Six Sigma Case Study: General Electric -


case study on six sigma

Browse our Site for a Collection of Lean and Six Sigma Case Studies. These Lean and Six Sigma Case Studies have been compiled from our Past Projects. A combination case study and tutorial illustrates Six Sigma use in an IT call center. It tracks a DMAIC project from inception through its five phases. The goal is . The enormity of Six Sigma’s success here cannot be understated. Welch would go on to become a lifelong advocate of the Six Sigma methodology, championing its effectiveness in businesses, large and small, all over the world. Six Sigma’s present day success is rooted in .

A Six Sigma Case Study - Tutorial for IT Call Center - Part 5 of 6 - iSixSigma

Having identified and verified ways that support cost is driven by staffing ratios, process factors like transfers and callbacks, and the proportion of phone and web traffic, the Six Sigma project team of the IT services business began identifying and selecting among solutions.

It had entered the Improve phase. Select and Tune the Solution: Using predicted performance and net value, decide what is the best solution alternative.

Work done during the Analyze phase identified several areas of prospective improvements that could deliver project results. The solution alternatives were:. Customers: Functionality and value. Employees as appropriate : Working conditions, interesting work and growth opportunities. To understand and compare each solution alternative, the team realized it would need to describe and characterize each of them with respect to the key requirements.

The characterization work is the core of step I2, and the population and work-through of the selection matrix is the main activity in I3. For each solution alternative, a sub-team worked through a series of comparisons and characterizations in order to check and quantify the key X-Y relationships that could be exploited for that alternative.

Each group began by determining the magnitude of the potential business benefit, case study on six sigma. Obviously the alternative passed if benefits meaningfully exceeded the likely cost of the improvement. If not, it was eliminated. The staffing option is an illustration of the process used.

To examine the other options, the team followed similar thought processes, but perhaps applied a somewhat different combination of tools. To evaluate the staffing option, the team asked this series of questions:. Which variables will be impacted, and by how much? What chain of analysis will be used to show the connection between additional staff and account growth? Does case study on six sigma time drive account growth?

How many staff might be added? How would that impact wait time? How much benefit would that staffing level produce? What would it cost? Figure 2 While this did not prove causality and there clearly were other influentialing factors, the team suspected a meaningful connection subject to stronger proof later and decided to pursue this clue further.

The team again applied regression analysis. Figure 3 It appeared that 61 percent of the variation in account growth could be attributed to case study on six sigma time.

Again, this was not case study on six sigma proof, but wait time was a worthy suspect. To understand the number of staff that might be added or reduced, the team considered each day separately.

The team found that meant adding 14 people to the call center staff on Mondays. The team used the following calculations:, case study on six sigma. The team then evaluated the likely impact of wait time on new account growth using information from Figure 3. The accounting department was asked to provide some of the facts needed to find out the incremental value of the projected new account growth. With this case study on six sigma and what the team already knew, it could calculate the financial impact.

The team completed a similar quantitative analysis of each of the options. Included among them were one on web service and one on transfers and callbacks.

An improvement summary was written for each. Web Service Implementation Summary. Approach: Increase client awareness about web case study on six sigma and help clients see how easy it is to case study on six sigma. Figure 4. Risks: Verify that the web system can handle increased volume. Verify that customer satisfaction does not slip. Method: Insert in upcoming mailings describing web services and interface.

Announcement on the phone router switch that answers all calls. Transfer and Callback Implementation Summary. Approach: In a focus group session with current staff, it was case study on six sigma that almost half had not be trained on policy and system changes implemented nine months before.

The data was stratified by those trained and those not. A t-test was used to compare transfer and callback percentages. The conclusion was provide training. Risks: No way to calculate how quickly the training will drive the percentage down. There may be a learning curve effect in addition to the training.

Also making staff available for training is an issue because training is only done on the first Monday of each month. Method: Considering risks, the decision was made to train 50 percent of those in need of training and evaluate the impact in a three-month pilot program. If that worked, the second half would be trained in the following quarter. If fully effective immediately, this penciled out to about half of the potential benefit.

When the team had completed a similar quantitative analysis of each of the options, it prepared a summary comparison and was ready to make recommendations for the next steps. The team did not pursue tuning the solution in the context of this project, although it recognized there might be opportunities to further optimize performance of the web component.

Before moving into the pilot phase, the team decided to meet with one of the Master Black Belts to get a sanity check on its work to that point. The CEO has told me in no uncertain terms that he wants our account growth to match the competition, and soon. He made it clear this is a strategic imperative. It has been let slide for too long as it is. It is evident that adding staff will help us more quickly than any of the other options, case study on six sigma.

We can always cut back staff later as these other improvements take hold. Turnover in this area is high anyway, so reducing staff will be painless when the time comes.

The team developed a plan for the pilot program in staff training that addressed the practical considerations for success. The team then conducted the pilot program and evaluated the results.

A number of significant questions needed to be answered in the results of the pilot program. Among the most important questions and answers were:. The team looked at the results month by month to see if there was a learning curve effect with the new staff.

There was an effect, but the new staff nearly caught up by the end of the third month. During the second month, the difference was down to 2. And by the third month, case study on six sigma, the difference was about one minute. Figures 5, 6 and 7. Did wait time decrease as expected?

Wait time was lower by 10 percent — just what was expected when the staff was increased by 10 percent. Did the new staff have any impact on transfers? New staff had slightly more transfers, but the number was not statistically significant, case study on six sigma. Did the new staff have any impact on callbacks? New staff had 1. This was a concern.

The team needed to determine if this was a learning curve issue, and if not, how the additional callbacks can be controlled.

What happened to customer satisfaction? The company moved from less than 73 percent to about After the pilot program on staffing was complete, the team was ready for the Improve tollgate review with the project Champion. Here is what the team reported on the staffing issue during the review:. Part 6case study on six sigma, the conclusion of this case study-tutorial, is about the Control phase of the project.

You must be logged in to post a comment. Please Sign in Register, case study on six sigma. By Gary A. Gack and David L.

The project is aimed at helping the company become more competitive and profitable, case study on six sigma. Figure 2: Wait Time vs. Figure 3: New Accounts vs. Wait Time. Figure New Boxplot for Customer Satisfaction. You Might Also Like. Gary A. View Profile View all posts by Gary A.

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Six Sigma Case Study: Starbucks -


case study on six sigma


A combination case study and tutorial illustrates Six Sigma use in an IT call center. It tracks a DMAIC project from inception through its five phases. The goal is . In this case study, a team wants to be sure their customer-focused business is satisfying its clients. Part 1 focuses on reducing the wait times associated with transferring cargo and documents. Part 2 looks at making more improvements using just-in-time (JIT) principles. Six Sigma works for large companies that accumulate a lot of waste and redundancy. But what about other organizations? What about small businesses? What about your company? This case study highlights the implementation of Six Sigma's DMAIC methodology in a North American manufacturer of plumbing products.