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Six Sigma in Action




                                                        GE Capital IT Solutions



                             Michael J Spofford
                             Customer Engineer, Green Belt
                             September 12, 2002
Master Black Belt: Steven Bonacorsi
Six Sigma in Action
                                                                                                   Time Tracking (Payroll)

Customer Profile – GE IT Services                                                                               Process Capability – Before

Business Problem & Impact
Non-Exempt employees have to submit time-tracking twice,
using Antenna and Excel payroll form. Cycle time is on
average 30 min. weekly. Non-exempts have complained about
the nonproductive rework.

Measure & Analyze
Data Collection: Cycle time for payroll remittance was
measured across two weeks by GEAE account non-exempts.
Root Causes: Submitting time-tracking in two forms results in
increased cycle time and decreased productivity.                                                                                             Process Capability Analy
                                                                                                         Process Capability Analysis for Time
                                                                                                          Process Capability – After
Improve & Control                                                                                                                                 USL
                                                                                             Process Data
Antenna web based solution was developed to track employee
                                                       USL
                                                             Process Data
                                                                               USL
                                                                         15.0000                              15.0000                                                                   ST
                                                                                                                                                                                        LT
time and submit to payroll. Cycle time and accuracy wasTarget
                                                       LSL
                                                                               *
                                                                               Target
                                                                                    *
                                                                                                                    *
                                                                                    LSL                             *
measured during the first two weeks of rollout.        Mean
                                                       Sample N
                                                                           8.2731
                                                                                Mean
                                                                               26                              8.2731
                                                       StDev (ST)        3.34791
                                                                               Sample         N                    26
Results/Benefits                                       StDev (LT)        5.14295
                                                                                    StDev (ST)                3.34791
                                                                                    StDev (LT)                5.14295
After Antenna Payroll Implementation, median cycle time was
                                                        Potential (ST) Capability
                                                       Cp                       *
reduced from 23.17 minutes to 8.27 minutes. The result is an
                                                       CPU
                                                       CPL
                                                                             0.67
                                                                                *       Potential (ST) Capability
expected efficiency savings < 200 K (annually), as well as
                                                       Cpk
                                                       Cpm
                                                                             0.67
                                                                                Cp
                                                                                *
                                                                                                                     *
                                                                                    CPU -10              -5      0.67
                                                                                                                    0        5          10         15          20            25
increased employee productivity..                                                   CPL                              *
                                                         Overall (LT) Capability               Observed Performance          Expected ST Performance          Expected LT Performance
                                                       Pp                       Cpk
                                                                                *            PPM < LSL           0.67 *     PPM < LSL                *       PPM < LSL                   *
                                                       PPU                      Cpm
                                                                             0.44            PPM > USL               *
                                                                                                               115384.62    PPM > USL         22253.27       PPM > USL            95438.54

                  A GEITS indirect Savings of $217K Annually!
                                                       PPL
                                                       Ppk
                                                                                *
                                                                             0.44
                                                                                             PPM Total         115384.62
                                                                                                                           -10
                                                                                                                            PPM Total
                                                                                                                                         -5
                                                                                                                                              22253.27
                                                                                                                                                         0
                                                                                                                                                             PPM Total
                                                                                                                                                                         5
                                                                                                                                                                                  95438.54
                                                                                                                                                                                             10


                                                                                        Overall (LT) Capability                  Observed Performance                    Expected ST Perf

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Payroll Remittance Six Sigma Case Study

  • 1. Six Sigma in Action GE Capital IT Solutions Michael J Spofford Customer Engineer, Green Belt September 12, 2002 Master Black Belt: Steven Bonacorsi
  • 2. Six Sigma in Action Time Tracking (Payroll) Customer Profile – GE IT Services Process Capability – Before Business Problem & Impact Non-Exempt employees have to submit time-tracking twice, using Antenna and Excel payroll form. Cycle time is on average 30 min. weekly. Non-exempts have complained about the nonproductive rework. Measure & Analyze Data Collection: Cycle time for payroll remittance was measured across two weeks by GEAE account non-exempts. Root Causes: Submitting time-tracking in two forms results in increased cycle time and decreased productivity. Process Capability Analy Process Capability Analysis for Time Process Capability – After Improve & Control USL Process Data Antenna web based solution was developed to track employee USL Process Data USL 15.0000 15.0000 ST LT time and submit to payroll. Cycle time and accuracy wasTarget LSL * Target * * LSL * measured during the first two weeks of rollout. Mean Sample N 8.2731 Mean 26 8.2731 StDev (ST) 3.34791 Sample N 26 Results/Benefits StDev (LT) 5.14295 StDev (ST) 3.34791 StDev (LT) 5.14295 After Antenna Payroll Implementation, median cycle time was Potential (ST) Capability Cp * reduced from 23.17 minutes to 8.27 minutes. The result is an CPU CPL 0.67 * Potential (ST) Capability expected efficiency savings < 200 K (annually), as well as Cpk Cpm 0.67 Cp * * CPU -10 -5 0.67 0 5 10 15 20 25 increased employee productivity.. CPL * Overall (LT) Capability Observed Performance Expected ST Performance Expected LT Performance Pp Cpk * PPM < LSL 0.67 * PPM < LSL * PPM < LSL * PPU Cpm 0.44 PPM > USL * 115384.62 PPM > USL 22253.27 PPM > USL 95438.54 A GEITS indirect Savings of $217K Annually! PPL Ppk * 0.44 PPM Total 115384.62 -10 PPM Total -5 22253.27 0 PPM Total 5 95438.54 10 Overall (LT) Capability Observed Performance Expected ST Perf