Six Sigma DMADV Methodology can be utilized in the inventory process and control, supply chain, and other business professional applications.

1. DMADV FUNDAMENTALS
Six Sigma principles provides opportunities with
different methodologies to solve issues. In this
presentation we will examine the DMADV
methodology.
DMADV methodology is to keep a solid structure in
the development stage of a procedure. Improving
effectiveness and omitting redundancies are ways to
make the entire process efficient.
Let’s look at the case study:

2. Define
Identify wants and needs believed to be
considered most important.
These wants and needs are identified through
historical information, customer feedback,
and other information sources.
e-Commerce Platform
and
We wanted to develop an e-Commerce Platform;
ebay Store and an Online Store.

3. Measure
Metrics. What defines a successful
e-Commerce Platform?
• How much time does it take to
process an order?
• What is the time cut-off for same
day shipments?
• How often are orders cancelled
due to out of stock?
• Gross Profit greater than 20.0%?
• At the end of twelve (12) months,
what are my Sales Goals?

4. Analyze
The result of the distribution process
is tested by internal teams to create
a baseline for improvement.
eBay process is manual. Order received; Customer data
may need to be set-up; Order entered; ebay and order
tracking is updated; Order is shipped; Customer receives
invoice and shipping information electronically; Once the
quantity is depleted, the product is taken off ebay.
The Online Store is automated with our CRM system.
The order is received; Order is picked and/or Special
Order is developed; Customer is notified via email of
any delay; When the order is completed, final
processing and shipment will occur. Customer receives
invoice and shipping information electronically.

5. Design
The results of internal tests are
compared with customer wants and
needs. Any additional adjustments
needed are made.
Certain products would not receive the published
discount. These low margin products are
assemblies, lower units, blocks, heads, kits,
propellers and serialized products.
Inaccurate Product/Package descriptions. Constant
review of Product/Package descriptions to insure
accuracy.
Some users will have a difficult time with the ARI
Parts Stream UI. A published phone number
would be required for user assistance.
NO
DISCOUNT

6. Verify
The last stage in the methodology is
continuous. While the service is being
released and customer reviews are coming
in, the processes may be adjusted.
On ebay, it was necessary to:
• Clarify descriptions,
• Request additional information to verify data,
• Research pricing to ensure competitiveness,
• Product Searches to uncover additional
products to sell.
In the Online Store, it was necessary to:
• One person to handle the entire process,
• List a telephone number for assistance,
• Do not use the general telephone
number; use a Direct Telephone Number,
• Display the Promo Code in bold,
• Set the Promo Code as a default.

7. RESULTS
There are several components with the system. You have the CRM
System, the Website company with Parts Stream, and the Credit Card
Processing company. It is important to work through the various plans.
When a policy and procedure is developed through DMADV, utilize it until
it fails. Then use the DMAIC methodology to correct it.
The goal of $2,000 average weekly sales by month twelve (12). In the
fifth (5th) month we are averaging $2,500 per week in sales.
We continue to review the community reach and needs. Our goal is to
keep Search Loss below 5% on a monthly basis. The Search Loss for the
previous month was 1.2%.

8. Define
Measure
AnalyzeDesign
Verify
DMADV Methodology
Working the process allows you to develop, measure and improve your
results. Whether you are Inventory Management, Supply Chain, or other
profession, the DMADV methodology will enhance your decision making.

9. WRAP UP
Systematic methodologies, such as DMADV, provides results.
The results are based on your drive and determination.
Look for senior management support with value. What is the ROI on
this process?
If you have multiple desired results, mix your short-term and long-term
goals. Work on 1 short-term goal while working on 1 long-term goal.