Bb06 srihari six_sigma project

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  • Bb06 srihari six_sigma project

    1. 1. Six Sigma Black Belt Project, Feb 2009 – Aug 2009 Reduction of Turn Around Time (TAT) in the certificate issuance process for improving customer satisfaction at DNV Dubai Project Intern – Srihari Chodagiri, BB-06 Project Guide – S. Ramanathan © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 1
    2. 2. Timeline of the five phases - DMAIC Feb’09 Define Measure Analyze Improve Control Mar’09 Apr’09 May’09 Jun’09 Jul’09 Aug’09
    3. 3. DEFINE  Introduction  Project Charter  CTQ Tree  Data  Process Flow Cart  SIPOC
    4. 4. Introduction Det Norske Veritas (DNV) is a certifying agency accredited by UKAS and RVA to conduct Management System certification for companies. It operates in 11 countries in the Middle East region with central office in Dubai, head quarters at Rotterdam, Norway and technical support centre in Mumbai, India. The current project aims to analyze the process of certificate issuance and bring improvements in the issuance time of a certificate after completion of audit called Turn Around Time (TAT). Certificate Issuance only covers certification and re-certification of audits for all standards and it does not cover surveillance audits as it is not required to issue certificate after surveillance and recommendation is sufficient. The different countries and the various certifications are as per Annexure –I. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 4
    5. 5. Project Charter Project ID No: BB06/ To reduce Turn Around Time(TAT) in the Certificate Issuance process at DNV Middle East corporate office Project Title Define Scope Goal Statement Currently certificate issuance process is taking an average time of 18 days which is resulting in customer dissatisfaction at various locations. Issuance process starts once the client company is recommended for certification till the certificate is issued to the client To provide timely and accurate support for certifications that will result in improvement for customer organizations. Reduced time for issuance of certificate to the customer Functional KRA Cost Drivers Reduced number of errors in the certificates being issued Delay in issuance will propel customer to follow up more thereby making Auditors make non value added follow up Tangible Benefits Reduction of TAT from current 18 days to 8 days by Aug 2009. Improved customer satisfaction, reduction in non value adding follow up from across locations Target Beneficiary The company and it’s subsidiaries- M/s.DNV Middle East Expected customer Benefits Improved satisfaction and reduction in number of errors in the certificates Project Champion Mr. Torger Baardseth – General Manager TAT, TR India time (TR India), TR Rotterdam Time (TR RD), Certificate Issuance time (CI) Black Belt Mr. Srihari Chodagiri Moniterable parameters Y – TAT is 18 days. Big Y & Small y’s Team Members Errors in the certificates result in return of certificates for correction and fresh issuance. Y : TAT to be 8 days. y : TR India – 5 days, TR RD – 2 days, CI – 1 days Mr. S. Ramanathan, Ms.Maya Ghorpade, Mr. Venkadeshwaran, Mr. KC. Sajeev, Mr. Sridharan y – TR India – 9 days, TR RD – 4 days, CI – 5 days Support Required Subsidary offices, TR India and Rotterdam offices, Auditors and support dept in Dubai office Project Start 18 – 02 - 2009 Project End 18 – 08 - 2009 Domain Expert Mr. S. Ramanathan, Master Black Belt & Operations Manager – DNV Middle East Duration Six months ISI team member Dr. Somnath Ray The Team Base line (Current) Measures of Y & y Metrics Critical to Business / Customer Problem Definition DNV Dubai office issues certificates for 10 countries including UAE on various certifications such as ISO 9001, 14001, 18001, HACCP, etc. Company Goal
    6. 6. CTQ Tree (in terms of days)
    7. 7. Data Collection
    8. 8. Process Map
    9. 9. Process Flow Chart for Certificate Issuance
    10. 10. Review assessment activity/provide feedback – Actual Process Follow up Follow up with TR India Rotterdam Follow up with Auditors © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 10
    11. 11. SIPOC for Certificate Issuance process
    12. 12. CTQ Specification Table Need Driver CTQ Operational definition of measure Specification / target Defect Definition KANO Once the document is Maximum of received, technical review 5 days should get completed by 5 days 5 days Any review exceeding Ten Less the better days TR RD Maximum of Document approval process 2 days to be complete by 2 days 2 days Any review exceeding five Less the better days CI Time Certificate to be printed and Maximum of approved to be ready for 1 days dispatch to customer 1 day Any review exceeding five Less the better days TR India Reduction of Turn Around Time Printing of certificate No errors Less the better
    13. 13. MEASURE  Data Collection  Check for Normality  Sigma level determination  Data Verification  Measurement System Study
    14. 14. Data collection plan S. No Characteristic 1 Measure Sampling (units) data TR Rotterdam for the clients of respective countries Where Recorded TR India for the clients of respective countries 2 Data Type Time 3 Certificate Issuance for the clients of respective countries 4 TAT overall for the clients of respective countries Days 2007 ~ CONCERT 2008 (till software Feb’09)
    15. 15. Data formulation From the data, the time periods for TR India, TR RD and CI are obtained as below: TR India = Review date – Recommended date TR RD = Approved date – Review date CI = Issue date – Approved date TAT = TR India + TR RD + CI Issue date is taken as baseline date(explanation given in measurement system page) and the data is re-tabulated with Project number and Certificate number with the above calculations, as shown below: S. No Country 1 Oman, RC Customer Name ALI & ABDUL KARIM TRD. CO. LLC [AATCO] Project Number DNV Certificate Number Issue Date TR India TR RD PRJC-15447-2007-MSC-ARE 39077-2008-HACCP-ARE-RvA 9/22/2008 30 15 CI 1 TAT 46 2 Bahrain, RC ARAB SHIPBUILDING & REPAIR YARD CO. [ASR Y] PRJC-25441-2007-MSC-ARE 46200-2009-AQ-ARE-RvA 1/18/2009 4 11 7 22 3 4 5 6 7 8 9 10 Bahrain, RC Syria, IA Syria, IA Syria, IA Syria, IA Pakistan, IA Pakistan, IA Pakistan, IA ARAB SHIPBUILDING & REPAIR YARD CO. [ASR Y] HASAN & HACHEM ZAYED CO. (NOBA) HASAN & HACHEM ZAYED CO. (NOBA) INTERNATIONAL SHIPPING BERUE (ISB-SYRIA) MASA CERAMIC INDUSTRY UNITED MARINE AGENCIES (PVT) LTD. SOFTECH WORLD WIDE NURICON PETROSERVICES [PTE.] LTD. PRJC-25441-2007-MSC-ARE PRJC-31783-2007-MSC-ARE PRJC-31783-2007-MSC-ARE PRJC-09857-2007-MSC-ARE PRJC-13882-2007-MSC-ARE PRJC-27599-2007-MSC-ARE PRJC-61637-2008-MSC-PAK PRJC-40827-2007-MSC-ARE 12/17/2007 7/16/2008 7/16/2008 9/16/2007 3/3/2009 2/19/2009 3/3/2009 2/24/2009 4 6 6 4 1 4 7 1 0 1 1 19 19 3 2 1 48 1 1 1 2 7 7 7 52 8 8 24 22 14 16 9 Qatar Petroleum-Oil and Gas Ventures Directorate PRJC-67268-2008-MSC-ARE 43263-2008-AQ-ARE-UKAS QATAR PETROLEUM PRJC-106709-2008-MSC-QAT 45770-2009-AQ-ARE-UKAS 11/20/2008 1/10/2009 28 2 4 2 1 1 33 5 Fakieh Poultry Farm PRJC-112059-2008-MSC-SAU 46654-2009-HSO-ARE-DNV 1/25/2009 9 15 11 35 Fakieh Poultry Farm PRJC-112059-2008-MSC-SAU 47572-2009-AE-ARE-UKAS 2/15/2009 1 3 10 14 18 Qatar, RC 19 Qatar, RC Saudi Arabia, 20 IA Saudi Arabia, 21 IA 15658-2007-AHSO-ARE-RvA 31377-2008-AQ-ARE-UKAS 31377-2008-AQ-ARE-UKAS 8703-2007-AQ-ARE-UKAS 48934-2009-AQ-ARE-RvA 48181-2009-AQ-ARE-RvA 48901-2009-AQ-ARE-RvA 48490-2009-AQ-ARE-RvA
    16. 16. Initial data collection (2007~2008) Data Collection (sample as generated from CONCERT) Local Unit Country Middle EastLU Iran (Islamic Republic of) Middle EastLU Middle EastLU Iran (Islamic Republic of) Middle EastLU Middle EastLU Middle EastLU Middle EastLU Middle EastLU Middle EastLU Middle EastLU Middle EastLU Jordan Jordan Iran (Islamic Republic of) Iran (Islamic Republic of) Iran (Islamic Republic of) United Arab Emirates Iran (Islamic Republic of) Bahrain United Arab Emirates Middle EastLU Middle EastLU Kuwait Iran (Islamic Republic of) Middle EastLU Middle EastLU Middle EastLU Middle EastLU Middle EastLU Iran (Islamic Republic of) Iran (Islamic Republic of) Iran (Islamic Republic of) Iran (Islamic Republic of) Iran (Islamic Republic of) Customer Name FARA DARYA ARSHEH CONSULTANTS Dr. NASIZADEH PATHOBIOLOGY LABORATORY UNITED TUBE PACKAGING IND.CO. LTD. (UNITUBE) Project Number PRJC-19097-2007MSC-ARE PRJC-07642-2007MSC-ARE PRJC-14615-2007MSC-ARE PRJC-14596-2007MSC-ARE PRJC-61552-2008ATTILA ORTHOPAED Co. MSC-IRN MASHHAD GEARBOX PRJC-24370-2007COMPANY MSC-ARE PRJC-24630-2007DEEP SEA KISH MSC-ARE DUBAI MUNICIPALITY - General PRJC-101999-2008Projects MSC-ARE PRJC-30582-2007ASIA AKAM INDUSTRY Co. MSC-ARE ARAB SHIPBUILDING & PRJC-25441-2007REPAIR YARD CO. [ASR Y] MSC-ARE PRJC-96538-2008ProDia International MSC-ARE MODERN VALLEY FARMS International Turnkey SystemsTrading as ITS and ITSoft SAZGAN GOSTAR CO. PORTS AND SHIPPING ORGANIZATION- SHAHID RAJAEE PORT COMPLEX PRJ-02250-95-CRTLDN PRJC-15454-2007MSC-ARE Activity Type IA IA RC RC IA IA IA IA IA RC IA RC IA PRJC-30395-2007MSC-ARE IA PRJC-52775-2008PERSIAN OFFSHORES MSC-IRN IA PRJC-72607-2008AZARAKHSH COKE SEPAHAN MSC-IRN IA PRJ-00513-2004-CRTPAXAN CORPORATION THR RC PRJC-78089-2008GANDOM DARAN MSC-IRN IA DNV Certificate Number 8388-2007-QARE-DNV Issue Date Calendar Recommended Review Authorized of Date Date Date Date Certificate 8/21/2007 17381-2007-AQARE-RvA 10/28/2007 40235-2008-AQARE-RvA 10/8/2008 44294-2008HACCP-ARERvA 11/15/2008 38849-2008-AQARE-NA 8/11/2008 19453-2008-AQARE-RvA 12/1/2007 28414-2008-AEARE-RvA 3/11/2008 42109-2008-AQARE-UKAS 11/2/2008 26130-2008-QARE-DNV 4/3/2008 15658-2007AHSO-ARE-RvA 11/10/2007 42448-2008-AQARE-RvA 11/2/2008 CERT-00293-96AQ-LDN-DNV / Rev. 2 9402-2007-AQARE-NA 26723-2008-AEARE-RvA 26321-2008-QARE-DNV 45039-2008-AQARE-RvA 7296-2007-AQARE-RvA 45051-2008-AQARE-RvA 9/9/2007 9/13/2007 9/16/2007 11/16/2008 12/23/2007 1/14/2008 2/14/2008 3/2/2008 10/11/2008 11/18/2008 11/25/2008 12/17/2008 12/13/2008 2/12/2009 2/16/2009 2/12/2009 9/17/2008 11/9/2008 11/9/2008 11/12/2008 1/22/2008 2/13/2008 2/25/2008 3/16/2008 4/23/2008 6/9/2008 6/16/2008 6/16/2008 11/11/2008 11/13/2008 11/13/2008 1/4/2009 4/26/2008 6/17/2008 7/15/2008 6/17/2008 12/17/2007 12/21/2007 12/21/2007 2/7/2008 11/17/2008 12/17/2008 12/22/2008 1/8/2009 5/2/2008 9/16/2008 9/16/2008 11/11/2008 11/6/2008 9/4/2007 9/29/2007 11/8/2007 11/8/2007 11/19/2007 3/9/2008 4/12/2008 5/28/2008 5/29/2008 6/1/2008 3/11/2008 4/29/2008 6/17/2008 7/15/2008 6/17/2008 11/3/2008 12/24/2008 1/22/2009 1/26/2009 2/9/2009 6/25/2007 8/15/2007 9/24/2007 10/1/2007 10/1/2007 11/8/2008 12/24/2008 1/22/2009 1/26/2009 2/9/2009
    17. 17. Whether this data can be considered as a data from a Process? Yes, this data can be considered as a data from a Process for the reasons as explained below: -The data is repetitive i.e every month there are fixed number of certificates being issued on different certifications and the respective audit reports are uploaded and reviewed. -Even though, the reports are not of a same company, the details in the report being reviewed are similar. - This is a service process wherein different transactions take place at four different locations, 1) Auditor upload 2) Technical Review at India 3) Approval in Norway 4) Certificate Issue from Dubai, all these processes integrated through software called CONCERT. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 17
    18. 18. Prioritization of Variables 74% of data having mean of 18 days TAT
    19. 19. Data analyzed for normality, it has been found that data is not normal (p<0.05)
    20. 20. 2-Parameter fits the distribution into normality (p-value -0.2) 47% of items defective Distribution is not normal in any distribution Distribution is not normal in any distribution
    21. 21. Sigma Level Calculation 194 data points identified from the last 2 years data, with defect specification as exceeding 10 days for TR India, 5 days for TR RD and 5 days for CI, the defects data is obtained as below: Defect Per Million Opportunities (DPMO) : Number of opportunities = 3 Number of units = 194 No of defects = 155 DPMO = NO. OF DEFECTS x 10**6 NO. OF UNITS x OPP. = 155 x 10 ** 6 194 x 3 = 266323 From Sigma and DPMO table, Sigma level is obtained as 2.13
    22. 22. Baseline status CTQ Average S.D. DPMO Sigma Level TR India 13.2 14 448,453 1.63 TR RD 5.0 8.5 278,350 2.09 CI 9.6 33.2 417,525 1.71 TAT 27.84 37.5 266,323 2.13
    23. 23. Data Verification -CONCERT generated data from ANSWERS Tab has been analyzed for sufficiency with the three months data Jan ~ Mar 2009 by comparing with actual data and system generated data and found the following problems: - Some companies were not getting captured in the data namely – IMDAAD, AMANA, RELIANCE CONTRACTING,.. -After analysis, it is found that the above companies are not attributed into Middle East Local Unit(LU) because of which, they were not getting captured. Fresh data has been captured for the last two years after initiating correction In the software to rightly capture all data points. Even though 194 appears to be too less a number for two years data, the data has been considered since there were lot many blanks in data entry in many of the points. Now after correction, many data points are retrieved and have obtained 557 valid data points for the two years. It can also be noted here that, in 2009, monthly average of data points is around 50. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 23
    24. 24. Measurement System Study -Data initially is being captured for analysis is of last 10 years, but given the recent software upgrade from previous software (Smartset) to CONCERT software, it has been decided to only use projects with ‘PRJC’ (last 2 years data) which are generated by new software as old software has incomplete data. Baseline date: Here a process is said to be complete once the certificate is issued which is represented by issue date. So, for analysis of certificates issued in a month can be more appropriately analyzed taking Issue date as baseline as against any other dates such as recommended or calendar date. The only caution that needs to be exercised is, in case the issue date is not entered in CONCERT during that month even though a certificate is manually issued, that adjustment in TAT data in the coming months need not be misunderstood. It is recommended to integrate the system of certificate issuance to customer with mandatory entry of issue date in ConCert software immediately on issuance.
    25. 25. New Data Collected, 557 data points 2007~2008 Data found not normal, P<0.05
    26. 26. Sigma Level Re - Calculation 557 data points identified from the last 2 years data, with defect specification as exceeding 10 days for TR India, 5 days for TR RD and 5 days for CI, the defects data is obtained as below: Defect Per Million Opportunities (DPMO) : Number of opportunities = 3 Number of units = 557 No of defects = 396 DPMO = NO. OF DEFECTS x 10**6 NO. OF UNITS x OPP. = 396 x 10 ** 6 557 x 3 = 236984 From Sigma and DPMO table, Sigma level is obtained as 2.22
    27. 27. Baseline status CTQ Average S.D. DPMO Sigma Level TR India 8.82 8.22 333,932 1.93 TR RD 4.0 3.85 271,095 2.11 CI 5.15 5.02 359,055 1.86 TAT 17.98 10.56 236,984 2.22
    28. 28. 2008 data alone, 300 data points © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 28
    29. 29. Analysis of TAT data for Q1 (Jan, Feb & Mar’ 09) © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 29
    30. 30. ANALYZE Brainstorming Points Cause & Effect Development of solution / Tool Analysis of problems Analysis of Certificate Review
    31. 31. Brainstorming: What are the problems observed in the process from data? Process 1 : Uploading of audit reports by the respective auditor in the country  Auditor does not upload the documents on the same day in CONCERT - Internet not available at customer location  Incomplete report - Auditor does not fill the required details like previous certificate date, scope, name of company(as to be printed in Certificate) etc in CONCERT Process 2 : Verification or technical review of the documents by India office,  The documents are reviewed at a later date depending on priority  Sometimes, the process happens back and forth with TR team getting clarifications from auditor  Delay in communication to Dubai office © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 31
    32. 32. Brainstorming points, contd. Process 3: Verification & follow up by DNV Dubai office  Delay in processing due to difference in weekdays with India office  The documents are kept pending for a later date depending on priority  Accumulating for a set of documents to take approval from Rotterdam  Delays in following up with Rotterdam Process 4 : Authorization from Rotterdam office  The documents are kept pending at Dubai to accumulate for a later date depending on priority  The respective person to authorize is not available. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 32
    33. 33. Brainstorming points, contd. Process 5 : Certificate printing, signature and dispatch  Manual preparation of certificates rather than generating from CONCERT  Incomplete details resulting in looking up for data causing delay  Time for filling up the details in the certificate generated in the CONCERT - To look into different details like Project, Certificate list, etc..  Delays in obtaining signature due to non availability of signing authority  Errors in certificate resulting in certificate being returned by customer © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 33
    34. 34. Cause-Effect Diagram <Cause & Effect diagram for all must be CTQs> Technical Review India Not taking it as priority Not able to identify pending reports Technical Review Rotterdam Delay in checking the report Review person not available Delays in corrections after review Approving person not available Errors in the certificate Certificate Issuance Incomplete report Not followed up by Dubai office Integrated software tool to track delays Delay in report uploading Auditor uploading All the above causes pointed to having an integrated tool that would identify time taken for the different processes as TR India, TR RD and CI -> CONCERT
    35. 35. Development of Solutions : Data tool for monitoring TAT using Answers Tab Creation of TAT specific Filters Analysis Icon Answers Tab TAT generated data © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 35
    36. 36. TAT data monitoring tool  It has to be noted that the above data tool developed is different from the initial data generation, which randomly generated data for last 10 years out of which data has to be sorted for last two years.  Moreover this tool is able to generate complete data with less number of blank details and the data is matching to the manual reports as explained in the coming slides. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 36
    37. 37. Analysis of current problems: S. No Country 2 Saudi Arabia, IA Saudi Arabia, IA 3 Iran, IA 1 Customer Name Project Number Fakieh Poultry Farm PRJC-1120592008-MSC-SAU DNV Certificate No Reco Date TR India TR RD CI TAT 1/25/2009 9 15 11 35 1/26/2009 17 7 1 25 1/23/2009 18 1 1 20 PRJC-1119732008-MSC-SAU 46654-2009HSO-ARE-DNV 46682-2009AFSMS-ARERvA PRJC-989322008-MSC-IRN 46169-2009-AISARE-UKAS PRJC-080692007-MSC-ARE 47326-2009-AQARE-UKAS 2/4/2009 7 8 10 25 1/15/2009 25 3 5 Remarks communic ation with client for NAME 33 4 Iran, IA Fakieh Poultry Farm MAPNA TURBINE ENGINEERING AND MANUFACTURING CO. (TUGA) MARITIME AFFAIRS DIVISION OF THE PORTS &MARITIME ORGANIZATION 5 Iran, IA TAKVIN SANAT CO. PRJC-203262007-MSC-ARE 46101-2009-AQARE-RvA 6 Iran, RC Mapna power plants and development co.(MAPNA-MD1) PRJC-408232007-MSC-ARE 46002-2009HSO-ARE-DNV 1/14/2009 26 1 19 46 7 Iran, IA ISARGARAN HADID TRADING AND INDUSTRIAL COMPLEX Co. PRJC-1025222008-MSC-IRN 46630-2009-AQARE-RvA 1/25/2009 9 9 5 23 8 UAE, IA DUBAI MUNICIPALITY Municipality Centres PRJC-1128782008-MSC-ARE 48498-2009-AQARE-UKAS 2/24/2009 14 2 7 23 9 UAE, IA DUBAI MUNICIPALITY - Sewage Treatment Plant PRJC-1125742008-MSC-ARE 48510-2009-AQARE-UKAS 2/24/2009 14 2 7 23 10 UAE, IA Masri Engineering & Contracting Establishment PRJC-972302008-MSC-ARE 47710-2009-AQARE-RvA 2/11/2009 12 3 11 26 11 UAE, IA DUBAI MUNICIPALITY - Public Parks & Horticulture PRJC-1128802008-MSC-ARE 48500-2009-AQARE-UKAS 2/24/2009 21 6 3 30 12 Jordan, RC KING ABDULLAH UNIVERSITY HOSPITAL(KAUH) PRJC-147172007-MSC-ARE 46760-2009-AQARE-RvA 1/27/2009 17 6 14 37 13 Syria, IA MASA CERAMIC INDUSTRY PRJC-138822007-MSC-ARE 48934-2009-AQARE-RvA 3/3/2009 1 19 2 Wrongly kept pending Wrongly kept pending communc with client for Name & Address 22 © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 37
    38. 38. Analysis of problems: As observed in the previous table, the main problems that have been observed after doing the detailed data collection: -Majority of the problems are related to follow up and taking up as priority at the respective location -Other problems like correction of reports are less in number and are occurring once in 3 months on average. - Holiday differences is also observed as one other contributor to variation in TAT times as Dubai has Friday and Saturday as holidays while Rotterdam and India office are having weekend holidays as Saturday and Sunday. -In some cases, certificates are being returned for correction of details as explained in the next page. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 38
    39. 39. Analysis of a certificate Line No Details in a certificate 1 DNV Symbol Printing details Part of printing paper 2 DET NORSKE VERITAS Generated by CONCERT 3 MGMT SYSTEM CERT or OHSAS Generated by CONCERT 4 Certificate No. Generated by CONCERT 5 This is to Certify that 6 "Name of the Company" Generated by CONCERT Generated by CONCERT, often requires manual correction 7 "at" 8 Three different types of certificates with accreditations of RVA, UKAS and DNV are shown in pictures. "Address of company" has ben found to conform to the Mgmt System Std or Generated by CONCERT OHSAS series 9 10 11 12 13 Name Generated by CONCERT Generated by CONCERT, often requires manual correction "Std No.(ISO 9001, 14001, 18001, …)" This Certificate is valid for the following product or service ranges….." or "This certificate is valid concerning all activities related to………." "Scope of certification" Initial Cert date (Manual) Valid until (Manual) Auditor name © Det Norske Veritas AS. All rights reserved Address Generated by CONCERT Generated by CONCERT, often requires manual correction Generated by CONCERT Place & Date Manual (Manual) Scope Symbol Torger Baardsheth 27 October 2013 Slide 39
    40. 40. Review of Analyze phase  Better co-ordination across the locations and follow up identified as important action for improvement in TAT.  Data monitoring tool is developed which is now being run weekly to communicate delays at respective locations.  Data correlated with monthly reports and re-calculated to reflect the actual picture.  It has been analyzed that once the reports that are uploaded by auditors are thorough, all other times are just dependent on close follow up. So, the critical area is just identified as close follow up with the respective locations.  Other actions like Certificate details, etc are also being analyzed. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 40
    41. 41. IMPROVE & CONTROL Action Strategy Certificate printing improvement Improvement data / trend graph  Sigma calculation Benefits – Financial / Non Financial Risk Management  Standardisation
    42. 42. Action Strategy -To adhere to the given target dates of TR India(5 days), TR RD (2 days) and CI (1 day) -Improvement of Auditor uploading time : -The same point has been raised at the annual auditors meet on 29th May 2009 and the auditors have principally agreed to uploading the reports on time in ConCert on time and with full details. Last two months, it has been observed that the reports are being uploaded promptly and with no/less corrections. -Improvement of Review time at TR India : -First time right data will be monitored at TR India -The pending reviews are periodically monitored on weekly basis with data tool. -Improvement of Approval times at Rotterdam : -The same issue has also been presented to the Management Representative (MR) of DNV Global during DNV Dubai office audit on 2nd June 2009 to firstly take to his notice delays in TR RD approvals and secondly to implement this actions in other locations (India). TR RD has shown improvement over the last two months.
    43. 43. Action Strategy (contd) - Improvement of time at Certificate Issuance(CI): - The monitoring data is being run every week using Answers and the relevant personnel are being followed up using email. - Approval on certificate is being taken as soon as authorization is received from Rotterdam. - Draft certificate is being sent to customer before issuing the final certificate. System improvement recommendation for future: Dubai, India and Amsterdam are having different holidays during the weekend and the communication is affecting the Turn Around Time(TAT) - Audit completion and report uploading starting from Auditors will be standardized with milestone points i.e all reports will be uploaded in CONCERT on two points in a week, Tuesday and Thursday noon they will be sent to India office by Tuesday evening for which India office has to send back by Friday & Tuesday evening, which will be approved by Dubai office by Sunday evening and sent to Amsterdam which will be coming back by Monday. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 43
    44. 44. Improvement of Certificate printing using CONCERT  As noted before, the three lines – Name, Address and Scope are requiring correction from the automatic generated certificate.  These manual corrections are sometimes resulting in further modifications as raised by Customer.  Corrective Action : Certificates to be generated directly from CONCERT and not to be edited manually. Customers are communicated through email for confirmation of these details, sometimes Draft certificates are being sent for Customer approval.  Preventive Action : Auditors, who make a note of these details after completion of Audit and upload them, are being clearly explained with the above details and to correctly note the above promptly.  Certificate printing using CONCERT Other Actions : It is recommended to provide a dedicated Printer adjacent to computer in this process as this would reduce Certificates wastage because of errors, as also reduce time of waiting while printing a certificate as different paper is needed to be kept and wait till the printing is completed. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 44
    45. 45. Improvement data – last three months 40, 52 and 51 data points are observed in the last three months Aug, July and June respectively as can be seen partly from the table above and the average value of TAT is drastically reduced during July and August, attributable to close follow up and data monitoring. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 45
    46. 46. Improve Trend graph Turn Around Time (TAT) © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 46
    47. 47. Improvement data TR India TR RD CI TAT Jul’ 09 6 2 2 8.77 Aug’ 09 10 3 1 10.88 It has to be noted here that Average TAT is not a direct addition of averages of TR India, TR RD and CI. Only TAT for a independent point or for a company will be a direct addition. So, as can be observed from above data, good improvement towards target have been noticed in TR RD and CI. TR India, though have shown improved performance during July did not sustain improvement in August and it was attributed with lack of follow up from Dubai office without time being summer and the staff and even the auditors were on leave. It is expected to comeback to below 6 days in the coming months © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 47
    48. 48. Sigma Level Calculation 143 data points identified from the last three months (Jun, Jul & Aug) data, with defect specification as exceeding 10 days for TR India, 5 days for TR RD and 5 days for CI, the defects data is obtained as below: Defect Per Million Opportunities (DPMO) : Number of opportunities = 3 Number of units = 143 No of defects = 45 DPMO = NO. OF DEFECTS x 10**6 NO. OF UNITS x OPP. = 45 x 10 ** 6 143 x 3 = 104895 From Sigma and DPMO table, Sigma level is obtained as 2.75 © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 48
    49. 49. Improved Sigma status CTQ No. of defects DPMO Sigma Level TR India 24 167832 2.47 TR RD 7 48,951 3.16 CI 14 97,902 2.8 TAT 45 104895 2.75 TAT has improved from a sigma level of 2.22 to 2.75 during this project
    50. 50. BENEFITS ANALYSIS: FINANCIAL The process being a service related one, the main benefits are mainly intangible in terms of reduction in time and improvement in customer satisfaction – both Internal and External. Though a service operation, here a point needs to be noted that the current operation of Certificate issuance is in itself is split up to as work in different locations as can be noted by Technical Review being done at India. Otherwise this has to be done at Dubai itself as part of the process. So, improvement in terms of time at Dubai as also reduced follow up at the DNV locations of Middle East will be amounting to significant contribution in money saving in terms of time. A rough estimate of the money saving is as presented below (at Middle East rates): No. of certificates issued per month (average) - 50 Current time of auditor’s follow up / being followed up (all auditors combined) - 20 hours or 3 man days / month - $1500 Contribution from delay in payments from Customers - $200 Miscellaneous (Rotterdam, India office follow up , errors, etc) - $100 Sub Total for a month $1800 Over a period a time, along with improvement in customer satisfaction, this project would also result in improvements to the tune of $20,000/year . © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 50
    51. 51. BENEFITS ANALYSIS: NON-FINANCIAL - Reduced cycle time - Reduction in re-processing of the certificates - Reduced follow up with customer with better coordination from Auditors - Lessons Learnt - This project opens up new areas in the usage of CONCERT data as to how to use different filters and generate different types of analysis. - Two more projects are already initiated in the Sales and Accounting process using the experience in this project. - Improved on-time delivery - On time delivery of the certificates is drastically improved with weekly deliveries to the respective DNV locations - Faster response - Response rate is enhanced with better coordination resulting in increased customer satisfaction - Reduced effort - Effort has also reduced with lesser piling up of certificates and periodical clearance. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 51
    52. 52. Risk Management Risk Identification The risks in implementation are:  Increased follow up  Email not read/missed: Will result in reduced coordination and even missing of some reviews. The emails are to be kept along with read receipt and needs to call in case a email is not read.  Customer not responding to draft  Lack of acceptability or resistance to the newly defined processes by the employees(auditors, reviewers, etc) as it may increase their day to day work.  Lack of consistency or standardisation among the various sections.  Crashing / upgrade of software to new version © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 52
    53. 53. Risk Assessment  For this project we are only conducting a qualitative assessment using a scale of high, moderate, and low. The matrix below is our view on the distribution of risks along a priority setting of the red, yellow and green with the red being the highest priority. This matrix is considered a risk neutral with all colours (severity). 1. Increased follow up: - probability = medium; the discussion on different sections with multiple people needs certain time to be allotted which may not be possible consider outstation trainings running for a week - Impact = high; effects the quality of implementation 2. Email not read / missed: - Probability = L, the audit and review dates can be pre planned such that there is availability - Impact = H 3. Crashing of software: - Probability = L - Impact = M P/I H 3, 5 2 M 5. Standardisation - Probability = M - Impact = H M L 4.Customers not responding to draft: - Probability = M - Impact = M L 4 1,6 H 6. Resistance to change - Probability = L - Impact = M © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 53
    54. 54. Risk Response Planning Based on the above assessment the only risks that are in the red are an opportunity (positive risk). As a response strategy we need to enhance the chance of this risk (opportunity) materializing. To accomplish this, we can work toward raising the probability of occurrence which we can achieve via the following steps:  Initially, it will be more but over a period of time, it is going to reduce and improve for good. This point has to be made realized by the CI personnel.  The importance of customer satisfaction and also increased coordination will be made understood such that employee resistance can be reduced.  Make sure to involve the personnel involved in the process while defining any new process.  By making sure that the other parties are giving cooperation, the load of additional follow up or even resistance fro change can be managed effectively.  For the other risks, they are considered acceptable and we trust that some of the responses mentioned here for the opportunity will also help minimize the probability and/or impact of the other risks. Therefore, no more response planning would be required or initiated. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 54
    55. 55. Standardisation The monitoring of TAT data is standardized or incorporated into the monthly report which is sent to head office in Rotterdam as shown below: © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 55
    56. 56. Standardization (Contd)  To start with, TAT data will be published to Rotterdam and slowly the details of TR India, TR RD and CI process will also be added into the report for monitoring each of the parameters.  The reasons for pending reports for major ones would also be escalated to the top management, keeping a check on audit report delays, customer communication, etc. © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 56
    57. 57. Appendix 1  List of Countries coming under DNV Dubai office   Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, UAE, Jordan, Pakistan, Syria, Iran, Egypt List of Certifications covered - ISO 9001, 14001, 18001, 22000, 27001, HACCP, SA 8000 © Det Norske Veritas AS. All rights reserved 27 October 2013 Slide 57

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