The Impact of Lean Six Sigma Within Best Buy’s Services

Division

Kristina Nordstrom

University of St. Thomas

May 2008

What is Lean Six Sigma?

Lean – Goal is to make a process more efficient, with less time, resources used.

Six Sigma - tool set for understanding statistical variation and reducing defects within a process.

Lean + Six Sigma = Efficiency & Quality

Services Division at Best Buy

Services Division responsible for services sold at Best Buy Fast growing area of the company

Geek Squad City Largest computer repair center Employees measured equally on quality and productivity

each day

Research Question

Has Lean Six Sigma training positively impacted employee commitment to quality?

Why is Quality Important to Services?

Quality and speed will drive customer satisfaction

High quality service will differentiate the brand

Quality principles are very relevant to the work done within the service centers

Services is not a competitive edge it is THE competitive edge!

-Albrecht & Zemke

Methodology

Research Instrument Geek Squad City: Paper survey Corporate Services: Email survey 17 questions

Survey population:421 Geek Squad City: 109 respondents Corporate Services: 103 Respondents

50% overall response rate with 212 respondents

Lean Six Sigma Training Participation

Corporate Geek Squad Cty

Non Trained 28% 59%

Trained 72% 41%

•Higher penetration of trained employees at Corporate

•Training opportunities at Geek Squad City have been limited.

Employee Perception of TrainingEmployees who have gone through Lean Six Sigma Training have favorable impressions of training and it’s relevancy to their jobs

0% 20% 40% 60% 80% 100%

LSS enhanced my understanding ofQuality & Efficiency

LSS principles are relevant to my job

I would like to learn more about LSS

% who agree or strongly agree

Corporate

Geek Squad City

Are You Aware of Quality Improvement Projects That Have Been Initiated in your work area?

There is a positive correlation to awareness and Lean Six Sigma Training

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

GeekSquadNon-

trained

CorporateNon-

Trained

GeekSquadTrained

CorporateTrained

Corporatew/

AdvancedTraining

Per

cen

tag

e

I Find it Easy to Balance Quality and Productivity Goals

Trained employees have a slightly higher likelihood to agree or strongly agree; 59% vs. 55%

Both groups have at least 30% of respondents who disagree or strongly disagree with this.

Geek Squad City employees only

0%

20%

40%

60%

80%

100%

StronglyDisagree

Disagree Neither Agree Strongly Agree

Trained

Non-trained

My Current Performance Goals Motivate Me To Do Quality Work

Lean Six Sigma training does not appear to play a role in motivation to do quality work

Geek Squad City employees only

0%

10%

20%30%

40%

50%

60%

70%80%

90%

100%

StronglyDisagree

Disagree Neither Agree Strongly Agree

Pe

rce

nta

ge

Trained

Non-trained

I am Committed to Delivering Quality Work

Employees are very committed to quality There are no significant trends that indicate that Lean Six Sigma

has impacted commitment to quality

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

StronglyDisagree

Disagree Neither agreenor disagree

Agree StronglyAgree

Geek Non-trainedGeek TrainedCorp Non TrainedCorp Trained

97%

My Management Team is Committed to Quality

•No differences in perception of management commitment to quality based on Lean Six Sigma Training

0%10%20%30%40%50%

60%70%80%90%

100%

Geek Squad Non-trained Geek Squad Trained Corp Non-trained Corp Trained

% Who Agree or Strongly Agree

56% 56%

86% 89%

The Company is Committed to Quality Improvements

•Corporate employees have a higher perception on company commitment to quality.

79%76%

53%66%

0%10%20%30%40%

50%60%70%80%90%

Geek Squad non-trained

Geek SquadTrained

Corp non-trained Corp Trained

% Who Agree or Strongly Agree

66%53%

76% 79%

Answer to my Research Question

Has Lean Six Sigma training positively impacted employee commitment to quality?

No

What I Learned

Employees have favorable impressions of Lean Six Sigma Training

Training increases awareness of quality initiatives

Training increases understanding of quality

Employees are committed and motivated to do quality work regardless of Lean Six Sigma training

Recommendations

Training Continue to offer Lean Six Sigma training as a

reinforcement of quality principles Offer Training more frequently at Geek Squad City

Leadership Involvement Engage management teams at Geek Squad City in

quality initiatives Reinforcement from Best Buy Senior Leadership

Questions?