Example Cases

Palomar Pomerado Health Laboratory Services

DFSS enables dramatic process improvements

At PPH Laboratory Services blood tests for suspected heart attack patients were taking some 78 minutes (the industry best practice benchmark was 60 minutes). Although PPH believed that additional staffing was required, DFSS indicated that process improvements alone would dramatically improve throughput. A variety of hypothesis tests were constructed to determine the key drivers for process performance - this identified areas which were significantly delaying the delivery of blood to the lab. Statistical analysis determined the potential gains achievable through adjustments to the process. Subsequent trails showed that performance improvement could be achieved matching the gains predicted by the statistical models. PPH not only achieved a turnaround time of 60 minutes, they also achieved "best in class" performance. The laboratory’s total services were improved with the introduction of DFSS with the cumulative average of all tests falling from 50 to 45 minutes. [14].

Bank of America Corporation

DFSS and the introduction of new services

Banks had some of the lowest customer satisfaction ratings of any single industry hence the Bank of America used the ‘Voice of the Customer’ and strongly focussed its planning efforts towards factors that would drive customer satisfaction and loyalty. Design For Six Sigma (DFSS) tools were used to drive improvement initiatives aimed at delighting customers. Data was constantly analysed to identify customer needs to gain insights into developing unique products and ways of communicating services. One DFSS project enabled the introduction of a new service that allowed online banking customers to view pending transactions not yet posted to their accounts. The project directly contributed a 6% increase in the online banking channel's customer satisfaction performance. Online banking was also recognised as a "Best of Six Sigma finalist", in the Bank of America associate recognition program.

Wausau Window & Walls Systems

DFSS used develop products and services

Wausau used Six Sigma and Lean tools to bring its processes under control and to promote a culture of continuous improvement/customer satisfaction. Wausau listened closely to the ‘Voice of the Customer’ and by this sought to anticipate their needs. Lead times and labour costs were reduced, and customers benefited from improved material handling and shipping/packaging practices that enabled faster, safer deliveries. An example of the improvements achieved was the reduction from 5-6 hours down to 45 minutes for customers to unpack consignments, whilst maintaining the correct sequence of products. Wausau trained eight personnel in Design for Six Sigma principles and by this aimed to develop Six Sigma concepts into products and services. The organisation has saved millions of dollars by using Six Sigma/Lean tools and had raised productivity at one plant by some 28%.

A high-tech manufacturing company

Stage-Gate Process aligned with product strategies

A refined stage-gate process was used by an anonymous high-tech US manufacturing company. The organisation had become frustrated with its inability to commercialise its products which offered major cost and quality advantages. A cross functional team worked at aligning the organisation’s business, market, technology, and product strategies. It found that the existing products did not address the correct market segment and were designed against an inappropriate set of customer needs. A platform plan was developed to demonstrate that new technologies could scale effectively and that these would sustain a clear competitive advantage over time. New channel approaches were identified for reaching a better targeted customer segment. An integrated program plan was created which redirected resources towards more effective innovation work. The net impact of the changes was dramatic, with the organisation becoming a preferred supplier to the largest retailer in the industry segment and company growth increasing by a factor of five. [9].

3M Company

Stage-gate Process enhanced with six sigma tools

Stage-gate procedures were used by 3M Company along with a "2x/3x" system designed to double (2x) the number of ideas entering the company’s commercialisation processes, and to triple (3x) the commercial impact of products entering full scale launch. 3M’s Design for Six Sigma programme (comprising some 90 tools), enhanced the stage-gate system through improving the quality and consistency of the data used at gate decision points. By tracking the movement of ideas as they passed through the critical 2x (full scale development gate) and 3x (full scale launch gate), 3M believed that it was better able to align resources with expectations throughout the company. To help get ideas to market quickly 3M required innovation using skill sets across the organisation, including R&D, manufacturing, sales and marketing, purchasing, and supply chain operations. At the time of writing 3Ms performance metrics were heading towards achieving the organisations aggressive goals. [19]