1. Lean Six Sigma… The Company Culture I N T E R N E T R E T A I L COMPANY OVERVIEW  World’s largest internet retailer.  Global headquarters in Seattle, Washington, US.  Roughly 60 Distribution Centers in: USA • Canada • England • Scotland • Wales France • Germany • Italy • Slovakia • Japan • China  Employs 65,000 people worldwide.  84,000 customers worldwide up 17% year over year. BUSINESS CULTURE - Why Lean Six Sigma? 1) ACES  Bottom-up Approach  Engage all employees in solving problems.  Utilize metrics at the staff level.  Process Improvement  Decrease time for products to reach customer.  Increase in products delivered to customer.  Tools  5S Approach “ A Place for Everything, Everything in its Place ”  Low Profit Margin Business  Sale of books via the internet results in low profit margins due to transportation costs.  Customer Centric Focus “ Voice of the Customer ”  Amazon is a customer centric company.  Customer centricity the heart of Lean Six Sigma.  Amazon Relentlessly Delights Customers with: 1) Lowest Prices 2) Highest Reliability 3) Highest Accuracy 4) Most Convenient 5) Biggest Selection 1. SORT 2. STRAIGHTEN 3. SHINE 4. STANDARDIZE 5. SUSTAIN Remove all unnecessary items. Put everything in its place. Clean and organize workspace and equipment.. Create consistent work practices. Review standards and maintain gains.  4M Process: Man • Method • Material • Machine • Manning is correct. • Methods are followed. • Materials are right for the job. • Machines work properly.  Standardized Work Processes Amazon Virtuous Cycle  Predict flow and timing of unit production.  Eliminate variances and wastes.  Reduction in Non-Customer Facing Processes  Customers include end users and vendors.  Eliminate non-value added functions. 2) KAIZEN Goal of Lean Six Sigma Tools and Processes       Implement Training Program  KAIZEN Leadership Training.  KAIZEN Essentials for Employees. Improve Quality Increase Productivity Enhance Service Levels Reduce Costs Ensure Safety  Select Employees & Managers for Teams Various Functions • Day & Night Shifts  Systematically Improve Work Processes Amazon Lean Six Sigma Processes 1) ACES - Amazon Customer Excellence System  Customer improvement methodology.  System built to increase customer satisfaction. Root Cause Analysis • Fishbone Diagrams Value Stream Mapping • PDCA (Plan, Do, Check, Adjust)  Set Financial Goal Targets 2) KAIZEN - “ Change for the better ” in Japanese  Reduce costs by $10MM at Fulfillment Centers.  Method to engage employees and enforce ownership. PREPARED BY: T H E B U L S A R D G R O U P