Six Sigma Presentation

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Six Sigma Presentation

  1. 1. 6 Sigma Principals to Help Quantify the Voice of the Customer By: Michael Maffei General Manager, Customer Service Caterpillar Financial (AccessAccount)
  2. 2. Agenda By the end of this session, you will… • How to identify the Voice of the Customer (VOC) and how that translates to Six-Sigma • Does Six-Sigma really matter when it comes to evaluating your call center. • How to start integrating Six-Sigma into your call center organization. • Evaluating the opportunity costs of Six Sigma.
  3. 3. 6 Essential Themes of 6 Sigma • There is a Genuine focus on the customer. • Data and fact-driven management is essential. • Process Focus, Management and Improvement. • Proactive and Involved Management at all levels. • Boundary-less Collaboration and Involvement. • A Drive for Perfection and a Tolerance for Failure.
  4. 4. What is the Goal of 6 Sigma? • To increase profits by eliminating variability, defects and waste that undermine customer loyalty.
  5. 5. 6 Sigma Critical Success Factors Business Process Framework Quantifiable Customer Measures & & Results Market Network Committed Committed Leadership Incentives Leadership & Strategy is critical to Accountability Integration the success Full Time of 6 Sigma 6 Sigma Team Leaders Leadership is KEY
  6. 6. 6 Sigma Methodology
  7. 7. 6 Sigma Processes DMEDI: Create new DMAIC: Improve processes, products, existing processes, services products, services, Leverage and sustain the gains achieved by improvement and creation
  8. 8. 6 Sigma Roles The Executive Leadership must inspire, own, fund, and • Executive Leadership drive 6 Sigma. They must lead • Deployment Champions with clarity, consistency, and commitment. Walking the • Project Sponsors talk is critical. They identify greatest areas of opportunities • Process Owners for the enterprise and business unit. • Master Black Belts • Black Belts • Green Belts • Yellow Belts
  9. 9. 6 Sigma Roles • Executive Leadership Deployment Champions are responsible for development and • Deployment Champions implementation of 6 Sigma deployment plans and • Project Sponsors implementation for their business units. DCs assist business unit • Process Owners leadership with resource allocation, prioritization of projects • Master Black Belts and coordinate the project • Black Belts selection with Project Sponsors. • Green Belts • Yellow Belts
  10. 10. 6 Sigma Roles • Executive Leadership Project Sponsors are often line managers / process owners and • Deployment Champions are responsible for identification and sponsorship of 6 Sigma • Project Sponsors Black Belt projects. They work with Deployment Champions on • Process Owners project prioritization and selection and oversee the details • Master Black Belts associated with the deployment • Black Belts plans and implementation. This is a Critical role…this is the • Green Belts “Rubber meets the road” position within 6 Sigma. • Yellow Belts
  11. 11. 6 Sigma Roles • Executive Leadership • Deployment Champions Process Owners are responsible for sustaining • Project Sponsors the gains. They inherit the • Process Owners new or improved process and ensure that the • Master Black Belts process remains in control. • Black Belts • Green Belts • Yellow Belts
  12. 12. 6 Sigma Roles • Executive Leadership Master Black Belts are our internal gurus. They are 6 Sigma experts • Deployment Champions who train and coach Black Belts. • Project Sponsors They are accomplished Black Belts who demonstrated exceptional • Process Owners technical expertise and leadership qualities. They are full-time • Master Black Belts coaches dedicated to making the Black Belts successful. • Black Belts • Green Belts • Yellow Belts
  13. 13. 6 Sigma Roles • Executive Leadership Black Belts are the full-time, trained • Deployment Champions leaders of 6 Sigma projects. An • Project Sponsors experienced Black Belts will manage a portfolio of 3-5 projects delivering • Process Owners $500,000 in direct, bottom-line benefits. They also are responsible • Master Black Belts for training new Green Belts. Informally they network and • Black Belts collaborate with other Black Belts around the world to benefit the • Green Belts enterprise. • Yellow Belts
  14. 14. 6 Sigma Roles • Executive Leadership • Deployment Champions • Project Sponsors • Process Owners Green Belts work on projects on a part-time • Master Black Belts basis giving approximately • Black Belts 20% of their time to a project and are usually key • Green Belts material or process experts. • Yellow Belts
  15. 15. 6 Sigma Roles • Executive Leadership • Deployment Champions • Project Sponsors • Process Owners Yellow Belts are everyone within the organization and • Master Black Belts must have a general • Black Belts understanding about 6 Sigma. • Green Belts • Yellow Belts
  16. 16. Application of Six-Sigma in Call Centers • Voice of the Customer (VOC) - Provides a means to understand what customers are saying and identifies internal processes that may be causing customer dissatisfaction. • Rep Dissatisfaction - Customer service representatives will often express frustration that they cannot do their job because someone else doesn't do theirs. • Human Resources - Define the new hire process by looking at such factors as the length of time it takes to hire a new employee; • Call Center Technology - Review of systems and processes that are in place and how efficient they are in helping CSR’s perform their jobs consistently. • Call Monitoring & Service Levels – Is the data collected from this forum used to help improve call center processes?
  17. 17. What Do Your Customers Want? The challenge is to understand how your customers define and prioritize the various needs and expectations they have of your call center. Product or Service Features, Attributes, Dimensions, Characteristics Relating to the Superior Quality Function of the Product or Service, Reliability, Availability, Taste, Effectiveness - Also Freedom from Defects. Competitive Pricing Prices to Consumer (Initial Plus Life Cycle), Repair Costs, Purchase Price, Financing Terms, Depreciation, Residual Value Exceptional Service Wait Times, Turnaround Times, Setup Times, Cycle Times, Delays Ethical Business Conduct, Environmental Impact, Business Risk Management, Regulatory Reputable Organization and Legal Compliance
  18. 18. Areas in Call Center to Identify Voice of the Customer • Quality objectives • Customer feedback • Call quality (evaluation score) • Employee satisfaction • First call resolution • Turnover • Errors and rework (accuracy – data entry) • Percent quality monitored • Efficiency objectives • Adherence to schedule • Percent call back • Cost performance • Percent sales conversion • Cost per call • Average interviews per hire • Strategic impact • Percent first call resolution. • Customer satisfaction scores
  19. 19. Six Steps for Successful Implementation 1. Identify the business role of the call center and its core function and processes. 2. Identify key customers and customer needs and expectations. (CCR’s) 3. Accurately measure current performance. 4. Analyze, identify weaknesses and opportunities. 5. Develop and implement process redesign. 6. Assume Control and improve CCR’s..
  20. 20. Call Center Process Measures Determining current process performance What issues are relevant? usually requires the collection of data. When developing a measurement plan ensure that: Who will collect data? Where is the data located? – The data collected is meaningful When will it be collected? What additional assistance is required? – The data collected is valid – All relevant data is collected What you want to do with the data? concurrently What precise data will be collected? Used daily, weekly, etc. Identify trends in the process data Performance measurement? Identify deficiencies in the process Causes of process deficiencies? Demonstrate current process performance Do we analyze all relevant data or a sample? Identify variation in a process Identify a cause and effect relationship What is the right sample size? What is the right frequency? What will be the sample selection method?
  21. 21. Analyze Findings, Define Critical Customer Requirements (CCRs) Voice of the Customer Key Customer Issue Critical Customer Requirements Actual customer The real customer The specific, precise and statements and comments concerns, values or measurable expectation which reflect their expectations regarding a which a customer has perception of: product or service. regarding a product or service. 1. An attribute of a Void of emotion or bias, the product or service statement describes the 2. An experience with a primary issue a customer  Add additional menu items to product or service or the voice system (bad) may have with the product or its delivery  Customer reaches correct services. Describes the person the first time within 30 3. An encounter or experience surrounding the seconds. (Good) experience with a attributes of the product or business processes service expected or desired or representative by the customer. “I’m always on hold or end up talking to the wrong person” Wants to talk to the right person quickly
  22. 22. Process for Developing Customer-Focused Business Strategy 1. Identify 2. 3. Collect 5. Develop 4. Analyze Process Information Develop Voice of the Findings/ Measures to Needed from Research Customer Define CCRs Monitor Status Customers Plan (VOC) • What business • Determine • Train • Analyze findings • Select input, decisions do we research interviewing team output, and need to make? collection • Display in process indicators methodology • Pilot graphical format • What questionnaire • Establish output information do we • Develop • Convert VOC into performance need to make structured • Modify CCRs targets those decisions? questionnaire questionnaire, as needed • Develop process • What data do we • Develop to monitor need for each analytical plan • Collect performance piece of information from information? customers
  23. 23. Understanding Your Role • Management’s view of things is likely to be different than yours. While there is no way to know everything that causes this difference in perspective, keep in mind that scheduling, budgeting, and other issues are almost certainly involved. • Realize that your team will have developed a knowledge of the process being reviewed that exceeds management’s. • Make sure that you include the right information needed by the stakeholders in the organization so they can make the right decisions about your proposed solution.
  24. 24. Strengthening Your Case • Explain how the solution will fit into the organization – Who will be affected? How? • Communicate with all parties who may be affected by your recommendation. • Review your implementation plan & solicit feedback. • Make sure everyone understands why the solution is needed. • Be prepared to sell your recommendations. • Your goal is to present solutions that will work and be accepted.
  25. 25. Thank You Questions

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