Recommended
More Related Content
What's hot
What's hot (18)
Viewers also liked
Viewers also liked (20)
Similar to Identify orders with issues- Resolve issues- Update issue bookTeam Lead:- Assign orders to CSRs- Monitor issue book updates- Report metricsSupervisor:- Monitor KPIs- Recognize top performers- Address issuesDirector:- Review project status- Approve changes- Recognize teamFinancial:- Track soft savings- Validate project benefitsDEFINEMEASUREANALYZEIMPROVECONTROL Improving the “Volume Direct OperationsUnited States Public Sector” Issue Book12SIPOCSuppliers:- US PS Order Management Team- US
Similar to Identify orders with issues- Resolve issues- Update issue bookTeam Lead:- Assign orders to CSRs- Monitor issue book updates- Report metricsSupervisor:- Monitor KPIs- Recognize top performers- Address issuesDirector:- Review project status- Approve changes- Recognize teamFinancial:- Track soft savings- Validate project benefitsDEFINEMEASUREANALYZEIMPROVECONTROL Improving the “Volume Direct OperationsUnited States Public Sector” Issue Book12SIPOCSuppliers:- US PS Order Management Team- US (20)
Identify orders with issues- Resolve issues- Update issue bookTeam Lead:- Assign orders to CSRs- Monitor issue book updates- Report metricsSupervisor:- Monitor KPIs- Recognize top performers- Address issuesDirector:- Review project status- Approve changes- Recognize teamFinancial:- Track soft savings- Validate project benefitsDEFINEMEASUREANALYZEIMPROVECONTROL Improving the “Volume Direct OperationsUnited States Public Sector” Issue Book12SIPOCSuppliers:- US PS Order Management Team- US
- 1. Improving the “Volume Direct Operations United States Public Sector” Issue Book Management Yellow Belt Candidates: Hiram Alvarez & Julio Solano Champion: María Solis Team: Edgar Gonzalez, Mariana Loera, Alejandra Rodriguez, Dalila Pompa, José Flores, Rajna Smilanova, Lorena Gutierrez, María Espindola. Financial Representative: Eduardo Tabares
- 2. Improving the “Volume Direct Operations United States Public Sector” Issue Book 2 Acronyms and Definitions DEFINE MEASURE ANALYZEIMPROVE CONTROL AH: Admin Hold N/A: Not Applicable AVDO: Americas Volume Direct Operations OCT: Order Cycle Time Avg.: Average PS: Public Sector BKO: Back Order PSG: Personal Systems Group BU: Business Unit PSOF: Public Sector Order Fulfillment CE: Corporate enterprise RTG: Reports To Go CS: Customer Support SMB: Small and Medium business CSR: Customer Support Representative SOTAT: Sales Order Turn Around Time DCE: Direct Customer Experience TAT: Turn Around Time Disco: Discontinued TCE: Total Customer Experience EOM: Employ of the month TL: Team Lead FPR: Focal Point Review US: United States GBS: Global Business Services USD: US Dollars GEM: Government, Education, Medical VO: Volume Operations IT: Information Technology WIP: Work in progress MI5R: Houston warehouse/facilities X: Discontinued Mixed: Mixed Warehouses
- 3. Improving the “Volume Direct Operations United States Public Sector” Issue Book 3 Business Context of Project • US Public Sector Order Management provides customer support to the US Public Sector customers and their orders. Incorrect management of the Issue Book cause a significant increase in e-mail and phone calls “requests”, escalations, order aging, customer dissatisfaction and unnecessary effort, which impacts on overall team’s performance metrics. • Then open order book (gem1000.xls report) for the US Public Sector team is a list with all the alive orders (not fulfilled yet) at a certain time, and it contains lots of useful data such as dates, aging and order value. • Open book plus a built report “current inputs” give as a result the orders that need to have extra manual work in order to be correctly routed to production or correctly placed in the order line for each warehouse, these orders build the “Issue Book”. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 4. Improving the “Volume Direct Operations United States Public Sector” Issue Book 4 The issue book was not being included in any of the CSR metrics nor activity and therefore we didn't really know how and/or if is being assisted and there are three main topics: Not Routing, stands for all those orders that are being held by an unavailable item from being drop to the factory to be configured, a clear example can be a desktop ordered by a customer along with its monitor, but the monitor may be in back order by that time, the order won't drop to manufacturing until this back order item gets available and is assigned to the order. This will delay the order from being fulfilled for an undetermined time (until the item gets availability), so if we proactively let the customer know and split this item, the desktop can start the configuration process and ship. Mixed, stands for the mixed warehouse cases in the book, meaning that in the order are many different items that are supposed to be fulfilled in different warehouses, the real issue that held this ordered from dropping or shipping is if they have product from a Houston warehouse (MI5R), in these cases we will need to separate the items either the MI5R flagged or the rest of the order but taking care of leaving the non-tangible items that are to be left in the Houston order. Disco, stands for the orders that contain at least 1 item "X" stock code flagged, the X stands for the discontinued items. CSRs will need to verify if the item will be fulfilled or if will need to be transitioned. For those cases that have more than one issue, it will only be identified with 1, the most important since the order should be worked and fixed all in once and not issue by issue. By taking this approach, we expect to reduce the time that an order is "open" in the our system and gets invoiced. Business Context of Project DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 5. Improving the “Volume Direct Operations United States Public Sector” Issue Book Management 5 Project Title: Improving the “Volume Direct Operations United States Public Sector” Issue Book Management Project Definition: Increase the Issue Book assistance rate by improving the metric method and changing the work culture. Processes Changed: Issue Book Assistance (issue book management) Total Estimated Project Savings: Validated soft savings up to $ 51,223.33 Executive Summary DEFINE MEASURE ANALYZEIMPROVE CONTROL Process was stable and predictable before the project started. 1st Improvement: Team Lead and Supervisors notified about the trends and assistance rate. 2nd Improvement: Team Leads and Supervisors aware of activity and goals, and the Customer Support Representative work is noticed and measured. Assistance Rate
- 6. Improving the “Volume Direct Operations United States Public Sector” Issue Book 6 Methods and Tools Used Define Measure Analyze Improve Control • Problem Statement • Project Charter • Team Structure • Value Chain Alignment • Enterprise Improvement Plan • SIPOC • Baseline Project Value Calculations • Project Schedule/Flexibi lity Matrix • Critical to Quality Tree • Data Collection Plan • Baseline of Primary Metric Process Stability & Capability • Baseline of Secondary Metric Process Stability & Capability • Lean Assessment Matrix • Baseline Process Flow Chart • Measure Phase Conclusions • Cause and Effect Diagram • Analyze Phase Conclusions • Improved Process Flow Chart • Improved Value Stream Map • Demonstration of Improvements – Primary Metric • Demonstration of Improvements – Secondary Metric • Improve Phase Conclusions • Control Plan • Leveraging Opportunities • Follow up issues • Team Recognition DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 7. Improving the “Volume Direct Operations United States Public Sector” Issue Book 7 Improving the Issue Book Management Problem Statement • HP AVDO PS, Order Management provides customer support to the US Public Sector customers and their orders. Incorrect management of the Issue Book cause a significant increase in e-mail and phone calls “requests”, escalations, order aging, customer dissatisfaction and unnecessary effort, which impacts on overall team’s performance metrics • Describe the pain and problems with the process from − Customer’s perspective: Order TAT increases, due to the orders are not configured until the problem is resolved maybe several days after the order gets placed. − HP’s perspective: Volume request from customer such emails and phone calls also increases, the DCE also gets affected and the urgent activities due to the high volume takes time from the necessary activities. − Employees perspective: Employs need to invest more time in answering the emails and the calls rather than having the issue solved since day 0 or 1 (if possible) also because they receive higher volumes of angry customer calls. Lack of standardized process, team performance measure and metrics to achieve, results in an unassisted process and long waiting times and customer dissatisfaction. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 8. Improving the “Volume Direct Operations United States Public Sector” Issue Book 8 Project Charter Project Title: – Improving the “Volume Direct Operations United States Public Sector” Issue Book Management Project Definition: • Project Objective: Increase the Issue Book assistance rate by improving the metric method and changing the work culture. • Project Scope and Boundaries: AVDO United States Public Sector Purchase Orders. • Project Timeline: November 2010 to March 2011 Primary Metric / Goal: • Assisted rate for the issue book / Goal 80% assistance rate (we did not have a metric). Secondary Metric / Goal: • Average age for PSG (Not Routing) assistance / Goal 3.5 business days to be assisted from 5.12 business days. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 9. Improving the “Volume Direct Operations United States Public Sector” Issue Book 9 Potential Project Benefits Customer (type of customer): • Increase customer satisfaction: − By attending the orders from day 0, we will avoid aged orders in the open order book, customer will not complain about being contacted days latter to resolve a simple error/issue with the orders. • Reduce customer order’s TAT: − By attending the orders from day 0, the order won’t be sit waiting for resolution to just start to be fulfilled, it will drop into the WIP status as soon as is assisted. Financial: • No hard savings Internal Productivity: • Saving valuable minutes per day to the CSR’s and TL’s: − Time saved for the team leads when they assign the new problematic orders, saves time during audit process and when grading CSR performance rate for the activity. − For the CSR time saved, when they get the workload directly and only update a single box instead of explaining and sending an email back to their team leads. • CSR Score card based on facts/data: − Data is storage and analyzed, we now have a database with daily gathered data to easier the work audits and the decision making processes. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 10. Improving the “Volume Direct Operations United States Public Sector” Issue Book 10 Team Structure Executive Sponsor(s): Dennis Pryor Project Champion: María Solis Project Lead: Hiram Alvarez & Julio Solano Steering Team: • Director / L4 Manager of Project: Dennis Pryor • Financial Representative: Eduardo Tabares • Mentor: Raúl Chávez Core Team & Process owners: • Edgar González, Mariana Loera, Alejandra Rodríguez, Dalila Pompa, José Flores, Rajna Smilanova, Lorena Gutiérrez, María Espindola. Extended Team: • US PS Supervisors & US PS Customer Support DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 11. Improving the “Volume Direct Operations United States Public Sector” Issue Book 11 Value Chain Alignment To Organizational Metrics Delivery to CashOrder to DeliveryOffering to Order Support & Service the Product Level 1 (Satellite Level) Metric Level 2 (30,000-ft- level) Metric Revenue Gross Profit SG&A % of Revenue VoW Scores PC Client share by country Warr Cost/ Unit Warr Cost % of Rev Inventory DOS SC Cost/ Unit SC Cost % of Rev Penetration Rate Attach GM $ CSAT Direct OTD 90% Fill Rate Marketing spend as %rev Direct Revenue HH Share Workstation Share Legend Time to Market* Indirect Revenue Channel DTFC Factor share by segment PC Clients, DT and NB share Forecast Accuracy Logistics cost% of revenue Mktg & Ops Cost to serve Reserves / AR Bad Debt Write-Off / AR Customer Experience Define the Product Offering Customers Invoicing & Collection Market the Product Supply - Demand Matching Strategic Planning & Improvement Initiatives TCE Analysis Business Reporting Sell Product & Take Order ACPScores Partner Experience Source & Deliver Product Design the Experience OPEX COS OTO % e-orders (VDO/ CO) Catalog Completeness Cust Data Setup: CBN Setup 90% Fill Rate OTS Fill Rate DTFC (Channel) SOTAT % OTS per BU, per PL Order Entry per BU Aged Backlog per BU DTFC per BU Field Inventory Aged Disputes (VDO) New Disputes (VDO) Clean Order Rate % (VDO/ CO)SLO Attainment Physical Claims TAT(channel) Financial Claims TAT (channel) Catalog SLA Attainment Field Inventory Nb of IT3 / nb of D69 / Aging Aged Disputes Weekly DRS / Weekly pandora New Disputes Weekly DRS / Weekly pandora DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 12. Improving the “Volume Direct Operations United States Public Sector” Issue Book 12 Enterprise Improvement Plan Alignment to Organization Strategies Level 1 Metric(s) Organizational Strategies Level 2 Metric(s) Improvement Project Title • Assisted rate for the issue book (SOTAT %) Strategic Implement Value Tracking Process Financial Achieve 64% Satisfaction (+6%) Operational Improve Order Status/Backlog with GBS People Develop and train the AVDO team to support all dimensions of VO mission • Avg. Age backlog for PSG (Aged Backlog per BU) • Improving the “Volume Direct Operations United States Public Sector” Issue Book Management DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 13. Improving the “Volume Direct Operations United States Public Sector” Issue Book 13 Project SIPOC Issue book publish for assistance Suppliers Inputs Process Outputs Customers •Reporting team •Reports To Go • gem1000 report • Mixed • Disco • BKO All • Email Fraud Open Order Book Inputs Report Fulfillment macro AH Issue Book Macro •Issue Book • CSR assistance rate •CSR Volumes •Region Volumes •Region Rates •PS Managers •PS Team Leads Pull the reports Build the inputs file Run the Macro Add the snapshot time, save as GEM Copy and paste the old data Run the access macro Publish the book in the SharePoint DEFINE MEASURE ANALYZEIMPROVE CONTROL The process is managed by Quality leads
- 14. 14 Project Value Summary Table Baseline – Before Improvements Validated by: Eduardo Tabares Date: April 7th, 2011 Soft Savings Category Baseline CODND before improvements Estimated % Savings Estimated Project Savings Improved CODND After Improvements Salaried employee costs to perform all process activities $1,828,800.00 3.00% $ 54,864.00 $ 1,773,936.00 Salaried employee costs to assign and audit activities $ 203,200.00 5.00% $ 10,160.00 $ 193,040.00 Improved TCE There will also be efficiency savings and TCE increases related to the TAT reduction and reduction of the number of reworks, but they are difficult to evaluate, as there is no dedicated metric in place. Total Soft $ 2,032,000.00 3.2% $ 65,024.00 $ 1,966,976.00 Hard Savings Category Baseline CODND (before improvements) Estimated % Savings Estimated Project Savings Improved CODND (After Improvements) Total Hard NA NA NA NA Grand Total $ 2,032,000.00 3.2% $ 65,024.00 $ 1,966,976.00 DEFINE MEASURE ANALYZEIMPROVE CONTROL Improving the “Volume Direct Operations United States Public Sector” Issue Book
- 15. Improving the “Volume Direct Operations United States Public Sector” Issue Book 15 Project Value Calculations 1/2 Baseline – Before Improvements Soft savings Reassigning the transactional activities among the team related to the issue book management Benefits = # of resources that could are assigned among the team for the activities = 72 Minutes Per Year: 112,500 Current Number of Employees CSR = 72 Current Number of Employees TL = 8 Saved per TL: 6,000: (5%) * FTE Cost ($25,400.00) = $1,270.00 Saved per CSR: 3,250 (3%) * FTE Cost ($25,400.00) = $762.00 Total savings: (#TL*$1354.67) + (#CSR * $733.78.33) Total Savings: $10,160.00 + 54,864.00 = $ 65,024.00 Cost for the entire team = 80 * $25,400 = $2,032,000.00 Saved %: $65,024.00 / $2,032,000.00 = 3.2 % Benefits = (2,032,000.00 * 3.2%) = $65,024.00 Baseline CODND before improvements = $2,032,000.00 Baseline CODND after improvements = ($2,032,000.00 - $65,024.00) = $1,966,976.00 There will also be efficiency savings and TCE increases related to the TAT reduction and reduction of the number of reworks, but they are difficult to evaluate, as there is no dedicated metric in place. DEFINE MEASURE ANALYZEIMPROVE CONTROL Validated by: Eduardo Tabares Date: April 7th, 2011
- 16. Improving the “Volume Direct Operations United States Public Sector” Issue Book 16 Project Schedule and Flexibility Matrix Flexibility Matrix Most Flexible Moderately Flexible Least Flexible Time Resources Objective Implemented and data collected. Objective is the Least Flexible: After collecting data, the goal for the rate assistance was imposed and will only have revision (if necessary) time frame flexible according to the business needs. DEFINE MEASURE ANALYZEIMPROVE CONTROL Project Schedule October November December January February March Define Phase Meassure Phase Analize Phase Improve Phase Control Phase
- 17. Improving the “Volume Direct Operations United States Public Sector” Issue Book 17 Critical to Quality Tree Need What does the customer need? Driver What would that mean (general, hard to measure)? Critical to Quality Characteristics What would that mean (specific, easy to measure)? Data Source Team leads and CSR need a measure of the performance of the CSR in the order assistance activity. A tool that ensures and rates the correct assistance for the open orders A board that shows the orders that need further manual assistance An accurate measure of the assisted orders vs. the non assisted ones. Assistance rate: The assistance percentage of orders stuck in the system due to one or more of the 3 main topics, that this project attends. Not Routing, Mixed Warehouse and Discontinued item. RTG: gem1000 report & PSOF open order book file AH Issue book Move the orders to production as soon as the systems allows. Increase the DCE by delivering the orders in timely manner. TAT assistance rate: BU (PSG) average time when these PSG orders are assisted and pushed to production. AH Issue book DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 18. Improving the “Volume Direct Operations United States Public Sector” Issue Book 18 Data Collection Plan Define the measure Source of the measure Timeframe Sampling / subgrouping plan (all, days, weeks, month) Method to measure, collect, and/or analyze data What Where When Frequency / Instances How Daily Open Order book assistance rate Resolvers CSR and TL 11/10/10 through 03/31/11 and beyond Daily / Monthly Excel spreadsheet / dynamic tables and trend graphics / E- mail Daily Open Order book assisted in PSG Resolvers CSR and TL 11/10/10 through 03/31/11 and beyond Weekly and monthly Excel spreadsheet / dynamic tables and trend graphics / E- mail DEFINE MEASURE ANALYZEIMPROVE CONTROL Both daily measures continues and will be continued with the new process
- 19. Improving the “Volume Direct Operations United States Public Sector” Issue Book Management 19 Primary Metric Assisted rate for the issue book Operational Definition of Metric Average assisted rate calculated in a daily basis. Data Type Continues, untransformed daily average Time Frame November 2010 – December 2010 Process Stability Statement Process is stable and predictable but not capable. DEFINE MEASURE ANALYZEIMPROVE CONTROL Assistance Rate Process is stable and predictable
- 20. Improving the “Volume Direct Operations United States Public Sector” Issue Book 20 Secondary Metric Average age for PSG (Not Routing) assistance Operational Definition of Metric Mean of PSG Assistance TAT process measured daily basis. Data Type Continues, untransformed daily average Time Frame November 2010 – December 2011 Process Stability Statement Process is mostly stable, with one special cause due to holidays. Process Capability Statement With a baseline mean of 5.12 days TAT, the process is in WIP of meeting the 3.5 days goal. DEFINE MEASURE ANALYZEIMPROVE CONTROL PSG Orders Assistance TAT Process is stable and predictable
- 21. Improving the “Volume Direct Operations United States Public Sector” Issue Book 21 Lean Assessment Matrix Lean Area Project Importance Category Principal None Some Major Workplace Organization X Workplace Standardized work X Workplace Visual controls X People Effectiveness X People Quality at the source X System Tool reliability X System Cellular flow X System Batch reduction or elimination X System Pull vs push system X System Point of use systems X DEFINE MEASURE ANALYZEIMPROVE CONTROL Workplace category was the most impacted because we implemented the metric to standardize the work.
- 22. Improving the “Volume Direct Operations United States Public Sector” Issue Book 22 Baseline Process Flowchart Lean Assessment Before - Swim Lane Flow Chart Green processes circulated are the ones that are mainly affected (will be improved) DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 23. Improving the “Volume Direct Operations United States Public Sector” Issue Book 23 Measure Phase Conclusions – Primary metric – Stable and predictable, but assistance rate is yet to low, since there is no goal, the team is not committed with this issue book assistance activity. – Secondary metric – This is mostly stable and predictable, also the number of days to get the order assisted is way to high and requires to be reduced. – Lean Assessment: Process complicated and with many hands off that may occur into many manual mistakes and extra efforts. – Lean Tools used: Planning the data collection may focus the process into its own improvement, also it may help to define the required next steps in the process. – Process Mapping, Detected process redundancies, they don’t add any value to it and can have disconnections. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 24. 24 Cause and Effect Diagram With 5-Why Method DEFINE MEASURE ANALYZEIMPROVE CONTROL Improving the “Volume Direct Operations United States Public Sector” Issue Book Management We found the most common causes to be the lack of goals, metrics and training causing a reactive mode.
- 25. Improving the “Volume Direct Operations United States Public Sector” Issue Book 25 Analyze Phase Conclusions – Conclusions from Cause & Effect diagram • The main reasons for the activity to be Ignored were: − Lack of metrics − Lack of goals − Reactive mode The activity was not being assisted, we’ve found that CSR is not measured based on a metric and supervisors and team leads are not aware of the complete status or not of the activity. The lack of action taken, causes a reactive activity mode, once the orders are aged and the customer is inquiring them and the workload increases. This also affects the customer satisfaction in a negative way. By ignoring this activity the team will receive many other request via email and phone related to the orders, increasing the rework volumes and increasing the need of invest more time and money since customer is now probably unhappy about HP’s order management/processes. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 26. Improving the “Volume Direct Operations United States Public Sector” Issue Book 26 Improved Process Flowchart Lean Assessment After - Swim Lane Flow Chart Key takeaways: Complexity in process has been reduced by half of handoffs. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 27. Improving the “Volume Direct Operations United States Public Sector” Issue Book 27 Summary of Improvements Process Changes Made Before After No metric associated Activity properly measure CSR not accountable of activity CSR ownership No goals for activity Enough data to establish goals Reactive mode Proactive mode DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 28. Improving the “Volume Direct Operations United States Public Sector” Issue Book 28 Primary Metric Assisted rate for the issue book Operational Definition of Metric Average assisted rate daily basis. Data Type Continuous, untransformed daily Time Frame December 2010 – March 2011 Process Stability Statement Process mostly stable special cause was during the implementation period. Process Change 1: Formal training and request for this SharePoint to be assisted daily basis, low assistance rate showed to the attendees (TL & Managers). Process Change 2: TL advised and metric explained, manager supporting the new data and metrics to be achieved. DEFINE MEASURE ANALYZEIMPROVE CONTROL Assistance Rate
- 29. Improving the “Volume Direct Operations United States Public Sector” Issue Book 29 Secondary Metric Average age for PSG (Not Routing) assistance Operational Definition of Metric Mean PSG Assistance TAT from process as measured daily Data Type Attribute, untransformed Daily grouping Time Frame December 2010 – March 2011 Process Stability Statement Process is stable and predictable as evidenced by the lack of special causes Process Capability Statement With a baseline mean of 5.12 TAT (in days) , the process is in WIP of meeting the 3.5 goal. Process Change 1: Formal training and request for this SharePoint to be assisted daily basis, low assistance rate showed to the attendees (TL & Managers). Process Change 2: TL advised and metric explained, manager supporting the new data and metrics to be achieved. DEFINE MEASURE ANALYZEIMPROVE CONTROL PSG Orders Assistance TAT
- 30. 30 Project Value Summary Table After Improvements Soft Savings Category Baseline CODND before improvements Estimated % Savings Estimated Project Savings Improved CODND After Improvements Salaried employee costs to perform all process activities $1,828,800.00 2.29% $ 41,910.00 $ 1,786,890.00 Salaried employee costs to assign and audit activities $ 203,200.00 4.58% $ 9,313.33 $ 193,886.67 Improved TCE There will also be efficiency savings and TCE increases related to the TAT reduction and reduction of the number of reworks, but they are difficult to evaluate, as there is no dedicated metric in place. Total Soft $ 2,032,000.00 2.52% $ 51,223.33 $ 1,980,776.67 Hard Savings Category Baseline CODND (before improvements) Estimated % Savings Estimated Project Savings Improved CODND (After Improvements) Total Hard NA NA NA NA Grand Total $ 2,032,000.00 2.52% $ 51,223.33 $ 1,980,776.67 DEFINE MEASURE ANALYZEIMPROVE CONTROL Improving the “Volume Direct Operations United States Public Sector” Issue Book Validated by: Eduardo Tabares Date: April 7th, 2011
- 31. Improving the “Volume Direct Operations United States Public Sector” Issue Book 31 Project Value Calculations 1/2 After Improvements Soft savings Reassigning the transactional activities among the team related to the issue book management Benefits = # of resources that could are assigned among the team for the activities = 72 Minutes Per Year: 112,500 Current Number of Employees CSR = 72 Current Number of Employees TL = 8 Saved per TL: 5,720 (saved 4.58%) * FTE Cost ($25,400.00) = $1,164.17 Saved per CSR: 2,860 (saved 2.29%) * FTE Cost ($25,400.00) = $582.33 Total savings: (#TL*$1164.17) + (#CSR * $582.33) Total Savings: $9313.33 + 41910.00 = $ 51,223.33 Cost for the entire team = 80 * $25,400 = $2,032,000.00 Saved %: $51,223.33 / $2,032,000.00 = 2.52 % Benefits = (2,032,000.00 * 2.52%) = $51,223.33 Baseline CODND before improvements = $2,032,000.00 Baseline CODND after improvements = ($2,032,000.00 - $51,223.33) = $1,980,776.67 There will also be efficiency savings and TCE increases related to the TAT reduction and reduction of the number of reworks, but they are difficult to evaluate, as there is no dedicated metric in place. DEFINE MEASURE ANALYZEIMPROVE CONTROL Validated by: Eduardo Tabares Date: April 7th, 2011
- 32. Improving the “Volume Direct Operations United States Public Sector” Issue Book 32 Improve Phase Conclusions – Summarize the Improve Phase: Most of the improvements came from standardizing the work among the teams, measure the volumes and assistance and base in gathered data we are now able to establish SMART goals. – Discuss before and after improvements for primary metric: Before we did not know where we were at and where we wanted to be, since there was not enough data and the activity was always attended in a reactive way so no standardized way to work was available/designed. – Discuss before and after improvements for secondary metric: Started to gather data and storage to analyze the business behavior, now we have bases to establish and calculate future goals, also we now can see who does and who does not assist the assigned orders without the need of having a customer complaining about their orders being ignored or having the team lead manually reviewing order by order.. – Final project value estimate: Soft savings of $ 51,223.33 and also affects the TCE in a positive way, it helps to improve the TAT of orders helping to get them invoiced sooner. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 33. Improving the “Volume Direct Operations United States Public Sector” Issue Book Management 33 Control Plan Improving the “Volume Direct Operations United States Public Sector” Issue Book Management Control Plan Category Task/Action Control Plan Owner Start Date / Frequency Target Corrective Action Processe s Daily snapshot Graphic delivered to Supervisors and Team Leads Hiram Alvarez & Julio Solano Current on going Available, daily basis at 100% TL to recognize or admonish the CSR. Processe s AH Issue Book uploading Leave available the data for the activity Hiram Alvarez & Julio Solano Daily Basis Available before 10 AM at 100% No aplicable People Assist orders Dynamic table showing results to TL’s and supervisors Customer Support Team Leads Daily Basis At least 80% of the orders updated in status. Score for the CSR’s FPR DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 34. Improving the “Volume Direct Operations United States Public Sector” Issue Book 34 Leveraging Opportunities List possible areas for leveraging the SMB & CE DEFINE MEASURE ANALYZEIMPROVE CONTROL Both business also assist their open order books with a few differences against PS but the 3 main topics are the same, their macro can also be standardized and published in a SharePoint to help in the data gathering and goal establishment.
- 35. Improving the “Volume Direct Operations United States Public Sector” Issue Book 35 Follow Up Issues – Areas for additional work • Issue 1 − Avoid deleting data from the SharePoint − Avoid over-refreshing status that don’t need to be refreshed. − Avoid using the Fixed status IF the order is not applicable to get this status (not fixed) • Issue 2 − Establish an audit processes for the NON-Refreshable statuses • Team leads to assist with this, except for the Fixed comment that the Quality Team should also publish a table with the caught failures. DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 36. Improving the “Volume Direct Operations United States Public Sector” Issue Book 36 Next Steps –Include possible Duplicate orders –Include over 25 days order status DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 37. Improving the “Volume Direct Operations United States Public Sector” Issue Book 37 Project Balanced Scorecard Financial – Soft saving for over $51,223.33 USD Operational – Improved operational efficiencies – Improved TCE with HP’s processes – Improve CSR scoring processes Cultural change • Proactive mode •New culture of working the Issue Orders • CSR accountable of making sure the order routes/remain corrected. Personal – Expertise in project development – Trainings were accessible and a great help for developing this project – Belt trainings were helpful – Learning is a continuous activity DEFINE MEASURE ANALYZEIMPROVE CONTROL
- 38. Improving the “Volume Direct Operations United States Public Sector” Issue Book 38 Team Recognition – Core Team: Mariana Loera, Edgar González, Alejandra Rodríguez, Dalila Pompa, José Flores, Rajna Smilanova, Lorena Gutiérrez, María Espindola. – Financial Representative: Eduardo Tabares – Mentor: Raúl Chávez – Denis Pryor & María Solis, for sponsoring and supporting this project. – Extended Team: María Solis, Yuridia Jiménez, Luz Coria, Diego Torres DEFINE MEASURE ANALYZEIMPROVE CONTROL
Editor's Notes
- Title Slide Instructions: Use descriptive Project Names/Titles. Do not use acronyms or “code names.” Good project name is “Improve xxx Process” where xxx clearly identifying the process to be improved Format is mandatory, although you may chose a different background color offered in the standard HP template. Overall Template Guidelines Ensure that each slide is readable by using a large enough font. Avoid dark font on dark backgrounds and light font on light backgrounds. Some slides have mandatory format requirements. See the Notes Sections to find out if the slide format is mandatory – or if you have the flexibility to change the format. Definition: format is the physical appearance including the order of bulleted items, table layout, etc. Include major talking points and key takeaways in a colored text box. The slides need to stand on their own to tell the story without a narrator. Spell out abbreviations and jargon the 1st time used. Check the Notes Section on each slide for reference information and slide instructions. Mandatory slides are marked with a belt level in the Notes Section of each slide. The phase of the DMAIC cycle referred to is to appear on the right-hand corner. Tools and Templates examples are located on the PSG WW Lean Six Sigma SharePoint site in the Process Improvement Repository: http://enhanced1.sharepoint.hp.com/teams/PSGL6S/default.aspx Update the Footer with your project title using the Header and Footer menu option in PowerPoint First read and understand, then remove instructional-only gold boxes that are designated with Check the Notes Section on each slide for reference information and slide instructions
- Acronyms and Definitions Mandatory slide for all belt levels. Format is flexible Instructions: Replace this example list with all the acronyms and definitions used in your presentation. Please exclude L6s terms from this example list. You can assume the reader already knows the L6s acronyms. Sort list in alphabetical order.
- Business Context of Project Mandatory slide for all belt levels. Format is flexible. Instructions: On this slide, briefly describe the purpose of the project with respect to the business in terms that your grandmother, a donut shop owner, or a twelve-year old would understand. Use everyday generic language and terms instead of HP terms. Spell out all acronyms. Assume the reader of this slide knows nothing about the processes. Many report-out reviewers will not be familiar with this process and/or your functional area. Explain at a very high level why this project was chosen including why it is important to HP, Customers and Employees. Do not repeat the details on the Problem Statement slide. Explain at a very high level what processes, organizations and people are involved. Explain what types of process improvements are desired, such as “reduce the time it take to….” or “improve the way the customer does…” Don’t state a solution(s) to the problem. Don’t state how the problem will be fixed. Assume that the reader does understand that Lean Six Sigma methods will be used. Bullet points are recommended over long paragraphs
- Executive Summary Mandatory slide for all belt levels. Format is somewhat flexible; see instructions below. YBs insert a run chart or control chart showing before-versus-after improvement performance over time Copy graph from Minitab, then Paste-special as a picture into PowerPoint Insert a text box that explains the change before and after GBs, BBs insert a control chart showing before-versus-after improvement performance over time Copy graph from Minitab, then Paste-special as a picture into PowerPoint Insert a text box for statements about the process stability and capability after improvement Insert a text box to show the before-versus-after hypothesis test, including statement of H0, HA, and conclusions from the test. Copy text from Minitab session window, then paste-special as Formatted Text into PowerPoint, then resize as required. Using Courier font will help align the columns from Minitab. Instructions: You are not required to complete this slide until the Final Report Stay very high level Use only one (1) slide Total estimated project savings is in annual US dollars, and must match the number reported on the Project Value Table - After Improvements slide, Estimate Project Savings total value. You have the flexibility to: Not use the blue lines or move the blue lines Show a control chart for both the primary and secondary metric, and not show the hypothesis tests
- Methods and Tools Used Mandatory slide for all belt levels. Format is flexible Instructions Keep this slide updated monthly with method / tools / results
- Problem Statement Mandatory slide for all belt levels. Format is flexible. References: HP Lean Sigma Memory Jogger, p. 78 IEEV3, section 4.5. 4.7 ISS2, p. 62 Detailed DMAIC Roadmap, block 1.2 Instructions: Problem Statement A statement or statements that describes the nature of the issue, problem or opportunity Describe specifically what occurs, when or under what circumstances it occurs, and/or who is involved Describe the pain and problems with the process from the Customers’ perspective HP’s perspective employees perspective. Do not make any mention of solutions to the problem Use bullet points instead of large paragraphs
- Project Charter Mandatory slide for all belt levels. Format is mandatory Reference: HP Lean Sigma Memory Jogger, p. 20 Project Charter: IEEV3, section 4.9; ISS2, section 1.13 Primary Metric, IEEV3, section 4.6 Secondary Metric, IEEV3, section 4.8 Detailed DMAIC Roadmap, block 1.5 Other instructions: This shows the overall plan for the project Project Title Use descriptive Project Names/Titles. Do not use acronyms or “code names.” Good project name is “Improve xxx Process” where xxx clearly identifying the process to be improved Project Definition Describe the main project objectives (what you want to accomplish) of the process improvement project, but do not replicate the primary & secondary metrics / goal statements. Describe the project scope and boundaries. Describe the desired project timeline. Use bullet points instead of large paragraphs Metrics and Goals: You may have an initial idea at first about what your project metrics should be, but then will later use the Critical to Quality Tree to completely define your project metrics. Only 1 primary metric and 1 secondary metric are allowed. Secondary metric is optional. Additional project measures can be used in the project, but they are not to be listed here.
- Potential Project Benefits Mandatory slide for all belt levels. Format is mandatory Slide Instructions Do not change these 3 benefit categories. Purpose of this slide is to capture team brainstorming on potential areas of project benefits This slide helps the team identify key benefit areas, and helps later with the CTQ Tree and the CODND table We don’t want to see the actual quantified values here as that would be redundant with later slides Customer (type of customer): State how the project might impact the customer, where customer is assumed to be the end-user customer unless otherwise stated. Benefits included here are not expected to be quantifiable. If benefits are quantifiable, do not show the dollar value on this slide. Only show calculated benefits on the Project Value Calculations slides. Financial (hard savings): State how the project might impact HP’s financials (hard savings) ); i.e., benefits associated with the direct savings of costs or the improvement of revenue or profit Benefits included here are not expected to be quantifiable. If benefits are quantifiable, do not show the dollar value on this slide. Only show calculated benefits on the Project Value Calculations slides. Internal Productivity (soft savings): State how the project might impact HP’s employees internal productivity (soft savings) Benefits included here are not expected to be quantifiable. If benefits are quantifiable, do not show the dollar value on this slide. Only show calculated benefits on the Project Value Calculations slides.
- Team Structure Mandatory slide for all belt levels. Format is flexible. As an option, you may include a RACI slide after this slide References: HP Lean Sigma Memory Jogger, p. 150 Roles & Responsibilities: IEEV3, Appendix A.1; ISS2, section 1.10 Team Effectiveness: IEEV3, Chapter 5; ISS2, Chapter 53 Detailed DMAIC Roadmap, block 1.6 RACI templates: http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/RACI%20Template.ppt http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/raci_template%20from%20MoreSteam.xls Notes: Definitions: The Project Champion is a person responsible for providing resources and remove barriers to progress. The Process Owner is the manager who owns the processes to be improved, and sponsors the project by providing resources. The Project Champion and the Process Owner can be the same person. The Director / L4 Manager of the Project is typically the Vice President or Director of the Belt. (Todd Bradley is the L1 Manager for PSG.) The Mentor is a trained L6s practitioner who provides coaching to the Belt on L6s tools and methods. Project Lead is the Belt leading the project.
- Value Chain Alignment Mandatory slide for all belt levels. Format is mandatory References IEEV3, section 3.2-3.5 ISS2, section 1.8 Detailed DMAIC Roadmap, block 1.4 Slide Instructions: Circle the Level 1 and Level 2 metrics to which your project aligns to show how your project potentially impacts the Value Chain. Circle at least one Level 1 metric, but not more than two. Circle at least one Level 2 metric, but not more than two. Do not circle a functional area block. Your project primary & secondary metrics do not have to be the same as the L1 and L2 metrics, but it should be intuitive how the project metrics are aligned with the L1 and L2 metrics. If the Value Chain is missing a metric for your BU, consult your L6s Program Manager about adding the missing L1 or L2 metric. A best practice is to also include a slide with your functional area business plan following this generic slide. Notes: The Value Chain Alignment illustrate how your improvement project aligns with the Level 1 and Level 2 metrics of the PSG Value Chain. Note that your project primary and/or secondary metric must intuitively align to these L1/L2 metrics, but are not necessary the same as the L1/L2 metrics. For example, your project may align to the Level 1 metric of Gross Profit and the Level 2 metric of Supply Chain Cost per Unit. However, your project primary metric may be a lower level metric such Reducing the Return Rate of Desktops in North America. Intuitively, the Reduction of NA Desktop Returns is aligned to the Reduction of Supply Chain Costs per Unit and the Increase in Gross Profit. When the PSG Value Chain and Metrics slide was initially created in 2006, there was a disagreement on if “TCE nCLI” was a L1 or L2 metric. For most organizations, it is considered a L2 metric. But for some organizations, it is a L1 metric. The decision was made to show it as a L2 metric, but allow it to be used an a L1 metric. CSAT stands for Customer Satisfaction and is a metric for Support and Services organizations.
- References: http://intranet.hp.com/cass/VO/AMSVDO/Pages/AmericasVolumeDirectOperatons.aspx Enterprise Improvement Plan Mandatory slide for all belt levels. Format is mandatory References: IEEV3, p. 85 ISS2, section 1.8 Detailed DMAIC Roadmap, block 1.4 Notes: The Slide further illustrate how your project is aligned to your organizations business metrics and strategies. Instructions: Column 1 – Level 1 Metric(s) replace the instructions with the list of one to two Level 1 metrics that are circled on the Value Chain Alignment Column 2 – Organizational Strategies replace the instructions with a list up 1 to 3 published business strategies from your organization to which your project aligns. It is preferably to list strategies associated with your functional area instead of higher level strategies. This column if for business unit and/or functional area strategic statements, and not those for your particular project. Column 3 – Level 2 Metric(s) replace the instructions with the list of one to two Level 2 metrics that are circled on the Value Chain Alignment Column 4 – Improvement Project Title replace the instructions with the title of your project
- Project SIPOC Option A Mandatory slide for all belt levels. Choose either Option A, B, or C. Format is mandatory References HP Lean Sigma Memory Jogger, p. 146 IEEV3, section 4.3 ISS2, p. 63, 103 Detailed DMAIC Roadmap, block 1.7 Notes: A SIPOC is intended to be high level, and describes the scope of your project. SIPOC Option A - With this template, there is not a 1:1 relationship between the SIPOC columns. SIPOC Columns: Suppliers = Who are the suppliers. Use nouns. Inputs = What do the suppliers supply? Use nouns. Process = What do you do in the process; use 4 to 7 steps; start with active verbs. Only include process steps within the scope of your project and do not include upstream and downstream steps not in scope. Output = What does the process produce. Use nouns. Customers = Who receives delivery of the output? Use nouns.
- Project Value Summary Table – Baseline – Before Improvements Mandatory slide for all belt levels. Purpose: to show the project benefits before actual improvements are made. These numbers will most likely be different from the After Improvements estimate done in the Improve Phase. Format is mandatory in that you cannot change the general layout of the Table; see instructions below. References IEEV3, section 4.4 ISS2, section 1.14 Detailed DMAIC Roadmap, blocks 1.9, 3.8 http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/Project%20Benefit%20Valuation%20Guidelines_v1.pptx Instructions: Only include the $ amounts; do now show assumptions and equations on this slide (show these on the next slide. Use annualized US dollars. Round to nearest dollar Replace example rows with rows required for your project. Do not leave the example savings categories if they are not applicable for your project. Notes: Cost of Doing Nothing Differently (CODND) is a term coined by Smarter Solutions, Inc. The Baseline CODND represents all of the costs and lost opportunities that HP has before any improvements are made. The Improved CODND represents all of the costs and lost opportunities that HP has after improvements are implemented. The Estimated Project Savings = Baseline CODND minus the Improved CODND, and represents the estimated value of the project to HP. Note on Soft Savings: Reducing non-value added activities, wait time, and other wastes in processes frees up salaried employees to work on value-add activities
- Project Value Calculations 1/2 Mandatory slide for all belt levels. Format is flexible; see instructions below References IEEV3, section 4.4 ISS2, section 1.14 Detailed DMAIC Roadmap, blocks 1.9, 3.8 http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/Project%20Benefit%20Valuation%20Guidelines_v1.pptx Instructions: Show all assumptions and calculations used to generate $ values shown on the previous slide Do not embed an Excel file The reader cannot see cell formulas from a picture of an Excel spreadsheet, so you need to include the equations on this slide. Notes: Cost of Doing Nothing Differently (CODND) is a term coined by Smarter Solutions, Inc. The Baseline CODND represents all of the costs and lost opportunities that HP has before any improvements are made. The Improved CODND represents all of the costs and lost opportunities that HP has after improvements are implemented. The Estimated Project Savings = Baseline CODND minus the Improved CODND, and represents the estimated value of the project to HP. Note on Soft Savings: Reducing non-value added activities, wait time, and other wastes in processes frees up salaried employees to work on value-add activities
- Project Schedule and Flexibility Matrix Mandatory slide for all belt levels. The Project Schedule is to be updated monthly Flexibility Matrix: Format is mandatory; see instructions below. Project Schedule: Format is flexible; see instructions below. Reference IEEV3, Chapter 7 ISS2, Chapter 52 Detailed DMAIC Roadmap, block 2.4 Instructions Cannot have a “tie” on the Flexibility Matrix. If the Objective is not the Least Flexible on the Flexibility Matrix, should explain why. On the Project Schedule, include best estimate of entire DMAIC project from the start to the end of the control phase; Keep updated monthly. The Project Schedule (Gantt Chart) can be done in a PowerPoint table, Excel or MS Project. If using Excel or MS Project, copy/paste special as a bitmap or picture so that file does not get too large. Update the gold box with a description of the current project status.
- 17
- Data Collection Plan Mandatory slide for all belt levels. Format is mandatory References: HP Lean Sigma Memory Jogger, p. 50, 106 IEEV3, section 17.3 – 17.4 ISS2, section 3.8 Detailed DMAIC Roadmap, block 3.1 Instructions: Document the plan to collect data before making the predictability and capability assessments, and doing other analysis. Need to make it very clear which measures are related to the primary and secondary metric, and any other data shown in the report-out. Clearly define the Operational Definition of each metric. A good “test” of a well documented Data Collection Plan is to give it to a team member and see if they bring back the data that you really wanted.
- Primary Metric – Baseline Process Stability YB – mandatory: control chart or run chart GB, BB – Mandatory: control chart, normality check, data transformation if appropriate Format is flexible References: HP Lean Sigma Memory Jogger, p. 106 – Operational Definitions IEEV3, Chapter 8 – Data Normality, Continuous Response IEEV3, Chapter 8 – Data Normality, Attribute Response IEEV3, Chapter 12 – Baseline Project, Continuous Response IEEV3, Chapter 13 – Baseline Project, Attribute Response ISS2, Chapter 7, 8 – Data Normality ISS2, Chapter 10 – Basic Control Charts ISS2, Chapter 11 – Process Capability Detailed DMAIC Roadmap, blocks 3.2-3.4 Instructions: Include this information on the slide: Name and Operational Definition of Metric Data type (continuous or attribute) Statement of process stability Stable if there are no special causes Not stable if there are special causes. Document special causes Discuss data normality and data transformation if appropriate Must use Minitab for all charts. Do not use Excel. In Minitab, change the y-axis label from the default text to text that represents the measure In Minitab, use a date stamp for the x-axis. Make sure that baseline time frame on the control chart matches what is stated on the Data Collection Plan Copy / Paste Special all graphs as Pictures to keep the file small You have the flexibility to change the format of the slide in many ways. Examples: Add or move or delete the blue line Combine with Process Capability for a single slide Other formatting changes are allowed as long as the slide remains readable and tells the story
- Secondary Metric – Baseline Process Stability & Capability YB – mandatory (if the project has a secondary metric): control chart or run chart GB, BB – Mandatory (if the project has a secondary metric): control chart, normality check, data transformation if appropriate Format is flexible References: HP Lean Sigma Memory Jogger, p. 106 – Operational Definitions IEEV3, Chapter 8 – Data Normality, Continuous Response IEEV3, Chapter 8 – Data Normality, Attribute Response IEEV3, Chapter 12 – Baseline Project, Continuous Response IEEV3, Chapter 13 – Baseline Project, Attribute Response ISS2, Chapter 7, 8 – Data Normality ISS2, Chapter 10 – Basic Control Charts ISS2, Chapter 11 – Process Capability Detailed DMAIC Roadmap, blocks 3.2-3.4 Instructions: Include this information on the slide: Name and Operational Definition of Metric Data type (continuous or attribute) Statement of process stability Stable if there are no special causes Not stable if there are special causes. Document special causes Discuss data normality and data transformation if appropriate Must use Minitab for all charts. Do not use Excel. In Minitab, change the y-axis label from the default text to text that represents the measure In Minitab, use a date stamp for the x-axis. Make sure that baseline time frame on the control chart matches what is stated on the Data Collection Plan Copy / Paste Special all graphs as Pictures to keep the file small You have the flexibility to change the format of the slide in many ways. Examples: Add or move or delete blue lines Separate the Process Stability and Normality Check on two different slides Other formatting changes are allowed as long as the slide remains readable and tells the story
- Lean Assessment Matrix Mandatory slide for all belt levels. Format is mandatory References: IEEV3, section 14.8 SSI BB and GB Workbook, Week 1, Lean Principles module Detailed DMAIC Roadmap, blocks 4.1-4.2 http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/Lean%20Assessment.ppt Instructions: Put X’s or some other mark in the fields for None, Some and Major importance from the perspective of project scope.
- Baseline Process Flowchart Mandatory slide for all belt levels. Format is flexible References: HP Lean Sigma Memory Jogger, p. 71, 164 IEEV3, section 16.2, section 14.17 ISS2, chapter 4, section 44.13 Detailed DMAIC Roadmap, blocks 6.1 – 6.2 Notes: Change the slide title to indicate the type of flowchart used Always indicate the Start and End points of the process Show the status of the process prior to any process improvements done as part of the project Example Process Flow tools include Decision Process Flow, Swim Lane, Value Stream Map. Use the most appropriate process mapping tool for your project List team conclusions or findings from Process Mapping Exercise
- Measure Phase Conclusions Mandatory slide for all belt levels. Format is flexible Instructions: Conclusions from MSA Assessment Primary metric stability and capability Secondary metric stability and capability Conclusions from Lean Assessment Conclusions from any Lean Tools used Conclusions from Process Mapping Identification of any Low Hanging Fruit and related action items
- Analyze Phase Conclusions Mandatory slide for all belt levels. Format is flexible Instructions: Summarize the Analyze Phase for all tools used Ensure you consider all Xs identified in the Measure Phase List any Low Hanging Fruit identified and related action items done during the Analyze Phase Other team conclusions from the Analyze Phase
- Improved Process Flowchart Mandatory slide for all belt levels. Format is flexible References: HP Lean Sigma Memory Jogger, p. 71, 164 IEEV3, section 16.2, section 14.17 ISS2, chapter 4, section 44.13 Detailed DMAIC Roadmap, blocks 7.8, 8.12 Notes: Change the slide title to indicate the type of flowchart used Always indicate the Start and End points of the process Show the status of the process after any process improvements done as part of the project Circle or highlight changes made from the baseline Example Process Flow tools include Decision Process Flow, Swim Lane, Value Stream Map. Use the most appropriate process mapping tool for your project List key takeaways
- Summary of Improvements Mandatory slide for all belt levels. Format is flexible Instructions List a summary of all improvements made Optional: use a Before and After table comparison
- Primary Metric – Baseline Process Stability YB – mandatory: control chart or run chart GB, BB – Mandatory: control chart, normality check, data transformation if appropriate Format is flexible References: HP Lean Sigma Memory Jogger, p. 106 – Operational Definitions IEEV3, Chapter 8 – Data Normality, Continuous Response IEEV3, Chapter 8 – Data Normality, Attribute Response IEEV3, Chapter 12 – Baseline Project, Continuous Response IEEV3, Chapter 13 – Baseline Project, Attribute Response ISS2, Chapter 7, 8 – Data Normality ISS2, Chapter 10 – Basic Control Charts ISS2, Chapter 11 – Process Capability Detailed DMAIC Roadmap, blocks 3.2-3.4 Instructions: Include this information on the slide: Name and Operational Definition of Metric Data type (continuous or attribute) Statement of process stability Stable if there are no special causes Not stable if there are special causes. Document special causes Discuss data normality and data transformation if appropriate Must use Minitab for all charts. Do not use Excel. In Minitab, change the y-axis label from the default text to text that represents the measure In Minitab, use a date stamp for the x-axis. Make sure that baseline time frame on the control chart matches what is stated on the Data Collection Plan Copy / Paste Special all graphs as Pictures to keep the file small You have the flexibility to change the format of the slide in many ways. Examples: Add or move or delete the blue line Combine with Process Capability for a single slide Other formatting changes are allowed as long as the slide remains readable and tells the story
- Secondary Metric – Baseline Process Stability & Capability YB – mandatory (if the project has a secondary metric): control chart or run chart GB, BB – Mandatory (if the project has a secondary metric): control chart, normality check, data transformation if appropriate Format is flexible References: HP Lean Sigma Memory Jogger, p. 106 – Operational Definitions IEEV3, Chapter 8 – Data Normality, Continuous Response IEEV3, Chapter 8 – Data Normality, Attribute Response IEEV3, Chapter 12 – Baseline Project, Continuous Response IEEV3, Chapter 13 – Baseline Project, Attribute Response ISS2, Chapter 7, 8 – Data Normality ISS2, Chapter 10 – Basic Control Charts ISS2, Chapter 11 – Process Capability Detailed DMAIC Roadmap, blocks 3.2-3.4 Instructions: Include this information on the slide: Name and Operational Definition of Metric Data type (continuous or attribute) Statement of process stability Stable if there are no special causes Not stable if there are special causes. Document special causes Discuss data normality and data transformation if appropriate Must use Minitab for all charts. Do not use Excel. In Minitab, change the y-axis label from the default text to text that represents the measure In Minitab, use a date stamp for the x-axis. Make sure that baseline time frame on the control chart matches what is stated on the Data Collection Plan Copy / Paste Special all graphs as Pictures to keep the file small You have the flexibility to change the format of the slide in many ways. Examples: Add or move or delete blue lines Separate the Process Stability and Normality Check on two different slides Other formatting changes are allowed as long as the slide remains readable and tells the story
- Project Value Summary Table – Baseline – Before Improvements Mandatory slide for all belt levels. Purpose: to show the project benefits before actual improvements are made. These numbers will most likely be different from the After Improvements estimate done in the Improve Phase. Format is mandatory in that you cannot change the general layout of the Table; see instructions below. References IEEV3, section 4.4 ISS2, section 1.14 Detailed DMAIC Roadmap, blocks 1.9, 3.8 http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/Project%20Benefit%20Valuation%20Guidelines_v1.pptx Instructions: Only include the $ amounts; do now show assumptions and equations on this slide (show these on the next slide. Use annualized US dollars. Round to nearest dollar Replace example rows with rows required for your project. Do not leave the example savings categories if they are not applicable for your project. Notes: Cost of Doing Nothing Differently (CODND) is a term coined by Smarter Solutions, Inc. The Baseline CODND represents all of the costs and lost opportunities that HP has before any improvements are made. The Improved CODND represents all of the costs and lost opportunities that HP has after improvements are implemented. The Estimated Project Savings = Baseline CODND minus the Improved CODND, and represents the estimated value of the project to HP. Note on Soft Savings: Reducing non-value added activities, wait time, and other wastes in processes frees up salaried employees to work on value-add activities
- Project Value Calculations 1/2 Mandatory slide for all belt levels. Format is flexible; see instructions below References IEEV3, section 4.4 ISS2, section 1.14 Detailed DMAIC Roadmap, blocks 1.9, 3.8 http://enhanced1.sharepoint.hp.com/teams/PSGL6S/Process%20Improvement/Process%20Improvement%20Repository/Project%20Benefit%20Valuation%20Guidelines_v1.pptx Instructions: Show all assumptions and calculations used to generate $ values shown on the previous slide Do not embed an Excel file The reader cannot see cell formulas from a picture of an Excel spreadsheet, so you need to include the equations on this slide. Notes: Cost of Doing Nothing Differently (CODND) is a term coined by Smarter Solutions, Inc. The Baseline CODND represents all of the costs and lost opportunities that HP has before any improvements are made. The Improved CODND represents all of the costs and lost opportunities that HP has after improvements are implemented. The Estimated Project Savings = Baseline CODND minus the Improved CODND, and represents the estimated value of the project to HP. Note on Soft Savings: Reducing non-value added activities, wait time, and other wastes in processes frees up salaried employees to work on value-add activities
- Improve Phase Conclusions Mandatory slide for all belt levels. Format is flexible Instructions Summarize the Improve Phase at a high level Don’t duplicate the detailed Summary of Improvements slide Discuss before and after improvements for primary metric Discuss before and after improvements for secondary metric Final project value estimate
- Control Plan Mandatory slide for all belt levels. GB, BB – expected to see use of ongoing control charts to monitor the process, along with the Owner, Target and Corrective Action if process gets unstable. Format is mandatory References IEEV3, chapter 39 ISS2, sections 38-1, 38-2 Detailed DMAIC Roadmap, section 9
- Leveraging Opportunities Mandatory slide for all belt levels. Format is flexible Instructions This slide demonstrates to the business that you are considering the entire business system for improvements List possible areas for leveraging the Improvement Data Collection/Control Plan Specific facets of your effort into other areas of the business.
- Follow Up Issues Mandatory slide for all belt levels. Format is flexible Instructions This is where you recognize issues that were found and not addressed It may also be recommendations that were identified but not worked in the project.
- Next Steps Optional slide for all belt levels Format is flexible Instructions List the Next Steps for a Project that is not yet complete, or is a multi-phase project
- Project Balanced Scorecard Mandatory slide for all belt levels that submit for certification after October 31, 2010. Format is mandatory – what is currently shown as bulleted items are just an example to be replaced with your own comments
- Team Recognition Mandatory slide for all belt levels. Format is flexible Instructions This is where you recognize and thank all the people who helped on the project. Don’t forget to add your Mentor to the list. Content is important; format is not important; so feel free to be creative on this slide