The Four Year Evolution of Six Sigma at ServiceMaster

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  • __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________
  • This represents an overall picture of the process. Present example(s) that go across the organization – Ken Peterson spoke about the “Tire project” that Steve Toell had as a wave 1 black belt that estimated a - $12 million savings based on tire maintenance practices: -purchasing program -saving with retreads -tire pressure is #1 cause of blow outs-maintenance could save $
  • The Four Year Evolution of Six Sigma at ServiceMaster

    1. 1. The Four Year Evolution of Six Sigma at ServiceMaster John Biedry Senior Vice President Continuous Improvement & Six Sigma
    2. 2. <ul><li>Lawn, Tree, & Landscaping </li></ul><ul><li>Plumbing / HVAC </li></ul><ul><li>Termite and Pest Control </li></ul><ul><li>Specialty Cleaning, Repair, Disaster Restoration </li></ul><ul><li>Maid Service </li></ul><ul><li>Home Warranty / Inspection </li></ul>Service to Homeowners ServiceMaster Solution
    3. 3. Cultural Background <ul><li>Our Four Company Objectives </li></ul><ul><li>Organization is hierarchical, and decentralized </li></ul><ul><li>Strong spirit of local ownership </li></ul><ul><li>ServiceMaster is home to: </li></ul><ul><li>1,000s of Branch Locations </li></ul><ul><li>40,000 Service Providers </li></ul><ul><li>Over 10,000,000 Customers </li></ul>
    4. 4. Business Unit Leader Deployment Champion Black Belt Black Belt Black Belt Black Belt Black Belt Project Sponsor Project Sponsor Project Sponsor Project Sponsor Project Sponsor CFO Financial Representative Green Belts Green Belts Green Belts Green Belts Green Belts Yellow Belts Master Black Belt Master Black Belt SVM 6  Leader
    5. 5. The Launch
    6. 6. The Journey
    7. 7. “ It’s a short trip from riding the waves of change to being torn apart by the jaws of defeat”
    8. 8. Field the Team with Top Players and Coaches
    9. 9. Fielding the Team <ul><li>Internal vs. External Hires </li></ul><ul><ul><li>Black Belts, Master Black Belts </li></ul></ul><ul><ul><li>Deployment Champion </li></ul></ul><ul><ul><li>Mistakes made </li></ul></ul><ul><ul><li>2006 changes for Green Belts </li></ul></ul><ul><ul><li>Functional Black Belts </li></ul></ul>
    10. 10. Training & Development <ul><li>From Technical Training to…. Leadership Development </li></ul><ul><li>ACCEL </li></ul><ul><li>Green Belt and Black Belt Certification and Changes </li></ul><ul><li>Leadership Refresher Training </li></ul>
    11. 11. Career Choices <ul><li>What’s next after Six Sigma? </li></ul><ul><li>Succession Planning </li></ul><ul><li>Where have Six Sigma “graduates” gone? </li></ul>
    12. 12. Project Selection – Sponsors Pick Projects?
    13. 13. Projects – From Cost Focus... $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Finance Contracts Maintenance Uniforms Stationary Parts Return Reports Brochures Floor Mats Truck Stock Postage IT Printing Costs Suspend Status Utilities Expense AOR Financing $
    14. 14. ...To Strategic Productivity Customer Experience Pricing $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
    15. 15. The Role of the Black Belt… <ul><li>From DMAIC to…Implementation & Compliance </li></ul><ul><li>From Projects to …Business Support </li></ul>
    16. 16. Implementation : Playing Is Not An Option
    17. 17. Six Sigma Workshops
    18. 18. Keeping Score =
    19. 19. Keeping Score - Replication Process Improvement is tied to bonus payout.
    20. 20. Keeping Score = Metrics Deployment Champion: Month: Jan-04 PROJECT NAME, BLACK BELT, and DESCRIPTION Start Date Replication Completion Date P H AS E Customer Benefits 1=Yes, 0=No Status Process Owner Total Locations to Replicate Locations Replicated Core Project Metric Core Metric Baseline Core Metric Goal Core Metric Current YTD Savings Through Jan Price Realization 2004-Price Book compliance-All Nov-03 May-04 C 1 Y Market- ing and Ops 61 2 % of Defective Invoices N/A 90% Complianc e xxxxxx Problem Statement/Oppurtunity Solution Monthly Progress Journal-Febuary Charts Project in 2003 was to establish baseline- Rolling out Task Code Compliance and SOP for discounting component by 1st half of year, 10% of GM's bonus tied to compliance metrics-AOR task codes, Service task codes project are tied to overall Price Realization 2004. Project is carry over from last year Price Realization 2003. Secondary Metrics :Invoices below List Price and Avg Discount (% Of Variance from List Price) Common Task Codes are underdevelopment. Task codes are expected to be finalized by Mid Febuary. 2004 MONTHLY SIX SIGMA STATUS REPORT Dave Thiessen Business Unit: ARS Due to Increase in Internal Costs by 15% and Variation (Discounting) from Price Book up to 30% resulting in lower Gross Margin and decreased revenue. No Formal process of controlling Discounting. No formal Price Book Process. By Controling variation ,improving Price Book Process and implementing a 2-5% List Price increase we can Realize $6-9M in Revenue.There is also an oppurtunity to improve our customer satisfaction scores by improving price book presentation and controling discounting
    21. 21. Bringing Six Sigma Deeper Into the Organization <ul><li>National to Regional projects </li></ul><ul><li>Yellow Belt training </li></ul><ul><li>Green Belt training </li></ul><ul><li>Green Belt projects </li></ul><ul><li>Lean projects </li></ul>
    22. 22. Some People Dream of Success, While Other People Live to Crush Those Dreams
    23. 23. Marketing & Sales <ul><li>Six Sigma eHandbook </li></ul><ul><li>Newsletter </li></ul><ul><li>Annual conference </li></ul><ul><li>External conferences </li></ul><ul><li>External publications </li></ul><ul><li>Internal recognition </li></ul><ul><li>Board of Director meetings </li></ul><ul><li>Business Unit President updates </li></ul><ul><li>Investor meetings </li></ul>
    24. 24. Incentives & Recognition <ul><li>Certification awards </li></ul><ul><li>Contests </li></ul><ul><li>Green Belt incentive pilot </li></ul>
    25. 25. From... Flavor of the Month
    26. 26. To... Stay the Course
    27. 27. Aim High… And Stay There

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