Christine Stephens Xerox Global Services, Inc. Lean Six Sigma Expanding Value Inside & Outside Your Company

Discussion Topics Evolution of Six Sigma at Xerox Adding {Lean} to the Six Sigma Process Lean Six Sigma Tools & Processes Extending the power of Lean Six Sigma to our clients: Intercontinental Hotel Group Electronic Classroom of Tomorrow Monroe County Sheriffs Department

Evolution of Six Sigma at Xerox

Adding {Lean} to the Six Sigma Process

Lean Six Sigma Tools & Processes

Extending the power of Lean Six Sigma to our clients:

Intercontinental Hotel Group

Electronic Classroom of Tomorrow

Monroe County Sheriffs Department

Evolution- Six Sigma at Xerox Internal Back Office 2001 Internal Manufacturing 1998 Past Present External Client Opportunities 2002

Xerox Quality and Innovation 1989 Xerox Corporation Business Products and Systems Malcolm Baldrige National Quality Award 1980 Fuji Xerox Deming Prize 1997 Xerox ISO All major Xerox manufacturing sites worldwide receive ISO 14001 certification 1997 Xerox Business Services Malcolm Baldrige National Quality Award 1990 Rank Xerox Netherlands Netherlands Quality Award 1992 Xerox de Colombia Colombian Quality Award 1992 Rank Xerox Belgium Belgian Quality Award 1989 Xerox Canada Canada Award for Business Excellence: Gold Award, Quality 1987 Rank Xerox France, Lille French Government Citation 1984 Rank Xerox UK, Mitcheldean British Quality Award 1992 Rank Xerox Hong Kong The Hong Kong Management Association Quality Award 1990 Rank Xerox Australia Outstanding Service Quality Improvement Award of Australia 1994 Xerox de Argentina Argentine National Quality Award 1994 Rank Xerox Portugal Portuguese Quality Award 1994 Rank Xerox Norway Norwegian Quality Award 1995 Xerox Uruguay Uruguayan National Quality Award 1996 Fuji Xerox (Wakaba QC Circle) Gold Award from 25th Annual All-Japan Invitational QC Convention 1996 Rank Xerox Middle East/Africa Dubai Quality Award

Integrates customer focus with clear linkage to business strategy / objectives XLSS - Strategy Supported by infrastructure and resource commitment to focus on key business issues and critical to customer opportunities. Builds on quality legacy with full arsenal of industry proven Lean and Six Sigma processes and tools

Integrates customer focus with clear linkage to business strategy / objectives

Supported by infrastructure and resource commitment to focus on key business issues and critical to customer opportunities.

Builds on quality legacy with full arsenal of industry proven Lean and Six Sigma processes and tools

State-of-the-Union: 2005 27 Full-time deployment managers > 500 active Black Belts have achieved certification, completed or started training in 2004 > 2,000 Senior executives have completed leadership workshops > 1,700 Active Green Belts > 17,000 in Yellow Belt training + many other on-line courses

27 Full-time deployment managers

> 500 active Black Belts have achieved certification, completed or started training in 2004

> 2,000 Senior executives have completed leadership workshops

> 1,700 Active Green Belts

> 17,000 in Yellow Belt training + many other on-line courses

Lean Six Sigma Tools & Processes

Adding to the Power of Lean Goal – Reduce waste and increase process speed Focus – Identify non-value add steps and causes of delay Method – Value Stream Tools, Kaizen events Lean Speed + Low Cost Lean Speed Enables Six Sigma Quality (faster cycles of experimentation/learning) Goal – Improve performance on Customer CTQs (Critical To Quality) Focus – Use DMAIC/DFSS processes to eliminate variation Method – Management Engagement, Deployment Managers, and Black Belt Projects Six Sigma Culture + Quality Six Sigma Quality Enables Lean Speed (fewer defects means less time spent on rework)

6  Quality + Lean Process Control Six Sigma Improves Quality of Value Add Steps ±6  ±5  ±4  ±3  # of Steps 99.9864 99.074 77.94 6.29 40 99.9932 99.536 88.29 25.08 20 99.9966 99.768 93.96 50.08 10 99.9976 99.839 95.733 61.63 7 99.99966 99.9767 99.379 93.32 1 Overall Yield vs. Sigma (Distribution Shifted ±1.5s) Lean Reduces Non-Valued Add Steps Lean Six Sigma Drives Quality, Speed and Cost Simultaneously

Focus on Customer Needs Without Lean Six Sigma Discipline… Conjecture/assumption/myths about what customers want Processes based on internal convenience/cost Limited efforts at tracking customer satisfaction Customer-focused data not communicated or used With Lean Six Sigma Discipline… Customer requirements based on careful assessment Processes designed and executed to fulfill customer requirements Multi-faceted, on-going “voice of the customer” effort Customer-focused data key to managing the business, short- and long-term Tools: VOC, QFD, CTQ, Kano, Conjoint, etc.

Without Lean Six Sigma Discipline…

Conjecture/assumption/myths about what customers want

Processes based on internal convenience/cost

Limited efforts at tracking customer satisfaction

Customer-focused data not communicated or used

With Lean Six Sigma Discipline…

Customer requirements based on careful assessment

Processes designed and executed to fulfill customer requirements

Multi-faceted, on-going “voice of the customer” effort

Customer-focused data key to managing the business, short- and long-term

When to use Xerox Lean Six Sigma When to Use: You have a challenging goal to reach or issue to solve Driven by the Business Unit strategy Issues that are valuable for the Business Unit to resolve Problems that have stood the test of time Solution is not known You are willing to commit people to identify and resolve the issue You want a more robust solution than traditional methods can provide You want to encourage the upward flow of ideas and build team spirit You want group ownership of a course of action When NOT to Use: You don’t have a specific challenge or clear issue to solve You already have a solution and a course of action You don’t have a process to improve With materials from the George Group, 2003

When to Use:

You have a challenging goal to reach or issue to solve

Driven by the Business Unit strategy

Issues that are valuable for the Business Unit to resolve

Problems that have stood the test of time

Solution is not known

You are willing to commit people to identify and resolve the issue

You want a more robust solution than traditional methods can provide

You want to encourage the upward flow of ideas and build team spirit

You want group ownership of a course of action

When NOT to Use:

You don’t have a specific challenge or clear issue to solve

You already have a solution and a course of action

You don’t have a process to improve

Project Types Setup Reduction Finance Month End Closes HR Hiring Procedures Marketing Event Setup Purchase Order Setup & Issue receiving & Inspection Process Flow Improvement Office Document Assessment Helpdesk Cycle time Improvement Order to Install Cycle Time Trial Equipment Recirculation Generic Pull Systems Order Management Product Development Info Tech Repair requests Replenishment Pull System Purchased Part Replenishment Stocking Strategy Product Rationalization Service / warranty Parts Distribution Channel management Value Added Time Improvement Customer Facing Operations Outsourcing Solutions With materials from the George Group, 2003

Setup Reduction

Finance Month End Closes

HR Hiring Procedures

Marketing Event Setup

Purchase Order Setup & Issue

receiving & Inspection

Process Flow Improvement

Office Document Assessment

Helpdesk Cycle time Improvement

Order to Install Cycle Time

Trial Equipment Recirculation

Generic Pull Systems

Order Management

Product Development

Info Tech Repair requests

Replenishment Pull System

Purchased Part Replenishment

Stocking Strategy

Product Rationalization

Service / warranty Parts

Distribution Channel management

Value Added Time Improvement

Customer Facing Operations

Outsourcing Solutions

Selecting LSS Projects Identify value levers in the business Strategic Financial Customer Operational (Process) Prioritize value levers Translate Value Levers into Opportunity Areas Translate Opportunity Areas into Project Ideas Score each project as High / Med / Low for Benefit and Effort Fill in Benefit / Effort Matrix Review plotted results Select highest priority opportunities for further analysis Assign opportunities to project sponsors for project definition Complete Draft Project Charters Evaluate projects using Evaluation Criteria Update Benefit / Effort Matrix Review plotted results Prioritize projects Schedule project launches based on resource availability Reduce Projects-in-Process Identify Value Levers 1 Identify Project Opportunities 2 Screen Initial List of Opportunities 3 Scope and Define Projects 4 Prioritize List of Defined Projects 5 With materials from the George Group, 2003

Identify value levers in the business

Strategic

Financial

Customer

Operational (Process)

Prioritize value levers

Translate Value Levers into Opportunity Areas

Translate Opportunity Areas into Project Ideas

Score each project as High / Med / Low for Benefit and Effort

Fill in Benefit / Effort Matrix

Review plotted results

Select highest priority opportunities for further analysis

Assign opportunities to project sponsors for project definition

Complete Draft Project Charters

Evaluate projects using Evaluation Criteria

Update Benefit / Effort Matrix

Review plotted results

Prioritize projects

Schedule project launches based on resource availability

Reduce Projects-in-Process

“ Catch Ball” Process The charter defines the team’s mission. It includes the following elements: Business Impact Opportunity or Problem Statement Goal Statement Project Scope Project Plan Team Selection The Project Charter does NOT solve the problem It is a living document, that will change over time... Project Chartering

The charter defines the team’s mission.

It includes the following elements:

Business Impact

Opportunity or Problem Statement

Goal Statement

Project Scope

Project Plan

Team Selection

The Project Charter does NOT solve the problem

It is a living document, that will change over time...

DMAIC Process Define the opportunity from both business and Customer perspective Understand the process and its performance Search for the key factors ( critical X’s) that have the biggest impact on process performance and determine the root causes Develop improvement solutions for the critical X’s Implement the solution and control plans Refined Project Charter Value Stream Map SIPOC Map Voice of the Customer RACI charts TOOLS USED Operational definitions Data Collection Plans MSA or Gage R&R Control Charts Paretos Histogram Cause & Effect Fishbone Brainstorming Basic Statistical tools Hypothesis testing FMEA Regression ANOVA Line Balancing Benchmarking Constraint identification Solution Selection matrix Pilot and Simulation Control Charts SOP’s Communication Planning Mistake proofing Project replication D Define M Measure A Analyze I Improve C Control

Refined Project Charter

Value Stream Map

SIPOC Map

Voice of the Customer

RACI charts

Operational definitions

Data Collection Plans

MSA or Gage R&R

Control Charts

Paretos

Histogram

Cause & Effect

Fishbone

Brainstorming

Basic Statistical tools

Hypothesis testing

FMEA

Regression

ANOVA

Line Balancing

Benchmarking

Constraint identification

Solution Selection matrix

Pilot and Simulation

Control Charts

SOP’s

Communication Planning

Mistake proofing

Project replication

DMAIC Storyboard

Define Complete Project Charter Create High Level Process Map (4-6 Steps) Adjust Scope If Necessary Collect VOC/VOB Translate VOB/VOC Into Measurable CTQ Metrics Perform Stakeholder Analysis Create RACI Diagram Identify potential impacts to internal controls Identify other impacts or requirements (EPA, SOX, etc.) Define Tollgate

Complete Project Charter

Create High Level Process Map (4-6 Steps)

Adjust Scope If Necessary

Collect VOC/VOB

Translate VOB/VOC Into Measurable CTQ Metrics

Perform Stakeholder Analysis

Create RACI Diagram

Identify potential impacts to internal controls

Identify other impacts or requirements (EPA, SOX, etc.)

Define Tollgate

Measure Micro Level Process Mapping Create Data Collection Plan Perform Measurement System Analysis (Gage R & R) Document Operational Definitions Determine Current State Performance Capability Validate Proposed Business Impact Measure Tollgate

Micro Level Process Mapping

Create Data Collection Plan

Perform Measurement System Analysis (Gage R & R)

Document Operational Definitions

Determine Current State Performance Capability

Validate Proposed Business Impact

Measure Tollgate

Analyze Complete Value Add Analysis of Detailed Process Maps Brainstorm Potential Root Causes Y=f(x) Perform Root Cause Analysis to Identify Variation & Gaps Identify “Critical Few” inputs affecting your Output Validate Business Impact Analyze Tollgate

Complete Value Add Analysis of Detailed Process Maps

Brainstorm Potential Root Causes Y=f(x)

Perform Root Cause Analysis to Identify Variation & Gaps

Identify “Critical Few” inputs affecting your Output

Validate Business Impact

Analyze Tollgate

Improve Brainstorm Potential Solutions Prioritize Solutions Select Recommended Solution(s) Use Data to Provide Predicted Improvements Review Potential Solutions with Sponsor & Stakeholders Conduct FMEA Pilot Results Create High Level Implementation Plan Create Communications Plan Revisit Potential Internal and Regulatory Controls Improve Tollgate

Brainstorm Potential Solutions

Prioritize Solutions

Select Recommended Solution(s)

Use Data to Provide Predicted Improvements

Review Potential Solutions with Sponsor & Stakeholders

Conduct FMEA

Pilot Results

Create High Level Implementation Plan

Create Communications Plan

Revisit Potential Internal and Regulatory Controls

Improve Tollgate

Control Fully Implement Solution(s) Create Dashboards Create Control Plan Identify Process Owner & Create Transition Plan Monitor & Document Process Results Create Project Storyboard & Lessons Learned Control Tollgate Communicate Business Results to the Organization Celebrate With Your Team

Fully Implement Solution(s)

Create Dashboards

Create Control Plan

Identify Process Owner & Create Transition Plan

Monitor & Document Process Results

Create Project Storyboard & Lessons Learned

Control Tollgate

Communicate Business Results to the Organization

Celebrate With Your Team

Cost Speed or Delivery Quality Customer Satisfaction Cost Per Device Cost Per Employee Device Uptime SLA Metrics Met Actual $51.25 Target $32.50 Actual $91.50 Target $78.39 Actual 2.0% Target 3.5% Actual 4.8 Target > 4 of 5 Actual 4.5 Target 9.0 Actual 4.5 hrs Target 6 hrs Actual 1 hr Target 2 hrs Fix Time Actual 4.5 Target 4.5 Mean Time to Repair Response Time Dashboard Concept Overall

Dashboard Rollup Concept City Dashboards County Dashboards Region Dashboards State Dashboards

Tollgate Reviews Ask the questions that need to be answered at each phase Ensure due diligence with the work process Properly address ID of critical factors that will influence results The following people are involved in a tollgate Review: Project Sponsor- needs to agree with the path being taken by the team, ensures CTQ’s are being addressed and proposed results will affect the bottom line Deployment Manager ensures Customer / Sponsor and Black Belt have working relationship to attack the project and that resources are allocated Black Belt illustrates critical thinking and organization skills, project management skills, uses statistical and lean tools and interprets results Master Black Belt oversee methodologies used by Black Belt; statistical tool usage, Lean concepts applied

Ask the questions that need to be answered at each phase

Ensure due diligence with the work process

Properly address ID of critical factors that will influence results

The following people are involved in a tollgate Review:

Project Sponsor- needs to agree with the path being taken by the team, ensures CTQ’s are being addressed and proposed results will affect the bottom line

Deployment Manager ensures Customer / Sponsor and Black Belt have working relationship to attack the project and that resources are allocated

Black Belt illustrates critical thinking and organization skills, project management skills, uses statistical and lean tools and interprets results

Master Black Belt oversee methodologies used by Black Belt; statistical tool usage, Lean concepts applied

Sharing the Power of Lean Six Sigma Monroe County Sheriffs Dept. Electronic Classroom of Tomorrow Intercontinental Hotel Group

Monroe County Sheriffs Dept.

Electronic Classroom of Tomorrow

Intercontinental Hotel Group

Case Study Employed Lean Six Sigma methodology Digitized and streamlined accident report process Created web-based document access system Integrated existing systems Reduced cost of processing an accident report from $28 to $8, ($500K/yr savings) Reduced cycle time from as much as 3 weeks to less than 3 days Reduced time spent by deputies on accident reports from 30 to 5 minutes Created revenue stream from charging for accident reports, worth $32K/year Client Challenges Monroe County Sheriffs Department Balance $100M budget Improve quality of service in accident report management Eliminate backlog of more than 3,000 records and over 4 months of data entry Free deputies from paperwork, so they can spend more time ensuring public safety Measurable Results Solution New York State’s largest sheriff’s office

Employed Lean Six Sigma methodology

Digitized and streamlined accident report process

Created web-based document access system

Integrated existing systems

Case Study Employed Lean Six Sigma methodology Focused on front of process to achieve quick results Automated manual processes Streamlined process steps Created tracking procedures to measure cycle time Reduced process cost from $43 to $25 per application Increased revenue by $4.5 MM/year Met accelerated deadline Client Challenges ECOT Accelerate enrollment cycle time Reduce overall per-student cost of enrollment Increase revenue by increasing process capacity/enrollment Deliver results quickly (2 month window) to impact current year’s enrollment Measurable Results Solution First and largest online school in Ohio

Employed Lean Six Sigma methodology

Focused on front of process to achieve quick results

Automated manual processes

Streamlined process steps

Created tracking procedures to measure cycle time

Case Study Employed Lean Six Sigma methodology Implemented remote control to minimize deskside visits Standardized OS and IT environment Moved administration offsite Achieved savings goal of $1.2 million/year Reduced cycle time for deskside software related problems from 21 to 9 Hours. Maintained/Improved customer satisfaction across 5 key metrics: Overall customer satisfaction Knowledge of staff Professionalism Technical ability Fix time Client Challenges Intercontinental Hotels Group Needed to cut costs to stay competitive during post-9/11 travel downturn… While at the same time improving customer satisfaction with IT support services Measurable Results Solution A leading hospitality company, managing brands such as: Holiday Inn Crowne Plaza Candlewood Suites

Employed Lean Six Sigma methodology

Implemented remote control to minimize deskside visits

Standardized OS and IT environment

Moved administration offsite

Achieved savings goal of $1.2 million/year

Reduced cycle time for deskside software related problems from 21 to 9 Hours.

Maintained/Improved customer satisfaction across 5 key metrics:

Overall customer satisfaction

Knowledge of staff

Professionalism

Technical ability

Fix time

A leading hospitality company, managing brands such as:

Holiday Inn

Crowne Plaza

Candlewood Suites

Formula for Success Select projects based on impact to the business and/or customer Identify Sponsors with the authority to break down barriers Ensure commitment for budget and team resources Operations leaders must be engaged in the process

Select projects based on impact to the business and/or customer

Identify Sponsors with the authority to break down barriers

Ensure commitment for budget and team resources

Operations leaders must be engaged in the process

Summary Xerox is rapidly moving Lean Six Sigma concepts and tools from manufacturing and supply chain into all business areas of the company and to our customers. Project selection process and infrastructure focused on the customer, business strategies & critical priorities Xerox Lean Six Sigma is customer centered, data driven & the way we will achieve results in all business areas

Xerox is rapidly moving Lean Six Sigma concepts and tools from manufacturing and supply chain into all business areas of the company and to our customers.

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