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Pc Shipping Improvement Six Sigma Case Study

Kevin Egan
Kevin Egan

Lean Six Sigma Group Free Project Case Study Overviews http://www.linkedin.com/groups/Lean-Six-Sigma-37987 Sponsored by the International Standard for Lean Six Sigma, e-Zsigma http://www.e-zsigma.com, IQPC, and PEX Network. Please contact Lean Six Sigma Master Black Belt, Steven Bonacorsi, Owner of the Lean Six Sigma Group to have your project case studies to be added to the Lean Six Sigma Group Library. Steve Bonacorsi sbonacorsi@comcast.net

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Six Sigma in Action: Demonstrating Customer Value Master Black Belt: Steven Bonacorsi
Six Sigma in Action: Shipping Cost Reduction Customer Profile GE Aircraft Engines, Lynn MA Business Problem & Impact Customer needed a reduction in shipping costs and improved order delivery performance for short cycle PC orders Measure & Analyze Defect Reduction in Shipping Orders Data Collection: Defects with respect to on-time deliveries were over 30%. Over one year, the customer was spending 0.35 approximately $33,000 on rush orders. 0.30 Root Causes: Statistical analysis proved multiple variation 0.25 sources, including variation in OEM shipping time, client 0.20 staffing to receive PCs and end user availability for set up 0.15 Improve & Control 0.10 Improvements included a modification in the inventory levels to accommodate variation in OEM ship time, a staffing change 0.05 that led to more consistent receiving practices, and a change 0.00 Measure Analyze Improve Control in the process for scheduling with end users that accommodated their availability Results/Benefits Defects in short cycle PC deliveries was reduced to less than 5% (from 30.1% to 3.2%), which resulted in a savings to the client of approximately $30K annually in shipping costs. Reduced clients staffing cost by $30K while improving performance!

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Pc Shipping Improvement Six Sigma Case Study

  • 1. Six Sigma in Action: Demonstrating Customer Value Master Black Belt: Steven Bonacorsi
  • 2. Six Sigma in Action: Shipping Cost Reduction Customer Profile GE Aircraft Engines, Lynn MA Business Problem & Impact Customer needed a reduction in shipping costs and improved order delivery performance for short cycle PC orders Measure & Analyze Defect Reduction in Shipping Orders Data Collection: Defects with respect to on-time deliveries were over 30%. Over one year, the customer was spending 0.35 approximately $33,000 on rush orders. 0.30 Root Causes: Statistical analysis proved multiple variation 0.25 sources, including variation in OEM shipping time, client 0.20 staffing to receive PCs and end user availability for set up 0.15 Improve & Control 0.10 Improvements included a modification in the inventory levels to accommodate variation in OEM ship time, a staffing change 0.05 that led to more consistent receiving practices, and a change 0.00 Measure Analyze Improve Control in the process for scheduling with end users that accommodated their availability Results/Benefits Defects in short cycle PC deliveries was reduced to less than 5% (from 30.1% to 3.2%), which resulted in a savings to the client of approximately $30K annually in shipping costs. Reduced clients staffing cost by $30K while improving performance!