Six Sigma DMAIC Project                                         GE Aircraft Engines                                      P...
Six Sigma in Action                                                                                                    Dir...
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Product Order Cycle Time 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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Product Order Cycle Time Six Sigma Case Study

  1. 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. 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
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