lean six sigma - expanding value inside & outside your company - lss xerox

© 2004 Xerox Corporation. All Rights Reserved.

CONFIDENTIAL Xerox Private Data 1 CONFIDENTIAL Xerox Private Data 1

Christine StephensXerox Global Services, Inc.

Lean Six SigmaExpanding Value Inside & Outside Your Company

CONFIDENTIAL Xerox Private Data 2 2CONFIDENTIAL Xerox Private Data

Discussion Topics

Evolution of Six Sigma at Xerox

Adding {Lean} to the Six Sigma Process

Lean Six Sigma Tools & Processes

Extending the power of Lean Six Sigma to our clients: Intercontinental Hotel Group Electronic Classroom of Tomorrow Monroe County Sheriffs Department


Evolution- Six Sigma at Xerox

Internal Back Office2001

Internal Manufacturing 1998

Past Present

External Client Opportunities

2002


1989

Xerox CorporationBusiness Products and Systems

Malcolm BaldrigeNational Quality Award

1980

Fuji Xerox

Deming Prize

1997

Xerox ISO

All major Xerox manufacturing sites worldwide receive ISO 14001 certification

Xerox Quality and Innovation

1997

Xerox Business Services

Malcolm BaldrigeNational Quality Award

1990 Rank Xerox NetherlandsNetherlands Quality Award

1992 Xerox de ColombiaColombian Quality Award

1992 Rank Xerox BelgiumBelgian Quality Award

1989 Xerox CanadaCanada Award for Business Excellence:Gold Award, Quality

1987 Rank Xerox France, LilleFrench Government Citation

1984 Rank Xerox UK, MitcheldeanBritish Quality Award

1992 Rank Xerox Hong KongThe Hong Kong ManagementAssociation Quality Award

1990 Rank Xerox AustraliaOutstanding Service Quality

ImprovementAward of Australia

1994 Xerox de ArgentinaArgentine National Quality Award

1994 Rank Xerox PortugalPortuguese Quality Award

1994 Rank Xerox NorwayNorwegian Quality Award

1995 Xerox UruguayUruguayan National Quality Award

1996 Fuji Xerox (Wakaba QC Circle)Gold Award from 25th Annual All-JapanInvitational QC Convention

1996 Rank Xerox Middle East/AfricaDubai Quality Award


Integrates customer focus with clear linkage to business strategy / objectives

XLSS - Strategy

Supported by infrastructure and resource commitment to focus on key business issues and critical to customer opportunities.

Builds on quality legacy with full arsenal of industry proven Lean and Six Sigma processes and tools


State-of-the-Union: 2005

27 Full-time deployment managers

> 500 active Black Belts have achieved certification, completed or started training in 2004

> 2,000 Senior executives have completed leadership workshops

> 1,700 Active Green Belts

> 17,000 in Yellow Belt training + many other on-line courses

© 2004 Xerox Corporation. All Rights Reserved.

CONFIDENTIAL Xerox Private Data 7 CONFIDENTIAL Xerox Private Data 7

Lean Six Sigma Tools & Processes


Adding to the Power of Lean

Goal – Reduce waste and increase process speed

Focus – Identify non-value add steps and causes of delay

Method – Value Stream Tools, Kaizen events

LeanSpeed + Low Cost

Lean Speed Enables Six Sigma Quality

(faster cycles ofexperimentation/learning)

Goal – Improve performance on Customer CTQs (Critical To Quality)

Focus – Use DMAIC/DFSS processes to eliminate variation

Method – Management Engagement, Deployment Managers, and Black Belt Projects

Six SigmaCulture + Quality

Six Sigma Quality Enables Lean Speed

(fewer defects means less time spent on rework)


6 Quality + Lean Process Control

Six Sigma Improves Quality of Value Add StepsSix Sigma Improves Quality of Value Add Steps

±6±5±4±3# of Steps

99.986499.07477.946.2940

99.993299.53688.2925.0820

99.996699.76893.9650.0810

99.997699.83995.73361.637

99.9996699.976799.37993.321

Overall Yield vs. Sigma(Distribution Shifted ±1.5s)

Lean

Red

uces

Non

-Val

ued

Add

Ste

psLe

an R

educ

es N

on-V

alue

d A

dd S

teps

Lean Six Sigma Drives Quality, Speed and Cost Simultaneously

Lean Six Sigma Drives Quality, Speed and Cost Simultaneously


Focus on Customer Needs

Without Lean Six Sigma Discipline…

Conjecture/assumption/myths about what customers want

Processes based on internal convenience/cost

Limited efforts at tracking customer satisfaction

Customer-focused data not communicated or used

With Lean Six Sigma Discipline…

Customer requirements based on careful assessment

Processes designed and executed to fulfill customer requirements

Multi-faceted, on-going “voice of the customer” effort

Customer-focused data key to managing the business, short- and long-term

Tools: VOC, QFD, CTQ, Kano, Conjoint, etc.


When to use Xerox Lean Six Sigma

When to Use:

You have a challenging goal to reach or issue to solve Driven by the Business Unit strategy Issues that are valuable for the Business Unit to resolve Problems that have stood the test of time Solution is not known

You are willing to commit people to identify and resolve the issue

You want a more robust solution than traditional methods can provide

You want to encourage the upward flow of ideas and build team spirit

You want group ownership of a course of action

When NOT to Use:

You don’t have a specific challenge or clear issue to solve

You already have a solution and a course of action

You don’t have a process to improveWith materials from the George Group, 2003


Project Types

Setup Reduction Finance Month End Closes HR Hiring Procedures Marketing Event Setup Purchase Order Setup & Issue receiving & Inspection

Process Flow Improvement Office Document Assessment Helpdesk Cycle time

Improvement Order to Install Cycle Time Trial Equipment Recirculation

Generic Pull Systems Order Management Product Development Info Tech Repair requests

Replenishment Pull System Purchased Part Replenishment

Stocking Strategy Product Rationalization Service / warranty Parts Distribution Channel management

Value Added Time Improvement Customer Facing Operations Outsourcing Solutions

With materials from the George Group, 2003


Selecting LSS Projects

Identify value levers in the business

• Strategic

• Financial

• Customer

• Operational (Process)

Prioritize value levers

Translate Value Levers into Opportunity Areas

Translate Opportunity Areas into Project Ideas

Score each project as High / Med / Low for Benefit and Effort

Fill in Benefit / Effort Matrix

Review plotted results

Select highest priority opportunities for further analysis

Assign opportunities to project sponsors for project definition

Complete Draft Project Charters

Evaluate projects using Evaluation Criteria

Update Benefit / Effort Matrix

Review plotted results

Prioritize projects Schedule project

launches based on resource availability

Reduce Projects-in-Process

Identify Value Levers

1Identify Project Opportunities

2Screen Initial List of Opportunities

3Scope and Define Projects

4Prioritize List of Defined Projects

5

With materials from the George Group, 2003


“Catch Ball” Process

The charter defines the team’s mission.It includes the following elements:

Business Impact Opportunity or Problem Statement Goal Statement Project Scope Project Plan Team Selection

The Project Charter does NOT solve the problemIt is a living document, that will change over time...

Project Chartering


DMAIC Process

D

Define

MMeasure

AAnalyze

I

Improve

C

Control

Define the opportunity from both business and Customer perspective

Understand the process and its performance

Search for the key factors ( critical X’s) that have the biggest impact on process performance and determine the root causes

Develop improvement solutions for the critical X’s

Implement the solution and control plans

•Refined Project Charter•Value Stream Map•SIPOC Map•Voice of the Customer•RACI charts

TOOLS USED

•Operational definitions•Data Collection Plans•MSA or Gage R&R•Control Charts•Paretos•Histogram

•Cause & Effect•Fishbone•Brainstorming•Basic Statistical tools•Hypothesis testing•FMEA•Regression•ANOVA

•Line Balancing•Benchmarking•Constraint identification•Solution Selection matrix•Pilot and Simulation

•Control Charts•SOP’s•Communication Planning•Mistake proofing•Project replication


DMAIC Storyboard

Suppliers Inputs Process Customers Requirements

Swagelok Users

Help Desk

On-Site Team

XGS Parts Vendor

XGS Purchasing

Management Teams

Service 800

VSI/D1

Step 1: User request service via XGS Help Desk.

Outputs

Step 2: XGS Help Desk accepts call and either resolves and closes ticket or forward to On-Site Team or 3rd

party vendor.

Step 3: On-Site team troubleshoots and closes call or transfers to internal Swagelok techs or orders parts

Step 4: Parts received in call is finished or inventory replenished

See Below Functional equipment

Customer Sat

Reporting

Closed PH Ticket

Completed ASTA WO

Replenished part

Installed/repaired device

Productive users

Completed IMAC

Users

Help Desk

On-Site Team

Swagelok IT

Dispatch (Cinn

Admin)

Third party cable

Swagelok network

Help Desk

On-Site TeEam

Technology Access

Technology (E-Mail,

Power Help, ASTEA,

Phones)

XGS Admin

XGS portal

Nextel/Pager

Step 5: Power Help Ticket is updated and closed out.

User Info

Non functioning

equipment

Knowledge of Help Desk

Knowledge of On-site

E-Mail Request

ASTEA Work Order

Email requests

Powerhelp call forms

Replacement Parts

MRB

Process documentation

IMAC requests

Accurate user info

Ticket Arrives inQueue

T icket Acc epted(2 min – 2 Hrs

Depending on techtraveling in

m eet ings etc)

Contac t U ser(5 - 20 min may vary

d ue to attemp t to fix via

p h on e)

Is user available?(50 % of T ime u ser

is available)

N O

Swagelok Trouble Ticket Process

Get details f romuser and

determ ine if call is

in correct queue

YES

Leave user voiceor e-m ail

(1 – 5 min )

Put Call in

appropriate callstatus to s top

c loc k

Is call in correctqueue?

(Co rrect q ueu e 95%

o f th e time)

Put call in correc tqueue

En d o f DSProcess

(1 – 5 min )

NO

YES

Is call resolveableover the phone?

5-20 minYES

Set tentat ive ET Aw ith user.

NO

Update T ic ket &move to

appropriate s tatus(5 – 15 min )

Arrive On-Site(5 – 60 min )

Is user available.U ser available 70%

o f time

Can work st ill be

perform ed w ithout userbeing present?

(Wo rk can b e performed90% o f T ime)

N O

Leave Voice or e-

m ail and note.(Wo rk can sti l l b ep er fo rmed 95% o f

th e T ime)

N O

Update T ic ket &move to

appropriate s tatus(5 – 15 min )

PerformT roubleshoot ing

YES

YESPro b lem Typ es

H ardw areApplicationOSProf ileGroupw arePlanningProjec tLANW ANM anufacturing

T ech m ay have to call userback m ore than once20-25 % of the t im e

Repair D evice

Update & C losePower Help Ticket

DefineDefine

Brainstorm!!!

VOC/ VOBAnalysis

Process Mapping

Ishikawa Diagram

68118665937 3.8 6.637.252.4

100.0 96.2 89.6 52.4

1800

1600

1400

1200

1000

800

600

400

200

0

100

80

60

40

20

0

Defect

CountPercentCum %

REQUEST

Perc

ent

Cou

nt

Pareto Chart for Sub Type

AnalyzeAnalyze

SolutionsWorkshop

ImproveImprove

Implement Solutions

MeasureMeasure

ControlControl

SIPOC

Prioritize Root Causes

FAILURE MODES & EFFECTS ANALYSIS WORKSHEETProcess/Product: Hotel Check-in FMEA Date (Original): 07/10/2000Black Belt: StudentFMEA PROCESS ACTION RESULTS

Item/ Process Step

Potential Failure Mode

Potential Effect(s) of Failure

Seve

rity Potential Cause(s)

of Failure

Occ

urre

nce

Current Controls

Det

ectio

n

RPN Recommended

ActionsResponsibility and Target

Date CompletionAction Taken

Sev

erity

Occ

urre

nce

Det

ectio

n

RPN

1 - Greet Guest Guest not greetedGuest has poor 1st impression of hotel

4 Lack of training 1

Train all lobby staff on greeting guests

3 12

Have information supervisor monitor

and note exceptions

Check in / out / info supervisor - Ongoing

0

1 - Greet GuestGuest not greeted in friendly manner

Guest has poor 1st impression of hotel

5Lack of training,

staff confusion or stress

3

Train all lobby staff on greeting

guests, simpler queue

3 45

Have information supervisor monitor

and note exceptions with

immediate feedback

Check in / out / info supervisor - Ongoing

0

2 - Take Guest Information

Clerk has difficulty in understanding

guest

Much of the information may have to be repeated

- extending wait time6

Lack of training in what to ask for

4 3 72Train staff to ask

for payment card or license up front

Lobby and Training managers - 9/15/00

0

2 - Take Guest Information

Guest information

not accurate in system

Extended wait time - building queue

6

Reservation info entered improperly, guest/agent gave wrong info, guest

changed preference

3

Repeat back res. info. to guest/agent while on line

2 36

Train staff to apologize for error.

Have system compile all check in

changes and develop scorecard for reservations. Pareto for most common causes

Lobby and reservations managers - 10/1/00 for scorecard with ongoing

monitoring

0

3 - Verify Guest Credit

Guest wants to change pmt method


6

Reservation info entered improperly, guest/agent gave wrong info, guest

changed preference

3Process check

in with new card

1 18

Train staff to apologize if an error. Review reservation

scorecard. Have

Lobby and reservations managers - 10/1/00 for scorecard with ongoing

monitoring

0

3 - Verify Guest Credit

Credit system down / slow


6Credit card service is down, slow line

throughput2

Installed dedicated

LAN lines and have

reservations place a "hold" on credit card

1 12

Instruct staff to authorize check-in if a hold is in place

and run credit when not busy. Have guest sign check in as usual

Lobby and Training managers - 9/15/00

0

FMEA

Imp

ort

an

ce

Potential Solutions

De

po

t S

olu

tio

n

Inc

rea

se

Dis

tan

ce

Re

loc

ate

Te

ch

s

Te

ch

Re

vie

w P

roc

es

s

Te

mp

to

Pe

rm N

ew

Hir

es

Se

nd

JC

I C

all

s t

o X

GS

All

3rd

Pa

rty

So

luti

on

Re

dir

ec

t lo

w v

olu

me

are

as

to 3

rd P

art

y

Co

ns

oli

da

te R

es

ou

rce

s

Ac

qu

ire

3rd

Pa

rty

Ven

do

r

Concept #

So

luti

on

Cri

teri

a

Reduce Cost

Reduce 3rd Party Usage

Meet SLAs

+ (plus) Pugh Sums

- (minus) Pugh Sums

Concept Rating (+'s and -'s)

Concept Rating (weighted by Importance)

1 2 3 4 5 6 7 8 9 10

1 0 0 0 0 0 0 0 0 0

0 1 0 0 0 0 0 0 0 0

T g g i j j g i i g

i j j k j j g g k i

g U j j K k j j k i

9.0

3.0

9.0

1 -1 0 0 0 0 0 0 0 0

-27

.0

-10

5.0

-69

.0

87

.0

12

.0

3.0

-99

.0

63

.0

69

.0

27

.0

ITS 3rd Party Solution Pugh Matrix

Pugh Matrix


Define

Complete Project Charter Create High Level Process Map (4-6 Steps) Adjust Scope If Necessary Collect VOC/VOB Translate VOB/VOC Into Measurable CTQ Metrics Perform Stakeholder Analysis Create RACI Diagram Identify potential impacts to internal controls Identify other impacts or requirements (EPA, SOX, etc.) Define Tollgate


Measure

Micro Level Process Mapping Create Data Collection Plan Perform Measurement System Analysis (Gage R & R) Document Operational Definitions Determine Current State Performance Capability Validate Proposed Business Impact Measure Tollgate


Analyze

Complete Value Add Analysis of Detailed Process Maps

Brainstorm Potential Root Causes Y=f(x) Perform Root Cause Analysis to Identify Variation &

Gaps Identify “Critical Few” inputs affecting your Output Validate Business Impact Analyze Tollgate


Improve

Brainstorm Potential Solutions Prioritize Solutions Select Recommended Solution(s) Use Data to Provide Predicted Improvements Review Potential Solutions with Sponsor & Stakeholders Conduct FMEA Pilot Results Create High Level Implementation Plan Create Communications Plan Revisit Potential Internal and Regulatory Controls Improve Tollgate


Control

Fully Implement Solution(s) Create Dashboards Create Control Plan Identify Process Owner & Create Transition Plan Monitor & Document Process Results Create Project Storyboard & Lessons Learned Control Tollgate Communicate Business Results to the Organization Celebrate With Your Team


Cost

Speed or Delivery

Quality

Customer Satisfaction

Cost Per Device

Cost Per Employee

Device Uptime

SLA Metrics Met

Actual $51.25Target $32.50


Actual 2.0%Target 3.5%

Actual 4.8Target > 4 of 5

Actual 4.5Target 9.0

Actual 4.5 hrsTarget 6 hrs

Actual 1 hrTarget 2 hrs

Fix TimeActual 4.5Target 4.5

Mean Time to Repair

Response Time

Dashboard Concept

Overall

12108642

USLProcess Data

Sample N 100StDev(Within) 2.25841StDev(Overall) 2.39212

LSL *Target *USL 9Sample Mean 6.21762

Potential (Within) Capability

Overall Capability

Pp *PPL *PPU 0.39Ppk 0.39Cpm

Cp

*

*CPL *CPU 0.41Cpk 0.41

Observed PerformancePPM < LSL *PPM > USL 130000.00PPM Total 130000.00

Exp. Within PerformancePPM < LSL *PPM > USL 108973.12PPM Total 108973.12

Exp. Overall PerformancePPM < LSL *PPM > USL 122385.02PPM Total 122385.02

WithinOverall

Process Capability of C2

12108642

USLProcess Data




Overall Capability


Cp

*





WithinOverall


12108642

USLProcess Data




Overall Capability


Cp

*





WithinOverall



Dashboard Rollup Concept

Cost

Speed or Delivery

Quality


Cost Per Page

Cost Per Employee

Device Uptime

SLA Metrics Met









Mean Time to Repair

Response Time

Overall

12108642

USLProcess Data

Sample N 100StDev(Within) 2.25841

StDev(Overall) 2.39212


Potential (Within) C apability

Overall C apability

Pp *

PPL *PPU 0.39Ppk 0.39Cpm

Cp

*


Observed Performance

PPM < LSL *PPM > USL 130000.00PPM Total 130000.00

Exp. Within Performance


Exp. O verall Performance


Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


Cost

Speed or Delivery

Quality


Cost Per Page

Cost Per Employee

Device Uptime

SLA Metrics Met









Mean Time to Repair

Response Time

Overall

12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


Cost

Speed or Delivery

Quality


Cost Per Page

Cost Per Employee

Device Uptime

SLA Metrics Met









Mean Time to Repair

Response Time

Overall

12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


Cost

Speed or Delivery

Quality


Cost Per Page

Cost Per Employee

Device Uptime

SLA Metrics Met









Mean Time to Repair

Response Time

Overall

12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


12108642

USLProcess Data





Overall C apability

Pp *


Cp

*








Within

Overall


City Dashboards

County Dashboards

Region Dashboards

State Dashboards


Tollgate Reviews

Ask the questions that need to be answered at each phase Ensure due diligence with the work process Properly address ID of critical factors that will influence results

The following people are involved in a tollgate Review:

Project Sponsor- needs to agree with the path being taken by the team, ensures CTQ’s are being addressed and proposed results will affect the bottom line

Deployment Manager ensures Customer / Sponsor and Black Belt have working relationship to attack the project and that resources are allocated

Black Belt illustrates critical thinking and organization skills, project management skills, uses statistical and lean tools and interprets results

Master Black Belt oversee methodologies used by Black Belt; statistical tool usage, Lean concepts applied


Sharing the Power of Lean Six Sigma

Monroe County Sheriffs Dept.

Electronic Classroom of Tomorrow

Intercontinental Hotel Group


Case Study

Employed Lean Six Sigma methodology

Digitized and streamlined accident report process

Created web-based document access system

Integrated existing systems

Reduced cost of processing an accident report from $28 to $8, ($500K/yr savings)

Reduced cycle time from as much as 3 weeks to less than 3 days

Reduced time spent by deputies on accident reports from 30 to 5 minutes

Created revenue stream from charging for accident reports, worth $32K/year

Client ChallengesClient Challenges

Monroe County Sheriffs Department

Balance $100M budget

Improve quality of service in accident report management

Eliminate backlog of more than 3,000 records and over 4 months of data entry

Free deputies from paperwork, so they can spend more time ensuring public safety

Measurable ResultsMeasurable Results

SolutionSolution

New York State’s largest sheriff’s office


Case Study

Employed Lean Six Sigma methodologyFocused on front of process to achieve quick resultsAutomated manual processesStreamlined process steps Created tracking procedures to measure cycle time

Reduced process cost from $43 to $25 per application

Increased revenue by $4.5 MM/year

Met accelerated deadline


ECOT

Accelerate enrollment cycle time

Reduce overall per-student cost of enrollment

Increase revenue by increasing process capacity/enrollment

Deliver results quickly (2 month window) to impact current year’s enrollment


SolutionSolution

First and largest online school in Ohio


Case Study

Employed Lean Six Sigma methodology

Implemented remote control to minimize deskside visits

Standardized OS and IT environment

Moved administration offsite

Achieved savings goal of $1.2 million/year

Reduced cycle time for deskside software related problems from 21 to 9 Hours.

Maintained/Improved customer satisfaction across 5 key metrics:

Overall customer satisfaction Knowledge of staff Professionalism Technical ability Fix time


Intercontinental Hotels Group

Needed to cut costs to stay competitive during post-9/11 travel downturn…

While at the same time improving customer satisfaction with IT support services


SolutionSolution

A leading hospitality company, managing brands such as: Holiday Inn Crowne Plaza Candlewood Suites


Formula for Success

1) Select projects based on impact to the business and/or customer

2) Identify Sponsors with the authority to break down barriers

3) Ensure commitment for budget and team resources

4) Operations leaders must be engaged in the process


Summary

Xerox is rapidly moving Lean Six Sigma concepts and tools from manufacturing and supply chain into all business areas of the company and to our customers.

Project selection process and infrastructure focused on the customer, business strategies & critical priorities

Xerox Lean Six Sigma is customer centered, data driven & the way we will achieve results in all business areas


Q & AQ & A

??


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