Maximizing the Impact of DFSS


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Maximizing the Impact of DFSS

  1. 1. WCBF Design for Six Sigma Conference M aximizing the Impact of DFSS The Venetian, Las Vegas  (June 8-10, 2005) Richard Paxton Master Black Belt SVP, Process Excellence and Lean Executive Bank of America
  2. 2. <ul><li>“ Why is it so important to establish a Design for Six Sigma culture?” </li></ul>
  3. 3. We Will Discuss… <ul><li>Combating psychological inertia, enabling and creating the right mind-set </li></ul><ul><li>Aligning DFSS to your business goals, organization and integrating into company culture </li></ul><ul><li>Establishing a sustainable innovation culture for Six Sigma </li></ul><ul><li>Managing your resources to lead DFSS efforts </li></ul><ul><li>Optimizing the involvement, support system and tools for DFSS users </li></ul>
  4. 4. Combating Psychological Inertia and Enabling & Creating the Right Mindset
  5. 5. Psychological Inertia – What Is It Psychological inertia is possibly the single largest obstacle between achieving breakthrough results and incremental improvement. It is a boundary between innovation and business as usual fueled by “In the Box” thinking.
  6. 6. Combating PI <ul><li>Design for Six Sigma breaks down these barriers by: </li></ul><ul><li>Leveraging cross-functional teams </li></ul><ul><li>Focusing on the customer </li></ul><ul><li>Identifying negative correlations (competing CTQ’s) </li></ul><ul><li>Developing product / process concepts independent of technology </li></ul>
  7. 7. <ul><li>Focus on Organic Growth… </li></ul><ul><li>Higher customer satisfaction </li></ul><ul><li>Higher retention rates </li></ul><ul><li>Lower cost to acquire these customers because we're adding additional products and services to an existing relationship, rather than initiating a new one </li></ul><ul><li>Customers who consolidate their financial relationships with one provider tend to maintain higher balances </li></ul>Creating the Right Mindset
  8. 8. <ul><li>Demonstrate understanding of business needs… </li></ul><ul><li>Establish appropriate Service Level Agreements (SLA’s) </li></ul><ul><li>Ensure technology environments are stable (Availability) </li></ul><ul><li>Accelerate time to market </li></ul>Not only meet but EXCEED customer expectations Customer Focused / Metrics Driven
  9. 9. Making the Connection Customer Is Delighted! Internal customer facing groups have appropriate tools to Service Customers with confidence The Customer has a financial Need Technology is built or Enhanced based on Customers Needs Internal product / sales teams identify “ Innovative Ways” to Service the Customer Organic Growth Occurs Provides a Stable Environment and Repeatable Processes Six Sigma / DFSS
  10. 10. DFSS Approach Identify Potential Concepts, And Select Concepts High-Level Design, Detailed Design, And Predict Design Capability Build, Test And Pilot Design Deploy Design, Execute Control Plan and Transition to Process Owners Define Measure Analyze Improve Control Pre-Define Business Alignment, Start The Project Gather Customer Needs Define and Prioritize CTQs Optimize design across multiple CTQ’s and structures to meet or exceed customer expectations at implementation <ul><li>New product/process/service or system where none existed before </li></ul><ul><li>Redesign an existing product/process/service or system where the existing entitlement does not meet customer requirements </li></ul><ul><li>Optimize an existing product/process/service or system where the change complexity (multiple CTQ’s) is high </li></ul>
  11. 11. Aligning Your Business Goals and Organization Around Design for Six Sigma
  12. 12. Alignment Starts at the Top Top-Down Strategy, Driven and Owned by all Bank Associates <ul><li>Vision / Mission/ Goals </li></ul><ul><li>3-5 Year Breakthrough Strategies </li></ul>Page 1 The ‘What’ <ul><li>12 Month Tactical Plan </li></ul><ul><li>Key Performance Metrics </li></ul>Page 2 The ‘How’ <ul><li>Performance Measures to track progress </li></ul>Page 3 ‘ Balanced Scorecard’ N S W E 1 Bank of America Ken Lewis, Chairman and CEO “ Be Recognized As One of the World’s Most Admired Companies” Breakthrough Strategies Provider of Choice 92% Customer Satisfaction Employer of Choice 90% Associate Satisfaction Investment of Choice First in Peer Group Total Shareholder Return 1.1 Provide a world-class customer/client experience through easy access and efficient, error-free service C. Goslee / B. Desoer 1.2 Attract and retain profitable customers/clients…and continuously reward them for keeping and bringing more of their business to us G. Taylor / R. DeMartini / B. Desoer E. Brown 1.1 Become the trusted advisor for financial solutions R. DeMartini / E. Brown 1.4 Develop and deliver innovative new products and solutions which make financial services work in ways it never has before B. Desoer / E. Brown VISION GOALS ASSOCIATE SHAREHOLDER CUSTOMER 2.1 Attract and retain a world-class work force S. Alphin 2.2 Define and align Associate roles, measures and rewards to our strategy S. Alphin 2.3 Provide the support and tools Associates need to excel B. Desoer 2.4 Enable Associates to achieve professional growth balanced with personal goals B. Desoer 2.5 Reflect in our work force the diversity of the communities and customers we serve S. Alphin 3.1 Double Shareholder Value Add (SVA) in the next 3 years J. Hance 3.2 Consistently achieve double-digit year-over-year (EPS) growth J. Hance 3.3 Consistently achieve annual revenue growth targets J. Hance 3.4 Substantially reduce volatility of market, credit and operational losses B. Vandiver 3.5 Dramatically reduce the complexity of our business and achieve double-digit productivity each year C. Goslee / T. Arnoult
  13. 13. One Organization, One Methodology Kanri = Execution Belk Ken Lewis, Chairman and CEO To be the financial services “Provider of Choice” by flawlessly delivering innovative solutions and advice through customer - focused associates in a way tha t enables customers and communities to realize their dreams. 1.1 Improve the customer experience by making it easy for customers to do business with us (Tim Arnoult, Chuck Goslee) 1.2 Build customer satisfaction, loyalty and share of wallet by enhancing customer value through differentiated service, pricing and product (Amy Brinkley, Gene Taylor) 1.3 Become the trusted advisor for chosen financial services and products (Rich DeMartini, Ed Brown) 1.4 Develop innovative new products and services, which make banking work in ways it never has before (Barbara Desoer, Amy Brinkley) “ Be Recognized As One of the World’s Most Admired Companies” VISION MISSION 3 - 5 YEAR STRATEGIES GOALS CUSTOMER SATISFACTION Provider of Choice 92% Customer Satisfaction 1. Hoshin plans set direction & align the organization 2. MBF’s plan how to close gaps Cause & effect learnings from MBFs refine tactics in Hoshin Plan Six Sigma DFSS Black Belt Green Belt 3. Nested MBF’s, DFSS, Black Belt, and Green Belt projects flow from MBF’s 4. Scorecard Reviews monitor performance
  14. 14. Establishing a sustainable innovation culture for Six Sigma
  15. 15. Understanding Innovation <ul><li>Innovation is defined as… </li></ul><ul><li>Introduction of something new, a new idea, method or device 1 . In technology, an improvement to something already existing 2 . </li></ul><ul><li>In process design, innovation could be defined through achieving breakthrough performance – 25-30% increase in productivity </li></ul><ul><li>… Innovation changes the game </li></ul>1 Webster, 2 Britannica
  16. 16. Making Innovation User Friendly <ul><li>Associates – quickly adopted tools that were. . . </li></ul><ul><li>Simple to use & intuitive </li></ul><ul><li>Integrated </li></ul><ul><li>Graphical </li></ul><ul><li>Mentally challenging & stimulating </li></ul><ul><li>Yielded fast, credible results </li></ul><ul><li>Associates Disliked: </li></ul><ul><li>“ Warm & fuzzy” innovation techniques . . . meditation, relaxation, etc. </li></ul><ul><li>Complex tools . . . </li></ul><ul><li>Time consuming tools w/ marginal results </li></ul><ul><li>… Get out of the BOX! </li></ul>
  17. 17. Leveraging Design for Six Sigma to Drive Innovation <ul><li>Examples include: </li></ul><ul><li>Creating synergies across products, assets classes and geography </li></ul><ul><li>Deployment of open source, Web services and grid and utility computing </li></ul><ul><li>Global process standardization </li></ul><ul><li>Shift from product focus to customer focus </li></ul><ul><li>Seamless service delivery </li></ul>Optimizing conflicting CTQ’s Strategic Positioning
  18. 18. Innovation and Development Center All Innovation and Development Projects Use Design for Six Sigma
  19. 19. Managing your resources to lead DFSS efforts
  20. 20. Eliminating Competing CTQ’s <ul><li>DFSS should be managed the same as BAU with a robust prioritization process </li></ul><ul><li>Needs to be aligned with business goals and supported by a business case including cost / benefit analysis </li></ul><ul><li>Heavy lifting completed at team offsites </li></ul><ul><li>Lead by seasoned MBB / BB </li></ul>Sound familiar… “ we have other priorities” “ I would like to support but…do not have the resources” “ Don’t have time…we just need it fixed” “ this is the way we have always done it”
  21. 21. Bringing It All Together Project Management Methodology Rooted in Six Sigma PMI – Project Management Institute PMBOK – Project Management Book of Knowledge
  22. 22. Optimizing the involvement, support system and tools for DFSS users
  23. 23. Integrate Into Company Culture <ul><li>What it takes… </li></ul><ul><li>A fully committed CEO </li></ul><ul><li>Q&P Executive reporting directly to CEO </li></ul><ul><li>Hoshin Kanri planning process </li></ul><ul><li>Executive leadership buy-in </li></ul><ul><li>Certified Six Sigma Professionals </li></ul><ul><li>Structured Training </li></ul><ul><li>Standards and Governance </li></ul>… Leaders Become Role Models
  24. 24. Tools Quality Function Deployment Books Surveys Fishbone KANO Process Modeling Statistical Software AHP TRIZ Process Maps FMEA 6-Thinking Hats Blind Variation Benchmarking Pugh Matrix
  25. 25. Real World Applications
  26. 26. <ul><li>“ Why is it so important to establish a Design for Six Sigma culture?” </li></ul>
  27. 27. Richard Paxton Master Black Belt SVP, Process Excellence and Lean Executive Bank of America Thank You!