process improvement for pabit solutions

PABITSolutions Inc.Introduction to Process Improvement –MGS 618 – Process Analytics and IT Risk

Management

Ayan BoseShweta VaidyaSnehal DattaSneha SalianSourav MukherjeeVibha Narasimha12/18/2015

DEFINE

24/10/2014

Project Outline

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Company background●PABITSolutions, Inc. is a small software company

generating a net worth of $10 million annually●CEO of the company - Pamela Anne Bronkowski ●The company has 5 centers of operation across

the US; two sites house the product development, sales and marketing, software engineering, accounting, and shipping departments. The other three sites are call centers

●Each call center handles calls for their region for Customer Sales, Onboarding, Customer Servicing and Customer Complaints

4/10/2014

Project Outline

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What has been going right●Company is expanding with multiple centres across all over the United States

●Increase in company departmental growth - Product development, sales and marketing, software engineering, accounting and shipping departments

●Business expansion plan under process●Talented resources with dedicated Subject Matter Experts(SME’s)

Project Outline

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What gives cause for concern●Customers dissatisfied with PABITSolutions

Customer Service and Onboarding processes● High performance variation ●Increase in Customer Abandonment rate●Unpredictable onboarding process●Increase in Customer Hold Time●Employees unwilling to analyse and accept

problems in their areas of expert

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Problem StatementCustomers are becoming dissatisfied with PABITSoln Customer Service & Onboarding processes. The problem is critical and it is occurring during the customer onboarding phase. The data source is Top Executive Summary Dashboard of the PABITSolutions dilemma.

Project Boundaries• Process Starts with:Customer placing a call or going to the online website • Process Ends with:Customer receiving an email

containing a password and welcoming them to PABITSolutions

In Scope:• Customer

data entry screens

• Manual data entry to OBS from screenshot

• Hotline availability

• Unfinished cases saved to OBS

• Tracking of abandoned onboarding

Out of Scope:• Timing of

customer calls to hotline

• Customer not knowing input for required fields

• Customer not responding to follow ups.

Goal StatementThe average monthly abandonment rate has increased to 35.33 in the last year (Oct ‘12 to Sep ‘13) from 17 in the previous year (Oct ‘11 to Sep ‘12) . It needs to be reduced to a maximum average of 8 in the course of the next 3 months.

BenefitsQuantitative Qualitative

Reduce expense

Improved customer engagement

Reduce errors and rework of manual entry

Decrease in exposure of customers’ sensitive information

Reduce abandonment rate

Better business reputation (helps in getting loan)

Preliminary TimelineProject Activities Time/ DateDefine: Project Pre-work, Project Scope, 2 WeeksMeasure: SIPOCValue Stream Mapping 2 Weeks

Measure: Baseline Data Time, Cost, Quality and Volume

2 Weeks (concurrent)

Analyze: Root Cause Identified 2 WeeksImprove: Solutions Selected 1 WeekImprove: Cost/Benefits Case 2 WeeksImprove: Implementation Plan Drafted 2 WeeksControl: Benefits Reporting Started, Control Plan 1 Week

Project Scope Document

Project TeamProcess Support

Project Lead

Joe Smith Champion Rupert Fries Process Owner

Peri Elfman MBB/ coach

Vibha Narsimha

Business Experts

Team Member

Snehal Datta Team Member

Sourav Mukherjee

Team Member

Sneha Salian Team Member

Shweta Vaidya

Project Support

Analytical Ayan Bose Compliance/Legal

Paul Premier IT Ruth Gipper Finance Deb Glass

Measure

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Current State Map

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Current State Maps

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The style map chosen is Swim Lanes which helps:● Identify who does what

1. Onboarding specialist a. Manual data entry to Onboarding system

b. Send welcome email to customer2. Call center employee

Service customer requests and onboardings3. Supervisor

Inspection of unfinished onboardings● Human-to-human interfaces

Customer with call-center employee● Database-to-database interfaces

Case saved in OBS moved to outbound call queue● Identify flaws in the call center system since its very detailed.

4/10/2014

Current State Maps

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Time, Cost, Quality and Volume metrics

Years Average Onboarding Turn Time in days

Cost of labor/hour for Onboarding

Quality(Hold time in min)

Attempted Onboarding Volume

2013 8 25.95$ 1 27420

2012 25 25.95$ 14 15564

2011 19 25.95$ 8 14376

Data Collection Plan

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● Data collection plan

● Need for Data and learningsThe Data is needed to quantify the waste in

the process with the amount to time taken to do Value-Add, Non Value-Add and Value Enabling processes. This data will be used to get the takt times for the entire process as well as for sub processes.

● Link with Project GoalsThis process will help understand where are

the extra time being spent which is leading to the increase in abandonment rates4/10/2014

Microsoft Excel Worksheet

Data Analysis – Basic Charts

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As per the pareto chart we are able to observe that the main reasons for the obstacles in reduction of waste are:

● Manual handoff errors ● Quality of Data, either due to missing sales or incorrect input by customers.


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From the above charts, for the Region-wise distribution of Onboarding and Abandonment Turn Time, we can conclude the following:

● The onboarding turn time is maximum for the Buffalo West region

● While the abandoned account turn time is maximum for Honolulu

● Onboarding to Abandonment rates are high for Buffalo East and Tucson South which are doing the best while it is the lowest for Tucson North and Honolulu which are not doing well.


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From the above charts of the abandonment rates across the years we can conclude the following:

● The highest abandonment is for the month of March and February.

● The number of abandonment over the years had gone up for 2012 and had come down 2013


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The correlation between abandonment volume and Average Onboarding turnover time is 0.5308 which indicates a moderate positive uphill relationship

Data Analysis

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Descriptive Statistics for Onboarding turn time in 2013 before Lean Six Sigma

Analyze

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Process Map

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Waste Identification

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Waste Identification

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Following wastes have been identified:●Operations: Manual customer data entry for

Onboarding systems●People’s skills: Too many people involved in

multiple steps ●Waiting: Customer wait time until information is

fed into the system is high●Processing: Multiple screens with too many

fields●Quality: Percentage of unfinished onboardings

inspected by supervisor is less ●Inventory: Unfinished onboardings are updated

to the outbound call queue only after 5 days

VA/NVA Table

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Fishbone Diagram

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Fishbone Diagram for Root Cause Analysis

Root Cause

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Following root causes have been identified for Increase in the Customer Abandonment Rate:

●Manual handoffs●Compliance functions not automated●Physical Layout/UI Screens with multiple fields●Dependence on multiple departments●Involvement of multiple people●Redundant Information Collection●Communication Gap●Missing Sales Data

Improve

2412/18/2015

Solution Selection Matrix

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●Solution Selection Matrix attached

●Criteria - defined keeping in mind Steps in Customer On boarding process and Employee Survey report.

●Weightage - maximum weightage has been given to steps directly impacting the customer followed by steps in the process cycle that are key to providing quality service.

12/18/2015

Microsoft Excel Worksheet

Chosen Solution

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● Our primary change will be to to implement a centralized onboarding database storage system.

● This will reduce manual data entry and expedite the Onboarding process while also removing potential manual error.

● Centralized storage will also make coordination between departments easier – one of the key complaint that staff had.

● We will also suggest having 24/7 call centers to avoid missing out on customers who call during non-work hours.

● Also QC review will be more frequent to detect and resolve potential issues sooner.

● Also it is suggested to standardize the versions amongst staff and customers to maintain uniformity and easy problem solving.

Future State Map

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Analyse Pilot: “As is” to “Should Be”

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●Comparison of Current State(As If) to Future State(Should be) Maps using VA/NVA Analysis

●Eliminated almost entire NVA steps in the current process to improve the quality of service

Cost Benefit Analysis

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●Qualitative Benefits● Improved Cycle Time directly linking Web on boarding to

data storage● Improved Customer Engagement● Decreased Exposure of Customer Sensitive Information● Improved Employee Engagement● Better Reputation (Helps in getting Loan)

●Quantitative Benefits● Improved Service ● Reduced errors and rework of manual data entry ● Reduce Customer abandonment ● Reduced Expense

12/18/2015

Cost Benefit Analysis

3012/18/2015

Implemented Solution Before process cost

New Process costs

Change

1.Web On boarding: Develop UI to On boarding Systems Interface for direct data storage(Standardized Versions)

30$/5000 sheets, that is, 0.006$ per sheet

30$/10000 sheets, that is, 0.003$ per sheet

Reduction in paper costs as there is no need to take printouts of screenshots

2.Onboarding hotline : Establish a 24/7 customer on boarding Hotline

56$ per account 25$ per account Reduction in Abandoned Onboarding cost per account

3.Onboarding hotline: SLA for each step of the onboarding process

38.95$ per hour cost of labor for service calls

20$ per hour cost of labor for service calls

Reduction in cost of labor per hour for service calls as potential risk of unfinished onboarding is identified at each step to reduce unfinished onboardings.

Implementation Plan

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Process Name : Web On boarding

Implementation Plan

Task ID Action Steps Responsibility Support Check Date Target Date Comments

1.1Analyzing redundant information on the UI Ruth Gipper Alice Kippler 21-10-2013 24-10-2013

In depth analysis of the UI , determining only the absolutely important fields

1.2Design a UI with only relevant fields Ruth Gipper Alice Kippler 04-11-2013 08-011-2013

Designing an efficient and user friendly interface.

1.3Implement UI to Onboarding Systems Interface for direct data storage.

Ruth Gipper Alice Kippler 11-11-2013 30-11-2013

Implementation of the UI, performing unit testing of each fields. So that there is no missing sales data

1.4Test UI to Onboarding Systems Interface for direct data storage. (Standardize versions) Ruth Gipper

Users , DBA, Testers 04-12-2013 20-12-2013

User Testing of the Systems and database. Load , Stress and User Testing to be performed

Implementation Plan

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Process Name : On boarding hotline

Implementation Plan

Task ID Action Steps Responsibility Support Check Date Target Date Comments

2.1Develop a 24/7 On call support Stratergy

Paul PremierRupert Fries

1-10-2013 15-10-2013

Strategize the on call support to follow 24/7 to reduce customer abandonment

2.2Train the Current and New Employees

Paul PremierRupert Fries 15-10-2013 1-01-2014

Train Employees on how to drive every problem to solution

2.3

Establish schedule for current Employees for 24/7 Support, Add new on shift Employees

Paul PremierRupert Fries

1-01-2014 7-01-2014Add new employees who would Support night shifts and weekend

2.4 Go Live 24/7 SupportPaul Premier

Rupert Fries 7-01-2014 21-01-2014Go live with the 24/7 Support

3.1Classify the on boarding process into steps

Joe SmithRupert Fries

21-01-2014 28-01-2014

Get the list of step in on boarding process and segregate them into 3 main parts

3.2

Service Level Agreement for the completion of each step of the on boarding process


1-02-2014 07-02-2014

Having a SLA for each step helps you to determine the potential risk of the onboarding (if it might be abandoned)

3.3Personalized follow up for each unfinished onboarding


7-02-2014 21-02-2014

Root cause analysis for each unfinished onboarding will enable us to improve the Quality Control

12/18/2015

Control

334/10/2014

Goal Statement

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Average monthly abandonment rate needs to be reduced to a maximum of 8 per month within the next 12 months.

GOAL

RESULT

Original Process

New Process Change

Average Abandonment Rate (monthly)

35.3 8 7.3% ↓

Average Non-Value Added times 85 35 58.2% ↓ Average Onboarding Turn Time 8 4 50% ↓

Original Process

New Process Change

Average Abandonment Rate (monthly)

35.3 5.3 84.9% ↓

Average Non-Value Added times 85 25 70.5% ↓Average Onboarding Turn Time 8 2.3 71% ↓

Hypothesis Testing

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We claim that through the improvements suggested in our process the average monthly abandonment rate is going to be reduced to a maximum of 8.

Null Hypothesis Ho : μ >= 8Alternative Hypothesis Ha : μ < 8

where μ = Average monthly abandonment rateSignificance level = 5%

Hypothesis Testing

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Pearson Correlation- 0.272Hypothesized Mean Difference- 27Df- 11t Stat - 27.0991P(T<=t) one-tail - 1.01E-11t Critical one-tail - 1.795885

Hypothesis Testing

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Because p-value (- 1.01E-11) < 0.05, reject the null hypothesis.

Therefore, at the 5% level of significance, there is enough evidence to support the claim that average monthly abandonment rate is has been reduced to a maximum of 8 after the process improvement.

Control Chart

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Failure Point or Risk

Prevention

Check Point or Trigger

Corrective Action

Process Owner

Database maintenance downtime

Backup Database

Unable to access web Onboarding site

Schedule database downtime when the customer load is less.

Ruth Gipper

FTE Utilization Reduce idle time of Employees

Low talk time per FTE.

Reduce number of Employees when the call volume is less

Joe Smith

Hold Time Increase number Employees

High Call volume.

Increase number of Employees when the call volume is high

Paul Premier

Quality Control (%) for unfinished on boardings

Follow up on unfinished on boardings

Increase in the number of Customers in the outbound call queue

Root cause analysis of each unfinished onboarding

Paul Premier

4/10/2014

Future Project Ideas

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Suggestions for future projects:

●Segment customers using IVR options: Improvising the routing of the IVR(Interactive Voice Response) options to match the right customer to the right employee when solving queries will undoubtedly improve customer satisfaction

●Share best practices: Whenever a good call is identified, a group session can be held to allow everyone to listen to it. This will reinforce the good behaviour in that particular individual and push others to demonstrate the same performance in the future

4/10/2014

Future Project Ideas

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●Extracting greater value from customer calls: Consider whether that data could be more efficiently aggregated and analysed, and whether the use of speech analytics technologies and quality management could help the company turn findings into real-time actions

●Build Relationships: Make a point to identify and know the key customers so as to build a strong customer relationship and retain high revenue generating customers

ACKNOWLEDGEMENTS

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Dear Professor,We appreciate your your thoughtfulness in

crafting this course and thoroughness in delivering helpful advice.

THANK YOU!

process improvement for pabit solutions

Leadership & Management