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1. Six Sigma in Action:
Demonstrating Customer Value
Master Black Belt: Steven Bonacorsi

2. Six Sigma in Action:
Shipping Cost Reduction
Customer Profile – GE Aircraft Engines, Lynn MA
Business Problem & Impact
Customer needed a reduction in shipping costs and improved
order delivery performance for short cycle PC orders
Measure & Analyze Defect Reduction in Shipping Orders
Data Collection: Defects with respect to on-time deliveries
were over 30%. Over one year, the customer was spending 0.35
approximately $33,000 on rush orders. 0.30
Root Causes: Statistical analysis proved multiple variation 0.25
sources, including variation in OEM shipping time, client
0.20
staffing to receive PCs and end user availability for set up
0.15
Improve & Control
0.10
Improvements included a modification in the inventory levels
to accommodate variation in OEM ship time, a staffing change 0.05
that led to more consistent receiving practices, and a change 0.00
Measure Analyze Improve Control
in the process for scheduling with end users that
accommodated their availability
Results/Benefits
Defects in short cycle PC deliveries was reduced to less than
5% (from 30.1% to 3.2%), which resulted in a savings to the
client of approximately $30K annually in shipping costs.
Reduced client’s staffing cost by $30K while improving performance!