American Express: Using Six Sigma to Reduce Defects in Service

American Express: Using Six Sigma to Reduce Defects in Service

Problem Enquiries

A number of merchants that accept American Express cards fail to place point-of-purchase materials (e.g., decals) that notify customers that they can use these cards at these establishments while displaying competing (e.g., Visa, Mastercard, etc.) point of purchase materials. American Express defines these merchants as passive suppressors. In an effort to increase visibility, an external vendor placed point-of-purchase material in the marketplace, identified passive suppressors, and measured placement and passive suppression rates was hired by American Express. However, the vendor had a significant rate of failure to contact or meet with the merchants. The leading reason for not meeting with the merchant was that the store was closed when the vendor stopped by.

Learning Issues

What is DMAIC?

How DMAIC works?

What is DMAIC?

DMAIC is a structured, five-step problem-solving procedure; Define, Measure, Analyze, Improve and Control

DMAIC is a project management or problem-solving process that uses for lean six-sigma projects

How DMAIC works?

Each letters stand physically for lean six-sigma projects

In the first phase Define

Project is define using the project charter

Project charter is a document that define the problems to be solve, the goal and the objectives, bottom line matrix and team members

It is also process in determine who are the project stakeholders where stakeholders are people who interested in the outcome of the project or can influence it

Do some initial documentation like a SIPOC diagram which list Suppliers, Inputs, Processes, Outputs and Customers for the process of interest

Measure phase

Identify the data that needed to collect and observe the process that need to analyze.