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Demonstrating Customer Value

Six Sigma in Action:

A Six Sigma in Action summary offers an example of the value a Six Sigma project can bring to a customer.
Master Black Belt: Steven Bonacorsi

Six Sigma in Action: Cycle Time Reduction


Customer Profile 15,000 seat chemical manufacturing company based in New Jersey
Business Problem & Impact
Customer requested a reduction in support costs for a remote location while maintaining or improving the quality of service.
Process Data USL 20.0000 * * 39.5845 84 38.1110 86.4850
USL Target LSL Mean Sample N StDev (ST) StDev (LT) Process Data 20.0000 * * 39.5845 84 38.1110 86.4850

Process Capability Analysis for Orig. Resolve


USL

Process

Measure & Analyze

Target LSL Mean Sample N

ST LT

Average cycle time of repairs to the remote site was 40 hours, and repair times historically went as high as 18.5 business days. Statistical analysis proved that root causes were both technician specific and process driven.
StDev (ST) StDev (LT) Cp CPU CPL Cpk Cpm

Potential (ST) Capability * -0.17 * -0.17 *

Potential (ST) Capability Cp CPU CPL Cpk * -0.17 *

Improve & Control

-200

-100

100

200

300

400

-0.17

500

Improvements included a communication to users re-enforcing the process for logging remedial calls, a redistribution of network support responsibilities, and an improved training program to reinforce effective processes
Overall (LT) Capability Pp * * PPU PPL Ppk -0.08 -0.08 Process Data
USL LSL Target Mean Sample N StDev (ST) StDev (LT)

Observed Perf ormance PPM < LSL PPM > USL * 333333.33

Process Capability Analysis for Ne


PPM < LSL PPM > USL * PPM < LSL Overall 696332.67 (LT) Capability USL PPM >

Cpm Expected ST Perf ormance

* -100 Expected LT-200 ormance Perf

Process Capability Analysis for New Resolve Pp * PPM Total 333333.33 PPM Total 696332.67 PPM Total
Process Data
* *

* Observed Perfo 589574.30 PPM589574.30 < LSL


PPM > USL PPM Total

USL PPU
PPL Ppk

-0.08 * -0.08

USL

20.0000

ST LT

USL Target LSL Mean Sample N StDev (ST) StDev (LT)

20.0000 * * 11.4839 62 7.73602 8.93168

Results/Benefits

11.4839 62 7.73602 8.93168

Average cycle time for calls was reduced 71%, with a 90%reduction in the long-term variation. Span (time between the customers desired repair time and the longest repair time) was reduced by 92%. These improvements included a direct savings to the client of over $130K in staffing costs.
Cp CPU CPL Cpk Cpm Pp PPU PPL Ppk

Potential (ST) Capability * 0.37 * 0.37 *

Potential (ST) Capability Cp CPU CPL


-20 -10

* 0.37 0.37
*

10

20

30

40

Overall (LT) Capability * 0.32 * 0.32

* Observed Performance
PPM < LSL PPM > USL PPM Total 145161.29 145161.29

Expected ST Performance PPM < LSL PPM > USL PPM Total * 135482.88 135482.88

Expected LT Performance PPM < LSL PPM > USL PPM 10 Total * 170174.79

0 Improved repair cycle time while reducing clients staffing cost-20 over $130K! by -10
Cpm *

Cpk

20 170174.79