Lean Six Sigma
Impressive Results
Examples of Lean Six Sigma Projects
- CREDIT CARD DISPUTES: The costs associated with customer complaints were increasing. Incomplete or incorrect internal information caused rework. Annual Lean Six Sigma Savings: $315,000
- ELIMINATION OF ACCOUNT STATUS STATEMENTS: Paper statements of customer account status were produced for all clients including those who had access to on-line services. Annual Lean Six Sigma Savings: $1,800,000
- SHIPPING ERRORS: This distribution center shipped more than 170,000 items per month to customers and the unit error rate was ~ 3% resulting in low customer satisfaction and a extra-handling costs of $400,000 annually. Annual Lean Six Sigma Savings: $200,00
- DAYS SALES OUTSTANDING (DSO): This company manufactured large control equipment to customer specifications. DSO’s were out of control. Annual Lean Six Sigma Savings: $150,000
- EMERGENCY STOCK REPLENISHMENT: This distribution center experienced problems with poor order fill because of inventory replenishment problems. Annual Lean Six Sigma Savings: $150,000
- CYCLE COUNTING: This distribution center experienced problems with their cycle counting process in which over 170,000 items were audited during the year. Annual Lean Six Sigma Savings: $65,000
- COST VARIANCE REDUCTION: This company manufactured control equipment. Large negative variances in project cost estimates caused margin erosion. Annual Lean Six Sigma Savings: $100,000
- QUOTATION SUCCESS: This customer had a sales quotation success rate of only 50%. Annual Lean Six Sigma Savings: $350,000
- CUSTOMIZED QUOTATIONS: In this organization, profit margins were not adequately adjusted for special orders resulting in an annual revenue loss of $1,670,000. Annual Lean Six Sigma Savings: $800,000.