Davenport, IA — November 17, 2006 — Kaplan University announced today the introduction of an online Six Sigma Certificate program for professionals interested in leading complex process improvements.

Six Sigma methodologies are designed to help businesses improve productivity and generate savings. “In today’s global economy, large companies increasingly rely on process improvement to maintain quality and manage costs,” said Kristina Belanger, vice president of continuing and professional studies at Kaplan. “As the demand for the Six Sigma method grows, so too does the demand for Six Sigma-certified professionals.”

The Six Sigma Certificate is a self-study program that can be completed in six months for the Green Belt level, or 12 months for the advanced Black Belt level. Six Sigma students will learn to more effectively manage quality improvements in both processes and projects. The curriculum includes learning how to define project goals, measure existing performance and analyze defects to eliminate them from business processes.

Professionals with Six Sigma certification typically earn nearly 10 percent more than those without certification, according to the American Society of Quality 2004 Salary Survey. The typical salary for a Six Sigma Black Belt is $88,858.

Several of the largest companies in the United States, including General Electric, use the Six Sigma program. It can be incorporated into every facet of a business, including production, human resources, accounts receivable and technical support.

Kaplan said it would begin enrollment in the certificate program immediately. More information is available on the university’s Web site.

Based in Davenport, Iowa, Kaplan University is accredited by The Higher Learning Commission of the North Central Association of Colleges and Schools (NCA). Kaplan University currently serves more than 26,000 online and on-ground students.

Years of surveying and conversations with readers have shown that busy executives turn to an industry magazine like Supply & Demand Chain Executive for essentially two reasons: to learn how to solve problems that they know they have, and to learn about solutions for problems they didn’t even know they had. The mission of this magazine, then, is to provide targeted information to help corporate executives and other supply and demand chain management professionals as they enable their supply chains for competitive advantage.

As part of this mission, each year the magazine uses its Supply & Demand Chain Executive 100 feature to make its readers aware of those enablers that are leading the way in providing cutting-edge solutions and services to help enterprises address pain points in their supply chains through the application of new technologies and new processes.

This year the magazine focused the criteria for its “100″ feature on innovation. Based on the submissions for the “100″ from end users and technology companies themselves, our judging committee looked for solutions across a variety of industries, addressing the needs of companies of varying sizes, and assisting in the transformation of a diverse mix of the functions that make up the supply chain. The result is a comprehensive listing of leading providers of supply chain services and technologies who are at the forefront of innovation.

The solution providers that follow are listed in alphabetical order, and this article provides a brief description of why each enabler was included in this year’s “100″ listing. We suggest scanning through the article and noting those solution providers that enable those segments of the supply chain (Sourcing, Logistics, etc.) that are current priorities at your enterprise, as well as consulting the additional online resources available at SDCExec.com — including the Interactive Global Supply & Demand Chain Map, the Global Enabled Supply & Demand Chain Directory and our Best Practices Forum — in order to assemble a list of appropriate solution providers who can assist you. In this way, the “100″ listing can provide a vital first step on your supply chain enablement journey. Bon voyage!

Common abbreviations: PLM — Product Lifecycle Management; CRM — Customer Relationship Management; ERP — Enterprise Resource Planning.

4flow AG (Berlin, Germany; Enables: Sourcing, Fulfillment/Logistics, Decision Support/Consulting). First integrated, standard software for supply chain design. Web-based planning engine allows users in different countries to work collaboratively on planning projects.

Aankhen Inc. (San Jose, Calif.; Enables: Order/Demand Management; Procurement; Sourcing; Decision Support/Consulting; Supply Chain Integration & Infrastructure/ERP; Payment; Fulfillment/Logistics; PLM). Solution automates the in-context computation of “should be cost,” allowing enterprises to manage what should be the spend and reducing financial leakage and uncertainty.

ACQUIREX (Long Beach, Calif.; Enables: Procurement; Payment). Web service integration technology allows customers to integrate electronic purchasing to existing technology infrastructure and MRP/ERP solutions; smaller companies gain benefits of e-procurement without the upfront professional service fees.

Adonix (Pittsburgh, Pa.; Enables: Order/Demand Management, Fulfillment/Logistics, CRM, Supply Chain Integration & Infrastructure/ERP). Revamped X3 app enables companies to extend ERP information infrastructure to accommodate key business partners as if they were internal users.

ADR North America LLC (Ann Arbor, Mich.; Enables: Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment, PLM, Procurement, Fulfillment/Logistics, Sourcing, Order/Demand Management). Creating practical, sustainable solutions that clients use to achieve cost savings and competitive advantage through their purchasing and supply chain operations.

Agistix (Redwood City, Calif.; Enables: Procurement, Fulfillment/Logistics). First carrier-neutral heavy freight shipping solution to automate freight shipment processing and provide visibility into global freight shipments.

AIM Computer Solutions Inc. (Fraser, Mich.; Enables: Procurement, Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, CRM, PLM, Fulfillment/Logistics). First to integrate billing, shipping, ASN transmission and release accounting with AIAG labels.

Arena Solutions (Foster City, Calif.; Enables: PLM). First to bring the benefits of on-demand – faster deployment and more cost-effective solutions – to PLM market. Customer Strida Bicycles implemented the Arena solution in two days and doubled its business within one year.

ARGO Tracker (Tucson, Ariz.; Enables: Fulfillment/Logistics). Combining GPS and wireless communication technologies with add-on sensor capabilities to enable real-time asset tracking and visibility of goods in transit throughout the supply chain, resulting in reduced costs due to damage, vandalism and spoilage.

Ariba (Sunnyvale, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Leader in solutions transforming procurement. Provides technology, services and expertise on a single, integrated platform.

Avendra LLC (Rockville, Md.; Enables: Order/Demand Management, Procurement, Sourcing, Decision Support/Consulting). Formed to deliver leveraged procurement to the hospitality industry, determining specifications and ordering economically.

Avnet Logistics (Phoenix, Ariz.; Enables: Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Order/Demand Management, Fulfillment/Logistics). Provides specialized supply chain and logistics services in the global electronic components industry.

Axway (Paris, France, and Scottsdale, Ariz.; Enables: Order/Demand Management, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP). Partnered with McKesson Corp. to develop an electronic pedigree solution allowing customers to meet regulatory mandates.

Baxter Planning Systems (Austin, Texas; Enables: Order/Demand Management, Procurement, Fulfillment/Logistics, PLM, Decision Support/Consulting). Integrated inventory planning software collects data from various consumption points and makes strategic recommendations, freeing users from manual data and transaction entry and providing visibility.

BigMachines, Inc. (Deerfield, Ill.; Enables: Sourcing, CRM). Leader in transforming the demand chain by enabling manufacturers to leverage on-demand Web technology to automate their entire customer facing processes.

Business Objects (San Jose, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Decision Support). Business intelligence solutions provide built-in functionality particular to supply chain processes such as procurement, logistics or manufacturing, streamlining information flow across the organization and the supply chain.

CGI Group Inc. (Montreal, Canada; Enables: Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment). Solutions designed to improve the procure-to-pay process. Have been used for statewide spend management in Delaware and Oregon, curbing off-contract purchasing and ensuring correct pricing for on-contract purchases.

Chainalytics (Atlanta, Ga.; Enables: Decision Support/Consulting, Fulfillment/Logistics). Pioneered a statistical model-based benchmark of transportation rates and the impact of operational policies on those rates.

Choice Logistics (New York, NY; Enables: Sourcing, Order/Demand Management, Fulfillment/Logistics, Procurement, PLM). Helps such companies as EMC, HDS and Avaya manage their inventory assets, facilitating on-time operations and improved performance.

Click Commerce (Chicago, Ill.; Enables: Order/Demand Management, Sourcing, Procurement, Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, PLM, CRM). Among the first to identify benefits of offering software-as-a-service in the supply chain management space. Uses a service-oriented architecture to link return forecasting and planning solutions with dynamic decision-making capabilities.

CombineNet (Pittsburgh, Pa.; Enables: Sourcing, Procurement, Decision Support/Consulting). Optimization technology enables “Expressive Commerce”: buyers provide open-ended requests for proposals online; suppliers respond with pricing, alternate items, contract and payment terms, bundled bids and conditional offers based on factors like market share/volume.

Comergent Technologies (Redwood City, Calif.; Enables: Order/Demand Management, CRM). eBusiness System provides support for inbound channel and addresses flexibility in the presentation of information across various user roles; offers an industry model for order capture processes, order routing, tracking and fulfillment.

Corporate United (Cleveland, Ohio; Enables: Sourcing, Procurement, Fulfillment/Logistics). This group buying organization requires all members to participate in commodity committees to hammer out effective national contracts that save millions of dollars for participants.

Cube Route Inc. (Toronto, Ontario, Canada; Enables: Fulfillment/Logistics). On-demand logistics management solutions for last-mile logistics — ideal for companies that want to improve service and achieve real-time visibility into delivery operations.

D.W. Morgan Co. (Pleasanton, Calif.; Enables: Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP). Blends logistics and supply chain solutions to free customers to focus on strategic goals. Works with clients to position their supply chains globally and competitively.

Demand Management Inc. (St. Louis, Mo.; Enables: Decision Support/Consulting, Procurement, Sourcing, Order/Demand Management). DS Collaborate creates a synchronized collaboration network for planning complex multiple promotions. Service Level Optimizer offers alternative way to determine safety stocks by measuring demand, not forecast error.

DSSI LLC (Southfield, Mich.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Payment). Leader in purchasing business process outsourcing (BPO) space, developing a Web-based e-procurement infrastructure that links the client, DSSI and suppliers together for integrated procurement.

E2open (Redwood City, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, PLM, CRM, Payment). On-demand software to address critical supply chain processes such as inventory management, forecast collaboration, order management.

EC Sourcing Group Inc. (Morristown, N.J.; Enables: Sourcing). First enabler to have eight different question formats within its request for information (RFI) module, and also the first provider to have request for proposal (RFP) variable labels technology, allowing all spend categories to be sourced within its e-sourcing software.

Edge Dynamics (Redwood City, Calif.; Enables: Order/Demand Management). Pioneer in channel commerce management solutions for the life sciences industry, allowing manufacturers to more effectively manage and enforce inventory management agreements (IMAs) and ensure inventory availability at the right place and time to prevent stockouts.

Emptoris (Burlington, Mass.; Enables: Procurement, Sourcing, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, CRM). First vendor to offer a single suite and support across the entire supply management process. First turnkey solution integrating source-to-contract processes to SAP’s Materials Management Procurement solution.

Enigma Inc. (Burlington, Mass.; Enables: Supply Chain Integration & Infrastructure/ERP). 3C Platform is the first fully integrated enterprise support chain management solution that has the ability to seamlessly link OEMs, operators and maintenance, repair and overhaul organizations (MROs), and high-tech industries through the Web, offline media (CD-ROM/DVD) and wireless.

Enporion Inc. (Tampa, Fla.; Enables: Order/Demand Management, Procurement, Sourcing, CRM, Payment, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Supply chain management technology tools and services for electric and gas energy companies. Enhancing its customers’ competitive advantage in the marketplace and driving significant savings throughout their supply chains, winning a highly enthusiastic client base.

Epicor Software Corp. (Irvine, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Sourcing, Procurement, Payment, CRM, PLM, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Portal solution is satisfying need for collaboration among consumers, suppliers, partners and employees, while delivering better management of distributed information.

Eqos (Burlington, Mass.; Enables: Sourcing). Offers companies and users working on complex sourcing projects a Web-based collaboration platform and “rapid application development” (RAD) environment that is configurable and flexible to change as processes change and as business grows.

FORTE (Mason, Ohio; Enables: Decision Support/Consulting). Distribution consultant and system integrator offering single-source design/build methodology. Software has developed into a Distribution Intelligence System that organizes, accesses and manipulates distribution performance information for current and future-state performance analysis.

Global eProcure (Clark, NJ; Enablex: Sourcing, Procurement). Pioneered the bid optimization feature in the reverse auction tool, allowing clients to view different savings scenarios before making their final award decision. Helping lead “insourcing” trend, enabling clients to supplement existing procurement resources with external personnel and resources to match procurement needs over time.

GXS (Gaithersburg, Md.; Enables: Order/Demand Management, Fulfillment/Logistics, PLM, Supply Chain Integration & Infrastructure/ERP, Payment). Providing low-cost, easy-to-use solutions that bring B2B e-commerce to small and medium-sized businesses (SMBs).

Hand Held Products Inc. (Skaneateles Falls, NY; Enables: Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Payment, CRM). Offers data collection technology capable of reading any bar code, including damaged and poorly printed labels, plus capture digital images and signatures — all with one solution.

Hewlett-Packard (Palo Alto, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics). Currently has a customer-driven supply chain model consisting of just five supply chains, each providing unique capabilities to meet different customer needs. This “portfolio of supply chains” strategy serves as a model for other companies looking to streamline the supply chain.

HighJump Software, a 3M Co. (Eden Prairie, Minn.; Enables: Fulfillment/Logistics). With a belief that no two supply chains are alike, HighJump develops and provides configurable supply chain execution solutions. Ensures all applications are integrated to support the real-time flow of information between suppliers, manufacturers, distributors and transporters.

Iasta.com Inc. (Carmel, Ind.; Enables: Sourcing, Procurement, Decision Support/Consulting). Iasta brings what it calls “Fortune 500″ sourcing technology to any size company at affordable prices. Building on self-service decision optimization tools.

IBX (Stockholm, Sweden; Enables: Order/Demand Management, Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment, Fulfillment/Logistics). In addition to its “green-yellow-red” methodology of designating suppliers, IBX focuses on making customers self-sufficient as soon as possible.

ILOG (Mountain View, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). CPLEX and PowerOps Suite integrate manufacturing’s planning and scheduling functions, synchronizing planning departments and the plant floor.

I-many Inc. (Edison, NJ; Enables: Decision Support/Consulting, Procurement, Sourcing). Contract management solutions employ a centralized repository of contracts with terms and conditions that is accessible to all supply chain participants. Visibility and control of contractual commitments help ensure regulatory, obligation and transaction compliance.

Indus International Inc. (Atlanta, Ga.; Enables: Sourcing, Procurement, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, CRM, Payment). Drove evolution from computerized maintenance management systems (CMMS) to enterprise asset management (EAM) solutions, expanding asset management to suppliers, service personnel and other outside partners.

Inovis (Alpharetta, Ga.; Enables: Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP). Business activity monitoring technologies enable companies to optimize collaboration with their worldwide trading communities, gain control and visibility of B2B transactions.

INSIGHT Inc. (Manassas, Va.; Enables: Order/Demand Management, Sourcing, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). First software for strategic supply chain design with a built-in set of options that uncover vulnerabilities and suggest designs and provide the relative costs of various strategies.

Integrated Warehousing Solutions (Downers Grove, Ill.; Enables: Fulfillment/Logistics). Encouraging companies to continue through the last mile of supply chain operations by advancing best practices and connecting production to the customer through the warehouse, creating demand-driven operations.

Intuit Inc. (Mountain View, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Payment). Uses customer data to develop business solutions that address specific industry needs. QuickBooks Enterprise aimed at growing businesses within the manufacturing industry seeking a new choice for production automation.

IQNavigator (Denver, Colo.; Enables: Procurement). Offers a configurable platform, giving users the versatility to handle the unique needs of various purchased services categories. As a software-as-a-service solution, IQNavigator can respond to individual user requests for changes or additions to the platform and then make those available to all customers without charge.

JPMorgan Chase (Dulles, Va.; Enables: Fulfillment/Logistics). With the acquisition of Vastera, JPMorgan Chase has become the first financial institution to sell solutions that simultaneously address both physical and financial events on one supply chain.

Ketera Technologies Inc. (Santa Clara, Calif.; Enables: Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP). Leader in the on-demand movement, offering spend management applications and promoting software-as-a-service trend in its offerings.

Kewill (Marlborough, Mass.; Enables: Fulfillment/Logistics). Innovator in transportation management, international trade logistics and visibility solutions for global trading communities. First to deliver the NCAP module in the U.S. to importers and customs brokers, allowing them to participate in the C-PAT security measures.

Kinaxis Inc. (Ottawa, Ontario, Canada; Enables: Order/Demand Management, Fulfillment/Logistics, PLM, Decision Support/Consulting). Leading market niche for response management, giving users tools to meet the challenges of unplanned and unexpected demand changes. On-demand service simplifies adoption.

LeanLogistics (Holland, Mich.; Enables: Supply Chain Integration & Infrastructure/ERP, CRM, Payment, Decision Support/Consulting, Fulfillment/Logistics, Procurement, Sourcing). Among first to offer a transportation management system solution in an on-demand environment. Its solution, combined with a long-term program of continuous improvement, offers a holistic strategy for reducing freight bill and transportation operations costs.

Logility Inc. (Atlanta, Ga.; Enables: PLM, Fulfillment/Logistics, Sourcing, Order/Demand Management). Built performance management capabilities into its solutions that allow companies to manage supply chain processes on an exception basis.

Management Dynamics Inc. (East Rutherford, NJ; Enables: Procurement, Fulfillment/Logistics). Synchronizes the flow of information among trading partners, manages trade regulatory compliance, minimizes border delays, streamlines logistics processes and reduces transportation costs throughout the entire supply chain, reducing risks and costs associated with global trade.

MCA Solutions (Philadelphia, Pa.; Enables: Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Fulfillment/Logistics, Order/Demand Management). Software allows planners to consider multiple what-if scenarios to evaluate the business impact of specified changes in the service supply network, helping transform the service supply chain into a driver of competitive advantage.

Model N (South San Francisco, Calif.; Enables: Decision Support/Consulting, CRM, Order/Demand Management). Integrates the key pricing and revenue relationships that link suppliers, channels and end customers, providing visibility to customer and contract commitments. Solutions help mitigate revenue exposure and regulatory compliance risk while enabling competitiveness.

Nextance Inc. (Redwood City, Calif.; Enables: Procurement). Contract performance management technology provider Nextance is the only industry player with fully XML-based solutions. Targets smaller companies’ supply chains with its Contract Insight with QuickStart Deployment.

Optiant (Burlington, Mass.; Enables: Supply Chain Integration & Infrastructure/ERP). Solutions allow customers to create models that show real-world uncertainty, helping them create dynamic supply chains that can respond and adjust.

Plexus Systems LLC (Auburn Hills, Mich.; Enables: Decision Support/Consulting, CRM, Payment, Supply Chain Integration & Infrastructure/ERP, Order/Demand Management, Fulfillment/Logistics, Procurement). Manufacturing performance system that integrates and streamlines the manufacturing process.

PowerTrack (Minneapolis, Minn.; Enables: Supply Chain Integration & Infrastructure/ERP, Payment, CRM, Decision Support/Consulting). Web-based electronic payment network creates links between physical supply chain events and back-end financial processes.

PrimeRevenue Inc. (Atlanta, Ga.; Enables: Procurement, Decision Support/Consulting, Payment). Supply chain finance solution applies supply chain management principles from product and information flows to financial flows and allows real-time monitoring and tracking of accounts payables transactions and cash flows.

Procuri (Atlanta, Ga.; Enables: Sourcing, Procurement, Decision Support/Consulting). Helped pioneer the on-demand delivery model for supply management and offers one of the industry’s most comprehensive solutions for managing supply management processes.

Prorizon Corp. (Kennesaw, Ga.; Enables: Procurement). Pioneered the Procurement Service Provider, or Managed Procurement Services, trend. Working to create one process for managing client order fulfillment by providing business process optimization consisting of middleware and resources to manage global daily transactional processes.

PurchasingNet Inc. (Redbank, NJ; Enables: Procurement, Sourcing, Payment). Credited with the first PC-, LAN- and Web-based purchasing systems, delivering first solution in 1983. Latest generation procure-to-pay solution is recognized as a leading solution and a value-conscious choice in the marketplace.

QAD (Summerland, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Payment, PLM, CRM). Envisions the future of manufacturing as a perfect lean market where the right information in the right place at the right time enables the supply chain to respond seamlessly to change.

Quadrem (Amsterdam, The Netherlands; Enables: Procurement, Sourcing, Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Payment, Decision Support/Consulting). Delivering value to buyers and suppliers by marrying procure-to-pay functionality with new value drivers that speed the payment process, deliver payment visibility and improve working capital management.

Real Time Freight Services LLC (Chicago, Ill.; Enables: Procurement, Fulfillment/Logistics, Sourcing, Supply Chain Integration & Infrastructure/ERP). Web-based solution that allows carriers and shippers to exchange information both within and across companies in real time.

Remstar (Westbrook, Maine; Enables: Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Fulfillment/Logistics). Solutions to split case picking applications have decreased London Drugs’ picking labor by 50 percent while keeping efficiency at 100 percent.

Sage Software Inc. (Irvine, Calif.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Supply Chain Integration & Infrastructure/ERP, CRM, Decision Support/Consulting). Innovative services designed to meet specific accounting and business management needs in selected industries.

SAS (Cary, NC; Enables: Sourcing, Order/Demand Management, Procurement, Decision Support/Consulting, CRM, Supply Chain Integration & Infrastructure/ERP). Helping customers see their supply chain as a strategic business issue. Remodeled its supply chain software to incorporate a modular SRM solution that allows companies to customize the way they manage supplier relationships.

SeeControl Inc. (San Mateo, Calif.; Enables: Order/Demand Management, PLM, Fulfillment/Logistics). Providing on-demand visibility and control over inventories of parts, maintenance supplies and consumables around the world.

Selectica Inc. (San Jose, Calif.; Enables: Procurement). Recognized leader in sales configuration technology. Plans to advance supply chain transformation by creating a more unified contracts management environment for buy- and sell-side users.

Servigistics (Atlanta, Ga.; Enables: Fulfillment/Logistics, Order/Demand Management). Helping advance supply chain transformation with its service parts management solution, enabling companies to achieve their revenue, profitability and customer service level goals. Solution includes the optimization of service parts prices.

Silvon Software Inc. (Westmont, Ill.; Enables: Decision Support/Consulting). Enterprise performance management (EPM) applications enable users to continually assess customer demand and the drivers behind it and plan, monitor and manage performance.

SLIM Technologies (Boston, Mass.; Enables: Decision Support/Consulting). Innovative solution approach that used Systems Dynamics Modeling together with Mixed-Integer Programming to allow inventory deployment decisions to be embedded in network optimization models.

Smart Software Inc. (Belmont, Mass.; Enables: Order/Demand Management). Invented a unique method to forecast hard-to-forecast items with “intermittent” demand.

SmartOps (Pittsburgh, Pa.; Enables: Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Order/Demand Management). Technology lets users employ systematic, scientific approaches to manage and account for the inherent uncertainty of supply chains in planning and execution.

Source One Management Services LLC (Willow Grove, Pa.; Enables: Sourcing, Procurement, Fulfillment/Logistics). Online procurement tool has a dashboard that can be used by buyers to manage multiple requests for proposals and view history of all RFPs and bids placed, especially important for Sarbanes-Oxley compliance.

SPS Commerce (Minneapolis, Minn.; Enables: Supply Chain Integration & Infrastructure/ERP). Offers EDI as software-as-a-service (SaaS) with low cost of ownership, enabling small and midsize suppliers to comply with retailers’ EDI requirements.

Staples Contract Division (Framingham, Mass.; Enables: Procurement). e-Procurement innovator that has helped its customers understand and achieve lowest total delivered cost.

Stellent Inc. (Eden Prairie, Minn.; Enables: PLM, Payment). Content management solutions help manufacturers streamline core business processes that tie into the supply chain. Customers now collaborate on engineering specifications with international partners via secure extranets.

Supply Chain Consultants (Wilmington, Del.; Enables: Order/Demand Management, Decision Support/Consulting, Fulfillment/Logistics). Provides supply chain planning software and consulting services that help manufacturers optimize the supply chain. SCC’s Zemeter software provides collaborative planning, demand management, inventory management, supply planning and finite scheduling.

Supply Chain Solutions Inc. (Grand Rapids, Mich.; Enables: Fulfillment/Logistics). Has enhanced inventory visibility and replenishment with exception-based alerts to perfect inventory control, enabling the management of complex inbound material flow and outbound distribution.

SYSPRO (Costa Mesa, Calif.; Enables: Order/Demand Management, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, CRM, PLM, Fulfillment/Logistics, Payment). Pushing the boundaries of technology to extend core ERP product and enable smaller to midsize manufacturers and distributors to successfully compete with larger establishments in their respective markets.

Technical Services Associates Inc./Puridiom (Mechanicsburg, Pa.; Enables: Payment, Supply Chain Integration & Infrastructure/ERP, PLM, Decision Support/Consulting, Procurement, Fulfillment/Logistics, Sourcing, Order/Demand Management). First procurement application available for the PC and Windows. Led push to integrate suppliers via EDI and later by cXML. Has promoted the use of blanket agreements to enable self-service procurement strategies.

Teradata, a division of NCR (Dayton, Ohio; Enables: Order/Demand Management, Procurement, Fulfillment/Logistics, Decision Support/Consulting, PLM, Supply Chain Integration & Infrastructure/ERP, Payment, CRM). Solution provides visibility, accurate monitoring, analysis and proactive alerting across entire supply and distribution chain while decreasing costs.

Terra Technology (Norwalk, Conn.; Enables: Order/Demand Management). Introduced Real-Time Forecasting (RTF) solution in 2003 and Real-Time Inventory (RTI) in 2006, helping clients decrease forecast error by 50+ percent and cut safety stock by 20+ percent.

The Mpower Group (Oak Brook, Ill.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Supply Chain Integration & Infrastructure/ERP, PLM, CRM, Payment, Decision Support/Consulting). Focused on change management and transfer of skill and knowledge. Working with companies on an advanced Supply Chain/Sourcing Maturity Model, changing sourcing groups to Value-creating Organizations.

TradeBeam (San Mateo, Calif.; Enables: Fulfillment/Logistics, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Payment). On-demand, end-to-end global trade management suite addresses such thorny challenges as supply chain visibility, global logistics and import and export compliance.

TradeStone Software (Gloucester, Mass.; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Payment, Supply Chain Integration & Infrastructure/ERP, PLM). Pioneered Unified Buying approach, helping companies streamline international and domestic supply chains, source opportunistically and globally and make more intelligent purchasing decisions.

Transplace (Plano, Texas; Enables: Fulfillment/Logistics). Believes capacity will be the key issue plaguing the logistics industry for years to come, and says ideal solution is collaboration, which can be achieved through on-demand solutions.

TrenStar Inc. (Denver, Colo.; Enables: Sourcing, Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Mobile asset management pioneer that tracks millions of assets daily. Its pay-per-use model supports the pooling of common containers and other mobile assets.

Verian Technologies (Charlotte, NC; Enables: Sourcing, Procurement, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure/ERP). Meeting mid-market requirements for robust e-procurement functionality, capturing and managing 100 percent of non-payroll spending.

VeriSign Inc. (Mountain View, Calif.; Enables: Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting). Helping the consumer goods, retail and pharmaceutical industries access and manage data that translate into real-time visibility of product location, supply and demand by enabling information exchange and collaboration among global supply chain participants.

Verticalnet Inc. (Malvern, Pa.; Enables: Decision Support/Consulting, Procurement, Fulfillment/Logistics, Sourcing). Verticalnet’s greatest innovation over the past year has been the push to put into operation it’s “on-demand” service.

Vinimaya (Shelton, Conn.; Enables: Procurement). First software-based solution for enabling suppliers on e-procurement solutions much faster and less expensively than traditional methods.

Vision Chain (Washington, DC; Enables: Order/Demand Management). Supply chain managers at consumer product companies use Vision Chain for a single location to feed daily point-of-sale (POS) data into demand forecasting apps, tie purchase orders to retailer trade deductions, combine RFID read events with demand data and monitor inventory from point of shipment through the warehouse to the retail store.

Vitria Technology (Sunnyvale, Calif.; Enables: Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Fulfillment/Logistics, CRM). Solutions provide real-time visibility of inbound/outbound orders. Helps actuals vs. historical trends comparison by the hour, enabling companies to react to problems that could result in loss of business.

Vue Technology (Lake Forest, Calif.; Enables: Supply Chain Integration & Infrastructure/ERP). Offers scalable, item-level RFID solutions for retailers and their supply chain partners. Enables a small number of RFID readers to network across thousands of antennas, increasing the number of zones a typical reader can support and eliminating many cost barriers associated with item-level RFID rollouts.

WhereNet Corp. (Santa Clara, Calif.; Enables: Fulfillment/Logistics, Supply Chain Integration & Infrastructure/ERP). Through its active RFID Real-Time Locating System technology, WhereNet has connected mobile assets with the people and information systems charged with managing those assets on a minute-by-minute basis.

Xign Corp. (Pleasanton, Calif.; Enables: Payment). Automates the financial flows between buyers and suppliers on the back end of the supply chain. Xign’s electronic settlement network manages working capital, helping buyers tap early payment discounts to reduce corporate spend while suppliers accelerate collections and reduce their days sales outstanding.

2006 SDCExec “Companies to Watch”

This year’s “100″ feature includes a supplemental list of “Companies to Watch” that includes solution providers implementing innovative projects to help their customers achieve new levels of supply chain performance. Among the many entries submitted for this year’s “100″ list, the “Companies to Watch” stood out for their ground-breaking work within their particular segments of the supply chain.

Acquirex (Long Beach, Calif.; Enables: Procurement, Payment) Developed innovative web service integration technology that allows customers to tightly integrate electronic purchasing to their existing technology infrastructure and MRP/ERP solutions

CDC Software (Atlanta, Ga.; Enables: Supply Chain Integration & Infrastructure/ERP, Customer Relationship Management) Case study for Wise Foods shows the company reduced inventory while maintaining a 99.6 percent service-to-sales level;, cut labor costs by predicting needs more than 24 hours in advance, saving $600,000 annually; and decreased changeovers by 35 percent across packaging and processing lines.

EntComm Inc. (Los Angeles, Calif.; Enables: Order/Demand Management, Sourcing, Procurement; Supply Chain Integration & Infrastructure/ERP Customers save over 4.5 percent of their supply chain costs within the first year by automating procurement, planning data and invoicing with over 90 percent of supplier base.

eWork Inc. San Francisco, Calif.; Enables: Procurement, Sourcing, Decision Support/Consulting) Provides vendor-neutral business process outsourcing strategies and solutions for the contracted workforce. Also integrates enterprise-class apps, outsourced managed services, and a consultant supplier network.

Global4PL SCM Consulting and Software (San Ramon, Calif.; Enables: Sourcing, Procurement, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Payment) Global4PL is a consulting company and technology broker that helps small to large sized companies that do not have the time or the experience to negotiate confidently with their vendors.

Infravio (Cupertino, Calif.; Enable: Product Lifecycle Management, Supply Chain Integration & Infrastructure/ERP) The creator of Service Delivery Contracts for enabling customization of Web Service/SOA style integrations. Users attribute it to a 95 percent reduction in the cost of integration and a 20-time improvement in integration speed.

InStream Financial (Huntington Woods, Mich.; Payment) Company’s product developed to integrate with B2B networks as Web-based financing solution. Requires no contractual commitment from buyers, leverages many lenders to fund its transactions and purchases supplier receivables.

Intervolve Inc. (Raleigh, NC; Enables: Customer Relationship Management) Intervolve pioneered providing on demand supply chain software using web and mobile technologies for the beverage and overall consumer goods markets.

Liaison Technologies (Alpharetta, Ga.; Enables: Supply Chain Integration & Infrastructure/ERP) Liaison Technologies’ offerings are delivered as managed services and are causing manufacturers to revaluate the competitive advantages that on-demand and managed services can bring to global businesses.

MFG.com Inc. (Atlanta, Ga.; Enables: Procurement, Sourcing) MFG.com is an online marketplace serving the manufacturing community with a focus on customer experience to help companies compete in a commoditized market with thin margins and tough competition.

National Logistics Management (NLM) (Detroit, Mich.; Enables: Order/Demand Management, Procurement, Sourcing, Fulfillment/Logistics, Payment, Customer Relationship Management, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP) NLM determines optimal shipping modes and coordinates shipments based on best price and quality. Its techniques have transformed how manufacturers order urgent shipments of components, resulting in reduced costs and improved quality of service.

Nulogy Corporation (Toronto, Canada; Enables: Decision Support/Consulting, Product Lifecycle Management, Supply Chain Integration & Infrastructure/ERP, Order/Demand Management, Sourcing, Fulfillment/Logistics) Nulogy has developed a platform of operational intelligence software tools that enables supply chain managers to make decisions more intelligently, more quickly, and with more focus.

One Network Enterprises (Dallas, Texas; Enables: Fulfillment/Logistics, Sourcing, Procurement, Order/Demand Management, Decision Support/Consulting, Supply Chain Integration & Infrastructure/ERP, Customer Relationship Management, Payment) One Network Enterprises pioneered real-time Web-based appointment scheduling.

OnVantage Inc. (Santa Clara, Calif.; Enables: Procurement) MeetingView is about to launch the first real-time electronic marketplace for purchasing meeting rooms and associated groups of sleeping rooms that includes real-time “best practice” guidelines, enabling users to make sourcing decisions.

Precision Industries Inc. (Omaha, NE; Enables: Order/Demand Management, Fulfillment/Logistics, Procurement, Sourcing, Payment, Customer Relationship Management,; Decision Support/Consulting) Company’s collaborative approach to expanding traditional supply chain models includes service parts management and a centralized storeroom offering.

Technology Group International (Ohio; Enables: Decision Support/Consulting, Product Lifecycle Management, Customer Relationship Management, Supply Chain Integration & Infrastructure/ERP, Order/Demand Management, Sourcing, Fulfillment/Logistics, Procurement) Provides enterprise software solutions for small to medium size companies with such features as user-specific dashboards, MapPoint, VOIP and increased functionality to allow users to remain fully compliant for the Bioterrorism Act of 2002 and 21 CFR Part 11 rulings.

Transzap Inc. (Denver, Colo.; Enables: Decision Support/Consulting, Payment, Sourcing) SpendWorks, by Transzap, is an e-payables service that simplifies the tasks involved in procuring and paying for goods and services. Transzap innovatively addresses three key issues: accessibility, mobility and simplicity.

2006 SDCExec Vertically Focused Solution Providers to Watch

This year’s “100″ feature includes a supplemental list of “Vertically Focused Solution Providers to Watch” that includes enablers implementing innovative projects to help their customers in specific industry segments achieve new levels of supply chain performance. These companies stood out for their pioneering approach to supply chain challenges in their target industries, but they are worth a look for supply chain executives in any sector.

Deacom Inc. (Wayne, Pa.; Enables: Order/Demand Management, Supply Chain Integration & Infrastructure/ERP, Fulfillment/Logistics, Product Lifecycle Management) DEACOM ERP software remains the only business software system for building component, prefabricated housing, process and mixed-mode manufacturers to integrate all functional areas of a manufacturer, thus providing a comprehensive view of the entire operation.

eSchoolMall (Horsham, Pa.; Enables: Order/Demand Management, Sourcing, Procurement, Supply Chain Integration & Infrastructure/ERP, Decision Support/Consulting, Payment, Fulfillment/Logistics) eSchoolMall is a leading provider of online procurement software and services for K-12 Schools.

Instill Corporation (Redwood City, Calif.; Enables: Procurement) A pioneer of on-demand for the food service industry, Instill automates the collection, translation, and standardization of unit-level invoice data from distributors and presents the information in applications that identify contract price variances, order guide non-compliance, and opportunities for SKU rationalization that drive measurable reductions in food costs of 2 to 5 percent.

Provide Commerce Inc. (San Diego, Calif.; Enables: Order/Demand Management, Procurement, Fulfillment/Logistics, Payment, Supply Chain Integration & Infrastructure/ERP) Provide Commerce started Proflowers.com, using technology to eliminate warehouses and importers. The company continues to branch out into other high-quality perishable goods markets and plans to launch a new subsidiary every year.

Webb/Mason (Baltimore, Md.; Enables: Order/Demand Management, Procurement) Webb/Mason embraced the Internet providing customers with a non-traditional online print ordering solution that produces tangible and measurable results. In 1998, Webb/Mason developed Enterprise Print Management Online.

Is there a company you’d like to nominate for the 2007 Supply & Demand Chain Executive 100? e-Mail Andrew Reese: areese@sdcexec.com.
From Supply & Demand Chain Executive, June/July 2006

When it comes to taking a disciplined approach to reducing defects in manufacturing, many companies may say they are practicing Six Sigma, yet few are actually doing it as rigorously as they should be. That’s according to a new report from the Boston-based IT research firm Aberdeen Group, which also says that companies that fully implement Six Sigma produce on average 40 percent more savings than other companies, including those that say they are implementing Six Sigma.

The research group defines companies that are “truly” implementing Six Sigma as ones that have a formal Six Sigma program; have adopted Define, Measure, Analyze, Improve, and Control (DMAIC) methodology; require employees with Black Belt status to produce results for certification; and require business impact projects to be formally validated by the Finance department. Six Sigma is a disciplined approach to reducing defects and producing measurable financial results. Six Sigma is rooted in statistical engineering and is often associated with lean manufacturing, which strives to reduce waste. In fact, 37 percent of the study’s respondents said their company had both lean and Six Sigma initiatives. A common goal of Six Sigma is to reduce the rate of defects to no more than 3.4 defects per million opportunities.

The report, which examined the practices of 418 manufacturing enterprises in a variety of industries, also makes the following recommendations to improve performance:

-Implement a corporate wide training program to educate employees; implement Six Sigma throughout the organization, not just manufacturing.

-Identify employees who will be dedicated and trained as Black Belts.

-Implement DMAIC methodologies.

-Identify and prioritize business impact projects according to anticipated savings and improved throughput.

-Identify process and project owners who will accept ownership and accountability of the improvement process.

-Use flow charts to map processes.

The report also recommends companies should integrate data collection with analysis, and connect potentially disparate sources of data.

Logistics Management has a new article titled – How does your warehouse stack up? by Maida Napolitano. The survey was conducted jointly by Logistics Management and Gross & Associates, a consulting firm specializing in materials handling and logistics – First Annual Warehousing Trends Survey.

The survey was designed to help today’s warehouse managers get a clearer picture of the challenges they face today and give them an opportunity to see how their warehouse operations compare with the industry average.

The composition of the survey involved:

The results of the Warehouse & DC Trends Study are based on the responses of 485 participants involved in making warehouse-operations decisions at North American companies.

The key findings of the survey are broken down along the following lines:

Typical Characteristics
-Goals
-Need for speed
-Operations
-Finding a solution
-Technology

Typical Characteristics of an American Warehouse

A typical North American warehouse
-is privately owned (77 percent) with either an end consumer (32 percent) or a manufacturer (26 percent) as its primary customer.
-is less than 250,000 square feet
-receives and ships a wide variety of products, such as electronics, computers and software (25 percent); paper, packaging, and office supplies (24 percent); and chemicals and raw materials (21 percent).
-the most common units handled are pallets (87 percent) and cartons (79 percent), with rack storage (86 percent) as the primary storage module, followed by floor storage (62 percent).
-Over 90 percent of warehouses still pick orders manually using carts and pallet jacks, while 20 percent have evolved to some form of mechanized picking to a conveyor.
-3 percent of warehouses have fully automated picking requiring no human intervention. The typical warehouse uses some form of warehouse management system (WMS).
-Thirty six percent of respondents developed their WMS in-house, 22 percent purchased a stand-alone package, and another 22 percent purchased their WMS as part of an ERP module.
-Surprisingly, 23 percent of all warehouses still have no WMS, relying mostly on spreadsheets and order-pick sheets.
-35 percent of respondents have annual budgets of less than $25,000 for continuous improvement programs and 8 percent don’t even have such a budget.
-Of the warehouse managers who have a budget of less than $100,000 (59 percent of all respondents), 37 percent said they would spend some of it on materials handling equipment, while 23 percent planned to invest in information management systems.
-Warehouse managers with budgets of $1 million or more (7 percent of total respondents) focused more of their spending on IT. Of the respondents in this category, 41 percent reported that they would spend on information management systems, while only 21 percent planned to buy materials handling equipment.

Goals
So what are American warehouse managers’ goals?
-The top objective pursued by warehouse decision-makers this year was increasing customer satisfaction (40 percent).
-Reducing costs came in second at 32 percent, validating the continuing cost-control burden on today’s warehouse manager.
-Only 7 percent of respondents reported that they were expanding their operations,
-1 percent said they primarily focused on maximizing efficiency by buying new equipment and systems.

And what are customer’s expectation of warehouse providers?
-97 percent of respondents said order accuracy was most important.
-On-time delivery came in second at 94 percent,
damage-free shipment was in third place with 91 percent.
-Need for speed

As seen from the above customer expectation where on-time delivery was a key customer demand (94% of the time)
-82 percent can ship orders in one day or less
-an impressive 23 percent said they can ship in less than four hours
4- percent of warehouse managers reported that they are still taking more than one week to ship merchandise
The key differentiator between players who are able to respond fast to orders seems to be technology – WMS, bar coding and RF technology (RFID?)

Operations
When surveyed about operational challenges and issues, the survey was further divided into:

-Receiving and shipping
ability to depend on truckers being at the appropriate dock door when needed-was deemed most critical by 43 percent of respondents
40 percent reported that shipping productivity was another critical issue
-Picking accuracy
the majority of respondents (64 percent) rated order accuracy as a highly critical issue for picking
-Metrics
42 percent of respondents said that they track the percentage of orders with errors
40 percent track the percentage of orders shipped complete
value-added services, such as ticketing and customization, were rated as very critical by only 19 percent of respondents
-Overall issues
warehouse safety was considered most critical by 44 percent of survey respondents,
warehouse security (32 percent)
-Finding a solution

How do warehouse managers plan to solve their problems?
-46 percent of respondents said they had purchased materials handling equipment.
-40 percent purged obsolete/overstock inventory

Technology
So what are the technology issues and solutions high up on a warehouse manager’s list of things?

-Bar coding led the way with 52 percent
-WMS followed closely with 48 percent of respondents

Continuous improvement is also making an appearance in the warehousing space if it hasn’t been there for a while already.
-56 percent of respondents reporting that they have implemented this strategy
-24 percent saying that they are making implementation plans.

Strong interest in relatively new strategies such as “lean” warehousing (34 percent), RFID (33 percent), and Six Sigma certification (30 percent) is apparent, yet few reported implementing these strategies or technologies. Many warehouse managers are adopting a “wait and see” attitude regarding new concepts, and are waiting for further proof of their value for their own warehouses.

I found this survey of warehousing to be quite illuminative in that it highlights what is going well in the warehouse space, the goals that are being formulated and the different programs and technologies employed to meet and/or surpass customer expectations.

Honeywell began its Six Sigma journey in 1995 to drive data-based decision making, ensure quality levels, and improve customer satisfaction. Through training, leadership, and senior management support, Honeywell has developed a successful Six Sigma program. However, the progress did not happen overnight and has been recently re-energized to create a more powerful business advantage that will drive productivity and growth.

In late 2001 Honeywell combined the concepts of Lean and Six Sigma in a program called Six Sigma Plus. This program aligns its improvement objectives directly with the business needs by incorporating top talent and producing bottom-line results.

“Although Honeywell had made great progress, Six Sigma was viewed as a side dish and not an entrée,” said Jeff Osborne, Honeywell Aerospace’s vice president of Six Sigma Plus.

“We had to create a compelling Six Sigma vision that was directly aligned to the business. Our vision was to make Six Sigma the way we think, act, and execute. It wasn’t solely about doing projects, and it was much more than Green Belt training and certification; it was about changing the way we operate our entire business.”
Osborne identified the following points as the 10 commandments of Six Sigma:

1. Six Sigma has one purpose: to serve the business. The business does not serve Six Sigma.

2. The Six Sigma vision and strategy must be a subset of the business vision and strategies.

3. Six Sigma organization must be directly aligned to the business model.

4. Focus on application instead of certification.

5. Project selection is owned by senior management, not by the Black Belts.

6. Measure the business results, not Six Sigma activity.

7. Never overstate Six Sigma benefits. Math wins every time.

8. Six Sigma resources must be business leaders and not statisticians.

9. Six Sigma resources must be full time and dedicated.

10. Six Sigma is a mindset, not a quality program.

Six Sigma is a mindset, not a quality program.

During the General Electric-Honeywell merger attempt, Six Sigma at Honeywell had lost much of its energy and enthusiasm. As a result, Honeywell’s Six Sigma program became disenfranchised, which left the employees with low morale. This situation led to the reinvigoration of Six Sigma once the merger attempt ended.

“It was the perfect time to begin to turn the Six Sigma program around,” said Osborne. “… The window of opportunity to implement large-scale change was open, so we seized the moment. The results in the past 18 months have been unbelievable. Employees are excited, leadership is fully engaged, the culture is changing and the results from executing business-critical projects are tremendous. Although, some results, such as culture change, are harder to measure, the pull we are currently experiencing from leadership is very clear and very impressive.”

This response has revived enthusiasm among top executives for Six Sigma. Osborne led the effort to bring leadership into the Six Sigma program based primarily on what he learned during his interactions with General Electric. By incorporating Six Sigma into the way Honeywell employees think, act, and execute, Honeywell has turned Six Sigma into more of a mindset than just a series of productivity projects.

Six Sigma resources full time and dedicated. Every Six Sigma expert (Black Belt or Lean expert) must obtain the following skill sets, in addition to their Six Sigma technical skills, when completing Honeywell’s two-year training program:

• program management,

• business acumen,

• negotiation skills,

• change management skills,

• executive communication, and

• leadership skills/behaviors.

By ensuring these skills are developed, Six Sigma experts are equally balanced in leadership and the technical aspect of Six Sigma. In the past, many Black Belts were so focused on the tool themselves they lost sight of the need to gain organizational acceptance.

Six Sigma resources must be business leaders and not statisticians. When Honeywell began its Six Sigma journey, it made a conscious effort to incorporate the Six Sigma vernacular into the corporate language. However, Six Sigma soon became an entity onto itself. Individuals became so involved in staying within the program that some lost touch with what the leader’s priorities were.
“We took our eyes off the ball,’ Osborne said. “Like many initiatives, Six Sigma began to appear somewhat self-serving to many business leaders. The initiative became the end [instead of] the means to the end. We lost sight of why we’re doing what we were doing.”

Although Six Sigma for the most part was supported at the senior management level, “down in the troops, it was beginning to lose its energy and appeal,” Osborne said.

To remedy the situation, Honeywell recruited top talent through the talent management process, assigned them directly to business leaders and mentors, and emphasized leadership development with future career opportunities.

“Rather than taking Black Belts and giving them leadership skills, we are taking leaders and giving them Black Belt skills,” said Osborne. “By far, that was the best thing we did to get absolute, immediate revitalization. Our mission was aimed at business performance and not just tool usage.”
Never overstate Six Sigma benefits. Math wins every time. Like many companies, Honeywell was dedicated to spend a substantial amount of time to measuring cost avoidance and non-value-added savings generated from Six Sigma projects. In terms of bottom-line results, Osborne said that an important element was to align Six Sigma project results directly with the business’ annual operating plan. “Six Sigma is no longer going to be their own scorekeeper. There’s one set of books: finance owns them and we are not here to create fictitious savings,” Osborne said.

Although financial results are important, Osborne said that it is also important that all the business needs are met. “We’ll work projects aligned to the business leader objectives even if there is minimal bottom-line financial savings–if it helps improve customer satisfaction [or] employee efficiency or drives strategic initiatives. We’re going to do exactly what the business needs by listening to our internal and external customers.”

Measure the business results, not Six Sigma activity. Almost all Six Sigma programs spend a great deal of effort on delivering training programs and tracking certification metrics. Yet Honeywell measures the success of Six Sigma by watching the movement of the business gauges rather than merely Six Sigma activity. “When we create a clear causal relationship between our projects and business performance, then we have a reason to celebrate,” said Osborne.

Six Sigma leaders are not recognized for Six Sigma activity–the training, charts, and metrics element. Instead, the leaders seek to support the goals of the vice presidents. As a result, they are recognized for “moving the needles for the business gauges that squarely matter to the vice presidents,” said Osborne. Project selection is owned by senior leadership, not by Six Sigma. Having business leaders set the improvement initiatives ensures that the Black Belts and Lean experts accomplish the goals of the business. “Self-selected projects is one of the greatest failure modes Six Sigma experts make,” said Osborne. “Leadership must set the direction. Our job is to figure out how to get to that end-state via the Six Sigma toolkit.”

Osborne warned against setting a specific financial target for Six Sigma resources. “If you set the tone that every Black Belt must get one million dollars of savings a year, you may not like what you get,” said Osborne. When Black Belts work on projects solely to reduce costs, for instance, business needs may be ignored and savings may be overstated.
Focus on application instead of certification. A lesson learned for Honeywell is that certification is the beginning and not the end. “Certification proves that you have a proficiency in a skill set such that you can now apply these skills with confidence,” said Osborne. “… Behavior is a function of what we measure and what we reward, so reward application.”

Six Sigma organization must be directly aligned to the business model. Honeywell ensured that its Six Sigma organizational model matched its overall business model. Osborne found many ways to organize the Six Sigma team.

Whereas a relatively small organization may decentralize and deploy staff to each functional leader, a heavily matrixed organization like Honeywell warrants a centralized Six Sigma model to reduce the variation in resource application.
The Six Sigma vision and strategies must be a subset of the business vision and strategies. By directly aligning the Six Sigma strategy with the business strategy, the personal objectives of the Six Sigma team serve the business and benefit the organization as a whole, said Osborne. Honeywell found that Six Sigma deployment must be a key component of the overall business vision and strategy to ensure the initiative lasts over the long haul.

Honeywell business leaders include Six Sigma in their management operating system, balanced scorecard, and day-to-day language in order to illustrate for employees their commitment. “Don’t under estimate the power of a compelling vision,” said Osborne. “This will speak volumes to the employees and reinforce this is not another program de jour; it is a long-term journey that they are fully committed to achieve.”

Six Sigma has one purpose: to serve the business. The business does not serve Six Sigma.

Osborne believes that the most beneficial aspect of revitalizing Six Sigma at Honeywell is understanding its place and purpose within the company. He said, “It is not productive to spend all my time proving to everyone the value of Six Sigma. It is the best productivity toolkit that exists today; but if they develop something superior tomorrow called Seven Sigma, we’ll ditch what we have and use the better toolkit. Our allegiance is to business performance, not to the means that take us there.”

In fact, according to an Operational Excellence study by Archstone Consulting only about 11 percent of companies have been truly successful with their continuous improvement programs. (For more details about the report, see the January 2006 article “Keep Your Eye on the Ball” from APICS magazine.) The consulting firm defined success as being able to implement an operational improvement that creates tangible results that are sustained over time.

In other words, implementing Six Sigma or lean or the theory of constraints (TOC) won’t automatically lead to operational excellence. Far too many companies have implemented continuous improvement techniques only to see limited, one-time savings and negligible bottom-line benefits.

So what separates successful programs from less-than-successful ones? According to the consultants’ analysis, there are four general attributes that separate the winners from the losers. Continuous improvement programs must be:

1) tied to the overall corporate strategy.

2) linked to the strategy through data and metrics.

3) designed as a comprehensive program so that everyone in the organization participates.

4) tailored to the organization.

Or it could be that those struggling companies just aren’t implementing “true Six Sigma,” argues a recent report from the Aberdeen Group. The Lean Six Sigma Benchmark Report found that less than 16 percent of participants in their survey were following a “rigorous” Six Sigma program. Aberdeen defined these programs as having a stringent quality goal, structured problem-solving approach, dedicated training, and prioritized projects. These “true” Six Sigma programs use the DMAIC methodology, require black belts to produce results for certification, and make sure that business impact projects are validated by the finance group. Aberdeen’s study found that true Six Sigma companies reported on average 40 percent more savings than the overall survey population.

Archstone’s report, however, stresses that lean, Six Sigma, theory of constraints, and other continuous improvement programs are only tools. It’s important to choose the right tool for the right problem. Archstone points to the fact that 100 percent of the successful companies use both lean and Six Sigma. The bottom line: Continuous improvement does not come from blindly following just one program.

Supply Chain Management Review staff – November 11, 2006