Dell Server Ordering 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
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Dell Server Ordering Six Sigma Case Study

  1. 1. Six Sigma DMAIC Project GEAE Account Project Leader/Green Belt: Mike Lisenby Project Leader Title: Project Coordinator and Certified Green Belt Project Start Date: September 9, 2002Master Black Belt: Steven Bonacorsi
  2. 2. Six Sigma in Action Dell Server OrderingCustomer Profile – Global design & production company for Aircraft Engines Before Z_ST 1.4Business Problem & ImpactServer replacements with Dell products had come to a halt, due to aninability to correlate servers and components received with what wasordered. The required cycle time of 10 days was not being met. Success Defect 48% 52% (29 Orders) (31 Orders)Measure & AnalyzeData Collection: Cycle time was measured in days, from the date of orderto the date of delivery. The existing process sigma was negative 1.2. Acomplete analysis of continuous data collected was performed. Uponreview, the customer elected to change their CTQ, causing a shift todiscrete data analysis. After Z_ST 2.76Root Causes: Lack of an identification methodology up-front in theordering process was identified as the root cause. Shipping distance was a Defectcontributor. 10% (3 Orders)Improve & ControlHost name and/or project code of the parent server was used as areference on each server/component order. Orders for multiple serverswere separated into logical units. Success 90% (26 Orders)Results/BenefitsAfter the 2 month project, the customer saved US$258K, and ITS saved$16K as a result of the improved process. A Combined Savings of $275K Over 12 Months!

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