Product Order Cycle Time Six Sigma Case Study
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Product Order Cycle Time Six Sigma Case Study

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  • 1. Six Sigma DMAIC Project GE Aircraft Engines Project Leader/Green Belt: Mike Lisenby Project Leader Title: Project Coordinator & CGB – OEM Management Project Start Date: January 20, 2003Master Black Belt: Steven Bonacorsi
  • 2. Six Sigma in Action Direct Ordering ModelCustomer Profile – Global design & production company for Aircraft Engines T USLBusiness Problem & Impact Process Capability – Before Histogram for CycletimeFixed assets ordering, to fulfill the GE ITS contract with GE 20Aircraft Engines, did not fit into existing GE Product Ordering in Hoursmethodologies. As a result, turnaround time suffered by a Frequencymanually-intensive review and approval process for every order. USL = 8 hrsThe existing process was not cost effective. Target = 1 hr 10 Z bench (LT) = 0Measure & Analyze Z bench (ST) = 1.5Data Collection: Time to place online orders was measured andcompared with IntelliSales/Herman orders. The existing processsigma was 1.5(ST). 0Root Causes: Internal, manual processes involving multiple 0 20 40 60 80 100 120 140Approval levels, erroneous loading of data into Oasis system T Hours USL(not IntelliSales), and no backup support for approvers were 15identified as root causes.Improve & Control The improvement solution was direct, 10 Frequency USL = 8hrsweb-based ordering, in this case, through Ingram Micro. The Target = 1 hrpilot revealed no adverse effects when tested over a 3 week 5period. Zbench(LT) = 7.5 Zbench(ST) = 6.0Results/Benefits Using the new method (out-of-the-boxthinking) resulted in immediate approval of orders, with >90% of 0shipments occurring on the date of the order. 0.3 0.6 Cycletime A Customer Savings of US $10K & ITS $20K in 2003