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