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  • 1. A successful Continuous ImprovementProgram within your SSC Elias Miera Pfizer Inc. Managed Services Operations Quality Director Elias.miera@pfizer.com Amsterdam, 16th May 2012
  • 2. Agenda1. Pfizer Inc.2. Why CI?3. Deploying CI in a SSC4. CI Project identification, selecting the right approach for project execution5. Benefits realisation6. Key Lessons Learned
  • 3. 1. Pfizer Inc.3
  • 4. 5 GFS and BT support locations• Three shared services operations offices supported by strategically placed BPO Application Support Outsourcing Business Process Outsourcing offices Chennai, India Bangalore, India Delhi, India• Highly-skilled and experienced team Bucharest, Romania Dalian, China leveraging global network to deliver Pfizers Financial Application IT Outsourcing partner is Accenture . standardized solutions Pfizers Business Process Outsourcing (BPO) partner is Genpact . Pfizers processes are supported from 3strategic locations. GFS Europe GFS Americas Dublin, Ireland Memphis, TN Markets Supported: GFS Asia • Austria • Luxembourg Markets Supported: • Belgium • Netherlands • Denmark Dalian, China • Canada • Norway • Mexico • France • Portugal • Finland Markets Supported: • North Latin America • Spain • Germany • Australia / New Zealand • United State & Puerto Rico • Sweden • Ireland • China • Switzerland Pfizer Location • Italy • Japan • United Kingdom BPO Location • Singapore Shared Services Markets
  • 5. 2. Why Continuous Improvement ?6
  • 6. History of Continuous Improvement Lean Six Sigma Ford Deming 1960s Toyota Production System Quality Improvement Tools 1970s Reduce Variation Just In Time TQM 1980s Lean Six Sigma Production (Motorola) 1990s Lean Quality Enterprise Focus 2000s 2010s LeanSigma Adapted by WPAP/WC from: http://www.leansigma.com/about.php7
  • 7. 5 Principles of Continuous Improvement People closest to the work A journey of know the relentlessly issues & seeking opportunities perfection To manage Everything performance can be you have to viewed as measure it a process Performance is judged by the customer8
  • 8. What is Continuous Improvement? Continuous Continuous Improved Improvement Improvement Business techniques contribution performance Six Sigma More Maximize Effective Revenue Methods & + Efficient Manage Lean Processes Costs Principles For Operating Strengthen + Divisions our Culture IMPACT And Enabling Customer + Functions Satisfaction Just do It There are 2 keys to ensuring CI improves Business PerformanceIdentify key processes for improvement, provide colleagues with the necessary skills9
  • 9. CI is a systematic approach for driving better performance – Bring the customer voice inside the organization – Get rid of errors Performance – Eliminate waste Step Change – Speed things up • Redesign • Reengineer – Simplify work • Break-Through – Free up colleague time Innovation No Maintenance Improvement – Move diverse groups more quickly to cohesive action Time Without CI, most processes actually degrade Especially true in non-manufacturing environments • Processes less visible, more difficult to manage • Individuals introduce variability & change10
  • 10. CI starts with the customer & treats the business asan integrated system Suppliers Inputs Processes Outputs Customers Start with Voice of the Customer. What does the Engage everyone involved in customer consider important? producing the customer benefit. Work together to produce a “total” customer outcome, not just a department activity Take a Process Perspective • Reduce waste, errors, delays • Speed up process • Improve productivity VA NVA • Design Improvements • Pilot, Implement & Control Measure and Analyze • Input, output, process data • Process flow • Customer satisfaction11
  • 11. CI links the strategic and the tactical Start with your strategic business goals More Satisfied, Loyal Ability to Divert Resources to More Engaged, Productive Customers Growth Opportunities Colleagues Ability to Command a Price Ability to Share Talent, Premium Knowledge Across Enterprise Long-Term, Sustainable Competitive Advantage … and develop tactical CI programs that enable you to reach them  Reduce errors, mistakes & rework  Reduce costs, free up resources  Reduce defects, unwanted variability  Increase capacity / productivity of current  Speed up a process, improve flow resources  Eliminate delays, handoffs, unnecessary  Reduce inventories steps  Reduce frustration12
  • 12. CI Methodologies LEAN SIX SIGMA A collection of methods and A set of principles and tools tools aimed at the significant that help us to eliminate COST reduction of unwanted process activities that don‘t variation in products and add value, and to create processes “flow“ • Elimination of waste • Reduction of variance • Improvement of flow Improved • Improvement of yield Process Performance Effectiveness Efficiency TIME QUALITY13 Lean Six Sigma
  • 13. 3. Deploying CI in a SSC14
  • 14. SSCs and CICI programs suit wonderfully SSC environments:• SSCs are typically process and transactional driven centres.• Standardisation is key for repetitive tasks quality management.• Customer centred.• Performance metrics focused.• Workforce profile. Most SSCs include a division exclusively focused in Business Process Management / Operational Excellence / CI
  • 15. Customer Centred SSCs• Customer SLA output definitions.• Customer SLA KPI definitions.• Critical To Quality (CTQ) metrics.• Ongoing Voice Of the Customer (VOC) process: understanding your customer satisfaction drivers, “dissatisfiers” and “delighters”.• VOC follow-ups, closing the gaps.
  • 16. Performance Measurement “You cannot manage what you cannot measure”• Process KPIs.• Metrics related to VOC: measuring quality in the eyes of the customer.• Leading vs. Lagging Indicators: applying SIPOC.• Traffic lights & remediation triggers: Process Control Maps.
  • 17. Promoting a CI culture in your SSC• Public visual displays of completed projects• Public visual displays for ideas• Public visual display for total $ achievements for the year• Recognition at site meetings of CI achievements• Recognition program, emails from top leadership
  • 18. SSC staff and CISetting up appropriate individual objectives is a key driverfor instilling a CI culture:• Promoting proactive behaviour when dealing with problems.• Agreeing Strategic vs. Tactical focus for an individual.• Sustain & Maintain vs. Improve & Change.• Top and middle management - CI project sponsorship.• Incentives for achievements.• Specific initiatives individually driven / participated in the year.Similarly, CI focus should be part of recruitment & internalpromotion process.
  • 19. 4. CI Project identification, selecting the right approach for project execution20
  • 20. CI Project identification• VOC process – feedback from customer, closing gaps• Dashboard – performance issues in key metrics• Individual employees – ideas for improvements• Technology developments – new systems available• Competitors & external parties – new market developments
  • 21. CI Project execution CI projects typically include: • Fixing or improving current broken processes • Amending errors • Addressing efficiency issues • Shortening process cycle time • Identifying and fixing root causes for current problems • Etc. Quantity “World Hunger” or Boiling Ocean Lean & Problems Logic & Six Sigma Projects Intuition Just Do It Too Difficulty of finding Too Hard Easy root causes22
  • 22. CI Project execution High Hanging Fruit: $$$ Advanced process e.g. Reduce cycle time for data analysis & financial month-end close change management Low Hanging Fruit: $$ Root cause validation e.g. Reduce errors during & solution monthly upload process identification from ERP to Consolidation Graphical Analysis, e.g. Reduce the Sales Basic process data Reporting Cycle Time analysis Ground Fruit: $ e.g. Develop an excel Quick wins: macro for automatic cost Just Do It centre classification23
  • 23. 5. Benefits Realisation24
  • 24. CI projects benefits realisationCommon savings categorization for CI projects:• Hard Savings:  Headcount reduction  Direct cost reduction / reduced third party payments  Working capital / cash flow  Revenue generation• Soft Savings:  Released capacity  Cost avoidance  Revenue retention• Control / ComplianceOther benefits arising from CI projects:• Customer satisfaction• Employee satisfaction• Staff retention• Reputational risks
  • 25. Employee engagement• Empowering employees to drive changes within their areas of responsibility.• Enriching their jobs – project work outside repetitive tasks• Self-fulfilment through accomplishment• Mobilising resources in same direction towards SSC goals• Excellent project results with often incremental savings to planned strategic initiatives• Releasing capacity / scalability through individual tasks streamlining• Training & personal development plans
  • 26. 6. Key Lessons Learned27
  • 27. Keys to success in your CI deployment• Leadership passion for Continuous Improvement• Selecting the right projects – strategy alignment, scope, impact / savings, suitable for each methodology• Avoid using the methodology for the sake of certifications• Select right people to drive these projects• Creating capacity for colleagues to execute CI projects• Proactive championing, removing barriers• Customise the training program / right tools to your particular needs• Internalize the training and coaching as soon as possible• Empower your employees to continually drive change, do not turn your CI deployment into a mere PMO executing 2-3 large projects
  • 28. Thanks for your time, any questions? Elías Miera Managed Services Operations Quality & Continuous Improvement Director Portfolio & Application Managed Services Finance & HR Business Technology The Watermarque, Ringsend Road, Ringsend, Dublin 4, Ireland Direct Line: + 353 1 480 7692 Mobile: + 353 86 8205359 Fax: + 353 1 480 7322 Elias.miera@pfizer.com29