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Quality Control & Six Sigma - ESD

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OCT–NOV 200620Official Publication of The Engineering Society of DetroitTechnologyCenturyVol. 11 No. 5 October–November 2006Departments02 PUBLICATION NOTES03 President’s Message04 LETTERS05 IN THE NEWS08 <strong>ESD</strong> Membership10 SUSTAINING & Corporate MEMBERS12 In Memoriam14 <strong>ESD</strong> EVENT HIGHLIGHTS14 <strong>ESD</strong> Upcoming Events18 <strong>ESD</strong> AFFILIATE COUNCIL19 Volunteer Opportunity44 Column: Working World 101SpeciaLS20 What’s Happening at Michigan UniversitiesFeatures23 by Kai Yang<strong>Six</strong> <strong>Sigma</strong> in a Nutshell25 By Antje Lembcke and Hans-Juergen KiesowSustaining Success28 BY Maria StaabDoes <strong>Six</strong> <strong>Sigma</strong> Apply toNonmanufacturing Enterprises?33 BY Norma S. SimonsCustomized Solutions forPerformance Improvement37 BY Judson B. EstesBlack Belt Development at DCX40 BY Andy WalkerR&D Tax Credit Opportunitieswww.esd.org | The Engineering Society of Detroit |


Technology CenturyVol. 11 No. 5 October–November 20062000 Town Center, Suite 2610 • Southfield, MI 48075-1307248–353–0735 • 248–353–0736 fax • esd@esd.org • www.esd.org<strong>ESD</strong> Publications CommitteeChair: Ralph H. Kummler, PhD, F<strong>ESD</strong>, Wayne State UniversityMichael F. Cooper, PE, Harley Ellis DevereauxUtpal Dutta, PhD, University of Detroit–MercyChristopher D. Dyrda, DaimlerChrysler CorporationWilliam A. Moylan, PhD, PMP, F<strong>ESD</strong>, Eastern Michigan UniversityJohn G. Petty, F<strong>ESD</strong>, General DynamicsCharles L. Wu, PhD, F<strong>ESD</strong>, Ford Motor CompanyYang Zhao, PhD, Wayne State UniversityStaff Liaison: Dale Thomas, The Engineering Society of Detroit<strong>ESD</strong> Board of DirectorsPresident: David S. Meynell, Dürr Systems, Inc.PRESIDENT-ELECT: Richard J. Haller, Walbridge Aldinger Co.Vice President: David A. Skiven, PE, General Motors CorporationTreasurer: Steven E. Kurmas, PE, Detroit EdisonSecretary: Darlene Trudell, CAE, The Engineering Society of DetroitPast President: Donald E. Goodwin, DaimlerChrysler CorporationMembers at large: Katherine Banicki, Testing Engineers and ConsultantsDennis M. King, FAIA, F<strong>ESD</strong>, Harley Ellis DevereauxMary Kramer, Crain’s Detroit BusinessThomas H. Landry, Jonna Construction CompanyMichael Morrison, Perot SystemsDavid C. Munson, Jr., PhD, University of MichiganDouglas Patton, DENSO International America, Inc.Richard F. Pearson, National Center for Manufacturing SciencesYogendra N. Rahangdale, American Axle and ManufacturingWilliam P. Russo, Ford Motor CompanyPaul T. Sgriccia, PE, Golder Associates Inc.Rebecca M. Spearot, PhD, PEMumtaz A. Usmen, PhD, PE, F<strong>ESD</strong>, Wayne State UniversityLewis N. Walker, PhD, PE, Lawrence Technological UniversityTechnology Century StaffPublisher: Darlene Trudell, CAE, <strong>ESD</strong> Executive Vice PresidentPub. Coordinator: Dale Thomas, <strong>ESD</strong> Managing Director of Marketing and CommunicationCreative DirECTOR: Nick Mason, <strong>ESD</strong> Creative Director and IT Systems DirectorEDITOR: Susan C. McCravenSTAFF: CeAnne LeonardTechnology Century (ISSN 1091-4153 USPS 155-460) is published six times per year by The Engineering Society of Detroit (<strong>ESD</strong>),2000 Town Center, Suite 2610, Southfield, MI 48075. Subscriptions are free to <strong>ESD</strong> members. Nonmembers may subscribe for$175 per year by contacting <strong>ESD</strong> at 248–353–0735. Periodical postage paid at Southfield, MI, and at additional mailing offices.POSTMASTER: Send address changes to <strong>ESD</strong>, 2000 Town Center, Suite 2610, Southfield, MI 48075.The authors, editors and publisher will not accept any legal responsibility for any errors or omissions that may be madein this publication. The publisher makes no warranty, express or implied, with respect to the material contained herein.Advertisements in Technology Century for products, services, courses and symposia are published with a caveat emptor (buyerbeware) understanding. The authors, editors and publisher do not imply endorsement of products, nor quality, validity orapproval of the educational material offered by such advertisements. ©2006 The Engineering Society of DetroitPublicationNOT<strong>ESD</strong>r. Ralph H.Kummler, F<strong>ESD</strong><strong>ESD</strong> PublicationsCommittee Chair;Dean, College ofEngineering, WayneState UniversityIt has been a source of pride for theengineering profession of Michigan to seethe quality ratings of our United Statesautomotive products climb into the toptier once again. Our companies have madequality a top priority and it shows. Hencewe felt that the theme of this issue should bequality management and one of the primarytools of that trade, <strong>Six</strong> <strong>Sigma</strong>. In the pages tofollow, we go from pedagogical strategy toreal-world examples.We begin with the fundamentals, called<strong>Six</strong> <strong>Sigma</strong> in a Nutshell, by Professor ofIndustrial and Manufacturing EngineeringKai Yang, from Wayne State University, whohas written two books on the subject. Then,we have articles from Simons-White, a <strong>Six</strong><strong>Sigma</strong> Training and Consulting Company,the Ford Motor Company and Siemens, alllooking at the application of <strong>Six</strong> <strong>Sigma</strong> in theirquality management efforts, so that you cangain an appreciation for how <strong>Six</strong> <strong>Sigma</strong> can beused to improve our manufacturing quality.Next, we have a historical perspectiveof the Black Belt development at theDaimlerChrysler Corporation, and then,in a continuing effort to let you know whatyour local universities are doing in the themearea, we have a spread giving each universitythe opportunity to brag a bit about what itprovides in quality management.In case quality management is not yourthing (don’t admit this publicly), we includean article on R&D tax credits by Monetek,a tax credit consulting company, and MikeCooper’s column giving advice to ouryounger members. This is a jam-packed issueillustrating the talent in <strong>ESD</strong>, so enjoy! | Technology Century | OCTOBER–NOVEMBER 2006


<strong>ESD</strong> PRESIDENT’s MESSAGE | October–November 2006Importance of Mentoring Young Engineershen successfulpeople are interviewedabouttheir careers, theyare usually asked,“Who has been themost influentialperson in your life?”Besides the obligatory mention of one’sfamily, successful professional peopleusually respond by naming an influentialmentor who helped shape their earlycareer and helped them over rough spots.How valuable is mentoring for a recentengineering graduate just beginningworking life?In a new upcoming feature onyoung engineers in Technology Century,recipients of <strong>ESD</strong>’s Outstanding YoungEngineer Award verify the importanceof mentoring in their careers. Mentoringcan mean the difference between successand mediocrity, or even the loss of apotentially talented engineer fromthe profession. It is the responsibilityof all of us to take mentoring of newengineering and technical employeesvery seriously. Experience has shownthat placing a young engineer underthe wing of an experienced and encouragingmentor results in the acceleratedprogress and development of newtechnical employees.Those of us with many years ofprofessional experience can easilyremember how much we felt we knewat the completion of four rigorous yearsof engineering classes—and how littlewe realized we knew once we steppedinto the realities of the working world.The outstanding engineering curriculaat our state universities (see “What’sHappening at Michigan Universities”on page 20) provides studentswith excellent knowledge in variousengineering disciplines and of othersubjects through elective courses, butwhat course covers a sensible scenarioin how to deal with a contentiouspersonal situation on a constructionsite or in an industrial plant? Right outof college, most engineering graduateshave little experience in the practicalimportance of company culture, turfwarfare, chain-of-command, managementdemands, office politics and the“Dilbert” view of “how things arereally done around here.”<strong>ESD</strong> offers a wonderful opportunityto inspire students by becominginvolved as an engineering mentorand technical advisor in its MichiganRegional Future City Competition heldin January. In this very successful teambasedprogram consisting of 7th and 8thgrade students, a teacher, and an engineermentor, the competition challengesstudents to design a fully functioningcity. You, too, can join <strong>ESD</strong> and otherengineers in helping students learnfirsthand how engineers turn ideas intoreality. More important, as a mentor,you can have a real impact in fostering ayoung person’s interest in math, scienceand engineering.I believe that newly hired youngengineers should be introduced to adesignated company mentor as a matterof corporate policy. Moreover, a recentissue of The Business Journal indicatedthat minority groups are unlikely toreach success at the corporate levelwithout significant mentoring at thebeginning, and consistently throughout,their careers.Experts generally agree thatmentoring has been found to be atwo-way street, where the young engineergains confidence and a sense ofbelonging, and the company mentorfinds his or her supporting role offersprofound personal and professionalsatisfaction in helping a young personfind success.Take a few minutes to reflect on yourown career, and recall those individualswho have guided you along the way…you’ll be surprised.Sincerely,David S. MeynellPresident, <strong>ESD</strong> Board of DirectorsPresident and CEO, DÜrr Systems, Inc.www.esd.org | The Engineering Society of Detroit |


LETTERSWhat’s Happening atMichigan UniversitiesI am a graduate of Michigan Technological University,and I am disappointed that MTU was notincluded in the summary of “What’s Happening atMichigan Universities” (August-September 2006issue of Technology Century).I hope that there is little debate that MichiganTech is an excellent engineering school, and thatMTU is working to maintain its reputation foreducating many successful engineers. This is accomplisheddespite many challenges that come from thelocation of this school with respect to “the businessside” of the state of Michigan (meaning approximatelythe lower third of the Lower Peninsula). Butif there is debate, we need to remember that thereare numerous examples of very successful engineerswho have graduated from Michigan Tech and technologies,which were identified at the university.I apologize for writing this because the articlepresents information that can be useful to the engineeringcommunity or those considering joiningour profession. I know that many decisions arebased on space constraints for the publication, andthere is significant effort in putting this excellentpublication together.Thank You.Stan StachelskiDailmlerChrysler Corporation<strong>ESD</strong> MemberThe editor welcomes discussion of articles and features published inTechnology Century. Comments must be confined to the scope of thearticle being discussed. Letters regarding this issue of the magazinemust be received by January 1, 2007. Please e-mail esd@esd.org andput “Technology Century” in the subject line. | Technology Century | OCTOBER–NOVEMBER 2006


IN THE NEWSCischkeHakim Pease Doran PhillionPitcherSue Cischke, F<strong>ESD</strong>, Vice President, Environmental and SafetyEngineering, Ford Motor Company, was selected as a Womanof Distinction by Girl Scouts of the Huron Valley Council.The Women of Distinction Award is given annually to womenwho exemplify excellence in their professional and/or theircommunity service work by giving their time and experienceto enrich the lives of others. Ms. Cischke was the recipient ofthe Horace H. Rackham Award for Outstanding Achievementin 1997 and has been an <strong>ESD</strong> Fellow since 2002. Throughouther career, she has been a strong advocate for women workingin historically male positions by breaking down gender barriersand helping other women along the trail she has paved.George N. Hakim, PE, an <strong>ESD</strong> member since 1980, has beennamed director of Facilities Administration for the MichiganDepartment of Management and Budget. Mr. Hakim’s newposition will be to lead an extensive facilities operation thatprovides building operations, design, construction, securityand real estate services for state government and relatedservices for public institutions. Mr. Hakim earned a bachelor’sdegree in civil engineering from the University of Detroit andcontinued post-graduate study at Wayne State University.NextEnergy, along with the United States Army Tank-Automotive and Armament Command’s NationalAutomotive Center and several Michigan alternativeenergy technology industry partners, are developing anAdvanced Mobile Microgrid Power System that will allow thedeployment of mobile power of up to 1.5 megawatts, anywherein the world in 48 hours or less. The system has projecteduses in the wake of a natural disaster, in the aftermath of ahomeland security incident and to support military operations.Turner Construction announced the following new hires:Jerry Moses, as Senior Project Manager; Mel Pease, asSuperintendent; Matt Bort, as Superintendent; DwightHooks, as lead estimator; and Eric Fairbanks, as SafetyCoordinator. Turner Construction is the leading generalbuilder in the United States and has completed more than$4 Billion worth of work in the state of Michigan.Altair Engineering, Inc. donated computer-aided engineeringsoftware to Western Michigan University estimated to beworth $1.5 million over the next five years. The program, AltairHyperWorks, is a suite of tools used by most of the world’sleading manufacturers, especially in the automotive industry.Altair Engineering is a leading global provider of technology andservices that strengthen client innovation and decision making.Thomas Doran, PE, was elected to the Board of Directors asVice President/Partner, for Hubbell, Roth & Clark (HRC),Inc. Mr. Doran will strengthen and expand HRC’s industrialand municipal offerings. HRC provides consulting engineeringand architectural services to municipal, industrial and privateclients throughout southeastern Michigan.DeMaria Building Company announced the following newhires: Todd Ackermann, as Project Superintendent; AnthonyPedrosi, as Project Engineer; and Carolyn Phillion, as ProjectBookkeeper. DeMaria also announced that they promoted JeffPitcher to Project Engineer and that they obtained the contractfor the renovation of City Hall for the City of Inskter.CTI & Associates is developing a bioreactor at a St. ClairCounty landfill that will speed up the decomposition oforganic garbage by injecting it with septic-tank waste. CTI’ssystem can be used to retrofit current lined landfills or buildinto new ones, thereby offering communities alternativesto dumping the sludge at wastewater treatment plants or onfarm fields, the two approved methods in Michigan. CTI is aconsulting firm that specializes in land development, landfilldesign and environmental engineering.The Bosch Group celebrated its 100th anniversary in theUnited States on August 31, 2006. What began with a salesoffice for magneto ignition devices in New York City inSeptember 1906 is now the Bosch Group’s largest marketoutside Germany. Bosch has also acquired both Mann &Hummel and Telex Communications Holdings since thebeginning of the year in an effort to achieve greater marketposition in the United States.www.esd.org | The Engineering Society of Detroit |


IN THE NEWSRuby & Associates won top honors in two categoriesin the Pinnacle Awards sponsored by the Society forMarketing Professional Services–Michigan. Ruby &Associates’ corporate brochure and annual calendar werenamed best in their categories by a panel of judges from thecommunications industry. Ruby & Associates is a structuralengineering firm based in Farmington Hills.Lear Corporation announced that Wendy Foss waspromoted to position of Vice President, Finance andAdministration and Deputy Corporate Secretary andEd Lowenfeld was promoted to Assistant Treasurer, CapitalMarkets and Director of Investor Relations. Ms. Foss joinedLear as Accounting Director in 1999 and Mr. Lowenfeldjoined the Lear Treasury team in 2004.SKF announced that the 2006 Cadillac STS-V will use itsX-Tracker high-performance hub bearing units. The X-Tracker system reduces brake caliper piston knock back,allowing the driver to brake later, creating faster corneringspeeds and reducing lap times. SKF won the Premier AutomotiveSuppliers’ Contribution to Excellence (PACE) Awardfor product innovation for its X-Tracker in April 2006.<strong>ESD</strong> Executive Vice President Darlene J. Trudell, CAE, (right) withJohn Puvogel, Benefit Specialist, Hartland InsuranceGroup, at theMichigan Society of Association Executives Diamond Award banquet.Mr. Puvogel is <strong>ESD</strong>’s representative for our Blue Cross/Blue Shieldand Blue Care Network insurance programs for <strong>ESD</strong> members. Pleasecontact <strong>ESD</strong> at 248-353-0735 or esd@esd.org for more informationabout insurance programs for <strong>ESD</strong> members.Innovation in the MakingLawrence Tech’s graduate programs strive to give you the tools andthe practical experience you’ll need to realize your dreams and beone of the minds behind tomorrow’s great innovations.• Automotive EngineeringLawrence Tech offers• Civil Engineeringover 60 undergraduate and• Computer Sciencegraduate programs in• Construction Engineering Management Colleges of Architecture• Electrical and Computer Engineeringand Design, Arts andSciences, Engineering,• Energy and Environmental Managementand Management.• Engineering in Manufacturing Systems• Engineering Management• Mechanical Engineering• Mechatronic Systems Engineering NEW!Your Future in the MakingOffice of Admissions21000 West Ten Mile Road, Southfield, MI 48075-1058800.CALL.LTU • admissions@ltu.eduwww.ltu.edu/engineering | Technology Century | OCTOBER–NOVEMBER 2006


IN THE NEWSAssociation ExecutivesHonor <strong>ESD</strong> with <strong>Six</strong> AwardsThe Michigan Society of Association Executives (MSAE)honored <strong>ESD</strong> with three Diamond Awards, two Gold Awardsand one Silver Award at the 5th Annual Diamond AwardsBanquet on September 21, 2006. <strong>ESD</strong> President David S.Meynell and Past President Charles M. Ayers, F<strong>ESD</strong> joinedthe <strong>ESD</strong> staff in attending the banquet.For the second year in a row, in the $500,000–$2 MillionBudget category, <strong>ESD</strong> won first-place Diamond Awards forWeb Site (www.esd.org), Electronic Newsletter (<strong>ESD</strong> E-News)and Membership Development (the <strong>ESD</strong> Engineering andTechnology Job Fair). The Job Fair is hosted by the <strong>ESD</strong> YoungEngineers Council and generated over 400 new <strong>ESD</strong> studentmembers last year.<strong>ESD</strong> took a second-place Gold Award for Technology Centurymagazine in the Magazine Publishing category. In the Meetings& Expositions category, <strong>ESD</strong> received both the Gold andthird-place Silver awards for the Energy Conference and Exhibitionhosted by DTE Energy and <strong>ESD</strong> and the 2006 EconomicForecast for Design and Construction, respectively.Thank you to the hard-working volunteer members whosecommitment and service earned these recognitions. If you areinterested in joining committees such as those working withthe above events or publications, please contact Laura Govan at248-353-0735, ext. 4120 or lgovan@esd.org.Board Member Retires,Replacement NamedAugust Olivier has stepped downfrom his position as a memberof the <strong>ESD</strong> Board of Directors,effective September 1, 2006, simultaneouswith his retirement fromGeneral Motors Corporation,where he served as Director ofCapital Projects. We congratulateMr. Olivier on his retirementOlivierand thank him for his service toour Society.As his replacement, the <strong>ESD</strong>Board unanimously approvedthe recommendation of theNominating Committee andappointed David C. Munson,Jr., PhD, Robert J. Vlasic Deanof Engineering, University ofMunsonMichigan, to fill the vacancy untilJune 30, 2008.Before assuming his role as Dean of the U-MCollege of Engineering, Dr. Munson served as aprofessor and chair of U-M’s Electrical Engineering &Computer Science Department. Dr. Munson is highlyregarded for his research in digital signal and imageprocessing. He has spent much of his career workingon imaging systems, especially synthetic apertureradar. He earned his bachelor’s degree in electricalengineering from the University of Delaware. Heearned his MS, MA and PhD in electrical engineeringfrom Princeton University.We welcome Dr. Munson to our Board andcongratulate him on his new deanship.Accepting the Diamond Award for Best Electronic Newsletter are(from left) Dale Thomas, <strong>ESD</strong> Managing Director of Communications;Shelly Smith, <strong>ESD</strong> Manager of Communications and MemberBenefits; Leslie Smith, <strong>ESD</strong> Director of Programs; and SusanShanaman, <strong>ESD</strong> Future City Coordinator.Harley Ellis Devereaux andGreenWorks Studio celebratedGreenWeek 2006 in September.This five-day informationalseries was devoted to spreadingthe good works of going green.Information from each sessionis available to you by contactingChris Meter at 248-233-0200 orcmeter@hedev.comwww.esd.org | The Engineering Society of Detroit |


<strong>ESD</strong> MEMBERSHIP<strong>ESD</strong>’s Newest Individual MembersTim AdamsPrincipalManer, Costerisan & Ellis, P.C.John AdamsonDirector of Business DevelopmentPatrick Engineering Inc.Carlos AgudeloEngineering ManagerLink Engineering Co.Faris AlamiDirector of MarketingEngineering Laboratories, Inc.Shani J. AllisonProduct Development Engineer -Climate <strong>Control</strong>Ford Motor CompanyJose A. AlmanzaElectrical EngineerHarley Ellis DevereauxIbraheem AlshunnarVice PresidentNTH Consultants, Ltd.Rebecca M. BakerCivil EngineerWade-TrimAnthony BangoVice PresidentSkanska USA Building Inc.Judi A. BennettProject ScientistShaw Environmental, Inc.Danny B. BerrySupv, Mech EngineeringFord Motor CompanyKurt A. BinderDesign ServicesGeneral Dynamics Land SystemsDan BirchmeierDirector, Sales & MarketingDesign Systems, Inc.Thomas BlazerFord Motor CompanyRao L. BoggavaraouSenior Staff EngineerGeneral DynamicsDavid P. BourgeoisVice President, BusinessDevelopmentWalbridge Aldinger Co.Skiles BoydVice PresidentDTE EnergyDan BrooksWade-TrimThomas W. BullinerManager, Wheeled VehiclesSystems EngineeringGeneral DynamicsStacy BurganDirector Human ResourcesNTH Consultants, Ltd.Mark ButtaVice President BusinessDevelopmentDetroit Thermal, LLCDave CaldwellPrincipalManer, Costerisan & Ellis, P.C.Larry CampbellAccount ManagerModern Engineering, Inc.John CarnagoRecruiterKelly ServicesMichael W. Carroll, CPASecretary/Treasurer CFOGeorge W. Auch CompanyPeter J. ChatelVice President, New MarketDevelopmentPerceptron, Inc.Vinod C. ChauhanIndustrial EngineerFord Motor CompanyChingchen ChuFord Motor CompanyJames W. ClawsonEngineering SpecialistGeneral DynamicsJohn M. CzarneckiVice PresidentSkanska USA Building Inc.James S. DaceFacility Energy CoordinatorFord Motor CompanyDona DavisFord Motor CompanyVincent DeLeonardisVice President, Project DirectorGeorge W. Auch CompanyRichard DeMariaCEODeMaria Building Company, Inc.Tim DuncanVice President Test OperationsLink Engineering Co.Bruce DunnPresidentManer, Costerisan & Ellis, P.C.Ryan DunningPrincipalCivil & Environmental ConsultantsJohn DwyerSenior Software EngineeringSpecialistGeneral Dynamics Land SystemsRodney ElgieWhite ConstructionJeffrey S. Elliott, PEVice PresidentTTL Associates, Inc.Alan EricksonAssociateNTH Consultants, Inc,Dan FahrerManagerDTE EnergyKen FayRecruiterOn AssignmentKedzie FernholzResearch EngineerFord Motor CompanyRick Flynn<strong>Control</strong>ler/<strong>Quality</strong> ManagerDeMaria Building Company, Inc.Kevin FoyeProject EngineerCTI & Associates, Inc.Kirk FrownfelterEVP-Area General ManagerSkanska USA Building Inc.Tyrone GallagherSection ManagerGeneral DynamicsVerne GarrardSales ManagerLimbach Company, LLCAric Geda, PEVice PresidentCivil & Environmental ConsultantsTom GibbonsDirector of Business DevelopmentPower Process PipingLisa R. GirardinManager, Marketing ServicesWalbridge AldingerTimothy GorenchanWade-TrimJohn GossiauxElectrical EngineerLink Engineering Co.Leah GroyaWade-TrimAmy B. GrundmanManager, Public RelationsKelly ServicesGenci GurabardhiKelly ServicesJosephine GustiloSenior Engineer, Tracked VehicleSystems Eng.General DynamicsRichard H. HagforsAutomotive Account ManagerINCOE CorporationDavid L. HamiltonPresidentGeorge W. Auch CompanyJeffrey HamiltonDirector, Project ManagerGeorge W. Auch CompanyEric HarrisWade-TrimGuy HarrisDirectorDTE EnergyDavid HarwoodDirectorDTE EnergyPaul HebelAuditorUHY AdvisorsCharles W. Heil, Jr., PESupervisorFord Motor CompanyAnil K. HingweVice President of <strong>Quality</strong>Metaldyne Corp.Mark HottaChief EngineerFord Motor CompanyEdward JakubiakDirectorDTE EnergyJoan JasinskiAccount ManagerModern Engineering, Inc.Jeffrey JelcinKelly ServicesDavid L. JohnsonMgr. Undergraduate DegreeProgramsCentral Michigan UniversityYvette P. JohnsonPrincipal Account ManagerDTE EnergyRobert M. JustinVice PresidentQ·Quest CorporationKevin M. KalinowskiSenior Engineering Specialist C4IGeneral DynamicsNesreen KhouriBenjamin W. Kiehl, Jr.Plant DirectorDTE EnergyJohn KingmanAccount ManagerModern Engineering, Inc.Donna KinseyKelly ServicesFritz KlinglerVice PresidentNTH Consultants, Ltd.Paul G. KnutsonDirectorDTE EnergySharad KumarSenior Director, SystemsEngineeringGeneral DynamicsDennis La PortePrincipalUHY Advisors - MI, Inc.E S D L e g a c y S o c i e t yThe Engineering Society of Detroit is committed toserving this generation of engineers and fostering thenext. To ensure that we achieve our mission, we havecreated the <strong>ESD</strong> Legacy Society. As leaders who knowfirsthand what it takes to meet life’s challenges, weinvite you to become a member of this program. To join,you need only pledge a gift in any amount to <strong>ESD</strong> fromyour estate. For more information, contact Dale Thomasat dthomas@esd.org or 248–353–0735, ext. 4123. | Technology Century | OCTOBER–NOVEMBER 2006


<strong>ESD</strong> MEMBERSHIPJohn LaRosaBrandon MuscottSenior Project ManagerAccount ManagerDeMaria Building Company, Inc. Modern Engineering, Inc.Larry K. Larson Cindy NorlinSenior Engineer,VetronicsDirerctorSubsystemsDTE EnergyGeneral Dynamics Land SystemsRon NoyesLamonte LatorManager Electrical EngineeringTreasurerLink Engineering Co.Maner, Costerisan & Ellis, P.C.Jim NyquistTrevor F. LauerDirectorVice President Retail Marketing Maner, Costerisan & Ellis, P.C.DTE EnergyJohn J. O’Donnell, Jr.,Bill LaurainPE,PMPProject DirectorManagerSkanska USA Building Inc.DTE EnergyDeborah Lazowski Tim OlexEngineerVP EngineeringFord Motor CompanyLink Engineering Co.Oddie Leopando David OlsonVice President & Gen. Mgr.Business Devepopment Mgr.Metaldyne Corp.NTH ConsultantsSandra LusarsTim OriansOffice ManagerPrincipalParagon Forensic EngineeringManer, Costerisan & Ellis, P.C.Rob ManganShawn PattersonSales EngineerDirectorLink Engineering Co.DTE EnergyAaron MarksBrian PaulSales EngineerSenior EngineerLink Engineering Co.General Dynamics Land SystemsPatrick M. Martin Scott PerkinsDirector of SalesUS Manufacturing Corp.Q·Quest CorporationTom MathieuDeborah PetersonOffice ManagerDirector of AdministrationWashington Group InternationalManer, Costerisan & Ellis, P.C.Gerry McClellandSharon PfeufferPlant DirectorEstimatorDTE EnergyGeorge W. Auch CompanyAndrew McCuneCindy PhillipsKelly ServicesSenior Vice PresidentWade-TrimCharles Poat, AIA,Dann McDonaldLEED APMarketing ManagerEngineering ManagerDeMaria Building Company, Inc. Walbridge AldingerRichard T. McGlew, Jr. Patricia PoppePresidentPlant DirectorQ·Quest CorporationDTE EnergyJonathan Means Frank V. PurczynskiVice PresidentDirector, Logistics Engineering andKelly ServicesProduct TestGeneral DynamicsStephen G. MeinscheinEngineering Spec, Structural Systems Dave Raeck& AnalysisDirectorGeneral DynamicsManer, Costerisan & Ellis, P.C.Ken MickBill ReaderSenior Director, SubsystemDirector Corporate MarketingEngineeringNTH Consultants, LtdGeneral DynamicsDavid ReeceBob MillerVice PresidentDirectorSkanska USA Building, Inc.Maner, Costerisan & Ellis, P.C.Wallace RiaseJohn MillerUS Manufacturing Corp.Manager Software EngineeringLink Engineering Co.Marc RichDirectorKaren MitchellDTE EnergyManagerDTE EnergyRobert RichardSenior VPAmanda MooreDTE EnergyAccount ManagerModern Engineering, Inc.Heather D. RivardDirectorSteve MorseDTE EnergyTraining DirectorWalbridge AldingerSteve RobbinsSecretaryManer, Costerisan & Ellis, P.C.Don RogersProject ExecutiveSkanska USA Building Inc.Paulette RossmannSales EngineerLink Engineering Co.Jim RumaSenior Director, Project EngineeringManagementGeneral DynamicsJudith RushlowDirector of AdministrationQ·Quest CorporationLinda A. RussoDirector Org. DevelopmentMetaldyne Corp.Henry A. SadaConsultantMetaldyne Corp.Mike SchlenkeProject ExecutiveSkanska USA Building Inc.Glenn SchultzContollerWhite ConstructionSteve ScottPrincipalManer, Costerisan & Ellis, P.C.Gordon ShutekDirector, Structures & MechanicalSystemsGeneral DynamicsBrian A. SimonPresidentU.S. Manufacturing CorporationKaramvir (Kevin)SinghPatrick Engineering Inc.Brian R. Smith, Ph.DHuman Factors EngineeringSpecialistGeneral Dynamics Land SystemsDarin SmithSpecial Projects ManagerLimbach Company, LLCBrian M. SnyderMechanical EngineerHarley Ellis DevereauxTe-Yang Soong, PEDirectorCTI & Associates, Inc.James SorensonService RepresentativeKelly Automotive Services GroupMaria Cecylia Staab<strong>Six</strong>-<strong>Sigma</strong> Integration DirectorFord LandJohn StadnicarVice PresidentNTH ConsultantsJeff StevensVice PresidentManer, Costerisan & Ellis, P.C.Michael StromayerJob Locator Developer CoordinatorOakland UniversityMorgan Subbarayan,PEPresidentCTI & Associates, Inc.Christine SuminskiEngineering SpecialistGeneral Dynamics Land SystemsRobert SwopeVice PresidentMetaldyne Corp.Dennis TheisPrincipalManer, Costerisan & Ellis, P.C.Kris ThorneOperations ManagerLimbach Company, LLCDan TitusConstruction ManagerCTI & Associates, Inc.Erin TorroneProject ScientistCTI & Associates, Inc.Yan TranApplications EngineerLink Engineering Co.James P. TurissiniVP Business DevelopmentSkanska USA BuildingBradley C. VenmanAssociateNTH ConsultantsRose Vinuya, PEEnvironmental EngineerTucker, Young, Jackson,Tull, Inc.Kim VisintineAccount ManagerModern Engineering, Inc.Erik R. WaldronEngineerMetaldyne Corp.Franklin WarrenPlant ManagerDTE EnergyDon WhitakerAccount ManagerModern EngineeringPaul D. WhitmanManagerDTE EnergyMichael P. WickCapital Projects-EngineeringServicesGeneral Motors Corp.Karen M. WilhelmResearcher/EditorKaren M. Wilhelm LLCTrey WilliamsPrincipalManer, Costerisan & Ellis, P.C.Steve WintheiserDirectorCTI & Associates, Inc.Vicky YarbroughVariant Requirements SectionManagerGeneral DynamicsLaura YousifEngineerWade-TrimXianda ZhaoSenior Project ManagerCTI & Associates, Inc.Terri ZickDirectorCTI & Associates, Inc.Chad ZielinskiParagon Forensic EngineeringJohn A. ZielkeDirector of TechnologyQ·Quest Corporation<strong>ESD</strong>’s NewestCorporate MembersManer, Costerisan & Ellis, P.C.Rep: James R. DeDyne, PrincipalMacomb Community CollegeRep: Linda O.Wells, Vice President forStudent and Community RelationsQ·Quest CorporationRep: Judith Rushlow, Director ofAdministrationCivil & Environmental ConsultantsRep: Ryan Dunning, PrincipalGeorge W. Auch CompanyRep: Vincent DeLeonardis, Vice PresidentParagon Forensic EngineeringRep: Sandra Lusars, Office ManagerSouthwest Research InstituteRep: Scott Hotz, Group Leader<strong>ESD</strong>’s NewestAffiliate SocietyCertified Hazardous MaterialsManagers of MichiganRep: Kevin BateFor information on <strong>ESD</strong> Affiliate Societies orindividual or corporate membership, pleasecontact Laura Govan at lgovan@esd.org or248–353–0735, ext. 4120.<strong>ESD</strong> Corporate Members receive Crain’s Detroit Businessfree with membership, compliments of <strong>ESD</strong>.<strong>ESD</strong> Professional Members can subscribe for only$15/year—75% off a regular subscription! Membersof <strong>ESD</strong> Affiliate societies can subscribe for only $35per year—a 40% discount! Contact Laura Govan at248-353-0735, ext. 4120, or lgovan@esd.org.www.esd.org | The Engineering Society of Detroit |


<strong>ESD</strong> Thanks Our Sustaining and Corporate Members, the Foundation of Our SuccessFord Motor CompanyAerotek, Inc.Albert Kahn Associates, Inc.American Axle & ManufacturingAmerican Iron & Steel InstituteAmerican Society of EmployersARKEMA Inc.BEI Associates Inc.Boyden Executive SearchBruel & Kjaer Instruments, Inc.Building Industry Association ofSoutheast MichiganC. Ayers LimitedCentral Michigan UniversityCeramicTech Dental Lab, Inc.Chrysan IndustriesCivil & Environmental Consultants, Inc.Climatek Engineering Inc.CompuwareConstruction Association of MichiganCornerstone <strong>Control</strong>sCTI & Associates, Inc.DaimlerChrysler CorporationThe Dako GroupDeMaria Building Company, Inc.DENSO International America, Inc.The Dragun CorporationDTE EnergyDTE Energy Gas OperationsDürr Systems, Inc.Eastern Michigan UniversityElectrical Resources CompanyElevator, Inc.Elsas Engineering, P.C.EMC² Inc.Engineering Laboratories, Inc.Financial One, Inc.Ford Motor CompanyFori AutomationGannett Fleming of Michigan, Inc.Gas Recovery Systems, Inc.Gates CorporationGeneral DynamicsGeneral Motors Corporation–WorldwideFacilities GroupGenslerGeorge W. Auch CompanyGHAFARI Associates, LLCGlenn E. Wash & Associates, Inc.Golder Associates, Inc.GZA GeoEnvironmental, Inc.Harley-Davidson Motor CompanyHarley Ellis DevereauxHartland Insurance Group, Inc.Henry Ford Health SystemHinshon Environmental Consulting, Inc.HNTB Michigan, Inc.Horiba Automotive Test Systems, Inc.Hubbell, Roth & Clark, Inc.Jacobs SverdrupJervis B. WebbKelly ServicesKettering UniversityKFORCE Professional StaffingKitch Drutchas Wagner Valitutti &Sherbrook, P.C.Kolene CorporationL3 Communications-CombatPropulsion SystemsLawrence Technological UniversityLear CorporationLimbach Company, Inc.Link Engineering Co.LTI Information TechnologyMacomb Community CollegeManer, Costerisan & Ellis, P.C.Metaldyne CorporationMichigan State UniversityMichigan Technological UniversityMidwest Steel Inc.Midwestern Consulting, LLCModern Engineering, Inc.Monetek, LLCMyron Zucker, Inc.National Center for Mfg. SciencesNewman Consulting Group, LLCNextEnergyNorthern Industrial ManufacturingCorporationNTH Consultants, Ltd.Oakland UniversityOn AssignmentOriginal Equipment Suppliers Assn.Paragon Forensic EngineeringParsons BrinckerhoffPatrick Engineering Inc.Perceptron, Inc.Perot Systems CorporationProfessional Concepts Insurance AgencyProfessional Underwriters, Inc.Q·Quest CorporationR.L. Coolsaet Construction Co.The Rains Group, A Division ofGallagher Benefit ServicesRemy, Inc.Results Systems Corp.Robert Bosch CorporationRuby & Associates, P.C.Shaw Environmental, Inc.Simons-White Associates, Inc.Skanska USA Building Inc.Southwest Research InstituteTech-Line Engineering CompanyTechnip USATesting Engineers & Consultants, Inc.Trammell Crow CompanyTranSystems CorporationTurner Construction Co.U.S. Manufacturing Corp.Universal Weatherstrip and BuildingSupplyUniversity of Detroit MercyUniversity of MichiganUniversity of Michigan–DearbornVeolia Water North AmericaW.K. Krill & Associates, Inc.Wade-TrimWalbridge Aldinger Co.Washington Group InternationalWayne State UniversityWestern Michigan UniversityWhite Construction Co.Worley Parsons10 | Technology Century | OCTOBER–NOVEMBER 2006


<strong>ESD</strong> Corporate Members ReceiveFree Subscriptions to~ Includes an subscription for each corporate representative—2 to 25 subscriptions, based on the level of your membership~ A $1500.00 value for a Level 5 Corporate Member—$60 for each corporate representative’s subscription~ 52 information-packed issues of the newspaper—with more than50 business lists including top architects, general contractors, largestdevelopers and technology-based companies, to name a few.~ Full access to crainsdetroit.com—with industry specific pages coveringautomotive, economic development, manufacturing and much more!~ Subscriptions renew with <strong>ESD</strong> corporate membershipsAs an engineer, you know how important it is to keepup on the issues facing your industry. But that is justone part of the big picture that shapes the businesscommunity you live in. For this reason, <strong>ESD</strong> is partneringwith Crain’s Detroit Business—to help you complete theentire picture of metro Detroit’s business landscapeby offering <strong>ESD</strong> corporate members complimentarysubscriptions to the leading weekly business publicationin metro Detroit. Crain’s Detroit Business is the bestplace to answer these and other questions:% What’s next in the ever-changing economicenvironment in Michigan?% What are your competitors up to?% Where does your company stand compared to othersin our region?% What is happening in Michigan that will affect yourbottom line?For corporate membership information, please contactLaura Govan at 248–353–0735, ext. 4120, or lgovan@esd.org.More information is online at www.esd.org.www.esd.org | The Engineering Society of Detroit | 11


<strong>ESD</strong> MembershipIn MemoriamWith deep gratitude for their membership andservice, The Engineering Society of Detroitacknowledges the deaths of the following members:Howard A. CollinsRetired/President, Collins AssociatesMember since 1970John A. Pylat, Jr.Consulting EngineerAssociated Manufacturing Systems EngineeringMember since 1985Lawrence J. RadzieckiSenior Project ManagerPinnacle Contracting, Inc. and Ruscilli ConstructionCompany, Inc.Member since 1981Collis James SimpsonRetired/ Manufacturing ConsultantMember since 1982TESTING ENGINEERS & CONSULTANTS, INC.Engineering Client Success• Geotechnical Services• Indoor Air <strong>Quality</strong>• Environmental Services• Asbestos/Mold/Lead• Building Envelope Services• Construction Materials Testing• Property Condition Assessments• Automotive Component Testing1-800-835-2654email: tec@tectest.com www.testingengineers.comOffices in: Ann Arbor,Detroit & TroyA Certified WBE/DBB12 | Technology Century | OCTOBER–NOVEMBER 2006


<strong>ESD</strong> HolidayNetworking Eventat The Parade Company Dec. 6, 2006sPONSORED BYBring the whole family.See details on page 15.www.esd.org | The Engineering Society of Detroit | 13


<strong>ESD</strong> Event HighlightsA Living lab of sustainabledesign: ltu’s Taubmanstudent services center<strong>ESD</strong>’s September 26, 2006, Networking Eventand Technical Tour of LTU’s Taubman StudentServices Center drew over 100 people.<strong>ESD</strong> Upcoming EventsWant to Get Ahead?Get LicensedAre you thinking about taking the NCEES FE or PE exam in April 2007? If so,then mark your calendar for <strong>ESD</strong>’s PE and FE Review courses—the best preparationtools available. Since 1940, <strong>ESD</strong> has successfully prepared thousands ofcandidates for both exams.In all of our courses, you will:• study from past exam questions;• learn from instructors who have firsthand knowledge of the course material;• be provided with a comprehensive binder of course notes to aid you duringyour exam;• learn from and meet your peers who are also studying for the State Exam; and• receive a certificate of completion from <strong>ESD</strong>.Free information sessions on earning your Pe licenseFind out from experts why you should become a PE andthe steps to take to get there. To learn more about theexams and how they can help your career, attend a FreeInformation Session on Earning Your PE License.We have various dates and locations between now andJanuary 2007. For more information and to register, visit www.esd.org orcontact Fran Mahoney at 248–353–0735, ext. 4116, or fmahoney@esd.org.Lewis N. Walker, PhD, PE, President of LTU,welcomes attendees at the Taubman StudentServices Center. The event and tour weresponsored by Harley Ellis Devereaux andWalbridge Aldinger Co.Fundamentals of Engineering (FE) Part IDates: January 30–April 5, 2007Times: 6–9 p.m., Tuesdays and ThursdaysLocation: Offered in both East Lansing and SouthfieldState Exam Date: April 21, 2007Principles & Practice of Engineering (PE) part IIDisciplines: Civil, Electrical, Environmental, MechanicalDates: February 17–March 31, 2007Times—Electrical & Civil: 8:30 a.m.–12:30 p.m., SaturdaysTimes—Mechanical & Environmental: 1–5 p.m., SaturdaysLocation: Southfield, MichiganState Exam Date: April 20, 2007Samuel R. Bayne, FAIA, of Harley EllisDevereaux (HED), explains various elementsof the HED-designed Taubman Center thatwas built according to the U.S. Green BuildingCouncil’s Leadership in Energy and Environmental(LEED) specifications.For information and to register for courses, visit www.esd.org or contactFran Mahoney at 248–353–0735, ext. 4116, or fmahoney@esd.org.Register by January 5, 2007, and save $25, plus you will receive ExamCafé, an online timed practice exam—for a total savings of $50.00!14 | Technology Century | OCTOBER–NOVEMBER 2006


<strong>ESD</strong> UPCOMING EVENTS3rd Thursdays Networking Events3rd thursdays, through januaryJoin us for fun and networking in some of Southfield’s bestrestaurants. These free networking events are hosted by <strong>ESD</strong>,the City of Southfield, and the Southfield Area Chamberof Commerce.Take advantage of this opportunity to network with engineersand business leaders throughout Southeast Michigan. Wewill meet from 4–6 p.m. on the third Thursday of every monthat various restaurants in Southfield. Hors d’oeuvres will beserved, and there will be a cash bar.Full details are on the Web, but the upcoming dates andvenues are:• November 16 — Tangos Restaurant• December 21 — Beans & Cornbread• January 18 — Fishbones2006 <strong>ESD</strong> Holiday Networking Eventat The Parade CompanyWednesday, December 6, 2006You will be blown away by the location we’ve found for ourannual Holiday Networking Event. Bring your family to the2006 <strong>ESD</strong> Holiday Networking Event at The Parade Companyon Wednesday, December 6, 2006, from 5:30 to 8:00 p.m. Kids12 and under attend for free!There is no cost to attend. Please show up and registeron site. For more information, please contact Tim Walker at248-353-0735 ext. 4115, or twalker@esd.org.<strong>ESD</strong> Safety SeriesElectrical Safety Is Not ShockingTuesday, November 14, 2006, <strong>ESD</strong> HeadquartersThis seminar will discuss MIOSHA ElectricalStandard Part 40 for General Industry, andPart 17 Construction and the best practicesneeded to avoid injury by qualified and unqualified persons.They will discuss arc flash injuries and how to prevent them,personal protective equipment training requirements,grounding, handheld electrical tools, guarding, flexible cords,GFCI’s, most cited MIOSHA violations and common hazards.For more information, visit www.esd.org, contact FranMahoney at 248-353-0735, ext. 4116, or fmahoney@esd.org.Next in series: MIOSHA Construction Excavation,Wednesday, January 24, 2007The Parade Company produces the America’s ThanksgivingParade and The International Freedom Festival. Our eveningof cocktails and conversation will be held in the Parade Studio,with its unique atmosphere of parade floats and costumes.This former Chrysler facility is truly the most unusual use of aretired auto plant in the world!For questions and to register for this event, please contactTim Walker at 248-353-0735, ext. 4115, or twalker@esd.org.Engineering & Technology Job FairThursday, February 13, 2007If you are looking for a job, you won’t want to miss <strong>ESD</strong>’s2007 Engineering & Technology Job Fair, presented by the<strong>ESD</strong> Young Engineers Council. The fair will showcase someof Michigan’s largest engineering, energy, technology andmanagement corporations. Companies will be recruiting inall disciplines including: chemical; civil; computers; design;electrical; energy: architects; environmental; manufacturing;mechanical; technical and other technology-related fields. Ifyou’re looking for a job in any engineering or technology discipline,this is the job fair for you!Registration for this event is only $12 for students, and thatincludes a 1-year student membership in The EngineeringSociety of Detroit. The event takes place from 2 p.m. to 7 p.m.in the 2000 Building atrium of the Southfield Town Center.For more information, contact Shelly Smith at 248-353-0735, ext. 4112, or ssmith@esd.org.www.esd.org | The Engineering Society of Detroit | 15


<strong>ESD</strong> Upcoming EventsRegional Development ConferenceTuesday, February 27, 2007The Engineering Society of Detroit has established aRegional Development Committee to encourage growth inDetroit and Southeastern Michigan. The group’s first eventwill define issues from the viewpoint of some of the region’smajor stakeholders. The program will focus on mappingthe present situation, the impediments to developmentand the opportunities for growth. Attendees will leave withsuggested strategies and tactics for economic progress inthe region.This half-day event will kick off with a keynotepresentation by Mike Duggan, President and ChiefExecutive Officer of the Detroit Medical Center (DMC).Other featured speakers include Vince Nystrom, Directorof Technology–Business Development from the MichiganEconomic Development Corporation (MEDC).For additional information or to register, contact LeslieSmith at 248-353-0735, ext 4152, or lsmith@esd.org.16 | Technology Century | OCTOBER–NOVEMBER 2006


<strong>ESD</strong> UPCOMING EVENTS & DeadlinesThe Future of Alternative DisputeResolution: Construction PractitionersResolving Construction DisputesFebruary 1, 2007When a dispute cannot be settled outside of the legal system,it is important to know what your legal options are and howto stay in control of the dispute. Alternative Dispute Resolution(ADR) is a viable alternative to the court system. It enablesyou to resolve disputes more efficiently and save money aswell as time. In order to protect your best interests, you needto become knowledgeable and be involved in the AlternativeDispute Resolution process.This conference will include dialogue about constructiondispute resolution in general, using trained constructionprofessionals as neutrals, and ways that you can take control ofthe resolution of disputes.• Keynote: James J. Giachino, President, James J. Giachino, Inc.• Overview of ADR: Michael T. Lynch, Esq., Associate, CorporateCounsel, Harley Ellis Devereaux• Panel Discussion: Experiences of Construction Practitionersas ADR NeutralsJanice Holdinski (Moderator), Vice President, AmericanArbitration AssociationJeff Roth, Roth, Inc.Linda Haith, RA, American Arbitration AssociationJohn Spittler, PMA Consultants• Insurance Industry Perspective:Michael Cosgrove, Senior Vice President, ProfessionalConcepts Insurance AgencyTonya L O’Hern, Claim Consultant, XL DesignProfessional• Panel Discussion: The Advocate’s Perspective on ConstructionPractitioners as ADR NeutralsJohn V. Tocco, Esq. (Moderator), Consultant, ToccoConstruction ConsultingRonald A. Deneweth, Esq., Managing Partner, Deneweth,Duggan & ParfittJim Case, Esq., Kerr, Russell & WeberEd Hartfield, Executive Director, National Center forDispute Settlementand Construction Arbitration ServicesJohn Sier, Esq., Principal, Kitch Drutchas Wagner Valitutti& SherbrookFor additional information or to register, visit www.esd.orgor contact Leslie Smith at 248-353-0735, ext 4152, orlsmith@esd.org. Sponsorship opportunities are available.<strong>ESD</strong> Construction & Design AwardsENTRy DEADLINE: February 2, 2007The <strong>ESD</strong> Construction &Design Awards are uniquein that they honor thethree primary members ofthe building team-owners,designers and constructors—and recognize outstandingteam achievement and innovativeuse of technology. Theawards were conceived 32 yearsago to encourage elevation ofthe standards of practice in theconstruction industry.Eligibility requirements: Submissions are accepted fromproject teams of owner, designer and contractor. At least oneof the primary members of the project team must be a memberof <strong>ESD</strong>. All projects must have been completed after January1, 2005, to qualify for nomination. Entries may be submittedfor: new buildings or significant construction; renovations andadditions; significant engineered systems; significant restoration,redesign and renovation of historical structures and engineeredsystems in Michigan. All original structures must be atleast 50 years old at the time of submission.Awards are presented at a gala on June 21, 2007, at theDetroit Science Center. For more details, visit www.esd.org.<strong>ESD</strong> Alpha Awards for Innovation inEngineering and TechnologyEntry DeadlinE: February 28, 2007The <strong>ESD</strong> Alpha Awards for Innovation in Engineering andTechnology recognize and celebrate the creative and originalideas of men and women in the engineering and technologyprofessions that develop innovative solutions to the needs of thegeneral public, business or academia.Eligibility requirements: Any product, material, system,structure, process or methodology that is innovative in applicationor use, including inventions, is eligible. The innovationmust have become commercially available, introducedinto general, active practical use, or demonstrated new, uniqueapplications within the last three years (since January 2004).The submission must be endorsed by a member of <strong>ESD</strong>, or youmay become an <strong>ESD</strong> member when you apply by enclosingmembership dues with your entry form.Awards are presented at a gala on June 21, 2007, at theDetroit Science Center. For more details, visit www.esd.org.www.esd.org | The Engineering Society of Detroit | 17


VOLUNTEER OPPORTUNITY<strong>ESD</strong> Director of Education, Ron Smith (center), shows attendees a Future City model at the Sally Ride Festival at Macomb Community College.Become a Future City Judge<strong>ESD</strong> is looking for engineers and architects to act as judges forthe <strong>ESD</strong> Michigan Regional Future City Competition. Theprogram helps prepare 7th and 8th grade students for life inthe real world and has a positive impact on the future of engineeringas a profession.The role of the judges is to draw on their expertise andresources to fairly judge a team’s efforts. Judges will be neededat each of the three stages of the competition.1. By November 22, teams must submit the city plan thatthey designed using SimCity software. The SimCity designswould be e-mailed to you for judging in December and earlyJanuary.2. Next students write a 300–500 word abstract about thehighlights of their city and a 500–700 word essay on fuelcelltechnology. Essays and abstracts would be e-mailed forjudging in early January.3. The final part of the competition will take place onJanuary 17, 2007, at Rock Financial Showplace in Novi. Atthat time, schools display a scale model of their futuristiccity constructed of recycled materials. Three representativesfrom each school give a five to seven minute presentation toa panel of judges. The winning Michigan team goes to thenational Future City Competition during NationalEngineers week in February.To volunteer or for more information, contact SusanShanaman at 248-353-0735, ext. 4117 or sshanaman@esd.org.Additional information is also available at www.esd.org.Helen Keller Middle School team members make final adjustments totheir model prior to judging of the <strong>ESD</strong> 2006 Michigan Regional FutureCity Competition.www.esd.org | The Engineering Society of Detroit | 19


What’s Happening atMichigan UniversitiesQC and <strong>Six</strong> <strong>Sigma</strong>Master of Science in <strong>Quality</strong> Managementat Eastern Michigan UniversityAre you a mid-career individual with quality-related responsibilitieslooking to:• Increase your salary?• Enhance your marketability?• Earn a master’s degree at yourconvenience?Look to EMU’s <strong>Quality</strong>Management online or livedegree program, developedusing the American Society for<strong>Quality</strong> body of knowledge.You’ll benefit from coursework in customersatisfaction, statistical process control, human factors, designof experiments, reliability, problem solving, quality planning,quality auditing, lean practices, cost of quality and <strong>Six</strong> <strong>Sigma</strong>.For more information, go to http://cot.emich.edu/quality ore-mail Dr. Thomas Soyster at tsoyster@emich.edu.If hands-on, real-world workshop-based programs will suityour needs, the ISO 9001:2000 Certified Center for <strong>Quality</strong>at Eastern Michigan University offers over 50 quality assuranceseminars, including <strong>Six</strong> <strong>Sigma</strong> Green, Black and MasterBlack Belt along with five other certificate programs. For information,please contact: www.centerforquality.org or ElenaO’Connor at 734-487-4926 or eoconnor@emich.eduMaster Black Belts at Lawrence Tech<strong>Quality</strong> control and<strong>Six</strong> <strong>Sigma</strong> principlespermeate the engineeringand managementcurricula atLawrence TechnologicalUniversity,and the educationalopportunities rangefrom short courses toa doctorate program.The ProfessionalDevelopment Centeroffers a variety ofProfessor Khalil Taraman discussesresearch with two candidates in theDoctorate of Engineering in ManufacturingSystems (DEMS) program at LTU.quality control and <strong>Six</strong> <strong>Sigma</strong> programs on campus, on-site andthrough e-learning. Participants can be tested and certified in<strong>Six</strong> <strong>Sigma</strong> courses all the way to Master Black Belt. Programcontent can be customized or can be taken with the originalmanufacturing/engineering focus. The Doctorate of Engineeringin Manufacturing Systems (DEMS) program seamlesslyintegrates the essential knowledge of quality control and<strong>Six</strong> <strong>Sigma</strong> with many manufacturing disciplines. For moreinformation, please contact: Professional Development Center248-204-4053, www.ltu.edu/pdc or DEMS Director, KhalilTaraman at 248-204-2565 or taraman@ltu.edu or visitwww.ltu.edu/engineering/mechanical/doctora.asp.20 | Technology Century | OCTOBER–NOVEMBER 2006


At the University of Michigan, cutting-edge research leads to cutting-edge professional programs. Photo by Richard Hirneisen.University of Michigan = <strong>Quality</strong>U of M’s Center for Professional Development offers professionaleducation programs that enable engineers, managersand technical professionals to be more effective, productiveand competitive through the use of leading technologies andprocesses. Participants gain a working knowledge of proventools from highly regarded faculty. Offerings include:• Online <strong>Six</strong> <strong>Sigma</strong>—Green & Black Belts:· Transactional-Service Focus· Manufacturing Focus· Healthcare Focus (Green Belt only)• Lean Certifications in:· Manufacturing· Product-Process Development· Office· Logistics· Healthcare· Pharma• Lean/<strong>Six</strong> <strong>Sigma</strong> CertificatePrograms can be customized and delivered at your site.Online programs include master’s degrees in AutomotiveEngineering, Manufacturing, Integrated Microsystems,Global Product Development and Manufacturing.Visit our Web site for more information: http://cpd.engin.umich.edu or contact Becky Erskine, Marketing & ProgramDevelopment, at 734-615-5698 or berskine@umich.edu.Lean Management at UD≠ MercyIn the current competitivebusiness environment,industries arestriving to improve efficienciesby increasingproductivity, enhancingproducts and serviceswhile reducing cost.Lean Manufacturing,<strong>Six</strong> <strong>Sigma</strong> and LeastTotal Cost Scheduling development and deployment haveemerged as the leading initiatives that have enabled manyorganizations to achieve all these goals. The techniques arewidely implemented at a variety of industries (medical,banking, insurance, pharmaceutical, automotive, aerospaceand others). This course (<strong>Quality</strong> Management/<strong>Six</strong> <strong>Sigma</strong> IEM 546) is intended for industry professionals who seek anunderstanding of such tools and techniques. It will introducethe participants to the principals of Lean Manufacturing, <strong>Six</strong><strong>Sigma</strong>, Least Total Cost Scheduling and integration of thoseto approach product and process improvement opportunities.The course is offered as part of the Master of EngineeringManagement (MEM) Program and is open to participantsoutside the MEM Program. For more information, pleasecontact Hriday Prasad, Director, MPD and MEM Programs, at313-993-3378, fax 313-993-1955 or prasadh@udmercy.edu.www.esd.org | The Engineering Society of Detroit | 21


Dr. Sheryl Sorby heads up the new MTU curriculum program designed forprivate sector industries, including training in <strong>Six</strong> <strong>Sigma</strong> methodologies.WSU Offers MS and PhD Degrees in<strong>Quality</strong> Management/EngineeringStudents interested in quality management and quality engineeringcareers can pursue master’s and doctoral degreespecializations through Wayne State University’s highlyrespected Department of Industrial and Manufacturing EngineeringDepartment. Learn <strong>Six</strong> <strong>Sigma</strong> principles and design,quality management systems, quality assurance and control,reliability estimation, robust design, advanced quality engineeringand value engineering from top experts in their areas.<strong>Six</strong> <strong>Sigma</strong> courses are taught by Professor Kai Yang, author of<strong>Six</strong> <strong>Sigma</strong> textbooks and a world-reknown expert (see articlepage 23). Hands-on learning, industrial partnerships, facultyexperts: three good reasons why students at WSU’s College ofEngineering receive a world-class education in the real world.For more information, please contact: http://mie.eng.wayne.edu/ or Ratna Babu Chinnam r_chinnam@wayne.edu or KaiYang kyang1@wayne.edu.Wayne State University’s Manufacturing Engineering buildingMTU New Curriculum: Engineeringfor the Service IndustryEngineering students are generally taught how to design andbuild products—better machines, instruments and other devicesor manufacturing processes—rather than services. However, theservice sector accounts for nearly 80% of all economic activity inthe United States. An interdisciplinary team at Michigan Techhas developed a new undergraduate engineering curriculumespecially for industries within the service sector. “If engineeringknow-how can be used to reduce health care costs, imagine theresulting savings in the cost of producing manufactured goods,”notes Dr. Sheryl Sorby, Associate Dean of the College of Engineering.Sorby received a $500,000 NSF grant to develop theprogram, which will launch in fall 2007. <strong>Six</strong> <strong>Sigma</strong> concepts willbe included in the new curriculum. In addition, Michigan Techoffers a number of excellent courses on <strong>Quality</strong> Engineering andDesigned Experiments, including an online course, Advanced<strong>Quality</strong> Engineering, through ME-EM Distance Learning.For more information, please contact: Dr. Sheryl Sorby,Michigan Technological University College of Engineering,906-487-2005, sheryl@mtu.edu or www.doe.mtu.edu.Kettering’s IME Program 1st in NationKettering University’s undergraduateIndustrial andManufacturing Engineering(IME) program has beenranked first in the nationseven years in a row by theU.S. News and World Report—America’s Best Colleges Edition.One of the concentrations inthe IME curriculum is <strong>Quality</strong>Assurance; it combinestheory, hands-on laboratoryexperience and integratedinter-disciplinary projects toenhance learning. ExtensiveStudents at work in KetteringUniversity <strong>Quality</strong> Assurancelab are, from left to right: NandaNeethimangala, Kathleen Monforeand Andrew Liddell.use of statistical computer software in every course allows ourstudents to solve real world problems. The <strong>Quality</strong> Assuranceconcentration courses sequence includes:• IME 332 Engineering Statistics II• IME 333 Design of Experiments• IME 471 <strong>Quality</strong> Assurance• IME 572 Introduction to Reliability and Maintainability• IME 573 Advanced <strong>Quality</strong> AssuranceFor more information, please contact Dr. Tony Lin atKettering University, Flint, MI 48504, 810-762-7948, tlin@kettering.edu.22 | Technology Century | OCTOBER–NOVEMBER 2006


<strong>Six</strong> <strong>Sigma</strong>Fig.in a NutshellFundamentalBeliefs1. <strong>Six</strong> <strong>Sigma</strong>as a BusinessStrategyBY Kai YangOrganizationalInfrastructureProjectExecutionix <strong>Sigma</strong> is one of the most successful businessmanagement systems ever developed. MotorolaCorp. developed the first <strong>Six</strong> <strong>Sigma</strong> initiative inthe mid-1980s. In 1995, the <strong>Six</strong> <strong>Sigma</strong> systemgained publicity after Jack Welch, former CEO ofGeneral Electric (GE), made this system a centralfocus of his business strategy and used it to transformGE into one of America’s flagship companies.GE’s remarkable success was contagious, and over thelast ten years, thousands of companies all over the world haveimplemented their own <strong>Six</strong> <strong>Sigma</strong> programs. The <strong>Six</strong> <strong>Sigma</strong>movement is credited with generating greatly improved operationalefficiencies and billions of dollars in savings.What is <strong>Six</strong> <strong>Sigma</strong>?The name ‘<strong>Six</strong> <strong>Sigma</strong>’ comes from statistical terminology: TheGreek symbol sigma (σ) represents standard deviation. For anormal statistical distribution, the probability of falling within± 6 sigma range of the statistical mean is 0.9999966, or almost100%. In production and manufacturing processes, the “<strong>Six</strong><strong>Sigma</strong> Standard” means that a process will produce defectiveproducts at the rate of 3.4 defects per million units. Therefore,<strong>Six</strong> <strong>Sigma</strong> quality is a valid indicator of an extremely lowdefective rate in a very high-quality process. <strong>Six</strong> <strong>Sigma</strong> is notjust statistical jargon; it is a proven, comprehensive businessstrategy with multiple aspects, or components (Fig. 1).<strong>Six</strong> <strong>Sigma</strong> Fundamental Beliefs1. Do the right things and do things right.“Doing the right thing” means that we have to designabsolutely the best product or service in terms of customervalues. ‘Doing things right’ means not only having a gooddesign, but also that we will make all our products, servicesor processesperform consistentlyso allcustomers will besatisfied at all times.2. Process is everything.TrainingMethods andTools<strong>Six</strong> <strong>Sigma</strong> is a process-focused approach tobusiness improvement, with the key feature of improvingone process at a time. The process here could be a productionsystem, a business process or a product-usage process.Compared with other quality initiatives, the <strong>Six</strong> <strong>Sigma</strong>system applies not only to product quality, but also to allaspects of business operation by improving key processes.For example, <strong>Six</strong> <strong>Sigma</strong> may help create well-designed,highly reliable and consistent customer billing systems, costcontrol systems and project management systems.Organizational InfrastructureIn order to achieve perfect products and processes in abusiness enterprise, <strong>Six</strong> <strong>Sigma</strong> needs to build an organizationalinfrastructure to manage and execute <strong>Six</strong> <strong>Sigma</strong> improvementactivities (Fig. 2).<strong>Six</strong> <strong>Sigma</strong> Terminology• Champion: Champion is a person responsible for coordinatinga business roadmap to achieve <strong>Six</strong> <strong>Sigma</strong> qualitygoals. A champion selects <strong>Six</strong> <strong>Sigma</strong> projects, executescontrol and alleviates roadblocks for the <strong>Six</strong> <strong>Sigma</strong> projectsin a given area of responsibility.• Master Black Belt: Master Black Belt is a mentor, trainerand coach of Black Belts and others in the organization. AMaster Black Belt brings the broad organization up to therequired <strong>Six</strong> <strong>Sigma</strong> professional competency level.www.esd.org | The Engineering Society of Detroit | 23


• Black Belt: Black Belt is a team leader implementing the<strong>Six</strong> <strong>Sigma</strong> methodology on projects. A Black Belt introducesthe methodology and tools to team members and to thebroader organization.• Green Belt: Green Belt is an important team member thathelps a Black Belt or leads successful, small and focuseddepartmental projects.• Project Team Members: Project team members willparticipate on the project teams and support the goals ofthe project—typically in the context of his or her existingresponsibilities.Black Belt TrainingAll <strong>Six</strong> <strong>Sigma</strong> professionals undergo various trainings dependon their duties. For example, Black Belt training usually takesfour weeks. Black Belt candidates will learn some basics ofbusiness processes, project management, team leadership skills,process maps and many statistical methods. In order to obtaina Black Belt certificate, the Black Belt candidate needsto complete one to several projects that deliver verifiablefinancial benefits to the company.<strong>Six</strong> <strong>Sigma</strong> Projects<strong>Six</strong> <strong>Sigma</strong> activities are characterized by the completion of projects—manyprojects. The goal for each project is to improveone process at a time. Each <strong>Six</strong> <strong>Sigma</strong> project is typically ahigh-impact project that brings verifiable monetary benefit tothe company’s bottom line. In the United States, the averagesavings of a <strong>Six</strong> <strong>Sigma</strong> project is over $200,000.A typical <strong>Six</strong> <strong>Sigma</strong> process improvement project usuallyfollows a DMAIC project flowchart. DMAIC stands for thefollowing five project steps: define, measure, analyze, improveand control. Specifically, these steps are:1. Define the problem and customer requirements.2. Measure the defects and process operation.3. Analyze the data and discover causes of the problem.4. Improve the process to remove causes of defects.5. <strong>Control</strong> the process to make sure defects don’t reoccur.<strong>Six</strong> <strong>Sigma</strong> Methods and ToolsMany methods and tools are used in <strong>Six</strong> <strong>Sigma</strong> activities. <strong>Six</strong><strong>Sigma</strong> Green Belts and Black Belts go through rigorous trainingsto learn the system’s methods and tools and effective applicationof these tools in projects. Commonly used methods andtools include project management, teamwork, leadership andapplied statistical methods.From Fig.1, we can see that <strong>Six</strong> <strong>Sigma</strong> is quite flexible interms of using different methods and tools, because as soonas the organizational infrastructure and project managementsystem is established, <strong>Six</strong> <strong>Sigma</strong> professionals learn and applyLeader/ChampionMaster Black Belt(MBB)Black Belts (BB)Green Belts (GB)Project Team MembersFig. 2. <strong>Six</strong> <strong>Sigma</strong> Organizational Infrastructurenew tools to solve new problems. Recently, two trends in <strong>Six</strong><strong>Sigma</strong> have emerged. One trend is Lean <strong>Six</strong> <strong>Sigma</strong>, whichfeatures lean manufacturing methods both to streamlinebusiness processes and improve efficiency.The second trend is Design for <strong>Six</strong> <strong>Sigma</strong> (DFSS), whichfeatures using creative, statistical design methods, such as QFD,TRIZ and Axiomatic Design, as well as robust design methodsto greatly improve the product development process and bringcustomer values into product offerings. One of the extremelysuccessful instances of DFSS application is the Samsung Corp.story: In only five years of using rigorous DFSS methods,Samsung surpassed its major competitor, Sony Corp., in termsof both revenue and profit.Information on Dr. Yang’s books, Design for <strong>Six</strong> <strong>Sigma</strong>: ARoadmap for Product Development, Design for <strong>Six</strong> <strong>Sigma</strong> for Service,and Multivariate Statistical Methods in <strong>Quality</strong> Management,may be obtained by contacting: kyang1@wayne.edu or calling313-577-3858.Kai Yang, PhD, is a professor in theindustrial and manufacturing engineeringdepartment at Wayne State University,Detroit, Michigan. With a PhD and MS inindustrial engineering from the Universityof Michigan in Ann Arbor, Dr. Yang isa leading expert in the area of quality,reliability and <strong>Six</strong> <strong>Sigma</strong>, and hasadministered over $2.5 million in research projects from theNational Science Foundation, General Motors, Ford Motor Co.,DaimlerChrysler and Siemens Corp.24 | Technology Century | OCTOBER–NOVEMBER 2006


Sustaining Success:Evolution of the <strong>Six</strong> <strong>Sigma</strong> Program atSiemens Gas Turbine Engineering DivisionHow Siemens Overcame Challengesto <strong>Six</strong> <strong>Sigma</strong> ImplementationBY Antje Lembcke and Hans-Juergen Kiesowbout six years ago, <strong>Six</strong> <strong>Sigma</strong> was introduced toSiemens Power Generation as part of the Siemensimprovement initiative “Top+”. Siemens PowerGeneration is a business of Siemens, a globaltechnology company.Gas turbine engineering is a major divisionof Siemens Power Generation, and its engineersoperate in a highly technical environment. Inthis article, the authors present the quality-control challengesfaced by Siemens engineering and how these hurdles were overcometo establish and maintain successful <strong>Six</strong> <strong>Sigma</strong> methodologiesin this complex industrial environment.Investigation of Initial Rejection RateTwo years after initiating <strong>Six</strong> <strong>Sigma</strong> methods at Siemens PowerGeneration, data revealed—besides large business benefits—anumber of problems. In particular, several <strong>Six</strong> <strong>Sigma</strong> projectsrelated to turbine engineering processes had been cancelledduring different phases of the DMAIC process (Define, Measure,Analyze, Improve and <strong>Control</strong>). This costly cancellationtriggered an investigation to help understand potential programissues and to develop specific mitigation measures.A detailed investigation at Siemens Gas Turbine EngineeringDivision (GT) was launched to uncover general program issuesand to understand the underlying reasons for the high <strong>Six</strong> <strong>Sigma</strong>project rejection rate of about 30%. Usually, the start-to-finishduration of a <strong>Six</strong> <strong>Sigma</strong> project in the engineering environmentis about six months to one year. At GT, 70% of the programrejections occurred in the Define Phase of <strong>Six</strong> <strong>Sigma</strong>’s DMAICprocess and 80% of all projects were rejected after 70 days afterinitiation. Cost of rejected <strong>Six</strong> <strong>Sigma</strong> projects was estimated at$1M per year, based on non-value-added work only (omittingthe intangible costs of frustrated <strong>Six</strong> <strong>Sigma</strong> Black Belt leadersand lost process opportunities).At GT, questionnaires were given to engineering managers,<strong>Six</strong> <strong>Sigma</strong> Black Belt leaders (certified experts in <strong>Six</strong> <strong>Sigma</strong>methodologies, also called “Belts”) and GT process owners. Thequestionnaire included questions about: <strong>Six</strong> <strong>Sigma</strong> program focus;Black Belt candidate selection process; business impact of <strong>Six</strong><strong>Sigma</strong> projects; importance of selected <strong>Six</strong> <strong>Sigma</strong> projects relativeto non-<strong>Six</strong> <strong>Sigma</strong> projects; quality of <strong>Six</strong> <strong>Sigma</strong> training; andorganizational support for Black Belt project work. During theone-on-one interview sessions, procedures ensured that questionswere interpreted in the same way. Several important <strong>Six</strong> <strong>Sigma</strong>Program findings were identified. In general, results showedthe following:1. Knowledgeable contact for questions relative to <strong>Six</strong> <strong>Sigma</strong> isnot available.2. <strong>Six</strong> <strong>Sigma</strong> project selections seem more arbitrary than systematic.3. Knowledge of the purpose of <strong>Six</strong> <strong>Sigma</strong> is lacking.4. Methods for validating and capturing <strong>Six</strong> <strong>Sigma</strong> projectideas are not clear.5. GT projects with <strong>Six</strong> <strong>Sigma</strong> program potential are notselected (because <strong>Six</strong> <strong>Sigma</strong> projects tend to have highvisibility to top management, responsible managers werehesitant to identify potential process weaknesses through awww.esd.org | The Engineering Society of Detroit | 25


<strong>Six</strong> <strong>Sigma</strong> analysis—a reaction often described as “protectingone’s own turf”).6. An adequate business case needs to be made for <strong>Six</strong> <strong>Sigma</strong>application at the start.7. There is no process-owner involvement and buy-in upfront(at project onset).8. Management shows insufficient recognition of <strong>Six</strong> <strong>Sigma</strong>process success.9. No charge number established for <strong>Six</strong> <strong>Sigma</strong> billing costs;insufficient program funding.After carefully weighing of all issues brought to light fromthe investigation, three main areas for improvement wereidentified: project selection, resource allocation and generalprogram support.Modification SolutionsTop+ <strong>Six</strong> <strong>Sigma</strong> TeamIssues identified by the investigation led to an overhaul of the<strong>Six</strong> <strong>Sigma</strong> process with several enhancements. The first majorimprovement was establishing a small group called the Top+<strong>Six</strong> <strong>Sigma</strong> Team, composed of engineers with a strong <strong>Six</strong><strong>Sigma</strong> background. Within GT, this team is charged with <strong>Six</strong><strong>Sigma</strong> program management and is identified as the directcontact for all Belts within engineering. Monthly metrics(process scorecards) identify targets, such as measuring:Fig. 1. Improved product selection processFig. 2. Improved project implementation26 | Technology Century | OCTOBER–NOVEMBER 2006


number of projects completed; business benefit; project rejectionrate; Belt utilization rate (comparing the number oftrained <strong>Six</strong> <strong>Sigma</strong> Belts with the number of projects in progress);project duration; and project milestones (actual datescompared with planned dates).Program enhancements include a Siemens Intranet Website listing the Top+ Team’s contact information, an FAQ linkand general information about <strong>Six</strong> <strong>Sigma</strong> and program objectives.Within the scope of improvement, two additions werealso made to the existing <strong>Six</strong> <strong>Sigma</strong> process with the goalsof improving management buy-in, resource allocation andproject selection. Figure 1 shows the enhanced project selectionprocess ensuring that new projects are consistent with businesspriorities and therefore guaranteeing the project’s importanceto all involved organizational levels.The Top+ <strong>Six</strong> <strong>Sigma</strong> Team derives project ideas from auditresults, incoming technical issues and R&D projects withthe help of the respective process owners (a process owner isresponsible for the GT component or process tackled by the <strong>Six</strong><strong>Sigma</strong> project). In preparation for the biweekly GT managementand direct staff meeting, each promising project idea iscomprehensively defined and presented in a standardized way.The meeting agenda includes identification of the businesscase; problem statement; proposed process Belt; process owner;and project cost and funding source. During the meeting,each process owner defends his or her project idea, and staffdecides on action for the project idea, as well as identifyingthe funding source and resources. This process enhancementensures adequate funding, management support and prioritythroughout the <strong>Six</strong> <strong>Sigma</strong> project duration.Project Understanding and OwnershipThe second major improvement is illustrated in Fig. 2. In theDMAIC process, the “improvement” step is divided into twoparts: the concept for improvement, with a staff managementrelease, and the implementation of a pilot trial after release.The Belt prepares standardized slides for a fifteen-minutestaff presentation, explaining in a concise way the problemstatement of the project, the business benefit, analysis results,derived improvement options, the selected option and animplementation plan.The advantage of the additional step is manifold: Theprocess owner presents the project, rather than the Belt, whichforces the process owner to take ownership and interest in theproject. Management release guarantees that the projectresult is consistent with business strategy (the big picture),and established business processes. Management review canbe seen as an equivalent to a technical design review on abusiness level. To facilitate the process further, a Web-baseddatabase with an electronic workflow has been developed,which manages all tollgates and approval signatures, stores theentire project documentation, gives the belt access to necessarytemplates, and forms and serves as a knowledge database.A Resulting Success Rate of Over 90%After the new improvement modifications were implemented,measurement results showed that, from twelve approvedSiemens GT projects completed, only one project was rejected(this project was rejected because a similar project wasunexpectedly opened on a company-wide level, making theGT project unnecessary). The new <strong>Six</strong> <strong>Sigma</strong> yield rate of theimproved process after implementation was greater than 90%.This yield rate of 90% has been sustained since implementationof program improvements until the present. It should benoted that a constant emphasis on the process isnecessary to prevent the program from deteriorating.It was a long road to the establishment of <strong>Six</strong> <strong>Sigma</strong> methodologyas an integral part of Siemens GT day-to-day business.The effort and the methods implemented ensure aself-sustaining improvement program that is a prerequisitefor a successful business culture of <strong>Six</strong> <strong>Sigma</strong>. Presently,Siemens Gas Turbine Engineering division has trained 20%of its staff as <strong>Six</strong> <strong>Sigma</strong> Green Belts and Black Belts whoactively support the program. Success speaks for itself: TheSiemens GT <strong>Six</strong> <strong>Sigma</strong> program alone has produced savingsin the (three-digit) millions of dollars, specifically in the categoriesof nonconformance, cost-avoidance, and asset managementand cost savings.Antje Lembcke, BS in environmentalengineering, MBA, Certified Black Belt, ishead of engineering services and processes,Siemens Power Generation, Orlando,Florida. Ms. Lembcke has eight years ofexperience in process reengineering andquality and six years in <strong>Six</strong> <strong>Sigma</strong>.Her degrees are from the University ofWeihenstephan, Germany, and the Universityof Central Florida.Hans-Juergen Kiesow, PhD in mechanicalengineering, Certified Green Belt, is headof gas turbine engineering, SiemensPower Generation, Inc., Orlando, Florida.Dr. Kiesow has 30 years of experiencein engineering, with 17 years of specialinterest in organizational behavior.www.esd.org | The Engineering Society of Detroit | 27


Does <strong>Six</strong> <strong>Sigma</strong> Applyto NonmanufacturingEnterprises?Tools for Retaining Market Sharein the 21st Century28 | Technology Century | OCTOBER–NOVEMBER 2006


BY Maria Staablmost everyone in the industrial world has heardof <strong>Six</strong> <strong>Sigma</strong> methodologies to design new andimprove existing manufacturing processes. Butwhat about nonmanufacturing businesses? Canthe business, or transactional, world also reapbenefits from <strong>Six</strong> <strong>Sigma</strong> process improvementstrategies? According to quality control professionals,the answer is “Yes!”Every process that produces a deliverable to a customer canbenefit from <strong>Six</strong> <strong>Sigma</strong> because there are no “perfect” processesin our world. Every process has room to increase in effectiveness,efficiency and flexibility—improvements that, in turn,ensure satisfied customers, more company profit, and theability to compete successfully in our fast-pacedtwenty-first century economy.Is <strong>Six</strong> <strong>Sigma</strong> Worthwhile?Ford Land, a wholly owned subsidiary of Ford Motor Companyin Dearborn, Michigan, provides services, worldwide, in:real estate management; construction project managment;operations and maintenance research facilities; and dealershipsupport. At Ford Land where the author practices applicationof <strong>Six</strong> <strong>Sigma</strong>, the question was raised whether our effortsin applying <strong>Six</strong> <strong>Sigma</strong> methodologies during the last fiveyears (2000 to 2005) were worthwhile. After a brief analysis,we discovered that Ford Land realized a 570% return on its<strong>Six</strong> <strong>Sigma</strong> investment in the form of hard dollars, or actualLeft: According to Maria Staab, shown here with the popular FordMustang GT, “It takes more than manufacturing to produce a great car.”At Ford Land, Black Belts use <strong>Six</strong> <strong>Sigma</strong> methods to provide processimprovement support to nonmanufacturing process owners associatedwith design and testing facilities. Photo courtesy of Peggy Finger-Greuther, SystemsAnalyst, Ford Land Asset Management Group.bottom-line savings. In addition, an equal return was realizedin the form of soft dollars, or noncaptured (nonfinancial)efficiency savings. Therefore, the answer to “Is <strong>Six</strong> <strong>Sigma</strong> worthit?” is “Definitely, yes!” Presently, there are eight <strong>Six</strong> <strong>Sigma</strong>certified Black Belts at Ford Land, real leaders at Ford MotorCo., who are ready to tackle the difficult challenges ahead ofthe company.Effectiveness, Efficiency and FlexibilityAre Customers Satisfied?All human work involves steps that can be mapped as a process,and the performance of all processes can be assessed in threecategories: effectiveness, efficiency and flexibility. Effectivenessmeasures customer satisfaction with our products, ordeliverables. If the process delivers what was promised to thecustomer, we say that process is effective. We can measure thedegree of effectiveness in the form of a sigma level, with a scoreof six being the best. Effectiveness is essential, since the lackof effectiveness will result in lost customers and eventualbusiness failure.For any process, we first evaluate its effectiveness insatisfying the customer to determine the process sigma level. Ifthe sigma level is unacceptably low, interim containment mustbe put in place to focus on retention of existing customers andto prevent further erosion of market share. Once we havea sufficient level of confidence that our process delivers anacceptable product or service to our customer, then we canproceed with assessing the efficiency level of our process,the second-most important aspect of process performance.Frequently, processes are very effective, but they are notefficient, which cuts into the bottom line. If a company isunable to make profit at the bottom line, the business willeventually collapse.www.esd.org | The Engineering Society of Detroit | 29


John Ferrara is performinga carbon monoxide safetyinspection on a heatexchanger for Ford Motor Co.Photo courtesy of Peggy Greuther.30 | Technology Century | OCTOBER–NOVEMBER 2006


Is Efficiency Reflected in the Bottom Line?The efficiency aspect of <strong>Six</strong> <strong>Sigma</strong> presents the greatestopportunity for process improvement reflected in the company’sbottom line. Based on different publications and workexperience, it is estimated that the majority of the businessessustain a 30% to 40% reduction of profits due to processinefficiencies. Inefficiencies hide in rework, redundancy,multiple levels of approval and inconsistency in taskperformance. If we discover that our customer is happywith our product or service, and the business owners andstockholders are pleased with process efficiencies, then westill evaluate one more aspect—flexibility, the third aspect ofprocess performance.Staying Competitive through FlexibilityIf the process owner is able to make changes to the process torespond to customer needs in a timely, effective and efficient way,the business will likely retain its customers, make a profit and stayone step ahead of the competition. In today’s world economy, itis not enough to sustain a profitable business. Owners who planto stay in business—even three years from now—need to carefullyevaluate the flexibility of their business processes. How can yourbusiness achieve the high levels of effectiveness, efficiency andflexibility, the three major aspects of <strong>Six</strong> <strong>Sigma</strong>? The answer lies inutilizing the <strong>Six</strong> <strong>Sigma</strong> methodologies to identify the weakest linkand address it before it breaks.DMAIC and DCOV: Two Major <strong>Six</strong> <strong>Sigma</strong>MethodologiesThe tools to address the three major aspects of a successfulprocess (effectiveness, efficiency and flexibility) are packagedin two main <strong>Six</strong> <strong>Sigma</strong> methodologies: DMAIC and DCOV.DMAIC is used for existing processes and stands for thefollowing five phases as applied to a problem: define, measure,analyze, improve and control. DCOV (also called Designfor <strong>Six</strong> <strong>Sigma</strong> [DFSS]) methodology functions to drasticallyredesign existing processes or design new processes. DCOVis a four-step process that stands for: define, characterize,optimize and validate.Both methodologies offer several tools that address specificneeds of process challenges faced by the <strong>Six</strong> <strong>Sigma</strong> team.When applied correctly, methodology tools work very well toimprove every aspect of the business processes. It is critical thatall company employees become familiar with the <strong>Six</strong> <strong>Sigma</strong>tools and learn how to use them effectively.When to Use DMIAC and DCOVEach phase of DCOV (called Design for <strong>Six</strong> <strong>Sigma</strong>) methodologyoffers specific tools to assist the team in defining thenew challenge and finding the most effective and efficientFig.1. DMAIC and DCOV decision logicway to deliver product/service to customers at the desiredperformance level (specific sigma level). The schematic inFig. 1 illustrates the logic for decision making and how todetermine which <strong>Six</strong> <strong>Sigma</strong> methodology applies to processimprovements, redesign and design challenges.<strong>Six</strong> <strong>Sigma</strong> and Competition in theTwentieth CenturyIn the twentieth century, businesses struggled to develop marketsfor goods and services. In the twenty-first century, however,businesses must remain competitive in a worldwide arenajust to retain their market share and stay in business. Stayingcompetitive is a struggle for every business. American industriesand services need to find ways to not only keep up with globalcompetition, but also to get ahead of the competition. The answerto the challenges of the future is innovation.Innovation for the future is very difficult. <strong>Six</strong> <strong>Sigma</strong> methodologies,specifically DCOV, can provide the special tools andpeople needed to attain innovation success. DMAIC methodologycan analyze existing processes that are not performingto the required level of satisfaction and will allow us to learnmore about our customers and our capabilities.www.esd.org | The Engineering Society of Detroit | 31


Fig. 2. Business process management matrixTraining and Process OwnershipWhat businesses need to do now is train employees inthe proper use of DCOV and DMAIC methodology tools.Employees must be empowered to lead and to use <strong>Six</strong> <strong>Sigma</strong> tosuccessfully innovate. Without innovation, a business cannotlong exist.Whether we are improving an existing process or designinga new one (innovation), the most critical issue is processownership. Even the best processes fail to deliver the rightproduct or service if they do not have an “owner” who tracksprocess performance indicators. Process ownership can provevery difficult for processes spanning several functional groupsand connecting to other major processes. Although establishingprocess ownership is challenging, it is necessary to sustainprocess improvement.To assist with establishing process ownership, <strong>Six</strong> <strong>Sigma</strong>methodology offers the concept of Business Process ManagementMatrix (BPMM). While this concept is not new, it is not usedas frequently as it should be. BPMM is a tool that includes stepsto plan, organize, control, analyze and improve the process tomaximize overall business results (Fig. 2). In reference to Fig. 2,traditional management structures are built around functionalorganization (vertical silos).Our purpose is to control and improve each individual functionwith respect to its own local goals and objectives. It is verychallenging to optimize overall process performance when aprocess path crosses several functional boundaries. Managingeffectively across boundaries is difficult because, often, no oneis in charge. Therefore, someone must be put in charge andthat person becomes the process owner, responsible for overallprocess performance, including accountability for the system’seffectiveness, efficiency and flexibility.Maria Staab, PhD, <strong>Six</strong> <strong>Sigma</strong> Specialist,Master Black Belt, has experience in thesteel industry, environmental services,facility management and process qualityimprovement. Ms. Staab has worked atFord Land, Dearborn, Michigan, and hastaught <strong>Six</strong> <strong>Sigma</strong> Green Belt training atFord Land and at Wayne State University,Detroit, Michigan, and specializes in process waste reduction toimprove business profitability.32 | Technology Century | OCTOBER–NOVEMBER 2006


Customized SolutionsforPerformanceImprovementSustainable Profits Over Quick-Fix SolutionsBY Norma S. Simonsising cost of products and services continues toput many organizations under pressure as theystrive to improve efficiencies, satisfy customersand provide reliable products at competitiveprices. Improving productivity and increasingquality remains a top-of-mind issue for mostexecutives. Pressure to increase productivity hasoften resulted in a “quick-fix” mentality, whereCEOs become addicted to the latest management fad, thinkingthat it will resolve the company’s problems. The focus onimproving operations in some cases has been dramatic, butmany companies have not been able to translate the short-termgains into sustainable profits.The process of choosing an improvement program isarduous, and selecting one program over another does notalways guarantee the optimal outcome. Business leaders needa practical framework to guide managers in using the righttools to achieve operational performance and implement thecompany strategy. In today’s environment, this strategy has tobe more fluid and the organization needs to be wired so that itcan respond faster than the competition.Figure 1 shows a diagram connecting performance initiativesto company strategy. It is important that each company usea template enabling an understanding of the direction of theorganization, current performance and the selection of theright initiatives that drive bottom-line results. Without thistemplate, the focus is on implementing a methodology ratherthan on implementing a strategy.Steps to Establish Customized Solutions1. Develop the strategySenior management develops the products and services neededfor respective customers. This management strategy needs tobe communicated in operational terms so that the direction of thecompany can be easily understood. As an example, considera hypothetical company (Acme Corp.) that plans to increasegrowth of its revenues by 10% over the next three years.2. Develop Key IndicatorsKey indicators developed by Acme’s top management make thestrategy actionable and ensure that the direction of the businessis clear. Measures selected should be leading indicators.For example, Acme Corp. develops a “dashboard” with thefollowing indicators:1. Reduce production cost.2. Improve responsiveness to the customer (delivery performance).3. Improve product quality.4. Improve efficiency.www.esd.org | The Engineering Society of Detroit | 33


Selection of these indicators is based on the current performanceof Acme Corp. and the areas of focus for achieving statedstrategic objectives.3. Identify Metrics for Business UnitsEach business unit now develops concrete metrics to support theindicators. For example, the Commercial Business Unit (CBU)within Acme selected delivery performance as one of theleading indicators and found that they had an average on-timedelivery performance of about 70%. The unit manager understoodthat this result relied heavily on use of premium freight.Other metrics monitored included customer complaints,internal rework and cycle time.4. Determine Performance GapsOnce the metrics, or scorecard, for the business unit areestablished, results become clear. Data demonstrate currenttrends and identify weaknesses. A focus on delivery performanceby CBU showed that parts were sent to the shipping area latebecause of delays in the rework area.5. Establish PrioritiesAt this point, it is important to identify improvement opportunitiesthat affect the performance gaps identified. In so doing, weensure that the areas for focus are linked with the strategy andthat the appropriate resources will be provided. For example,data show that Acme part No. 0410 had the highest numberof occurrences of rework and a Pareto Chart for the causesfocused on paint defects as the leading issue for rework (Fig. 2).From this information, the CBU manager must now select anapproach for improvement.6. Select Performance InitiativesChoosing the appropriate initiative requires committingtime and resources, communicating to the organizationwhat is being done and stating reasons why a particularapproach was selected. Figure 3 provides a brief outline onhow to select the right approach. Every organization shouldhave a <strong>Quality</strong> Management System (QMS) in place as afoundation to ensure standardization and consistency ofprocesses. With the QMS comes an understanding and useof process management, and requires the entire organizationto become process-focused with the ability to manageprocesses to improve internal and external customer satisfaction.This concept provides the foundation for selectingthe right initiative.For incremental improvements, teams can work with astructured problem-solving methodology (Team ProblemSolving) that provides a quick and easy approach to solvingfrequently occurring problems. In cases where problems arechronic, a more elaborate approach might be necessary. At thispoint, <strong>Six</strong> <strong>Sigma</strong> and the use of the DMAIC (Define, Measure,Analyze, Improve and <strong>Control</strong>) approach become importantin being able to reduce long-term variation. In other instances,where processes need redesign because of technologicalchanges, market shifts or more aggressive customer requirements,the Design for <strong>Six</strong> <strong>Sigma</strong> approach is used. For Acme’s CBU,the DMAIC approach was used (Fig. 2).Pressure to increaseproductivity has oftenresulted in a “quick-fix”mentality, where CEOsbecome addicted tothe latest managementfad, thinking it willresolve the company’sproblems.Fig. 1. Process for linking strategy with performance improvement34 | Technology Century | OCTOBER–NOVEMBER 2006


Fig. 2. DMAIC7. Measure and Monitor PerformanceIt is important to monitor the progress of the improvementinitiative at key milestones. For <strong>Six</strong> <strong>Sigma</strong> and the DMAICphases, reviews are performed at the end of each phase. Reviewensures that the project is on track and helps identify anybarriers that might prevent the success of the project. This stepnot only keeps management informed, but also ensures thatthere is continuous and consistent communication throughoutthe company.Once the process improvement initiative is complete,a follow-up mechanism ensures that improvement is realizedand that the anticipated financial impact is realized. Thisrequires careful evaluation of the metrics and the ability towork closely with the financial function from the beginning toensure that the results identified concur with hard savings.Securing Sustainable ProfitsFor our hypothetical CBU at Acme Corp., the <strong>Six</strong> <strong>Sigma</strong> projectprovided an average yearly cost savings of $280,000. In addition,defects per unit were reduced from 4.5 to 0.4, allowingproducts to move faster through the assembly and paintprocess. Increasing the assembly rate ultimately had an impacton the on-time delivery performance of the business unit.Process improvement initiatives may result in improvedefficiencies and the elimination of waste, but may have nolong-term strategic impact. Therefore, the focus needs to beon establishing a framework that requires an understandingFig. 3. Guidelines for selecting performance initiativeswww.esd.org | The Engineering Society of Detroit | 35


of current company performance and the direction of thecompany. Value to the organization and the customer is thenbased on the ability to select an appropriate improvementmethod at the right time, implementing it in areas that willyield sustained bottom-line results, and ultimately contributeto the overall long-term growth of the company.Be a Future City JudgeNorma Simons is president of Simons-White & Associates, a performanceconsulting company in Ann Arbor,Michigan, that has been in business forover 14 years, and employs performanceimprovement systems such as Lean<strong>Six</strong> <strong>Sigma</strong>, <strong>Quality</strong> Management Systems,Business Operating Systems andBalanced Scorecards. Certified as a quality engineer, reliabilityengineer and a <strong>Six</strong> <strong>Sigma</strong> Black Belt, Ms. Simons has an MSin industrial engineering/operations research from WayneState University in Detroit, Michigan. Contact: 734-975-9340 ornsimons@simons-white.com. Web: www.simons-white.com.LookCMYK6.875x4.375-TechCentury 1/26/06 4:56 PM Page 1<strong>ESD</strong> is looking for engineers andarchitects to serve as judges for the<strong>ESD</strong> Michigan Regional Future CityCompetition, a competition for 7th and8th grade students.Judging opportunities are availableon the day of the competition, January17, 2007, and before the event, judgingessays and other milestones in theprogram. For more information, contactSusan Shanaman at 248-353-0735, ext.4117, or sshanaman@esd.org.SouthfieldTOWN CENTERLOOK INTO WORLD-CLASS OFFICE SPACE AT DOMESTIC RATESSouthfield Town Center is a 2.2 million square foot office landmark where more than6,000 people conduct business every day. Unparalleled amenities include signature restaurants,prominent banks, child care, state-of-the-art health club, travel services, a four-star hotel andmany other important conveniences. Don’t miss your opportunity to join over 250 leadingcompanies in this outstanding location at extremely attractive rates.Premier Office And Retail Space Available With Covered ParkingP 248.350.2222 F 248.350.2266 southfieldtowncenter.comB L A C K S T O N EPROPERTY MANAGEMENT36 | Technology Century | OCTOBER–NOVEMBER 2006


Black BeltDevelopment at DCX:A Historical Perspectiveby Judson B. Esteshe development of the Black Belt program hastruly been one of DaimlerChrysler Corporation’s(DCX) secret quality weapons inthe company’s ongoing—and increasinglysuccessful—battles to match and surpass the bestand most widely recognized quality performersin the auto manufacturing industry. BlackBelt techniques have been in use here at DCXBlack Belt Core Group (BB) in Auburn Hills, Michigan, since2000, and the process has been in development and growthever since. What started as one man’s idea and core group hasgrown into the ideas and work of more than two thousandpeople today and a blueprint for the company’s future.There has been staggering success from the Black Beltprocess. Since 2000, the process has saved hundreds ofmillions of dollars by utilizing the tools the system provides;this savings is a result of more than 3000 projects, completedby 864 Green Belts, 297 Black Belts and 36 Master Black Beltsthat have been certified over this time. The problem-solvingtechniques utilized are powerful and effective in solvingcomplex quality problems. These techniques have been soeffective that when Tom LaSorda, President and CEO ofChrysler Group, developed the company’s <strong>Quality</strong> Mandates,Black Belt was included.Genesis of <strong>Six</strong> <strong>Sigma</strong> at Chrysler CorporationHistorically, the genesis of the Black Belt program came in1997 from Lynn Tilly, a former DaimlerChrysler managerof Black Belt Initiative. Tilly’s initial work was done whilehe lay in a hospital recovering from leg amputation surgery.He pursued the idea that there had to be a faster, better andcheaper way to solve the problems within the Jeep DevelopmentTeam and at Chrysler Group in general. Tilly brought thetheories of Shainin, Kepner-Tregoe, and statistical problemsolving to Jeep engineering and began envisioning the BlackBelt group.Initial Success with Jeep LineThe first Black Belt projects completed at Chrysler Groupinvolved such common industry issues as wind noise. Theinitial success of the Jeep teams led to the presentation of solutionsat the Vice Presidential <strong>Quality</strong> Meeting in 2000. The ability ofthe Black Belt teams to solve problems that were industry-widebegan to be noticed and momentum to continue the programgrew. With this important success, the DaimlerChryslerprocurement and supply (P&S) division took the next step tointegrate the technique into their organization. Subsequently,the P&S Supplier <strong>Quality</strong> Team grew into one of the mostprolific areas of Black Belt methodology application.The development of Black Belt technology throughoutthe entire auto-manufacturing realm began to take hold.Tom LaSorda established Black Belt techniques as one of thehallmarks of his management style. In 2000, the car-manufacturingarena was ripe for use of these tools. Many projectproblems and production challenges that had persisted foryears were solved using the Black Belt tools in the casting,machining, assembly and testing areas in DCX plants.Suppliers and European Counterparts IncorporateBlack Belt TechniquesSupplier plants were included in Black Belt developments. It wasrecognized that our success as a company could only be completewww.esd.org | The Engineering Society of Detroit | 37


38 | Technology Century | OCTOBER–NOVEMBER 2006


when our supply partners joined in the Black Belt mantra.Supplier training for Black Belt is one of the few things that DCXgives to the suppliers free of charge. Supplier Black Belt trainingis the same as that for Chrysler Groups employees.As we trained alongside our supplier partners, we worked onthe same problems and production issues. The growth in breadthand depth of the supplier involvement has developed into theparticipation more than 40 companies and 100 individuals, andwe were pleased to certify the first Master Black Belt from DanaCorporation (Toledo, Ohio) in 2005. Many more suppliers are inthe pipeline, scheduled for training.Eventually, the work of our Core Black Belt Group inCorporate <strong>Quality</strong> extended to our European counterparts.In the last two years, we have helped develop programs forDCX in Graz, Austria, and Berlin, Germany. Our activecoaching in Europe has led to the certification of 22 GreenBelts, one Master Black Belt and an overall cost savings inthe millions.Becoming Proactive: Green Y TechniqueEven though we are achieving great success in quality fixesand cost savings, the reactive program focused on finding andfixing existing problems. We began to see that many of theproduction challenges could be solved much earlier in theChrysler Development System process. We knew we had tobe much more proactive; that is when the Green Y techniquewas developed.This proactive approach began to address developmentissues. DCX began with Green Y, a simple way to determineif manufacturing variation or customer environments wouldcause warranty issues. This system worked very well on themultiple-displacement system and the stow-and-go seatingdesigns. We then included the more complex system of Designfor <strong>Six</strong> <strong>Sigma</strong> (DFSS). This technique develops products andprocesses that are robust to variation and meet predictedperformance in the presence of ambient noise. DFSS techniquesare just now coming online and will form the basis ofthe future Chrysler engineering culture.According to Stephen Walukas, Vice President, Corporate<strong>Quality</strong>, Chrysler Group, “The ability to evolve the Black Beltsystem from a reactive process to a proactive one is truly oneof the secrets to our success in improving customer satisfactionand improving our scores on a series of external metrics,including Consumer Reports and J. D. Power. The quality gapPicture at left: Reflections from bar lights allow DCX’s Component and<strong>Quality</strong> Assurance Design Studio employees to check for imperfectionsand thus ensure the surface paint on this Chrysler Pacifica is free ofbubbles. By checking early models before production, this proactivequality process allows staff to get in front of any potential surfacing andexterior fit and finish issues.There has been staggeringsuccess from the BlackBelt process.between us and the traditional leaders in quality is dramaticallyshrinking. This is the result of process but also the prideof our people, who have passionately embraced these tools todeliver dramatic results.”From an Idea, to a Way of doing Business,to the FutureThe maturing of the Black Belt process has grown from integrationby a select few to a fundamental management system thatis totally ingrained in the way DCX does business. EngineeringCore Component Teams, manufacturing and the supply groupshave each developed talent and structured processes to identifyand resolve read-across issues and chronic problems in a timelymanner. The Engineering Management process is used to identifyreactive Black Belt projects and chronic/systemic problemsin Core and Product Teams. Deployment of additional tools,such as Design of Experiments, and Robust Design and Innovation,resolve chronic/systematic problems and prevent themin future programs.We now look at the future of the Black Belt systems and thebright prospects of complete integration of the proactive DFSSinto everything we do in design, development and productinnovation. This complex and scientific approach to problemsolving is becoming part of the basic skill set needed to remaincompetitive in today’s worldwide marketplace. As part ofour corporate culture, the fundamental view of statisticalproblem solving is evolving from “Why would we do that?”to “Why wouldn’t we do that?” Complete integration of <strong>Six</strong><strong>Sigma</strong> Black Belt methodology throughout all manufacturingprocesses at DCX is an indicator that this great company has asolid and competitive future.Judson Estes is manager of the Black BeltCore Group of DaimlerChrysler AG, and hasbeen with DCX for 20 years. Mr. Estes isresponsible for leading the implementationof the Black Belt Program, worldwide, forDaimlerChrysler AG. To date, Mr. Estes hasimplemented the program in over sevencountries and for over forty suppliers.www.esd.org | The Engineering Society of Detroit | 39


R&D Tax CreditOpportunitiesfor Engineering FirmsAre You Missing Out on Tax Savings?


BY Andy Walkeror many years, manufacturers and technology developershave evaluated their technical and manufacturingexpenditures to identify those that canbe both deducted and used to support a claim forR&D (research and development) tax credits. Thesecredits further reduce a company’s tax liability ona dollar-for-dollar basis. Few engineering firms,however, have taken advantage of this opportunity.These firms mistakenly believe they are not doing qualifyingR&D or underestimate the amount of their R&D. Still otherfirms mistakenly think that they do not qualify for R&D creditsif they have already deducted related costs.Does Your Engineering Firm Qualify?For your services to qualify, you have to meet a few requirements:• First, you have to be using technology (math, chemistry,physics, engineering, computers, etc.) to create or improvea product or process—an easy requirement for engineers tomeet. For the engineering firm this means delivering betterengineering services.• Second, there has to be some uncertainty, from the outsetof a project, as to whether it will succeed. Engineers oftenrespond to this requirement by saying that what they dois not uncertain: “Obviously the bridge can be built, that’swhy we were hired.” But knowing that something can bedone eventually does not negate the qualifying uncertainty;the path to the final solution still requires a hypothesis anda trial-and-error process to prove whether it works.• Third, you have to be engaged in a process of experimentation(trial and error) to generate data or information thatallows you to resolve the uncertainty.• Finally, the research endeavor has to be yours—not yourclient’s. If your client has agreed to pay you for yourresearch efforts, regardless of your success, then related R&Dexpenditures would go toward your client’s R&D credits. Inmany situations, however, you bear all, or at least some, ofthe risk and to that extent the R&D credit could be yours.Another example is if you have a fixed-fee contract witha client, your firm may be obligated to perform the researchneeded, regardless of the cost. Even if you receive progresspayments, you may be at risk if there is a chance you will haveto refund them if your research is unsuccessful. Another part ofthis requirement is that your firm must retain substantial rightsin the research it performs for its client.If you have an agreement that assigns all the R&D to yourclient and gives your client the exclusive right to use the resultsof the research, the research is not yours for R&D tax creditpurposes. However, if your firm retains a substantial right touse its work product, it may qualify. One important thing tokeep in mind is that activities do not need to be successful toqualify, and in fact, will sometimes not be successful due to therequired uncertainty involved.Expenditures That QualifyYour expenditures that can be counted toward R&D creditsare direct, supporting and supervising R&D labor, suppliesconsumed in the experimentation process (often in prototypes)and outside R&D contractors retained to help you.Equipment purchases and other costs that are being depreciateddo not count. But the labor to install the equipment mightcount if the definition of R&D is met.While some employees’ participation efforts in qualifyingR&D activities are obvious, like those of design engineersand software programmers, many are not. Often overlookedas R&D participants are the project supervisor and othersinvolved in making your firm’s processes more comprehensive,more efficient or more capable of meeting clients’ needs. Alsomissed are R&D participants working in “value engineering”and engineers assigned to clients’ plants who work on trials.Actual Client Engineering Firm ExamplesHere are some examples of qualifying R&D projects engineeringfirms have completed:• Design of a challenging building componentwww.esd.org | The Engineering Society of Detroit | 41


Firms mistakenly believe they are not doing qualifyingR&D or underestimate the amount of their R&D.A firm improved its engineering services so it could providea design methodology to create a unique structural lift.The design methodology was to reduce temporary shoringtowers and to preassemble trusses while on the ground.• Design new manufacturing processesA firm designed improved processes in a manufacturingplant that reduced its client’s material costs and increasedthe number of units that could be made each hour.• Design structures in unique circumstancesA firm improved its engineering services by providing adesign for reinforcing a bridge pier using special structures.The concrete base of the pier had deteriorated, resultingin a long crevice. The challenge was to design a method toencase the pier, to fill the crevice with concrete and then totest the results.• Design of a lift and assembly methodA firm improved its engineering services so it could providea lift and assembly method for placing and installing a newantenna on the top of a skyscraper. The challenge was todesign a crane and to determine where it should be locatedin order to lift and assemble the antenna pieces on top of thebuilding, without interfering with normal building traffic.What is My Tax Credit Potential?Firms that are at least twenty-two years old use one set of rulesto determine their R&D expenditures that can be convertedinto tax credits. Newer firms are called “start-ups” and aregoverned by different rules. The current federal credit alonecan reach 6.5% of a firm’s total qualified R&D related wages,supplies consumed, and 65% of what is paid to contractors thatprovide R&D services to a firm. These credits reduce a firm’s taxliability in the tax year they are incurred. Unused credits can becarried forward for twenty years.An example: Firm A has $10M in gross receipts, uses technologyin its operations, and can qualify $500,000 (5%) ofits expenditures as R&D. Assuming a few questions can beanswered to the good, the annual credit could be $32,500.Many firms can also claim R&D tax credits in three previoustax years and amend their returns to get refunds. In thisexample, Firm A could receive a total of $97,500 in credits forthree past tax years.How Does An R&D Tax Credit Program Work?In a comprehensive R&D tax credit program, technicallytrained investigators first identify a firm’s qualifying R&Dactivities and then find the people involved, the suppliesconsumed and contractors used for each activity. This is doneby personal interviews and reviewing relevant documentation.This method has several benefits over traditional reliance onthe financial records of a firm to identify its R&D.Technical investigators are able to identify more qualifyingactivities, which leads to more qualifying expenditures andcredits. Also, when the technical investigator does a technicalwrite-up of each R&D activity, the firm has a detailed recordto help support the credits claimed should they ever be challenged.This answers the question: Why do these activitiesqualify? Finally, for each identified R&D activity, a spreadsheetof corresponding R&D expenditures (labor, suppliesconsumed, etc.) will be created as part of the final report.This answers the question: How many qualifying expendituresare involved?Timing ConsiderationsTime may be of the essence in claiming R&D tax creditsbecause the right to take credits in the earlier tax years maybe expiring. Many accountants advise their clients to includefiling of R&D tax credits with the original annual return, sothe firm does not have to file an amendment. Also, most firmswant to conduct one comprehensive R&D project that coversall open tax years rather than do one year at a time. So, ifclaiming R&D credits sounds attractive, it makes sense to startthe process as soon as possible to ensure the filing is completedby the tax deadlines and no credits are lost.Andy Walker is president of MonetekLLC, a consulting firm with offices inBloomfield Hills and Grand Rapids,Michigan. Monetek works with a widerange of clients and their tax accountantson new R&D tax credit programs andways to enhance existing programs.An attorney, Mr. Walker has extensiveexperience working with technically oriented attorneys andengineers, has published articles and has given numerouspresentations to groups of tax professionals on R&D tax credits.Contact Mr. Walker at 248-647-2233 or asw@monetek.com.42 | Technology Century | OCTOBER–NOVEMBER 2006


Alpha Awardsfor Innovation in Engineering and TechnologyCall for Entries Deadline: February 28, 2007The <strong>ESD</strong> Alpha Awards recognize and celebrate thecreative and original ideas of men and women in theengineering and technology professions that developinnovative solutions to the needs of the general public,business or academia.Any product, material, system, structure, process ormethodology that is innovative in application or use,including inventions, is eligible. The innovation musthave become commercially available, introduced intogeneral, active practical use, or demonstrated new, uniqueapplications within the last 3 years.To submit an entry an entry, visit www.esd.org or contactLeslie Smith at 248-353-0735, ext. 4152 , or lsmith@esd.org.www.esd.org | The Engineering Society of Detroit | 43


WORKING WORLD 101: ACHIEVING SUCCESS AS A NOVICE ENGINEERChapter 9:Continuing Education, the Endof College Is Just the BeginningA Continuing Series of Columns Designedto Help Young Engineers Find Their WayMichael F. Cooper, PEPrincipal and SeniorMechanical EngineerHarley Ellis Devereauxmfcooper@hedev.com248–233–0146Learning Never StopsFor some, graduation from engineering school is one of life’shappiest days: no more tests, no more homework and theexcitement of a new job. For others, graduation is bittersweet:friends separate and “real” responsibility awaits. However youview your post-collegiate days, it is important to remember onething: While one phase of your formal education is over, a newphase is just beginning. The best way to achieve success inyour career is to define your professional goals and positionyourself to be ready for career opportunities by continuallyseeking knowledge.You may think that as a recently graduated engineer, youare already busy enough with your new job responsibilities,and have no time for anything else. Nevertheless, it isimportant to look at the big picture: Engineers who takeadvantage of learning opportunities are more likely to achieveprofessional success. Here are a few ideas to consider:Professional Societies: Professional engineering societiesoffer a wide variety of seminars and workshops. These eventsare usually available for both members and nonmembers,and address technical and nontechnical topics. In the lastyear alone, <strong>ESD</strong> has hosted programs on the subjects ofnanotechnology research, working in the future, and economicforecasting for our region. In addition, many societies planannual or semiannual national conferences where industryexperts lecture or participate in panel discussions on importantindustry issues.Technical Journals: The engineering community hasdozens of technical journals at its disposal. These publicationsoffer information on leading companies, emergingtechnologies, educational opportunities, regulatory issues,effective management and almost anything else you mightwant to know. Regular reading of these journals will keepyou abreast of industry trends and changes, and give you awealth of current ideas for discussion with your colleaguesand supervisor.Industry Organizations: Many leading engineeringorganizations host targeted technical programs at their officesat no charge. Sometimes, these organizations will come to youroffice for a lunchtime seminar if a sufficient number of staff isinterested in the subject matter. As examples, experiencedpractitioners from dynamometer and vehicle emissionssystems manufacturers are often willing to take the time topresent practical applications of the latest advancements inautomotive testing and development.World Wide Web: One can find just about anything onthe Internet, including continuing education. Many industrysponsoredWeb sites offer information on technologies,regulations and new research endeavors. In Web-basedseminars, a subject expert and interested parties can belocated anywhere in the world, and interact to discuss issues.College/University: It may be the last thing you expected,but yes, you might find yourself back on campus. Technicalcolleges and universities offer industry-specific courseworkdesigned for working engineers on their Web sites. Thesecourses are taught evenings and/or on weekends by workingprofessionals with relevant experience.Your Company: Most of us look right past our mostobvious and convenient source of knowledge—our owncompany. Consider the experience and knowledge of yourco-workers and the value of this knowledge to you. Takeadvantage of any opportunity to talk to your colleagues abouttheir experiences and how they might approach your projects.Many organizations have in-house training sessions whereexperienced employees discuss issues and challenges with staff.While this venue is often the most informal of the knowledgesources discussed here, it can be the most effective as it targetsyour specific products.Don’t Forget to Give BackIt is likely that your career will be long and prosperous and includecontinuous learning. As you can see, there are many places to findknowledge. While you are obtaining all of this great information,don’t forget that there is a generation coming up right on yourheels. Once you have achieved a level of expertise, look foropportunities to share your knowledge. Speak at conferences,write technical articles or teach a professional development course.Time spent in sharing your professional insight will help solidifyyour status as an industry expert, and, at the same time, help thenext generation of engineers find their way.44 | Technology Century | OCTOBER–NOVEMBER 2006


Savings Add UpforMEMBERS OF THEEngineering Society of Detroit and its Affiliated Technical SocietiesGet Three Types of Saving s onYour Home and Auto Insurance .GROUP DISCOUNTS<strong>ESD</strong> members and members of its affiliate technical societiescan enjoy special discounts on their auto and home insurancewith Citizens Insurance Company of America. These groupdiscounts are exclusive to members through The HartlandInsurance Group, Inc.And you can save even more if you qualify for the discounts below. As a final savings,take advantage of the convenient Electronic Funds Transfer (EFT) payment option —and eliminate installment fees on your policy bills.Auto InsuranceSaving s :12Member discountPolicy Creditsand Discounts■ Home ownership■ Paid-in-full■ Multi-Policy■ Multi-Car■ Anti-theft deviceHomeownersInsurance Saving s :12Member discountPolicy Creditsand Discounts■ Newly built home■ Anti-theft device■ Smoke alarmsand sprinklers■ Insuring yourauto withCitizens InsuranceAdditionalSaving s :Save $5 per paymentwhen you sign up forthe Electronic FundsTransfer policy premiumpayment method. If youhave a 10-paymentplan, you’d save $50per policy period.Policies are underwritten by the Citizens Insurance Company of America and/or Citizens Insurance Company of the Midwest, companies ofThe Hanover Insurance Group. Participation in the group auto and home insurance program is based upon group membership and companyunderwriting guidelines.This document offers a brief description of coverages and programs. Actual coverages may vary by state. Options and credits are notavailable in all states. For exact terms, conditions, exclusions and limitations of coverages, please contact the branch office nearest you.Citizens Insurance and The Hanover Insurance Group with Eagle icon are trademarks of The Hanover Insurance Group, Inc.3Call the pioneer in insurancefor members of professionalassociations—Hartland InsuranceGroup, Inc.Through their outstanding mix offriendly and professional serviceand the innovative home andauto insurance programs fromCitizens Insurance, you can savebig on your personal insurance.Call us today at 800-682-6881for a free comprehensive quote.691 N. Squirrel Rd., Suite 190Auburn Hills, MI 48326www.hartlandinsurancegroup.com800-682-6881Citizens Insurance Company of America | 645 West Grand River Avenue, Howell, MI 48843w w w . C i t i z e n s i n s u r a n c e . c o m

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