Six Sigma – DMADV Methodology

Six Sigma DMADV Methodology can be utilized in the inventory process and control, supply chain, and other business professional applications.

1. DMADV FUNDAMENTALS Six Sigma principles provides opportunities with different methodologies to solve issues. In this presentation we will examine the DMADV methodology. DMADV methodology is to keep a solid structure in the development stage of a procedure. Improving effectiveness and omitting redundancies are ways to make the entire process efficient. Let’s look at the case study:

2. Define Identify wants and needs believed to be considered most important. These wants and needs are identified through historical information, customer feedback, and other information sources . e-Commerce Platform and We wanted to develop an e-Commerce Platform; ebay Store and an Online Store.

3. Measure Metrics. What defines a successful e-Commerce Platform? How much time does it take to process an order? What is the time cut-off for same day shipments? How often are orders cancelled due to out of stock? Gross Profit greater than 20.0%? At the end of twelve (12) months, what are my Sales Goals?

4. Analyze The result of the distribution process is tested by internal teams to create a baseline for improvement. eBay process is manual. Order received; Customer data may need to be set-up; Order entered; ebay and order tracking is updated; Order is shipped; Customer receives invoice and shipping information electronically; Once the quantity is depleted, the product is taken off ebay . The Online Store is automated with our CRM system. The order is received; Order is picked and/or Special Order is developed; Customer is notified via email of any delay; When the order is completed, final processing and shipment will occur. Customer receives invoice and shipping information electronically.

5. Design The results of internal tests are compared with customer wants and needs. Any additional adjustments needed are made. Certain products would not receive the published discount. These low margin products are assemblies, lower units, blocks, heads, kits, propellers and serialized products . Inaccurate Product/Package descriptions. Constant review of Product/Package descriptions to insure accuracy. Some users will have a difficult time with the ARI Parts Stream UI. A published phone number would be required for user assistance. NO DISCOUNT

6. Verify The last stage in the methodology is continuous. While the service is being released and customer reviews are coming in, the processes may be adjusted. On ebay , it was necessary to: Clarify descriptions, Request additional information to verify data, Research pricing to ensure competitiveness, Product Searches to uncover additional products to sell. In the Online Store, it was necessary to: One person to handle the entire process, List a telephone number for assistance, Do not use the general telephone number; use a Direct Telephone Number, Display the Promo Code in bold, Set the Promo Code as a default.

7. RESULTS There are several components with the system. You have the CRM System, the Website company with Parts Stream, and the Credit Card Processing company. It is important to work through the various plans. When a policy and procedure is developed through DMADV, utilize it until it fails. Then use the DMAIC methodology to correct it. The goal of $2,000 average weekly sales by month twelve (12). In the fifth (5 th ) month we are averaging $2,500 per week in sales. We continue to review the community reach and needs. Our goal is to keep Search Loss below 5% on a monthly basis. The Search Loss for the previous month was 1.2%.

8. DMADV Methodology Working the process allows you to develop, measure and improve your results. Whether you are Inventory Management, Supply Chain, or other profession, the DMADV methodology will enhance your decision making.

9. WRAP UP Systematic methodologies, such as DMADV, provides results. The results are based on your drive and determination. Look for senior management support with value. What is the ROI on this process? If you have multiple desired results, mix your short-term and long-term goals. Work on 1 short-term goal while working on 1 long-term goal.