The Four Year Evolution of The Four Year Evolution of Six Sigma at ServiceMasterSix Sigma at ServiceMaster

John BiedrySenior Vice President

Continuous Improvement & Six Sigma

Lawn, Tree, & LandscapingLawn, Tree, & Landscaping

Plumbing / HVACPlumbing / HVAC

Termite and Pest ControlTermite and Pest Control

Specialty Cleaning, Repair,Specialty Cleaning, Repair, Disaster Restoration Disaster Restoration

Maid ServiceMaid Service

Home Warranty / InspectionHome Warranty / Inspection

Service to Service to HomeownersHomeowners

ServiceMaster ServiceMaster SolutionSolution

CulturalCultural BackgroundBackground

• Our Four Company Objectives

• Organization is hierarchical, and decentralized

• Strong spirit of local ownership

ServiceMaster is home to:•1,000s of Branch Locations•40,000 Service Providers•Over 10,000,000 Customers

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

The LaunchThe Launch

The JourneyThe Journey

““It’s a short trip from riding the waves It’s a short trip from riding the waves of change to being torn apart by the of change to being torn apart by the

jaws of defeat”jaws of defeat”

Field the Team with Top Field the Team with Top Players and CoachesPlayers and Coaches

Fielding the TeamFielding the Team

• Internal vs. External Hires

– Black Belts, Master Black Belts

– Deployment Champion

– Mistakes made

– 2006 changes for Green Belts

– Functional Black Belts

Training & DevelopmentTraining & Development

• From Technical Training to…. Leadership Development

• ACCEL

• Green Belt and Black Belt Certification and Changes

• Leadership Refresher Training

Career ChoicesCareer Choices

• What’s next after Six Sigma?

• Succession Planning

• Where have Six Sigma “graduates” gone?

Project Selection – Project Selection – Sponsors Pick Projects?Sponsors Pick Projects?

Projects – From Cost Focus...Projects – From Cost Focus...

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Finance ContractsMaintenanceUniformsStationary Parts ReturnReportsBrochuresFloor MatsTruck StockPostageIT Printing CostsSuspend Status Utilities ExpenseAOR Financing

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...To Strategic...To Strategic

Productivity Customer Experience

Pricing

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The Role of the Black Belt…The Role of the Black Belt…

• From DMAIC to…Implementation & Compliance

• From Projects to …Business Support

Implementation :Implementation :Playing Is Not An OptionPlaying Is Not An Option

Six Sigma WorkshopsSix Sigma Workshops

Keeping Score =Keeping Score =

Keeping Score - ReplicationKeeping Score - Replication

Process Improvement is tied to bonus payout.Process Improvement is tied to bonus payout.

Keeping Score = MetricsKeeping Score = Metrics

Deployment Champion: Month: Jan-04

PROJECT NAME, BLACK BELT, and

DESCRIPTION

Start Date

Replication Completion

Date

PHASE

Customer Benefits 1=Yes, 0=No

StatusProcess 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

Ops61 2

% of Defective Invoices

N/A90%

Compliance

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

Bringing Six Sigma Deeper Into the Organization

• National to Regional projects

• Yellow Belt training

• Green Belt training

• Green Belt projects

• Lean projects

Some People Dream of Success, Some People Dream of Success, While Other People Live to Crush While Other People Live to Crush

Those DreamsThose Dreams

Marketing & SalesMarketing & Sales

• Six Sigma eHandbook• Newsletter• Annual conference• External conferences• External publications• Internal recognition• Board of Director meetings• Business Unit President updates• Investor meetings

Incentives & RecognitionIncentives & Recognition

• Certification awards

• Contests

• Green Belt incentive pilot

From... Flavor of the MonthFrom... Flavor of the Month

To... Stay the CourseTo... Stay the Course

Aim High… And Stay ThereAim High… And Stay There