Aggressively drive an enterprise-wide process improvement initiative
Agreed upon financial targets and timelines to realize those targets
Focused on helping achieve 2009/2010 business-wide targets
Develop detailed design information for the individual processes (sub-processes) that result in the highest financial and/or customer impact
Support execution/implementation of the new processes, including communications, management of organizational change and formal documentation of new processes
Focus on end-to-end efforts in addition to BU issues
Look specifically for agreement on key processes to attack for the initiative
Business-centric issues prioritized between each other to ensure optimal benefit
Create end-to-end design documentation including linkages to growth and expense target plans, initial financial justification and determination of which of the sub-processes require detailed design documents
Ensure that gains are recognized and sustainable
Establish a program management function to ensure that the process changes hold and, as importantly, that the planned benefits are being achieved
Establish and prioritize the list of end-to-end processes to be reviewed
Allocate team members based upon highest return/highest impact processes
Concurrently: Establish impacts to the overall enterprise and the associated interactions
The Business Process Improvement Approach High Speed Internet Identification of core focus areas within & across lanes EMBARQ BPI Analysis Improvement Opportunities & Roadmaps New Build Economics Supplier Contracts Parts & Materials Customer Contracts Extensive Data Collection Overall Objective: Identify tangible improvement opportunities aligned to EMBARQ’s 3 year operating plan
Updated Network methods & procedures, posted updates to Network Services intranet site and delivered training to address identified gaps
Completed scorecard assessments and executive review sessions with 12 critical suppliers (integrated supplier risk management into program)
Integrated supplier risk management (financial & IP) into the program & executive discussions
Planned Actual Contract Compliance: Conducted audits of non-PO violation spend in Network and Business Operations Completed as planned Held Kaizen session to align M&P’s with fiscal & sourcing policies Completed as planned Delivered training on M&P’s/policies Completed as planned Conduct ongoing quarterly audits to continually address future violations Audits suspended in 2009 due to merger/resource constraints and anticipated NewCo process changes Supplier Management: Development of scorecard/methodology Completed as planned Conduct executive review sessions with identified suppliers Completed as planned Developed 3-4 strategic-level improvement areas with each supplier Business units continue to execute on plans
Supplier Contracts Planned Actual Reduce excess cable in field locations by $XX Recovered and used $XX of cable Conduct Clean Sweeps in 20 locations by year-end. Target recovery of $XX of unused assets.
Recovered to inventory - $XX plus over $XX in plug-in cards
Consignment sales - $XX
Scrap Sales - $XX
XX pallets of product
Add images and plain English descriptions to the TONES catalog The majority of all items were completed by year-end (over 3000 products) Improve Supplier Performance – Delivery to Lead Time for top 8 suppliers
X of X currently above XX%.
One supplier dropped due to decreased spend.
Seven suppliers improved year-over-year
Customer Contracts Initiative Before BPI After BPI Government Repository (Pramata)
The contract repository tool (ASP) stores contracts by year which made gathering the entire contract difficult.
Not all contracts were stored in ASP – some resided with sales personnel in the field or could not be located at all
Special Ts&Cs were not consistently identified and managed
Government contracts will be centrally stored and easily accessible.
Key/special terms and conditions are extracted and catalogued in a contract summary
Data requests can be managed quickly via repository reporting capabilities
Contract with Pramata is expandable to other contract types, for example supplier and real estate
Provided an overview and demonstration to CTL. Reviewing possible integration with their contracts
Terms and Conditions
Uncertainty as to what contract documents existed
Terms and conditions were not consistent across documents and may have been outdated or non-applicable to today’s operating environment
Clear understanding of what contracting documents and gaps exist
Internally provided a website matching the tariffs, terms and conditions to the product Improvement recommendations prioritized and in progress
Stood up Capital Targeting Tool for evaluation of projects to determine economic viability
Billing and deposit methodology was created and implemented in cases where it was determined developer assistance was required
Generated shareholder value through investing only in those New Builds which offer an opportunity for an acceptable return
Completed cost structure reviews leading to work with vendors for cost reduction, best practice implementation and training for more efficient use of capital and labor
Continue project reviews for New Service Addresses in 2009
Continuing process improvement
Brings efficiency and consistency to the economic evaluation process; XX projects were reviewed from May to December
XX bills have been calculated and sent to developer for deposit or aid to construction
Projects found to be uneconomic resulted in a Cap-Ex reduction of $XX
The process improvement initiatives provided for a XX% cost decline in our preferred FTTP technology
$XX is forecast to be reviewed and billed due to economic viability
Reduced cycle times, economic review completed in farther in advance of project construction dates
High Speed Internet Focus Area Initiative Objective Annual Benefit HSI Equipment Systematic CPE Recovery on Cancelled Orders Recover HSI equipment from customer if the order was cancelled. $XX Optimize Shipping Change HSI order due date & RAS date from 2 to 3 days. $XX Tangible Customer Facing Equipment Implement database to store, trace and help proactively troubleshoot new and refurbished equipment serial #’s at the household level.
$XX to $XX
Flexible pricing strategy
(Numbers based on CenTel current modem lease program)
Records Clean-Up Pre-Grooming & Records Clean-Up Pilot
Verify and correct records and pre-groom all primary capable lines in the Gardner market.
Conducted pre-pilot time and motion study baseline the pilot in the Gardner market.
Reduced dispatches & clear times
Fewer trouble calls & internal calls to support groups
0, -1, +1 MEDR Errors Address unnecessary escalations that are a result of errors in MEDR. Improve process for correcting records.
$XX rev opportunity
Fewer trouble calls
Dispatch Reduction Cancelled Order Dispatch Reduce/eliminate rolling trucks on cancelled orders. $XX cost avoidance Cancelled Order Revenue Prevent XX% of cancelled orders due to reducing capacity management and records issues. $XX rev opportunity Dispatch Report by Tech Support Center Measurable tool to hold centers accountable by total customer experience vs. metric TBD Capacity Management Network/Marketing Communication Ensure all Business units are proactively and consistently providing campaign and utilization information TBD Underutilized Devices RCA, Identify Process Improvements and Implement changes $XX for each 1% increase in utilization Training & Communication Replacement HSI CPE Reduction Reduce unnecessary replacements through detailed agent reporting and online training. $XX Retail HSI CPE Focus Increase Retail pick up option for necessary HSI CPE replacements. $XX External Customer Training Online HSI customer training modules for key & high volume topics TBD