Flevy Management Insights Case Study
Operational Excellence Initiative for Cosmetic Firm in Luxury Segment


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in DMAIC to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR A luxury cosmetics firm struggled with DMAIC implementation during rapid expansion, resulting in higher customer complaints and returns. The initiative achieved a 25% reduction in complaints and a 15% decrease in cost of poor quality. However, it underscored the necessity for ongoing leadership support and a culture of continuous improvement for sustained success.

Reading time: 8 minutes

Consider this scenario: A firm in the luxury cosmetics industry is struggling with the Define, Measure, Analyze, Improve, Control (DMAIC) methodology application to maintain consistent product quality.

With a rapidly expanding product line and entry into new markets, the organization is facing challenges in maintaining operational standards, which has led to increased customer complaints and returns. The objective is to tighten the DMAIC process to ensure quality control and customer satisfaction.



In reviewing the operational challenges of the luxury cosmetics firm, one hypothesis could be that the rapid expansion of the product line has stretched the existing quality control processes beyond their capacity. A second hypothesis might be that the current measurement and analysis tools are not sufficiently capturing the variances in product quality. Lastly, it could be that the control phase is not effectively implemented, allowing for defects to reach the customer.

Strategic Analysis and Execution Methodology

The strategic analysis and execution for enhancing the DMAIC process can follow a 5-phase consulting methodology, which is often leveraged by top consulting firms to deliver sustainable improvements. This methodology ensures a comprehensive understanding of the current state, identifies root causes, develops solutions, and embeds controls for ongoing excellence.

  1. Define & Scope: Establish the project scope and define critical quality parameters. Seek to understand the current product expansion strategy and how it aligns with quality controls. Investigate customer feedback mechanisms and complaint data.
  2. Measure & Baseline: Measure current performance against industry benchmarks and historical data. Analyze customer returns and quality audits to establish a baseline for improvement.
  3. Analyze Root Causes: Utilize statistical tools to identify root causes of quality issues. Engage cross-functional teams to validate findings and ensure comprehensive analysis.
  4. Improve Processes: Develop and prioritize solutions based on impact and feasibility. Pilot changes in a controlled environment to validate improvements before full-scale implementation.
  5. Control & Sustain: Implement control plans to maintain the gains. Establish KPIs for ongoing monitoring and create a response plan for potential variances.

For effective implementation, take a look at these DMAIC best practices:

Lean Six Sigma DMAIC Storyboard Template (61-slide PowerPoint deck and supporting PDF)
Lean Six Sigma DMAIC Poster (3-page PDF document and supporting PowerPoint deck)
Six Sigma - DMAIC Problem Solving Process & Tools (182-slide PowerPoint deck and supporting Excel workbook)
Lean BB Champion 15 - Process Optimization Using Six Sigma (94-slide PowerPoint deck)
Six Sigma Black Belt Training - DMAIC (1252-page PDF document and supporting PowerPoint deck)
View additional DMAIC best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

DMAIC Implementation Challenges & Considerations

Executives might question the integration of the improved DMAIC process with existing workflows. The methodology is designed to be adaptable and should be integrated with minimal disruption, leveraging change management techniques to ensure buy-in from key stakeholders. Another consideration is scalability, as the organization continues to grow. The improved process must be scalable and flexible, allowing for continuous improvement. Lastly, executives will be concerned with the time to value. The phased approach allows for quick wins to be identified and implemented early in the process, demonstrating value and building momentum for ongoing improvements.

Post-methodology implementation, the organization should expect to see a reduction in customer complaints and returns, a more consistent product quality, and improved customer satisfaction. Quantitatively, we can anticipate a reduction in the cost of poor quality by at least 20% within the first year.

Potential implementation challenges include resistance to change, misalignment between departments, and data integrity issues. To address these, it is essential to engage leadership, foster interdepartmental collaboration, and ensure robust data collection and analysis systems.

DMAIC KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


A stand can be made against invasion by an army. No stand can be made against invasion by an idea.
     – Victor Hugo

  • Defects Per Million Opportunities (DPMO): To measure the quality performance of processes
  • Customer Satisfaction Index (CSI): To gauge customer perceptions post-improvement
  • First Pass Yield (FPY): To assess the efficiency of the production process
  • Return Rate: To track changes in the rate of product returns
  • Cost of Poor Quality (COPQ): To quantify the financial impact of defects

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it became evident that employee engagement is critical to the success of process improvements. Firms that actively involve their employees in the DMAIC process see a 30% higher success rate in sustaining quality improvements, according to McKinsey & Company. Additionally, the importance of data integrity cannot be overstated; accurate data is the foundation of any successful DMAIC initiative.

Incorporating digital tools to enhance the Measure and Analyze phases can lead to a more nuanced understanding of quality issues. Gartner reports that organizations utilizing advanced analytics can see a 25% improvement in decision-making speed and accuracy.

Lastly, the Control phase is often the most challenging to maintain over time. Establishing a culture of continuous improvement, coupled with strong leadership support, is essential for long-term success.

DMAIC Deliverables

  • Quality Improvement Framework (PowerPoint)
  • Operational Excellence Roadmap (PowerPoint)
  • Statistical Analysis Report (Excel)
  • Process Documentation Template (Word)
  • Performance Dashboards (PowerBI)

Explore more DMAIC deliverables

DMAIC Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in DMAIC. These resources below were developed by management consulting firms and DMAIC subject matter experts.

DMAIC Case Studies

A global cosmetics company implemented a DMAIC initiative to address quality issues in their skincare line. By focusing on the Analyze phase, they identified a critical ingredient inconsistency and rectified the issue, resulting in a 40% reduction in customer complaints.

An international luxury beauty brand utilized DMAIC to streamline its product development process. The initiative led to a 60% improvement in time-to-market for new products and a 15% increase in customer satisfaction scores.

A renowned makeup firm applied DMAIC to improve their supply chain efficiency. The project led to a 20% cost reduction in logistics and a 5% increase in on-time delivery rates, enhancing overall customer satisfaction.

Explore additional related case studies

Integrating DMAIC with Existing Corporate Culture

Ensuring that DMAIC methodologies resonate with an organization's culture is paramount for successful implementation. Resistance to change is a common challenge; however, studies by McKinsey & Company highlight that initiatives with clear communication strategies are 3.5 times more likely to outperform their peers. It is essential to tailor the DMAIC approach to align with the organization's values and norms, which requires transparent communication, clear demonstration of the benefits, and direct involvement of leadership at all stages.

Leadership engagement is not merely about endorsement; it involves active participation. When senior executives are directly involved in the DMAIC process, there is a 70% increase in the likelihood of project success. This involvement includes regular review sessions, resource allocation, and recognition of team efforts, all of which contribute to a more receptive organizational culture.

Measuring the Success of DMAIC Initiatives

Quantifiable outcomes are essential to gauge the success of DMAIC initiatives. While KPIs like DPMO and COPQ provide direct measures of process improvement, it is also important to track longer-term metrics such as market share and customer lifetime value (CLV). According to Bain & Company, a 5% increase in customer retention correlates with more than a 25% increase in profit. By linking DMAIC outcomes to these broader business metrics, executives can better understand the full impact of process improvements.

Moreover, it is crucial to establish a baseline before implementing DMAIC to measure progress accurately. This baseline should consider both current operational metrics and strategic business outcomes. By doing so, the organization can track improvements not just in operational efficiency but also in strategic business performance, providing a holistic view of the DMAIC initiative's success.

Scaling DMAIC for Global Operations

As organizations grow, the complexity of implementing standardized processes increases. For global operations, the DMAIC process must be adaptable to different cultural contexts and regulatory environments. Accenture's research indicates that globally standardized processes can lead to a 15% reduction in operational costs. To scale DMAIC effectively, it is essential to develop a flexible framework that allows for regional customization while maintaining core process integrity.

Best practices suggest establishing Centers of Excellence (CoEs) as a means to maintain consistency in DMAIC application across diverse operations. CoEs serve as hubs of expertise, standardization, and innovation, ensuring that the DMAIC process remains robust and responsive to local needs while driving global operational excellence.

Ensuring Long-Term Sustainability of DMAIC Improvements

The longevity of DMAIC process improvements is a common concern among executives. The initial success of a DMAIC project can be undermined if improvements are not sustained over time. PwC reports that organizations with continuous improvement programs that include regular follow-up and re-calibration have a 75% chance of sustaining improvements over a three-year period. This highlights the importance of not only implementing change but also nurturing it.

To ensure sustainability, it is crucial to embed a culture of continuous improvement and regular performance reviews. This involves setting up a governance structure that monitors performance against the KPIs and takes corrective action when necessary. Additionally, ongoing training and development programs can help maintain the skills and knowledge required to support the DMAIC process and adapt to changes in the business environment.

Additional Resources Relevant to DMAIC

Here are additional best practices relevant to DMAIC from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced customer complaints by 25% within the first six months post-implementation, indicating improved product quality and customer satisfaction.
  • Achieved a 15% reduction in the cost of poor quality (COPQ) within the first year, demonstrating tangible financial impact from the initiative.
  • Increased First Pass Yield (FPY) by 10%, reflecting enhanced efficiency in the production process.
  • Implemented a scalable and adaptable DMAIC process, evidenced by successful integration with minimal disruption and quick wins identified early in the process.
  • Challenges in maintaining the Control phase over time, highlighting the need for sustained leadership support and a culture of continuous improvement.

The initiative has yielded significant improvements in customer satisfaction and financial metrics, with a notable reduction in customer complaints and COPQ. The increase in FPY also indicates improved operational efficiency. However, the challenges in maintaining the Control phase over time have been evident, suggesting the need for ongoing leadership support and a stronger focus on embedding a culture of continuous improvement. The successful integration of the scalable DMAIC process with minimal disruption and the identification of quick wins early in the process have been positive outcomes. However, the inability to fully sustain the Control phase highlights the need for a more robust long-term sustainability plan. Alternative strategies could include more comprehensive change management techniques to ensure sustained buy-in from key stakeholders and a stronger emphasis on ongoing training and development programs to support the DMAIC process and adapt to changes in the business environment.

For the next steps, it is recommended to focus on enhancing the sustainability of the DMAIC improvements by establishing a robust governance structure that monitors performance against KPIs and takes corrective action when necessary. Additionally, ongoing training and development programs should be implemented to maintain the skills and knowledge required to support the DMAIC process and adapt to changes in the business environment. A renewed emphasis on embedding a culture of continuous improvement, coupled with sustained leadership support, will be essential for the long-term success of the initiative.

Source: Telco Network Efficiency Redesign Using DMADV, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Lean Process Improvement in Specialty Chemicals

Scenario: The organization is a specialty chemicals producer facing challenges in maintaining quality control and reducing waste in its DMAIC processes.

Read Full Case Study

Educational Performance Management for K-12 Schools in Competitive Markets

Scenario: The organization, a network of K-12 educational institutions, faces challenges in its Design Measure Analyze Improve Control (DMAIC) processes, which are critical to ensuring high academic performance and operational efficiency.

Read Full Case Study

DMADV Deployment for Defense Contractor in Competitive Landscape

Scenario: The organization is a global defense contractor grappling with the integration of DMADV methodology into their project management processes.

Read Full Case Study

Pursuit of Operational Excellence in Semiconductor Manufacturing

Scenario: The organization is a leading semiconductor manufacturer facing significant yield issues during the Design, Measure, Analyze, Design, Validate (DMADV) stages of product development.

Read Full Case Study

Ecommerce Process Improvement for Online Retailer in Competitive Landscape

Scenario: The organization, a mid-sized online retailer specializing in consumer electronics within a highly competitive market, is struggling to maintain its market share due to operational inefficiencies in its Define, Measure, Analyze, Improve, Control (DMAIC) process.

Read Full Case Study

Lean DMAIC Improvement in Ecommerce Fulfillment

Scenario: The organization is an online retailer facing challenges in its order fulfillment process, which is critical to customer satisfaction and operational efficiency.

Read Full Case Study

DMADV Deployment in Aerospace Component Manufacturing

Scenario: The organization, a North American aerospace components manufacturer, is grappling with quality control issues that have led to increased production costs and delayed deliveries.

Read Full Case Study

DMADV Deployment for Aerospace Firm in Competitive Market

Scenario: The organization is a mid-sized aerospace parts supplier grappling with quality control issues that have resulted in increased production costs and decreased customer satisfaction.

Read Full Case Study

DMADV Deployment for Retail Apparel Chain in Competitive Landscape

Scenario: A retail apparel chain is grappling with market share erosion in a highly competitive environment.

Read Full Case Study

Operational Excellence in Media Broadcasting - DMAIC Deployment

Scenario: A leading media broadcasting firm is facing challenges in sustaining operational excellence while scaling up its production capabilities.

Read Full Case Study

Inventory Management Enhancement for Retail Chain in Competitive Market

Scenario: The organization in question operates within the highly competitive retail sector, grappling with challenges in inventory management that are affecting its bottom line.

Read Full Case Study

Customer Experience Re-engineering in Telecom

Scenario: The organization is a mid-sized telecommunications provider facing escalating churn rates and declining customer satisfaction scores.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.