Six Sigma Victoria Secret

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Six Sigma Victoria Secret
Prepared by: Katherine Schildmeyer
Brit’Anne Chynces
Date: 3/13/12
PRODUCT
This is a Six Sigma evaluation for The store experience within the Victoria Secret
retail stores. Our team visited four locations. We also visited each location twice.
from these visits, we began the evaluation process.
PROBLEM
During the visits to these stores, we looked for several issues that can create a poor
customer experience. The list we created had 18 opportunities for improvement.
The list is…
OPPORTUNITES
Overstock on bras
Over stock on panties
Under stocked on bras
Under stocked on panties
Messy Panty displays
Dirty Cosmetics and testers
Cosmetics Under Stocked
Items out of place
Uncomfortable Shopping experience
Holds not placed
Wasn’t told about the bra box
Bra fitting was incorrect
Dirty Floors
Poor Signage
No Bra Card Given
Line at cash wrap was more than 2 min wait
Dirty trash cans
Un helpful sales staff
From this list and the number of times we experienced each opportunity, we can
determine our Six Sigma scores.
USE OF SIX SIGMA TACTICS
2
DEFINE
The following form is a charter. It will encompass the following tollgates.
 The Buisness Case
 Problem Statement
 Project Scope
 Goals & Objectives
 Milestones
 Roles & Responsibilities
Business Case: Conducting Customer experience survey to determine how effective
our retail environments are on sales. Evaluation of Visual Merchandising, ease of
shopping, and accurate customer service is categories for various measures. From the
number of occurrences, we can determine the most important opportunities and
develop a plan to rectify these issues
Project Scope
Areas of importance
Sizes full stocked
clean organized displays
Signage is directive and communicative
All shelves and tables filled with correct
product
testers are clean and sanitary
floors are swept and cleaned daily
Racks/ tables are not overstuffed
bra fittings are offered by all sales staff
bra fittings are accurate
the bra box/bra cards are offered in FR
Panty Liners are in FR
Greeted within 1 min of entry
Wait in cash wrap line is less than 2 min.
Holds kept by date, clean and
alphabetized
Visuals are concise with merchandise.
overall cleanliness of employees and store
Areas to Avoid
Looking at the stockroom
if under stocked, size availability
don't do survey at only peak times
Specialty Matter Experts
Contractor:
Contact Info
Point Person:
team:
Contractor:
Contact Info
Point Person:
Contractor:
Contact Info
Point Person:
team:
Goals & Objectives
Goal
Improve Cleanliness 80%
Improve Customer Experience- 50%
Reasons
easily attainable with
direction
comfortable/ accurate
3
shopping
Improve Merchandising- 50%
Approval
increase of sales
Champion:
Date:
Notes:
Team Leader
Date:
Notes:
Six Sigma Director
Date:
Notes:
Problem
Victoria secret has sustained several customer complaints for the last
year(2/12/11- 2/12/12). Victoria secret is concerned that their maybe several
lost sales due to inaccurate bra fittings, unclean testers and store, sales
associates with poor communication skills, and ineffective use of
merchandising.
Expected Benefit
Target
2.5 units per
trans
STREATCH
3 units per
transaction
5%
7%
2%
2%
Total Savings
$
$
Milestone Start Date
Define
Measure
Analyze
Improve
Control
Plan
2/15/12
3/15/12
5/1/12
7/1/12
9/1/12
Actual
3/1/12
Team
Champion:
Team Leader
Master Black Belt
Name/role
Higher upt
Higher atv
Less returns
Low theft
% of time
assigned
4
Team Member
Anita Snite
Robyn Haggar
Customer Needs Tollgate
The following are some examples of customer needs. We first define the need and
then look at what will improve this for the customer.
High Level Process Map
5
The following map is the overview of how the organization may currently work. In a
real process for six nsigma, the company would provide the information. This is
done from high level perspective from a store. This is not the entire process from
corp.
Four managers
1. store manager
2. HR manager
3. Ops/ Merchant manager
4. Part-time merchant manager
Schedule process: Currently they look at the basic process. Is Victoria secret
doing long range planning on a 4-5-4-calendar format. Looking at daily,
weekly, monthly, yearly plans. From this we as a sigma team can start to
analyze why the daily goings on of business are not being met.
6
Measure
The following table are areas requiring measure.
Input measure
Process Measure
Output measure
Bra fittings
Helpful associates
Size availability
Cleaner environment
High value
High value
High value. Profits
Less theft, high value,
additional labor cost
75% growth
90%
To look at the above chart we will capture the discrete data first. Then after a little
analyzing and watching we can begin the Continuous data to determine where,
how, when, and how much financing we have to cover certain problems.
Discrete Data
messy panties
dirty cosmetics
full trash cans
items out of place
overstock bras
overstock panties
understock bras
understock panties
Inattentive satff
was not told about bra box
dirty floor
Calculating Baseline Sigma/ Mother Sigma
7
The next list will help calculate the SIGMA for the store. The areas of measure
are opportunities that affect the customer experience. Our target market is large and
has various back grounds we use a approach of examine; that takes all customers
into consideration.
Mother Sigma
Opportunity
Overstocked Bras
Overstock Panties
Under stocked bras
Under stocked panties
Messy Panty Display
Dirty Cosmetics
Cosmetics under
stocked
Full trash cans
Inattentive Staff
Items out of place
Uncomfortable
shopping
Holds not kept
Was not told about
bra box
Dirty floor
Poor signage
No bra size card given
Bra fitting incorrect
Line at register (2 min
more)
total number of
defects
Unit of Opportunity
7
6
5
6
23
10
3
12
8
13
4
1
3
1
7
2
5
1
117.00
Process sigma: .70
Long term yield: 19
Defects per million: 812,500
How we arrived at sigma score:
117 defects
X 1,000,000
18 opportunities x 8 visits
.8125 x 1,000,000=812500defects per million
8
Data Analysis
21
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
5
10
15
20
25
From the chart above. The sigma team can see variables that affect the report the
most. By changing these variables. The Sigma Score can become better at a quicker
rate. Many times the largest areas of effect are controllable.
For example, we will focus on the top 5 areas.
 Messy panties
 Full trash cans
 Items out of place
 Dirty cosmetics
 Unhelpful staff
9
The next process is continuous data. Continuous data helps the team figure
out why a issue is reoccurring. For example, I visited a store 5 times and
every time the trash was not changed. Why? If the team assigned to this
response waits and watches, the answer could be found in lack of team
accountability. The continuous data is used for root cause analysis.
Trash Can Full
12
10
8
9:00 p.m.
7:00 p.m.
6
3:00 p.m
12:00
4
9:30 a.m.
2
0
Monday
WED
THURSDAY
SATURDAY
This chart shows that wed, the trash is not emptied like it should be.
However, upon further investigation. We can see the shipment process
happens on wed. We may need to look at shipment staffing and other
efficiencies’ to change the trash issues for wed. This is a sub process
On the Six Sigma team, the process of analysis looks at each step. The process
requires that the steps that currently happen are correct. If not the team will
re-work the opportunity. The overall process of analysis will also allow
companies to focus in on the most important issues.
10
Improve
Imporvement for the company is reliant upon the managers of the store. The
six sigma team needs to communicate the issues and give the methods for
correction.
The list we developed for top five opportunities was mostly task oriented items . All
but one. Here is the following list.





Messy panties
Full trash cans
Items out of place
Dirty cosmetics
Unhelpful staff
Upon coaching and training a staff, we ask the question….
“WHY DO YOU CHOOSE TO WALK BY A FULL TRASH CAN?”
“WHY DO YOU CHOOSE TO HAVE MESSY TESTERS IN YOUR STORE?”
“WHY DO YOU CHOOSE NOT TO HELP CUSTOMERS, WE ARE A STORE?”
These questions seam odd, but they hold the employee accountable. We all
see things we need to fix from time to time, but we may not think they are as
important as a customer in the fitting room or the current task at hand. A
store has a team, and if the issue is communicated the problem can be solved.
This is also good for considering cause & effect.
11
The first step to improvement is calling out what you
see. Recognizing that each activity at work is a choice. We also need to value
communication. If associates in the store think that it is the manager’s job
to change the trash and help customers, then the communication is poor.
Looking to the leader to develop and enforce activities will be the most
important area for improvements to see a lasting effect.
Method and measure for improvement
1.
2.
3.
4.
5.
Coaching/ accountability for activities. Asking a choice question
Communicating needs of business activities to associates.
Measure: continuous secret visits to the store.
Let go of employees who can’t improve.
Have store managers spot interview customers or ask them to fill out a
questionnaire.
Control
The improvement of a audit works well into controlling the outcome.
When a team has the intent of doing better, and tools to be smarter. The
improvement level is important to them. By sharing what improvement has been
shown, with actual dollar metrics, the team becomes that much more focused on
delivering to a higher standard.
By using new detailed processes, the organization can keep improving with
technical answers to problems. By choosing only the most efficient learning’s, the
company will also see profitable returns, and happy customers.
12
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