process Mastery and the Australian Qualifications Framework (AQF), the certification process is designed to maximise the probability of economic returns for the host company.

For more information about this world-class training visit here -http://www.soarent.com.au/apm

SigmaXL and Process Control Charts

The latest release of SigmaXL Statistical Analysis Software has a range of incredibly useful templates and tools including the Control Chart Selection Tool.

This tool is designed to simplify the process in choosing the correct Statistical Process Control chart for any given data set you wish to analyse for your business improvement project.

To show you how to use it, we will refer to a simple variable data example collected through a process of subgroup sampling.

Here is the data set.

Now we locate SigmaXL’s Control Chart Selection Tool in the Control Chart menu.

The selection tool asks you to choose the type of data you are analysing – Continuous/Variable Data or Discrete/Attribute Data.

In this case, we choose Continuous/Variable Data.

Choose use entire data table.

And then select the characteristics that are relevant to your data set and click OK >>.

Your completed Control Chart is generated and appears on a separate worksheet.

And there it is, ready for you to draw your conclusions.

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SigmaXL is possibly the best value for money statistical analysis tool for Lean Six Sigma practitioners.

It presents a range of tools and templates that will satisfy the needs of even the most advanced Six Sigma users.

For more information about SigmaXL and to download your trail software, visit our website here.

SigmaXL has now released the latest version of its incredibly versatile software.

Version 6.12

The latest version is jam packed with features and is a serious alternative to more expensive options.

It offers a range of new functions including an extensive list of templates that cater to the needs of Lean Six Sigma professionals. These include:

DMAIC and DFSS Templates

• Team/Project Charter
• SIPOC Diagram
• Flowchart Toolbar
• Data Measurement Plan
• Cause & Effect (Fishbone) Diagram and Quick Template
• Cause & Effect (XY) Matrix with Pareto**
• Failure Mode & Effects Analysis (FMEA) with RPN Sort**
• Quality Function Deployment (QFD)
• Pugh Concept Selection Matrix
• Control Plan

Lean Templates

• Takt Time Calculator
• Value Analysis/Process Load Balance
• Value Stream Mapping

Multiple Windows Formats

It is now offered in both 32 Bit and 64 Bit formats and is compatible with Windows 7 platforms and Excel 2010.

To download and trial this new version, visit our main Sigma web page - http://www.soarent.com.au/lean-six-sigma/sigma-xl-software

by George Lee Sye

I remember getting a battery-operated train as a Christmas present when I was a child. When the ON button was activated, the train would self propel around the lounge room bumping into everything in its path. The front wheels were arranged in such a way that when it bumped into an immovable obstruction, it would simply make a whole lot of noise, back away and take another path until it bumped into some other obstruction. Its life simply consisted of bumping into obstacles and changing direction until eventually it ran out of energy.

Unless a Lean Six Sigma Black Belt undertakes some form of risk management for their implementation project, they risk operating much like this train did. When you meet obstructions you will have to change direction and if this continues to happen you’ll be forced to abandon your original plan and shift into an ad hoc project management approach.

A Lean Six Sigma project leader must not ignore the fact that there will be uncertainty in the implementation of their solutions. Risk and uncertainty go hand in hand, and for even simple projects it must be managed.

The purpose of this piece is to provide an overview of project risk and opportunity management. Risk is experienced when you are exposed to the consequences of uncertainty. In the absence of uncertainty, there is no risk, as you would know with 100 percent confidence what would occur.

Dimensions of Risk

Traditionally, we view risk as something associated with what can go wrong that will hurt us. Something bad even. However, that is not the complete picture of risk. Risk has multiple dimensions:

Hazard - The traditional focus of risk management is on managing the downside associated with the consequences of an adverse event such as loss, fraud, damage and any other negative form of risk. Hazard risk is addressed through compliance and contingency planning (insurance, instructions, audits, response plans etc).

Opportunity – Usually an investment or financial focus is required to take action required to maximise the upside within the constraints of the organisation’s environment. A view from this dimension is implicit in the concept that risk and return have a strong relationship. A lot of the work that goes into deploying Lean Six Sigma in a business is for the purpose of managing opportunity based risk, that is putting in place a strategy for capturing and benefiting from opportunities that would otherwise go unrealised. Opportunity risk is addressed through value management (hedging, futures, scenario planning, proactive improvement etc).

Variation – Risk associated with the difference between anticipated outcomes and actual outcomes. Whilst more academic in nature, this view is of the distribution of all possible outcomes and the uncertainty associated with that distribution. Variation exists somewhere between hazard and opportunity. Variation risk is addressed through process improvement and variation management.

Risk Management in Implementation Projects

Risk management during the phase leading up to solution generation, addresses both hazard-based risk and opportunity-based risk.

For example, strategies such as operating agreements are put in place to reduce the likelihood of conflict between parties that could have a negative impact on the project. On the other hand, the work of the team leader in facilitating the process largely addresses the risk of missing opportunities to generate the best solutions. Both sides of the equation are addressed, albeit unconsciously on many occasions.

By contrast, risk management during the implementation phase largely addresses hazard-based risk. The purpose of risk management during this phase is to maximise the probability that implementation project objectives will be achieved.

When carefully thought out, these objectives are usually linked to the constraints of the implementation project … i.e. time, cost, performance/quality and scope, therefore anything that can adversely affect any of these should be addressed.

By minimising these impacts, the project should be completed:

• on time,
• within budget,
• according to scope, and
• achieve the level of performance expected by stakeholders.

————————

To Read more about managing project risk within the Lean Six Sigma project environment, refer to Chapter 18 of Process Mastery with Lean Six Sigma 2nd Edition.

by George Lee Sye

It’s been spoken about in political circles, it’s mentioned in finance news, it’s a situation that will benefit those who are in a position to capitalize on it and will cause misery for those who aren’t.

Australia’s Two Speed Economy

The Mining and Energy sector has experienced tremendous growth over the past decade, and it’s on the back of this growth that Australia’s economy has remained solid while other countries struggle. The Australian Newspaper reported that construction work on new resource projects rose by 31 percent during 2011.

It’s also very clear that this sector is where the growth will continue to be for the foreseeable future, particularly in Western Australia.

Therein Lies the Opportunity for Action Takers

The question is how can a non-miner without any obvious mining industry skill or qualifications enter and build a career in this sector?

Here’s how, let me tell you about my friend Mick.

A New Career in Mining

Mick was working for the Queensland Government in a community service role. His military background had positioned him perfectly for his job.

He approached Soarent Vision in 2010 seeking to develop his skills further so he participated in our Lean Six Sigma Black Belt training program.

Mick’s participation served him in a number of ways:

Number 1 – He learnt the application of a highly valued methodology now implemented in all major mining companies today, it is also growing rapidly in popularity for the junior mining companies.

Number 2 – He developed a skill set that allows him to work in industries and processes which are foreign to him – in this case the Mining sector.

Number 3 – He chose a training program that was specifically designed for and is recognised as the preferred training for this industry – mining.

Number 4 – He developed a network of contacts that would serve him later.

Not only did Mick do the Lean Six Sigma training, he also took action that accelerated his entry into a career within the mining industry.

1. He chased opportunity to apply his new skills by volunteering to help a small manufacturing business to improve their processes – this gave him some runs on the board and demonstrated his initiative and drive.
2. He maintained his network of contacts.
3. When an opportunity was presented to him … he took it.

Mick now works for one of the largest mining companies in the world!

He has held three positions during his tenure with the organisation, is now financially much better off than he was two years ago, and his career prospects grow as he learns more about mining businesses and their processes.

Do You Want a Career in Mining?

If you do not have mining skills or qualifications, one of the most effective ways to enter and build a career in the mining industry today is through becoming a Lean Six Sigma Black Belt.

Here’s why:
- You do not need to be a content expert or a miner; rather you facilitate process and engage with people who are content experts
- You can quickly generate quantifiable value for an organisation, value that is recognised at the highest levels
- You learn the business rapidly by understanding its processes
- You have room to move around the various functions of the business
- You quickly build a network within the business

The opportunity is there for the taking!

Take care.
——————-

Soarent Vision provides the best Lean Six Sigma Training and Support for Mining and Energy companies in the world today.

It’s accredited, it’s not delivered by academics but people who use it, it’s not cheap but fair value for money, it’s designed purposefully for the Mining and Energy sector, and it can generate enormous value for both the course participant and the host company if they play their part.

For more information about the training, visit here – http://www.soarent.com.au/lean-six-sigma/academy-process-mastery

by George Lee Sye

I am often asked this question …

“What value will we get in return for training people in lean six sigma?”

Fair question I guess.

Here’s the answer …. NONE!

Let’s cut through the crap and use a little blunt force trauma … training NEVER generates a return!

If a manager thinks that training somebody is going to suddenly impact the bottom line, they’ve missed the point entirely.

The ONLY thing that will generate some return is the utilisation of what it is one learns.

Therein lies the problem I see in many [if not most] improvement and leadership training programs today; people learn something and then return to work and go straight back to their old job and ingrained ways of behaving.  Hmmm, George, don’t open that can of worms.

Let’s instead refine the question and ask this …

What quantifiable value will we get if we implement and effectively utilise an appropriate business improvement strategy (which might include Lean, Kaizen, TOC, Six Sigma or any combination of methodologies)?

Much better question!

Let me attempt to answer it this way.

What do the numbers tell us?

PART 1 – THE FINANCIAL RETURNS CAN POTENTIALLY BE SIGNIFICANT

In the 2nd edition of my book, Process Alchemy, I quoted figures drawn from the publicly available financial reports of some major companies. (refer to page 54 of Process Alchemy – 2nd Edition)

Those figures are a bit old now, particularly if we focus on the $ values. So let’s not do that.

The problem with $ values is they vary so greatly and we can’t really compare conpanies against one another because of the variation in size and situations.

We can instead focus on a metric which is more appropriate across all organisations.

That metric is the $ value of bottom line impact converted into a ‘percentage of revenue’. Now we begin to get a clearer picture which we might use to understand impact on our own companies.

The returns experience by companies who do it properly are reportedly up to about 3 percent of revenues.

• General Electric – 0.35 to 1.79 percent (1996 to 1999)
• Motorola – 0.44 percent (1986 to 2001)
• BHP Billiton – 0.23 to 0.74 percent (2001 to 2003)
• Black and Decker – 1.91 to 2.27 percent (2001 to 2002)
• Honeywell – 2.11 to 2.80 percent (1998 to 2000)
• American Express – 0.84 percent (2002)

How does that relate to your situation? I’ll leave it for you to do the maths.

If you are seeking this type of quantifiable return, my advice is this.

1. Clearly understand the performance of your VALUE STREAMS – a business unit leader or line manager who cannot refer to or analyse a value stream map of their business will never realize the potential of their business

2. Write your BUSINESS PLAN (I mean at the business unit / asset level) around profitability targets and any other appropriate business objectives

3. Identify where you need to make PROCESS PERFORMANCE SHIFTS in order to achieve that plan – your PROJECT PIPELINE will eminate from these focal points

4. If you need to train people to close the PROCESS IMPROVEMENT SKILL gap, do it properly – develop them according to your needs, don’t just copy somebody else or reinvent the wheel to satisfy somebody’s ego

5. If you have trained improvement people (green belts and black belts), get line managers to USE THEM for projects that are going to make process improvements related to achieving business plan objectives

Always remember this … Lean Six Sigma today is a business execution strategy, not speculation about where you might save a few dollars by training people.

PART 2 – FEW ACTUALLY SUCCEED

It would be impossible to get a true picture of company failures and successes with lean six sigma initiatives.

Even so, I have heard it claimed consistely around the traps by consultants and industry experts that the failure rate is in the vicinity of 80 percent.

Only 20 percent succeed? Seriously … that’s ridiculous!

Towards the end of the GFC (the first one I mean), I spoke to representatives of 126 companies around australia and asked them one question – Have you increased, decreased, maintained the same or eliminated your efforts in business improvement in response to the GFC?

Here’s what I learned – 92 companies had either REDUCED the size of the business improvement team (and the financial commitment that went with that) or had ELIMINATED it completely.

I know one guy who was given 30 minutes notice that he was now redundant!

Why?

I have one thought here … if business leaders / executives in those companies believed BI was generating a genuine $ return, they would never decrease their efforts or investment in it.

I’ll leave you to draw your own conclusions.

If you want to kill your BI initiative do this!

Number 1. Just TRAIN PEOPLE (Western Mining Corporation did this when they trained some 15 black belts during 2004 – not one project was completed in the 12 months I observed them and only 1 of those black belts was still at the company 12 months later)

Number 2. Don’t drive your improvement PROJECT PIPELINE from a value stream perspective, do it piecemeal and without any real framework behind it

Number 3. Do not SYSTEMISE BUSINESS IMPROVEMENT nor make it part of the business execution process – let it sit out there on its own as a bolt on and another thing to do

Number 4. Set it up so it only survives and thrives on the back of a HIGHLY MOTIVATED INDIVIDUAL and hope they stay in your company

Number 5. Take on as many projects as you can and create a STATE OF CONTINUOUS CHANGE and initiative overload – don’t worry about that control phase [of DMAIC] where we lock in change and stability

Number 6. And finally … if you do train green belts and black belts, LEAVE THEM IN THEIR OLD JOBS and pray they use their newly learned skills to make business related improvements

It’s depressing to see this so often in businesses in Australia.

Anyway, enough of that, let’s take a quick look at real business improvement benefits.

Benefits you can (and must) decisively set out to achieve.

1. Increase Earnings (cost reduction and / or revenue increases visible on the profit and loss statement)

- Reduce fixed and variable costs (i.e. power, insurance, maintenance, cost per unit produced, rework, life of non capital assets, interest paid)

- Increase revenue (i.e. process yield, unit sales volume, interest earned, unit price)

2. Convert Current Assets Into Cash (move balance sheet $ into the bank as cash)

- Reduce debtors (i.e. payment cycle time, accounts receivable)

- Reduce inventory (i.e. parts, work in progress, stockpiles)

3. Defer or Prevent Capital Outlay

- Increase the useful life of plant and machinery

- Increase plant capacity (i.e. reduce defect production rate, increase production capability)

4. Increase Asset Value

- Increase future growth potential (i.e. customer data base, future production, management capacity, staff capacity, process capacity)

- Reduce business risk (i.e. key person risk, cash flow smoothing, potential liability etc)

Here’s some tips to consider so you don’t waste your money!

TIP 1. If you plan to do some training and have no idea what the return will be, don’t do the training till you do.

TIP 2. Get support in developing the framework that will drive quantifiable financial success with this improvement thing we all talk about.

TIP 3. One size does not fit all … Six Sigma may well be the correct methodology to introduce first in a manufacturing business, Lean is more appropriate in the first instance in an organisation where throughput is the main issue.

TIP 4. One size does not fit all … Lean Six Sigma for manufacturing is not Lean Six Sigma for mining or energy.

TIP 5. If leaders and line managers are not going to take responsibility and drive this, forget it. Invest your money in rental property instead.

TIP 6. The initiative must impact the key variables that in turn positively affect (a) the multiple of valuation (Price Earnings Ratio or PER) and (b) company earnings … only then will you get corporate executive support.

- Note – if you’re not sure what this means, get a copy of How to Create Wealth IN Business – for Kindle or iPad only

TIP 7. Put energy into project pipeline development and management.

- Note – some good learnings can be gleaned from How To Select Great Improvement Projects – available for Kindle and iPad

That’s it!

Until next time, take care

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Soarent Vision is the provider of nationally accredited Lean Six Sigma Training in Australia under the governance of ….. hang on a minute, that is so boring. Let me start again.

Soarent Vision provides the best Lean Six Sigma Training and Support for Mining and Energy companies in the world today. I gotta call it as I see it.

It’s accredited, it’s not delivered by academics but people who use it, it’s not cheap but fair value for money, it’s designed purposefully for the Mining and Energy sector, and it can easily convert into an investment IF you play your part.

For more information about the training, visit here – http://www.soarent.com.au/lean-six-sigma/academy-process-mastery