Six Sigma Project Case Study Overview, from the General Electric "At the Customer, For the Customer" Six Sigma Program, led by Lean Six Sigma Master Black Belt and President of the International Standard for Lean Six Sigma (ISLSS) and Owner of the Lean Six Sigma Group

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!