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Surplus Equipment Sales Six Sigma Case Study

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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"

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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!

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