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Six Sigma DMAIC Project




                                         GE Aircraft Engines




                                      Project Leader/Green Belt: Mike Lisenby
                       Project Leader Title: Project Coordinator & CGB – OEM Management
                                        Project Start Date: January 20, 2003

Master Black Belt: Steven Bonacorsi
Six Sigma in Action
                                                                                                    Direct Ordering Model
Customer Profile – Global design & production company for Aircraft Engines
                                                                                                T USL
Business Problem & Impact
                                                                                                               Process Capability – Before
                                                                                                               Histogram for Cycletime
Fixed assets ordering, to fulfill the GE ITS contract with GE              20
Aircraft Engines, did not fit into existing GE Product Ordering                                                      in Hours
methodologies. As a result, turnaround time suffered by a




                                                                   Frequency
manually-intensive review and approval process for every order.                                                        USL     = 8 hrs
The existing process was not cost effective.                                                                           Target = 1 hr
                                                                           10
                                                                                                                      Z bench (LT) = 0
Measure & Analyze
                                                                                                                      Z bench (ST) = 1.5
Data Collection: Time to place online orders was measured and
compared with IntelliSales/Herman orders. The existing process
sigma was 1.5(ST).                                                              0
Root Causes: Internal, manual processes involving multiple                                      0         20   40     60      80    100    120   140
Approval levels, erroneous loading of data into Oasis system                                              T            Hours                       USL

(not IntelliSales), and no backup support for approvers were                               15

identified as root causes.
Improve & Control The improvement solution was direct,                                     10




                                                                               Frequency
                                                                                                                    USL = 8hrs
web-based ordering, in this case, through Ingram Micro. The
                                                                                                                    Target = 1 hr
pilot revealed no adverse effects when tested over a 3 week
                                                                                            5
period.                                                                                                         Zbench(LT) = 7.5
                                                                                                                Zbench(ST) = 6.0
Results/Benefits Using the new method (out-of-the-box
thinking) resulted in immediate approval of orders, with >90% of                            0

shipments occurring on the date of the order.                                                   0.3 0.6              Cycletime


              A Customer Savings of US $10K & ITS $20K in 2003

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Product Order Cycle Time Six Sigma Case Study

  • 1. Six Sigma DMAIC Project GE Aircraft Engines Project Leader/Green Belt: Mike Lisenby Project Leader Title: Project Coordinator & CGB – OEM Management Project Start Date: January 20, 2003 Master Black Belt: Steven Bonacorsi
  • 2. Six Sigma in Action Direct Ordering Model Customer Profile – Global design & production company for Aircraft Engines T USL Business Problem & Impact Process Capability – Before Histogram for Cycletime Fixed assets ordering, to fulfill the GE ITS contract with GE 20 Aircraft Engines, did not fit into existing GE Product Ordering in Hours methodologies. As a result, turnaround time suffered by a Frequency manually-intensive review and approval process for every order. USL = 8 hrs The existing process was not cost effective. Target = 1 hr 10 Z bench (LT) = 0 Measure & Analyze Z bench (ST) = 1.5 Data Collection: Time to place online orders was measured and compared with IntelliSales/Herman orders. The existing process sigma was 1.5(ST). 0 Root Causes: Internal, manual processes involving multiple 0 20 40 60 80 100 120 140 Approval levels, erroneous loading of data into Oasis system T Hours USL (not IntelliSales), and no backup support for approvers were 15 identified as root causes. Improve & Control The improvement solution was direct, 10 Frequency USL = 8hrs web-based ordering, in this case, through Ingram Micro. The Target = 1 hr pilot revealed no adverse effects when tested over a 3 week 5 period. Zbench(LT) = 7.5 Zbench(ST) = 6.0 Results/Benefits Using the new method (out-of-the-box thinking) resulted in immediate approval of orders, with >90% of 0 shipments occurring on the date of the order. 0.3 0.6 Cycletime A Customer Savings of US $10K & ITS $20K in 2003