Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Surplus Equipment Sales Six Sigma Case Study


Published on

Six Sigma Project Case Study Overview by Master Black Belt Steven Bonacorsi, International Standard for Lean Six Sigma (ISLSS). General Electic ACFC "At the Customer, for the Customer"

  • Be the first to comment

  • Be the first to like this

Surplus Equipment Sales Six Sigma Case Study

  1. 1. Six Sigma in ActionBrian Boyce Jr.Certified Green Belt, CEDecember 8, 2003 Master Black Belt: Steven Bonacorsi
  2. 2. Six Sigma in Action Surplus Equipment Sales Before Data = $38.12Customer Profile GE ITS, IT solution provider Lot Type 2 Lot Type 1Business Problem & Impact $48.88On an annual average GE ITS sells 11,000 pieces of surplus computer $27.35equipment in “bulk” in a “as is” condition. There is no attention given tothe quality or true value of this equipment. All equipment is sold as anecessary step for equipment disposal & is thought to have little or noactual value. Grand Avarage Per Unit = $38.12Measure & AnalyzeData Collection: Average cost of sale on equipment for 2001was measured.Root Causes: Completeness and Functionality of equipment After Data = $218.51sold identified as root causes.Improve & Control Lot Type 2 Lot Type 1To implement a new practices for used equipment sales $216.09 $220.93that will increase revenue for GE ITS.Results/Benefits• Increase revenue Grand Avarage Per Unit = $218.51• Add control over how equipment is sold 5.7 x Greater than Baseline Average A savings of US$500K in 2003!