In this section, we explain how we at Amazon adopted the DMAIC process—a structured Six Sigma methodology—to bring clarity and control to our increasingly complex operations. This approach helped us stay focused on what drives business performance, even as we scaled globally and diversified our offerings.
Key Takeaways:
- We turned to Six Sigma to manage complexity: As Amazon grew from a book retailer into a multi-product, international company, we needed a structured way to measure, monitor, and improve our processes. Six Sigma’s DMAIC framework offered exactly that.
- DMAIC became our operational foundation: The five steps—Define, Measure, Analyze, Improve, Control—allowed us to break down complex systems into manageable parts, identify input metrics, and drive improvements with precision.
- We embraced Donald Wheeler’s philosophy: Following his principle that understanding variation is key to improvement, we focused on how changing inputs affects outputs, aligning our culture around continuous improvement.
- We built clarity into invisible systems: Since much of Amazon’s operations (software, fulfillment, logistics) were either virtual or distant, we created standard definitions and measurements to make the system’s performance tangible and actionable.
- We aligned every part of our system to inputs: From product selection and pricing to software reliability and delivery speed, we learned that managing the inputs across all departments ultimately shaped our outputs like revenue and customer satisfaction.
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