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Six Sigma in Action

Brian Boyce Jr. Certified Green Belt, CE December 8, 2003

Master Black Belt: Steven Bonacorsi

Six Sigma in Action Surplus Equipment Sales

Before Data = $38.12

Customer Profile GE ITS, IT solution provider Business Problem & Impact

On an annual average GE ITS sells 11,000 pieces of surplus computer 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.
Lot Type 2 $27.35 Lot Type 1 $48.88

Measure & Analyze

Data Collection: Average cost of sale on equipment for 2001 was measured. Root Causes: Completeness and Functionality of equipment sold identified as root causes.

Grand Avarage Per Unit = $38.12

After Data = $218.51

Improve & Control

To implement a new practices for used equipment sales that will increase revenue for GE ITS.

Lot Type 2 $216.09

Lot Type 1 $220.93

Results/Benefits Increase revenue

Add control over how equipment is sold

Grand Avarage Per Unit = $218.51 5.7 x Greater than Baseline Average

A savings of US$500K in 2003!