Bringing Discipline to Marketing Activities An Engine Business Unit Case Study

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  • 2 step C&E - Step 1 – calculated C&E matrix score for each process step. There were 9 process steps in the process being looked at here. Process steps with highest score from first phase are bold titles highlighted in green. Step 2 – For the process steps identified as key (by highest C&E score), the impact of each process input on primary customer requirements was assessed. Primary customer requirements were: Quality Cost Throughput
  • Key process inputs as identified in the C&E matrix (those with highest score) were analyzed using FMEA. FMEA asked: What can go wrong? What are the effects if it goes wrong? What causes something to go wrong? What controls are in place today? RPNs then calculated based on: Severity of the effect to the customer – how bad is it if something goes wrong Likelihood of occurrence – how often does the cause or failure mode happen How do we know (today) if this happens?
  • Do we want to keep the Aprimo logo?
  • Do we want to keep the Aprimo logo?
  • Do we want to keep the Aprimo logo?
  • Mention ability to audit creative vendors task completion (frequency chart by day of week; overdue tasks)
  • Do we want to keep the Aprimo logo?
  • Do we want to keep the Aprimo logo?
  • Bringing Discipline to Marketing Activities An Engine Business Unit Case Study

    1. 1. Bringing Discipline to Marketing Activities An Engine Business Unit Case Study Tracy Kiser Cummins Inc. September 2004
    2. 2. Cummins – Who We Are <ul><li>Fortune 500 company </li></ul><ul><li>Design, manufacture, distribute and service engines and related technologies </li></ul><ul><li>Sales of $6.3 billion in 2003 </li></ul><ul><li>More than 24,000 employees worldwide </li></ul><ul><li>Headquartered in Columbus, Indiana </li></ul>
    3. 3. Strong Global Position Supply Chain Operations Service Distribution 131 Countries 500 Distributor Locations 5,000 Independent Dealers 5,847 Service Locations Operations Components Technical Centers Regional Parts Distribution Sales and Service International Distributors
    4. 4. Four Complementary Business Units Engine Power Generation Filtration & Other International Distributor
    5. 5. Engine Business Case Study <ul><li>Opportunity - spend less time and less money creating effective brochures, newsletters, and other marketing materials </li></ul><ul><li>Solution – use Six Sigma approach to process improvement </li></ul><ul><li>Six Sigma team included Cummins marketing process owners and representative from creative agency </li></ul>
    6. 6. Identifying Critical Process Inputs - DMAIC Critical Input Variables 59 Inputs 4 2 2 Found Critical X’s Controlling Critical X’s 8 All X’s 1st “Hit List” Screened List MEASURE ANALYZE IMPROVE CONTROL <ul><li>Process Maps </li></ul><ul><li>Failure Modes and Effects Analysis </li></ul><ul><li>Multi-Vari Studies </li></ul><ul><li>Design of Experiments (DOE) </li></ul><ul><li>Control Plans </li></ul><ul><li>C&E Matrix </li></ul>
    7. 7. Project Timeline Define Measure Analyze Improve Control  MSA  C&E Matrix  Project Charter  Process Maps  Failure Modes & Effects Analysis  Multi-Vari (regression; main effects plot)  Decision to Implement Software  Interim Improvements (pre-software)  Revised FMEA  Software Configuration  Software Training / Rollout  Control Charts  Management Reports  Recognition of Best Practices 12-02 to 1-03 2-03 to 4-03 5-03 7-03 8-03 to Present
    8. 8. Measure Phase <ul><li>Collected baseline data on project throughput (workdays), copy revisions, and layout revisions </li></ul><ul><li>Process Maps, Cause & Effect Matrix, and Failure Modes and Effects Analysis revealed key issues </li></ul><ul><ul><li>Incomplete, premature communication of project needs and objectives to creative agencies </li></ul></ul><ul><ul><li>Inconsistent, undisciplined content review processes </li></ul></ul>
    9. 9. Two-Step Cause and Effect Matrix <ul><li>Step 1: Calculated C&E matrix score for each process step </li></ul><ul><li>Step 2: For key process steps, assessed impact of each process input on primary customer requirements </li></ul><ul><ul><li>Quality, </li></ul></ul><ul><ul><li>Cost, and </li></ul></ul><ul><ul><li>Throughput </li></ul></ul>
    10. 10. Failure Modes and Effects Analysis (FMEA) <ul><li>Analyzed key process inputs identified in C&E matrix to determine: </li></ul><ul><ul><li>Potential failure mode </li></ul></ul><ul><ul><li>Potential failure effects </li></ul></ul><ul><ul><li>Potential causes, and </li></ul></ul><ul><ul><li>Current controls </li></ul></ul><ul><li>Process input risk priority numbers (RPNs) calculated based on </li></ul><ul><ul><li>Severity of failure mode effect, </li></ul></ul><ul><ul><li>Likelihood of failure mode occurring, and </li></ul></ul><ul><ul><li>Current ability to detect the failure mode </li></ul></ul>
    11. 11. Analyze Phase <ul><li>Copy revisions and layout revisions identified as significant contributors to project throughput </li></ul><ul><li>Main effects plot shows relationship between revisions and throughput </li></ul>Copy Revs > 2 Layout Revs > 2 Copy & Layt Revs > 2 Copy + Layt Revs > 4
    12. 12. Improve Phase <ul><li>Identified improvements fall into 2 areas: </li></ul><ul><ul><li>Improve initial communication of project objectives to vendor </li></ul></ul><ul><ul><li>Increase the level of discipline and measurement throughout the process </li></ul></ul>
    13. 13. Improve Phase <ul><li>Potential improvement tools: </li></ul><ul><ul><li>Word form to capture initial input </li></ul></ul><ul><ul><li>Lotus Notes database </li></ul></ul><ul><ul><li>MRM tool </li></ul></ul><ul><li>Selection criteria: </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Reporting and analysis capabilities </li></ul></ul><ul><ul><li>Ease of use; breadth of access </li></ul></ul>
    14. 14. Improve Phase <ul><li>Decision to implement web-based software system </li></ul><ul><ul><li>Accessible to Cummins employees, distributors, and vendors </li></ul></ul><ul><ul><li>Reduce dependency on face-to-face meetings </li></ul></ul><ul><ul><li>Proposal templates and reviews </li></ul></ul><ul><ul><ul><li>Enable Cummins to “do its homework” before engaging creative vendors in billable work </li></ul></ul></ul><ul><ul><li>Disciplined online content reviews </li></ul></ul><ul><ul><ul><li>Engage the right people at the right time </li></ul></ul></ul><ul><ul><ul><li>Change control capabilities </li></ul></ul></ul><ul><ul><li>Report and analyze results for continuous improvement </li></ul></ul><ul><li>Additional software benefits </li></ul><ul><ul><li>Better management of digital assets (product photos, logos, etc.) </li></ul></ul><ul><ul><li>Comprehensive marketing calendar </li></ul></ul>
    15. 15. Controlled Process Proposal Developed Proposal Concept Review Proposal Investment Review Calendar Updated ; Tasks Assigned Add to Digital Asset Library Creative Reviews of Copy / Layout Production / Direct Marketing
    16. 16. Controlled Process Proposal Developed Proposal Concept Review Proposal Investment Review
    17. 17. Proposal (Creative Brief) <ul><li>Project team (vendors, reviewers, project manager) </li></ul><ul><li>Key messages and objectives </li></ul><ul><li>Cost estimates </li></ul><ul><li>High-level project schedule </li></ul><ul><li>Details (format, quantity, reference materials) </li></ul>
    18. 18. Key Proposal Benefits <ul><li>Cummins “does its homework” before engaging vendors </li></ul><ul><li>Reviews involve the right people at the right time </li></ul><ul><li>Budget management (more complete and accurate invoice estimates; accruals) </li></ul><ul><li>Alignment of vendor output with project needs </li></ul><ul><li>Ability to measure marketing resource allocation per product, market, strategy </li></ul><ul><li>Reusable best practice templates for each activity type </li></ul>
    19. 19. Controlled Process Proposal Developed Proposal Concept Review Proposal Investment Review Calendar Updated ; Tasks Assigned
    20. 20. Key Task Management Benefits <ul><li>Best practice project schedules </li></ul><ul><ul><li>Estimated task durations </li></ul></ul><ul><ul><li>Task predecessor relationships </li></ul></ul><ul><ul><li>Description of task assignee </li></ul></ul><ul><ul><li>Project milestones </li></ul></ul><ul><li>Multiple viewing formats: list view, calendar view, or Gantt chart view </li></ul><ul><li>Task notifications and reminders via email </li></ul><ul><li>Task reporting capability </li></ul>
    21. 21. Task Calendar View
    22. 22. Controlled Process Proposal Developed Proposal Concept Review Proposal Investment Review Calendar Updated ; Tasks Assigned Creative Reviews of Copy / Layout
    23. 23. Creative Review - Copy
    24. 24. Creative Review - Layout
    25. 25. Key Creative Review Benefits <ul><li>More disciplined process reduces number of costly revisions </li></ul><ul><li>Reviews involve the right people at the right time </li></ul><ul><li>Consistent, auditable process for communicating change requests to vendors </li></ul><ul><ul><li>Reviewers use Microsoft Word and Adobe Acrobat markup tools to communicate feedback </li></ul></ul><ul><li>Opportunity to improve vendor confirmation of changes </li></ul>
    26. 26. Controlled Process Proposal Developed Proposal Concept Review Proposal Investment Review Calendar Updated ; Tasks Assigned Add to Digital Asset Library Creative Reviews of Copy / Layout Production / Direct Marketing
    27. 27. Control Plan Results <ul><li>Throughput: average work days between proposal review and production-ready art </li></ul><ul><ul><li>Six Sigma target: 36% reduction vs. 2002-2003 baseline data </li></ul></ul><ul><ul><li>Q1 & Q2 2004 results: 61% reduction vs. 2002-2003 baseline data </li></ul></ul><ul><li>Revisions: average copy / layout revisions per project </li></ul><ul><ul><li>Six Sigma target: 62% reduction vs. 2002-2003 baseline data </li></ul></ul><ul><ul><li>Q1 & Q2 2004 results: 78% reduction vs. 2002-2003 baseline data </li></ul></ul><ul><li>Software usage to date: 92% of projects have a proposal </li></ul>
    28. 28. Sample Control Plan Report <ul><li>Shows project-level throughput and revision data compared to Six Sigma targets </li></ul>
    29. 29. Successfully Controlling Change <ul><li>Obtain support from and communicate expectations of senior management </li></ul><ul><li>Ongoing, visible measurement (control plan) </li></ul><ul><li>Recognize participation in new processes and usage of new tools </li></ul><ul><li>Provide sufficient user training and ongoing user support, all delivered by Cummins employees </li></ul>
    30. 30. Bringing Discipline to Marketing Activities An Engine Business Unit Case Study Tracy Kiser Cummins Inc. September 2004

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