Six Sigma Project Case Study Overview by Master Black Belt Steven Bonacorsi, International Standard for Lean Six Sigma (ISLSS). General Electic ACFC "At the Customer, for the Customer"

1. Six Sigma in Action
Brian Boyce Jr.
Certified Green Belt, CE
December 8, 2003
Master Black Belt: Steven Bonacorsi

2. Six Sigma in Action
Surplus Equipment Sales
Before Data = $38.12
Customer Profile GE ITS, IT solution provider
Lot Type 2 Lot Type 1
Business Problem & Impact $48.88
On an annual average GE ITS sells 11,000 pieces of surplus computer $27.35
equipment in “bulk” in a “as is” condition. There is no attention given to
the quality or true value of this equipment. All equipment is sold as a
necessary step for equipment disposal & is thought to have little or no
actual value.
Grand Avarage Per Unit = $38.12
Measure & Analyze
Data Collection: Average cost of sale on equipment for 2001
was measured.
Root Causes: Completeness and Functionality of equipment After Data = $218.51
sold identified as root causes.
Improve & Control Lot Type 2 Lot Type 1
To implement a new practices for used equipment sales $216.09 $220.93
that will increase revenue for GE ITS.
Results/Benefits
• Increase revenue Grand Avarage Per Unit = $218.51
• Add control over how equipment is sold 5.7 x Greater than Baseline Average
A savings of US$500K in 2003!