Monitor Costs Six Sigma Case Study

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Monitor Costs Six Sigma Case Study

  1. 1. Six Sigma DMAIC Project GE Medical Systems Project Leader/Green Belt: Steve Kosloske Project Leader Title: SDL, CGB Project Start Date: March 6, 2003Master Black Belt: Steven Bonacorsi
  2. 2. Six Sigma in Action Sun Monitor CostsCustomer Profile – GEMS Engineering – 3 Sites in Milwaukee Area Process Capability – BeforeBusiness Problem & ImpactStandard Engineering workstations pricing continues at thesame high level yearly. Sun has moved to more standard Z bench (ST) = - 3.0parts, allowing substitution of high cost Sun parts for less-lostly Avg. Cost = $10003rd party products, which can save GEMS thousands per year.Measure & AnalyzeData Collection: Average cost for a standard Sun 21” monitoris $1000 for all open leases in 2000-2002.Root Causes: Single source of monitors (Sun). Process Capability – AfterImprove & ControlBid replacements monitors to 3rd party companies, testreplacement monitors to meet/exceed user requirements, and Z bench (ST) = 6get end-user sign off on new monitors. Avg. Cost = $509Results/BenefitsDirect savings of $509 per workstation order, no extra costs tocustomer if monitor fails during lease period. A Customer Direct Savings of US$385K in 2003!

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