Arvinder Singh Monty Six Sigma as a Competitive Advantage WCBF's 2nd Annual Six Sigma Conferences, Fall 2005
Leveraging Unparalleled Experience & Expertise <ul><li>Vertical Experience & Process Depth </li></ul><ul><ul><li>15 indust...
Industry and Process Expertise Critical Manufacturing OEMs, Chemicals, Oil& Gas, Pharmaceuticals, Healthcare, Industrials ...
Reduced Risk Through Process Discipline Trusted Provider <ul><li>Offshore talent via trusted provider </li></ul><ul><li>Mu...
Increased Visibility & Control of  Operations to Clients <ul><li>Analytical models applied to operational data to pinpoint...
Genpact Drives Business Impact  Through Process Excellence Direct impact on top line and bottom line <ul><li>…  improve yo...
Building 6    and Lean into our DNA <ul><li>400+  BBs/MBBs/QL </li></ul><ul><li>2000+ Certified Green Belts  </li></ul><u...
Change Acceleration Process:  A Model For Change Quality of Solution * Acceptance = Effectiveness Leading Change Changing ...
Roadmap to Process Excellence Break through: Best-In-Class Continuous  Improvement Process Stabilization Focus Work Transf...
Work Transfer
Six Sigma Based Work Transfer Methodology Transition Work Transfer Service  Delivery Strategic Assessment Planning Executi...
Selecting Right Processes… Process Selection Scorecard Criteria   Assessed <ul><li>Feasibility: </li></ul><ul><li>De-coupl...
Failure Modes & Effects Analysis <ul><li>Scientific Risk Assessment </li></ul><ul><li>Identify ways in which the Transitio...
Process Stabilization
Business Process Management System Document CTQ’s Develop Dashboards 1 2 3 4 5 6 7 8 9 Create Process Mission Document Pro...
Continuous Improvement
Case Study 1: Medical Diagnostic Business <ul><li>Business Case :   </li></ul><ul><li>The client experienced High turnarou...
<ul><li>Reduced Turnaround time,   Uptime of equipment </li></ul><ul><li>More Remote Fixes vs field visits Saved $360 K F...
<ul><li>Loan Interest: Direct interface to Oracle GL </li></ul><ul><li>Exp. Amortization: Recurring JE in Oracle </li></ul...
Business Case   We call & collect lease/ rental charges. <ul><li>High volumes; Could contact only 30% accounts each month ...
<ul><li>Prioritized accounts based on dollar balance and risk score </li></ul><ul><li>A/c segregation based on profiling <...
Case Study 4: Human Resources..Attrition Type of Work  HR Skips Awards Length of Service Performance Score Variable Shift ...
<ul><li>Fishbone </li></ul><ul><li>Homogeneity of Variance </li></ul><ul><li>Pareto </li></ul><ul><li>Moods Median Test </...
Case Study 5: Consumer Finance Company <ul><li>Knowledge management for exception situations </li></ul><ul><li>Refresher T...
Business Impact  <ul><li>Collection Efficiency </li></ul><ul><li>$$ Collected </li></ul>Capitalizing Process Efficiency Co...
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Six Sigma as a Competitive Advantage

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Six Sigma as a Competitive Advantage

  1. 1. Arvinder Singh Monty Six Sigma as a Competitive Advantage WCBF's 2nd Annual Six Sigma Conferences, Fall 2005
  2. 2. Leveraging Unparalleled Experience & Expertise <ul><li>Vertical Experience & Process Depth </li></ul><ul><ul><li>15 industries </li></ul></ul><ul><ul><li>1,000 processes </li></ul></ul><ul><ul><li>80+ customers </li></ul></ul><ul><li>Reduced Operational Risk </li></ul><ul><ul><li>Unparalleled experience – 1,000+ transitions </li></ul></ul><ul><ul><li>Regulatory compliance focus across all major jurisdictions </li></ul></ul><ul><li>Visibility & Control Over Operations </li></ul><ul><ul><li>Advanced dashboard technology for increased transparency </li></ul></ul><ul><ul><li>Real-time views of transactional, operational and business metrics </li></ul></ul><ul><li>Relentless Focus on Process Excellence </li></ul><ul><ul><li>Six Sigma quality and LEAN productivity techniques – cornerstones of our GE heritage </li></ul></ul><ul><ul><li>Single-minded focus on quality and business impact </li></ul></ul>… Through Global “Right-Shore” Delivery Centers <ul><li>Europe </li></ul><ul><ul><li>700 employees across Hungary & Romania </li></ul></ul><ul><li>China </li></ul><ul><ul><li>1,250 employees in Dalian, China </li></ul></ul><ul><li>India </li></ul><ul><ul><li>13,000 employees across five major cities </li></ul></ul><ul><li>US & Mexico </li></ul><ul><ul><li>2,700 employees in Mexico & the U.S. </li></ul></ul>
  3. 3. Industry and Process Expertise Critical Manufacturing OEMs, Chemicals, Oil& Gas, Pharmaceuticals, Healthcare, Industrials Transportation Airlines, car/truck manufacturers, car rentals, rail, trucking, shipping, courier & cargo firms Business Services Media & Entertainment, Communications, Retail, Insurance Life, Property & Casualty, Mortgage, Reinsurance, Health, Long-Term Care Banking/Finance Consumer, Commercial, Mortgage, Investment Banking & Real Estate Sales & Marketing Analytics Supply Chain & Procurement Financial Services Collections / Operations Customer Service Finance & Accounting Information Technology Services Enterprise Application Services & Program Management Aftermarket Services Transaction and Core Operations
  4. 4. Reduced Risk Through Process Discipline Trusted Provider <ul><li>Offshore talent via trusted provider </li></ul><ul><li>Multiple global locations for diversification & BCP Strategy </li></ul>Unmatched Experience & Expertise Transition Expertise <ul><li>Vast experience with multiple large clients </li></ul><ul><li>Six Sigma methodologies to facilitate change </li></ul>Financial Stability <ul><li>$500M 2005E revenues </li></ul><ul><li>GE backed & supported by leading global private equity firms </li></ul>Expertise <ul><li>Extensive industry and process expertise </li></ul><ul><li>80+ customers across 15 verticals </li></ul>Intense Culture of Operational Excellence Robust Control <ul><li>Efficiency metrics to increase visibility (dashboards) </li></ul><ul><li>Focus on process discipline & operational excellence </li></ul>Continuous Improvement <ul><li>GE heritage of continuous productivity improvement </li></ul><ul><li>Deep industry expertise to foster innovations </li></ul>Regulatory Compliance <ul><li>Greater visibility to reduce regulatory (e.g.) SOX concerns </li></ul><ul><li>Deep regulatory knowledge/adherence </li></ul>Strong Regulatory & Data Compliance Data Security/Privacy <ul><li>Proven systems with trusted provider </li></ul><ul><li>Regular network monitoring and access controlled areas </li></ul>Disaster Recovery <ul><li>Comprehensive BCP – multi-city, multi-site </li></ul><ul><li>Redundancy in data, desktop, network, and server </li></ul>
  5. 5. Increased Visibility & Control of Operations to Clients <ul><li>Analytical models applied to operational data to pinpoint areas of improvement </li></ul><ul><li>Regular Monitoring of pre-defined metrics across customer, products and processes </li></ul>2 Digital Cockpit Profiling Client Operations 3 Knowledge Central for Information Exchange 1 Client Intranet <ul><ul><li>Single Window to Client Operations </li></ul></ul><ul><ul><li>Links to Digital Cockpit & Knowledge Central </li></ul></ul><ul><ul><li>Operating Procedures </li></ul></ul><ul><ul><li>Process Excellence Projects </li></ul></ul><ul><ul><li>Recent Updates </li></ul></ul><ul><ul><li>Business Highlights </li></ul></ul><ul><ul><li>Secured and Restricted Access </li></ul></ul><ul><ul><li>Information on SOPs </li></ul></ul><ul><ul><li>Migration Details </li></ul></ul><ul><ul><li>Reports </li></ul></ul><ul><ul><li>One View into Operations Performance </li></ul></ul><ul><ul><li>Real Time Information on </li></ul></ul><ul><ul><ul><li>Client SLAs </li></ul></ul></ul><ul><ul><ul><li>Process Metrics </li></ul></ul></ul><ul><ul><ul><li>Trends on SLAs </li></ul></ul></ul>
  6. 6. Genpact Drives Business Impact Through Process Excellence Direct impact on top line and bottom line <ul><li>… improve your operations </li></ul><ul><li>… to drive tangible business impact </li></ul><ul><li>Our capabilities… </li></ul><ul><li>Business and domain knowledge </li></ul><ul><li>Reduced risk via process discipline </li></ul><ul><li>Global service delivery </li></ul><ul><li>Six Sigma operational quality </li></ul><ul><li>World-class HR practices </li></ul><ul><li>Strong governance & controllership </li></ul><ul><li>Commitment to transparency </li></ul><ul><li>Improvements in: </li></ul><ul><li>Revenue </li></ul><ul><li>Cash </li></ul><ul><li>Costs </li></ul><ul><li>Margins </li></ul><ul><li>Speed </li></ul><ul><li>Customer Retention </li></ul><ul><li>Better Focus on Core Competencies </li></ul><ul><li>Improved Decision-Making </li></ul><ul><li>Superior Operational Performance </li></ul>
  7. 7. Building 6  and Lean into our DNA <ul><li>400+ BBs/MBBs/QL </li></ul><ul><li>2000+ Certified Green Belts </li></ul><ul><li>150 Lean Coaches </li></ul><ul><li>400+ Six Sigma Projects, 2400 Lean Improvements in 04… </li></ul><ul><li>Delivering >$30 MM Productivity & Customer Benefits YOY </li></ul>Transitions Six Sigma & Lean Operations People Movement across Functions Domain Knowledge + Process Excellence + Customer Centricity Developing Tomorrow’s Leaders:
  8. 8. Change Acceleration Process: A Model For Change Quality of Solution * Acceptance = Effectiveness Leading Change Changing Systems & Structures Current State Transition State Improved State Creating A Shared Need Shaping A Vision Mobilizing Commitment Monitoring Progress Making Change Last
  9. 9. Roadmap to Process Excellence Break through: Best-In-Class Continuous Improvement Process Stabilization Focus Work Transfer <ul><li>Drive Entitlement </li></ul><ul><li>Bench marking </li></ul><ul><li>Remove Non Value Add </li></ul><ul><li>Simplify , Digitize </li></ul><ul><li>Empower </li></ul><ul><li>Metric Performance </li></ul><ul><li>Customer Feedback </li></ul><ul><li>Risk Assessment </li></ul><ul><li>Knowledge Transfer </li></ul>Voice of the Customer 0-6 months 6-18 months 18+ months Level of Improvement
  10. 10. Work Transfer
  11. 11. Six Sigma Based Work Transfer Methodology Transition Work Transfer Service Delivery Strategic Assessment Planning Execution Operations Feasibility Analysis D M A I C Strategic Assessment & Feasibility Analysis Work Transfer <ul><li>Select the Right Processes </li></ul><ul><li>Change Management Tools </li></ul><ul><li>Defining Performance Standards </li></ul><ul><li>Risk Assessment </li></ul><ul><li>Mapping Learning Curve </li></ul><ul><li>FMEA </li></ul><ul><li>Process Mapping & Reporting </li></ul>Focus To Stabilize…And Improve Sigma Level of Key Metrics Genpact Perf. Transition Time Baseline 2  4  70% Accuracy 99% Accuracy
  12. 12. Selecting Right Processes… Process Selection Scorecard Criteria Assessed <ul><li>Feasibility: </li></ul><ul><li>De-couplable </li></ul><ul><li>Potential for improvement </li></ul><ul><li>Legal aspects </li></ul><ul><li>Operating procedures </li></ul><ul><li>Risk: </li></ul><ul><li>Business risk </li></ul><ul><li>Skill availability </li></ul><ul><li>Preparedness </li></ul><ul><li>IT risk </li></ul>
  13. 13. Failure Modes & Effects Analysis <ul><li>Scientific Risk Assessment </li></ul><ul><li>Identify ways in which the Transition can fail. </li></ul><ul><li>Helps prepare a response plan for prevention </li></ul>Ensuring Minimal Disruption To Client Operations <ul><li>Visibility and Control </li></ul><ul><li>RPN valuation periodically..Is your risk Increasing ? </li></ul>
  14. 14. Process Stabilization
  15. 15. Business Process Management System Document CTQ’s Develop Dashboards 1 2 3 4 5 6 7 8 9 Create Process Mission Document Process ID Process Measures Create PM System Data Collection Plan Performance Monitoring Improve Process Infrastructure Implementation Execution <ul><li>Cross functional involvement </li></ul><ul><li>Revisit regularly </li></ul><ul><li>1 - 2 Months data collection </li></ul><ul><li>Gauge R & R </li></ul><ul><li>Visible & Transparent Performance </li></ul><ul><li>Visual Management </li></ul>T T VOC Validation Loop
  16. 16. Continuous Improvement
  17. 17. Case Study 1: Medical Diagnostic Business <ul><li>Business Case : </li></ul><ul><li>The client experienced High turnaround time, leading to: </li></ul><ul><ul><li>Downtime of expensive equipment </li></ul></ul><ul><ul><li>Field engineer visits onsite for issues that could be fixed remote </li></ul></ul><ul><ul><li>Customer dissatisfaction </li></ul></ul>Process is to provide Remote Fix capability to clients Turnaround time for providing network connectivity. Baseline: 60 hours Y Metric
  18. 18. <ul><li>Reduced Turnaround time,  Uptime of equipment </li></ul><ul><li>More Remote Fixes vs field visits Saved $360 K FE Cost </li></ul><ul><li>Improved process flow </li></ul><ul><li>Genpact team Productivity  </li></ul>Process Improvements Field Engineer time Freed up - 9000 hrs FE Calls Connectivity Team @ Gurgaon Contact Hyderabad team to load iLink Hyderabad team Attempts Connectivity On failure, escalate to Bangalore team > 50% Cases 60 Hour TAT FE Calls Connectivity Team @ Gurgaon Gurgaon team fully equipped and completes the connectivity AS IS Process Changed Process Business Impact 40 Min TAT Case Study 1: Medical Diagnostic Business
  19. 19. <ul><li>Loan Interest: Direct interface to Oracle GL </li></ul><ul><li>Exp. Amortization: Recurring JE in Oracle </li></ul><ul><li>Mgmt. Fee: Recurring JE in Oracle </li></ul><ul><li>Controllership risk…inefficient controls </li></ul><ul><li>Loss of productivity…manual work </li></ul>Automation Used 6 Sigma to drill down … More than 50% MJE Reduction Accrual 43% Level 1 AP 23% Cash 23% Others 11% Level 2 (Analysis of Accruals) Loan Interest 41% Exp. Amortization 34% Mgmt. Fee 15% (%JE Lines) Case Study 2: Commercial Real Estate Company Results Root Cause Analysis Too Many Manual Journal Entries 7326 7023 6142 7375 6041 7718 2735 40% 39% 39% 42% 40% 42% 23% 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 Jul Aug Sep Oct Nov Dec Sep' 04 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% MJE Lines MJE % Pre-Project Post
  20. 20. Business Case We call & collect lease/ rental charges. <ul><li>High volumes; Could contact only 30% accounts each month </li></ul><ul><li>High delinquency & roll over to Post 30 </li></ul>Tools <ul><li>Logistic regression </li></ul><ul><li>Moods Median </li></ul>Goal :Reduce SPAN from 101 days to 30 days “ Self-Pay Project” – Collections Business Y Metric: Days to collect Typical approach: Hire more collectors, make more calls, bring delinquency down - $ 600K Cost impact Genpact approach: Ensure calls are made only on accounts not likely to pay automatically Case Study 3: Equipment leasing Company
  21. 21. <ul><li>Prioritized accounts based on dollar balance and risk score </li></ul><ul><li>A/c segregation based on profiling </li></ul><ul><ul><li>“ Self-Pay” –high probability of paying </li></ul></ul><ul><ul><li>True Collections accounts – Need to be contacted </li></ul></ul>Risk Profiling / Watch List processes Delinquency history of the Account 30% Increase in Productivity <ul><li>No Grace period for bad portfolios </li></ul>Business Impact Process Improvements Case Study 3: Equipment Leasing Company $588 $550 $546 $363 $185 $309 $171 $0 $200 $400 $600 Millions Oct'03 Jan'04 Feb'04 Mar'04 Apr'04 May'04 Jun'04 Roll-Over to Post-30 ($MM)
  22. 22. Case Study 4: Human Resources..Attrition Type of Work HR Skips Awards Length of Service Performance Score Variable Shift Bench Status Redeployment Key X’s 0 – 6 Mts 6 Mts – 1 Yr 1 – 2 Yr > 2 Yr <ul><li>Robust Hiring Assessment ..Screening for 10 Potential Defects </li></ul><ul><li>Pre Offer Orientation …”Reality Check” </li></ul><ul><li>Gecis University …1200+ Enrolled </li></ul><ul><li>Parent Connect Program </li></ul><ul><li>Improved Voice of Employee Issue Resolution </li></ul><ul><li> Production Bonus Amount …PD Policy , Move from Forced Raking </li></ul><ul><li>Improve Shift Scheduling </li></ul><ul><li>Enhanced R&R Programs – “Cheers” </li></ul><ul><li>Rigorous Internal Job Posting…120+ Deployed ,1400+ Applications </li></ul><ul><li>Defining Multiple Career Paths for Professional Growth …Process Expert Path… </li></ul>Attrition Below Industry Levels by 50% Using Six Sigma to impact Attrition Y= Length of service in Days Initiatives
  23. 23. <ul><li>Fishbone </li></ul><ul><li>Homogeneity of Variance </li></ul><ul><li>Pareto </li></ul><ul><li>Moods Median Test </li></ul><ul><li>Multiple Regression </li></ul><ul><li>2 sample T Test </li></ul><ul><li>ANOVA </li></ul><ul><li>Business Case : </li></ul><ul><li>A high Average handle time impacts cost / call and results in </li></ul><ul><li>Calls Queuing up at the India site </li></ul><ul><li>Customer dissatisfaction </li></ul><ul><li>Poor Service levels </li></ul><ul><li> Call Abandon Rate </li></ul><ul><li>Calls flowing back to the US alternate site; Additional cost of $1.1 million </li></ul>We handle customer service calls from users of private label credit cards, on Y Metric Average Handle Time ( AHT ) is the total time taken by an agent to resolve an issue Goal Reduce AHT from 260 to 200 secs Average Handle Time - for Inbound Customer Service Case Study 5: Consumer Finance Company Tools used
  24. 24. Case Study 5: Consumer Finance Company <ul><li>Knowledge management for exception situations </li></ul><ul><li>Refresher Trainings by Call Types </li></ul><ul><li>Online process knowledge quizzes and guides </li></ul><ul><li>Macros to simplify Screen navigation </li></ul><ul><li>“ Assistline” to take care of non-availability </li></ul><ul><li>of SME’s on the floor </li></ul>SPAN reduced from 498 secs to 71 secs 4.6 M <ul><li>Same day turnaround defined </li></ul><ul><li>Online Ticker for new updates </li></ul><ul><li>Data repository for updates; added to Process Knowledge tester </li></ul>Process Knowledge Main Frame Screens not User Friendly Process Updates Dissemination Reduced AHT from 260 secs to 180 secs Key Xs Improvements
  25. 25. Business Impact <ul><li>Collection Efficiency </li></ul><ul><li>$$ Collected </li></ul>Capitalizing Process Efficiency Cost Arbitrage <ul><li>… Resulting in significant business impact delivered </li></ul><ul><ul><li>Reduction in AP delinquents in 6 months  $403M savings </li></ul></ul><ul><ul><li>Transformation of a client settlement process from 46 to 7 steps  35% productivity gain </li></ul></ul><ul><ul><li>Re-engineering of a billing process – invoice accuracy  to 99%  $200M  in cash flow </li></ul></ul><ul><ul><li>Creation of a purchase likelihood model for predicting behavior  $25M  in revenue </li></ul></ul><ul><ul><li>Improvement in right party contact by 48% for collections  $8M in savings </li></ul></ul>2004 2005 2006E Delivering Material Business Impact: The Genpact Model Process Productivity <ul><li>Continuous Improvement </li></ul><ul><li>Process Aggregation </li></ul>P1 P2 P3 Process Performance 40% 25-30%

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