As with most hospitals, labor is the largest budget expense at the Providence Alaska Medical Center (PAMC) in Anchorage. But benchmarking indicated that staff utilization at PAMC, a part of the Providence Health System, was above the 75th percentile of the national average. To remedy this, in October 2003, a multidisciplinary team (nursing, leadership, finance and physicians) began a Six Sigma project to create a more effective process for scheduling staff.
During the Define phase of the project, the team found that the hospital’s staffing dollars – which includes salaries, benefits and contract labor – were substantially over budget. Roughly 75 percent of the variance could be linked to nursing salaries and the use of registered nurses from outside staffing resources. Within the nursing area, the team found that the adult critical care unit (ACC) was 22 percent over budget for staffing … click here to read ahead
If we take a close look at the strengths and weaknesses of SCOR, It quickly becomes clear that SCOR methodology fills a major need in a Lean and Six Sigma program – identification, prioritization and strategic alignment of
project opportunities with the capability to execute them. Read more to know why?
Abstract: In recent years, companies have begun using Six Sigma Methodology to reduce errors, excessive cycle times, inefficient processes, and cost overruns related to financial reporting systems. This paper presents a case study to illustrate the application of Six Sigma Methodology within a finance department. Specifically, the case relates to the Continuing Account Reconciliation Enhancement project undertaken by the finance department of a major U.S. defense contractor. The goal of the project was to streamline and standardize the establishment and maintenance of costing and planning for all business activities within the current financial management process. The Six Sigma implementation resulted in a significant reduction in the average cycle time and cost, per unit of activity, needed to produce the required financial reports.
Introduction: In 1987, Motorola developed and organized the Six Sigma process improvement Methodology to achieve “world-class” performance, quality, and total customer satisfaction. Since that time, at least 25% of the Fortune 200, including Motorola, General Electric, Ford, Boeing, Allied Signal, Toyota, Honeywell, Kodak, Raytheon, and Bank of America, to name a few, have implemented a Six Sigma program (Antony et al. 2008, Hammer, 2002). These companies claim that Six Sigma has significantly improved their profitability (Hammer, 2002). For example, in 1998 GE claimed benefits of $1.2 billion and costs of $450 million, for a net benefit of $750 million. The company’s 1999 annual report further claimed a net benefit of more than $2 billion through the elimination of all non–value added activities in all business processes within the company (Lucas, 2002). keep reading…
This Six Sigma case study looks at how we were able to drastically reduce inventory levels for our client in the oil and gas industry. This was done without sacrificing service levels.
The Problem:In this six sigma case study, we look at a large company in the oil and gas sector that sells drilling liquids and chemicals to exploration companies.
The supply chain path of the company worked like this:
Product Manufacturer –> Regional Hub –> Country Warehouse –> District Warehouse –> Rig Storage
Since the items on the rig were on consignment, technically the inventory was still owned by the supplier until it is actually consumed by the customer.
Oil drilling can be highly variable and if for some reason the rigs run out of drilling fluids, it could cost the drilling company millions of dollars per hour. Due to this fact, the fluids company stocked multiple times of what was actually required to ensure they do not ever face that situation.
The inventory turns were at 1.2. This means that on average, a product would sit around for about 10 months before being consumed! These were high value and bulky items which required large warehouses to host them. Click here to read more…
This is a black belt online banking case study. This is a classic case study dealing with the application of DMAIC methedology for Deposit Process of a Bank,which is an on line process. It includes data and causes,Additional findings and Project conclusion…read ahead
JEA is an electric, water, and sewer utility located in Jacksonville, Florida and parts of three adjacent counties. The JEA water system serves more than 305,000 water customers and 230,000 sewer customers in Northeast Florida.
JEA’s water is supplied from 134 artesian wells, which tap the Floridan aquifer, and water is distributed through 26 water treatment plants and 4,208 miles of water lines. JEA collects sewage through more than 3,760 miles of collection lines, and uses seven regional and eight non-regional sewer treatment plants to complete sewage treatment for its customers.
Essentially all the sludge from all treatment facilities is consolidated at the Buckman Street facility for production of Green Edge fertilizer, which is sold through the Ace Hardware chain. The JEA electric system currently serves more than 417,000 electric customers in Jacksonville. The utility has applied Lean and Six Sigma process improvement techniques since 2000. Click here to read more…
The development of its employees and better respond to the changing business environment, one department of a large financial-services company decided to revamp its existing performance management system through a Six Sigma project. A pre-project analysis revealed that a complete redesign of the system was required.
As incremental improvement in the existing system was not possible, the project team followed the Design for Six Sigma (DFSS) DMADV (Define, Measure, Analyze, Design, Verify) roadmap, incorporating best practices from Six Sigma, project management and information technology (IT) service management. This case study covers a few major aspects of the project, which could readily be applied in similar situations across various industries and business environments…
CRM Adoption Success Factor Analysis and Six Sigma DMAIC Application
Abstract: With today’s increasingly competitive economy, many organizations have initiated customer relationship management (CRM) projects to improve customer satisfaction, revenue growth and employee productivity gains. However, only a few successful CRM implementations have successfully completed.
In order to enhance the CRM implementation process and increase the success rate, in this paper, first we present the most significant success factors for CRM implementation identified by the results of literature reviews and a survey we conducted. Then we propose a strategy to integrate Six Sigma DMAIC methodology with the CRM implementation process addressing five critical success factors (CSF). Finally, we provide a case study to show how the proposed approach can be applied in the real CRM implementation projects. We onclude that by considering the critical success factors, the proposed approach can emphasize the critical part of implementation process and provide high possibility of CRM adoption success.
Introduction: Customer Relationship Management (CRM) was first introduced in the United States in 1990 and has evolved from the Sales Force Automation (SFA), Customer Service System (CSS) to Call Center. It integrates the concepts of modern marketing and field services. It also combines Computer Telephone Integrated Technology (CTIT) and Internet Technology (IT). Throughout more than ten years of evolution, CRM products have become multifarious. In the Chinese market, there are not only many worldfamous vendors of CRM products, such as SAP, Microsoft, Oracle, and Sieble, but also local Chinese vendors such as Unifa, Kingdee and Powerise. Many companies in China have already adopted these CRM applications and have gained benefits such as high customer satisfaction, fast revenue growth and employees’ productivity improvement..
Abstract: In recent years, companies have begun using Six Sigma Methodology to reduce errors, excessive cycle times, inefficient processes, and cost overruns related to financial reporting systems. This paper presents a case study to illustrate the application of Six Sigma Methodology within a finance department…
Introduction: In 1987, Motorola developed and organized the Six Sigma process improvement Methodology to achieve “world-class” performance, quality, and total customer satisfaction. Since that time, at least 25% of the Fortune 200, including Motorola, General Electric, Ford, Boeing, Allied Signal, Toyota, Honeywell, Kodak, Raytheon, and Bank of America, to name a few, have implemented a Six Sigma program…
Click here to read more for Application of Six-Sigma in Finance
>Be Honest: How Many Heavy-Duty Statistics Do We Really Need to Drive Process Improvement
>Lean Data Analysis Process
Introduction: This paper introduces the idea of “Visual Six Sigma,” a practical and pragmatic approach to data analysis and process improvement. This approach has been developed in response to a growing business need to broaden the use of Six Sigma-type thinking beyond the realms of highly trained and statistically savvy Black Belts and Green Belts…
Case Study: A fictional case study based on simulated data is presented, a copy of which is available on request from the authors. The scenario around which the data has been simulated is fairly typical of call centres. While the situation is not based on any particular case, it does try to reflect the realities of analysing and improving call centre processes…
Click here to find out more for Six Sigma: Making Data Analysis Lean