Six Sigma in Action:                 Demonstrating Customer ValueMaster Black Belt: Steven Bonacorsi
Six Sigma in Action:                                                               Shipping Cost ReductionCustomer Profile...
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Pc Shipping Improvement Six Sigma Case Study

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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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Pc Shipping Improvement Six Sigma Case Study

  1. 1. Six Sigma in Action: Demonstrating Customer ValueMaster Black Belt: Steven Bonacorsi
  2. 2. Six Sigma in Action: Shipping Cost ReductionCustomer Profile – GE Aircraft Engines, Lynn MABusiness Problem & ImpactCustomer needed a reduction in shipping costs and improvedorder delivery performance for short cycle PC ordersMeasure & Analyze Defect Reduction in Shipping OrdersData Collection: Defects with respect to on-time deliverieswere over 30%. Over one year, the customer was spending 0.35approximately $33,000 on rush orders. 0.30Root Causes: Statistical analysis proved multiple variation 0.25sources, including variation in OEM shipping time, client 0.20staffing to receive PCs and end user availability for set up 0.15Improve & Control 0.10Improvements included a modification in the inventory levelsto accommodate variation in OEM ship time, a staffing change 0.05that led to more consistent receiving practices, and a change 0.00 Measure Analyze Improve Controlin the process for scheduling with end users thataccommodated their availabilityResults/BenefitsDefects in short cycle PC deliveries was reduced to less than5% (from 30.1% to 3.2%), which resulted in a savings to theclient of approximately $30K annually in shipping costs. Reduced client’s staffing cost by $30K while improving performance!

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