Avis Budget Group - Effective Strategies for Replicating Projects Globally

780 views

Published on

Featuring: Joe Hulseman, Lean Six Sigma Master Black Belt, Avis Budget Group

You’ve done a great job improving a process in one area of the business. In an ideal world, that successful process change would be adopted at all site locations. But what usually happens next? All too often, the answer to that question is, unfortunately, “not much.”

That’s not the case, though, at Avis Budget Group (ABG), a leading global provider of vehicle rental services. ABG utilizes a dedicated team of 90 PEX Leaders around the globe to improve and standardize the customer car rental experience. This model uses projects that are replicated at multiple locations and is designed to enhance the customer experience.

But how do they achieve that when they have over 30,000 employees and more than 10,000 rental locations? And why is project replication so important to the customer experience?

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
780
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
9
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Avis Budget Group - Effective Strategies for Replicating Projects Globally

  1. 1. Effective Strategies for Replicating Projects Globally 1
  2. 2. Performance Excellence Joe Hulseman Avis Budget Group Joseph.Hulseman@AvisBudget.com
  3. 3. Performance Excellence Topics Quick Overview of our deployment Going from Original project to replication Measuring Project implementation & success Managing Project Pipeline
  4. 4. Performance Excellence Our Brands
  5. 5. Performance Excellence Why “Lean / Six Sigma”? Challenging Operating Environment due to: Vehicle costs dramatically increased in 2 year time period Difficulty in recapturing increasing expenses through pricing Cost cutting measures only took us so far.
  6. 6. Performance Excellence Performance Excellence New way to evaluate & improve processes, removing waste and defects Ability to take new “methods” and implement throughout company
  7. 7. Performance Excellence Deployment Status Started in May 2007 Currently have 90 PEx Leaders worldwide 3 Master Black Belts 9 Black Belts 15 Green Belts 14 Green Belts in training PEx commitment of 2 – 3 years 7
  8. 8. Project Growth Since Inception
  9. 9. Performance Excellence Projects Running a project in one location is good Replicating those benefits elsewhere is GREAT!!!  Standardized process steps  Faster project execution time  Addresses unique issues at each location Formal method and tools to replication world-wide
  10. 10. Performance Excellence Why the path of Replication? Shorter cycle time to complete the project Our airport locations should have SOPs Almost 2,500 local market stores Majority of savings is from replications
  11. 11. Performance Excellence Chosen for Replication Obvious replication candidate Discussed the opportunity with management at several other locations Final review – Senior Leadership Approval Next step – Replication Package 11
  12. 12. Performance Excellence Replication Package 12
  13. 13. Performance Excellence Replication Package 13
  14. 14. Performance Excellence What’s included in the Replication package? Project Background Areas impacted by project Instructions to implement Objective Helpful hints Financial Metrics Lessons Learned Original Team Members Management tools Data Reporting Mechanisms Key Measurements 14 New Process Steps List of who is necessary to be on the project team
  15. 15. Performance Excellence Testing the Package Test package in at least two locations - First location with original team - Second location with different team If successful, move into Replication status Hold replication call 15
  16. 16. Performance Excellence Who Replicates? PEx Replication Leaders JDI – Location Management Specialists 16
  17. 17. Performance Excellence Replication “SCORE” checklist 17
  18. 18. Performance Excellence Replication “SCORE” checklist Pre-S 18
  19. 19. Performance Excellence Sustainability Weekly calls helps to identify problems & “Golden Nuggets” One page monthly report review Monthly Area by Area Scorecard review Finance updates Actual results monthly Monthly Business Metrics Review 19
  20. 20. Performance Excellence How do we track & measure? Power Projects “One Pagers” Score Card Minitab Statistical Testing 20
  21. 21. Performance Excellence 21
  22. 22. Check-In Standardization ORD Avis Performance Excellence Run Date July 2008 November 1st, 2007 Champion 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 650 550 450 350 250 150 AUG SEP Rick Thiele Keys Replaced / Lost & Found Items 750 50 Juanita Chaidez PEx Leader CSR Behavior Observations Robert Jarrett Process Owner OCT NOV DEC 150 15 10 110 90 70 5 50 Keys Goal: Less than 5 0 JAN FEB MAR APR MAY JUN JUL Total Observations 565 349 395 694 267 287 295 Keys Replaced % Correct 94% 95% 98% 93% 93% 93% 97% Lost & Found Items % Check Ins Charged Fuel 130 L&F Goal: Less than 120 30 JAN FEB MAR APR MAY JUN JUL 8 6 3 4 4 4 148 135 125 134 103 99 AUG SEP OCT NOV DEC 10 3 82 # of Damage Vehicles w/o Reports 55% 60 50% 50 45% 40 40% Goal: Over 40% 35% 30 30% 20 25% 10 20% Check Ins Charged Fuel 22 Goal: Less than 10 JAN FEB MAR APR MAY JUN JUL 49% 50% 45% 49% 45% 42% 44% AUG SEP OCT NOV DEC 0 # of Damage Vehicles w/o Reports JAN FEB MAR APR MAY JUN JUL 57 60 65 30 15 9 10 AUG SEP OCT NOV DEC
  23. 23. Performance Excellence Score Card One Place to view results Tracking all current projects Tracks Performance metrics separate from financial metrics Easy to read “Red”, “Yellow” or “Green” status for projects. 23
  24. 24. Example “ScoreCard”
  25. 25. Performance Excellence Business Metrics Statistical Review using Minitab Comparing:  Run v Non Run Locations  Pre Run v Post Run Ensures project success and sustainability beyond financials 27
  26. 26. Performance Excellence Business Metrics – Run v nonRun Optimize Flow - nonRev's as % of Total Run v nonRun Statistics Mean Test Is Non Rev % Ru less than Non Rev % no? 0 0.05 0.1 > 0.5 Yes No P = 0.000 The mean of Non Rev % Ru is significantly less than the mean of Non Rev % no (p < 0.05). Non Rev % Ru Non Rev % no Sample size Mean 90% CI Standard deviation 14 0.20571 (0.1683, 0.2432) 0.079137 14 0.31621 (0.29968, 0.33275) 0.034940 Difference between means* 90% CI -0.1105 (-0.15072, -0.070280) * The difference is defined as Non Rev % Ru - Non Rev % no. 90% CI for the Difference Does the interval include zero? Comments -0.16 -0.12 -0.08 -0.04 0.00 Distribution of Data Compare the data and means of the samples. Non Rev % Ru -- Test: You can conclude that the mean of Non Rev % Ru is less than Non Rev % no at the 0.05 level of significance. -- CI: Quantifies the uncertainty associated with estimating the difference from sample data. You can be 90% confident that the true difference is between -0.15072 and -0.070280. -- Distribution of Data: Compare the location and means of samples. Look for unusual data before interpreting the results of the test. Non Rev % no 0.1 0.2 0.3 0.4 28
  27. 27. Performance Excellence Business Metrics – PreRun v Post Run Select & Go VOTC 'Rental Car Received' Current Period v Prior Period Statistics Mean Test Is Car Rec Ru_1 greater than Car Rec Ru_2? 0 0.05 0.1 > 0.5 Yes No P = 0.011 The mean of Car Rec Ru_1 is significantly greater than the mean of Car Rec Ru_2 (p < 0.05). Car Rec Ru_1 Car Rec Ru_2 Sample size Mean 90% CI Standard deviation 16 5.5411 (5.514, 5.569) 0.062739 16 5.4698 (5.4263, 5.5134) 0.099340 Difference between means* 90% CI 0.071323 (0.021149, 0.12150) * The difference is defined as Car Rec Ru_1 - Car Rec Ru_2. 90% CI for the Difference Does the interval include zero? Comments 0.00 0.03 0.06 0.09 0.12 Distribution of Data Compare the data and means of the samples. Car Rec Ru_1 -- Test: You can conclude that the mean of Car Rec Ru_1 is greater than Car Rec Ru_2 at the 0.05 level of significance. -- CI: Quantifies the uncertainty associated with estimating the difference from sample data. You can be 90% confident that the true difference is between 0.021149 and 0.12150. -- Distribution of Data: Compare the location and means of samples. Look for unusual data before interpreting the results of the test. Car Rec Ru_2 5.3 5.4 5.5 5.6 5.7 29
  28. 28. Performance Excellence The Path to Replication Managing the Pipeline of Projects
  29. 29. Performance Excellence Manage the replication schedule
  30. 30. Performance Excellence Manage the New Project Pipeline
  31. 31. Performance Excellence Recapping the path to replication Idea Assignment of “Original Project” Shepherd towards replication Test in other locations Develop Info Map Package Replication Instruction call Begin Replicating
  32. 32. Performance Excellence Key Components Communication Accountability Tracking System Measurement Reporting Financial Manage Project Pipeline 34
  33. 33. Performance Excellence 35 Thank You Joe Hulseman Avis Budget Group Joseph.Hulseman@AvisBudget.com
  34. 34. PDU Credits This webcast session entitles you to obtain 1 PDU towards your PMP as per the PMI Organization. This session appears on www.pmi.org web site page. Continuing Certification Requirements System: https://ccrs.pmi.org/search Course information: • Rep #: 2750 • Provider Name: Upland Software • Course ID: 11132013 • Program Name: Effective Strategies for Replicating Projects Globally

×