Project Reviews and Examples

© 2001 ConceptFlow

0

Module Learning Objectives

 Understand that projects can utilize one or several of the 3 Six Sigma® elements  Discuss the components of Black Belt project reviews  Recognize that project reviews ensure consistency and timing of project completion  Provide project examples to demonstrate Six Sigma methodologies

© 2001 ConceptFlow

1

Six Sigma Projects
While there are three elements comprising the Six Sigma foundation, projects can utilize:  A singular element as the focus  Growth  Eliminate unnecessary steps  Reduce variability  Multiple elements  Growth + Reduce variability

The Project Champion’s approach to reviews is consistent regardless of the “type” of project
© 2001 ConceptFlow 2

Project Reviews When:  Project reviews are conducted at logical “tollgates”  Academic reviews occur during Black Belt training with classmates  Business reviews occur with Business Managers and Process Owners  Final reviews for senior leadership at project completion Regularly scheduled reviews…demonstrate achievements © 2001 ConceptFlow 3 .

Black Belts. Business Managers and Process Owners in attendance  10 uninterrupted minutes for presentation…5 minute questions & answers  Strict time discipline ensures continued participant involvement Single.Project Reviews How:  Use standard template  Project Champions. concise format…complex business problems © 2001 ConceptFlow 4 .

Project Reviews What:  Method to assess the project progress and team engagement  Method to learn Six Sigma through participation  Way to provide visible support  Way to recognize and energize the teams  Way to leverage best practices The project review… demonstrating significant progress © 2001 ConceptFlow 5 .

Elimination of Unnecessary Steps .Lean © 2001 ConceptFlow 6 .

Lean Streamlined Processes … Lean The method of reducing unnecessary steps to reduce rework.Elimination of Unnecessary Steps . and extend capacity of valuable resources Identifying waste and making it visible is the first step © 2001 ConceptFlow 7 . save time. save cost.

Employee Benefit Advisors. Project Objective Statement To understand what steps are non-value added and eliminate those steps. call centers and service teams will be able to manage client reviews in a more organized fashion with only work important to the client being accomplished.5M $7. Financial Benefits • Revenue Increase • Other Cost Savings • Total Benefits $7. but the elapsed time can extend to almost 40 days from first contact to execution.0M $0.Portfolio Reviews Project Overview Problem Statement The process for portfolio reviews varies in depth and time to prepare from 1 day to 8 days. © 2001 ConceptFlow 8 .5M Client Benefit Executing a consistent portfolio review process with only value added steps will reduce the time from when the Advisor and Client identify the need for a session and the point when the session is able to be conducted.

Portfolio Review Duration Step 1 .63 Hrs 9 .Map the “As-Is” Value Stream E/T = Elapsed Time W/T = Work Time VA/T = Value-Added Time © 2001 ConceptFlow “As-Is” Process Cycle Time: E/T = W/T = VA/T = 249 Hrs 18.08 Hrs 6.

Cross Functional Team Prioritizes Opportunities Step 2 .63 Hrs 10 .08 Hrs 6.Prioritize Waste / Defect Opportunities Red – Greatest Potential Benefit Yellow – Worthwhile Opportunity © 2001 ConceptFlow “As-Is” Process Cycle Time: E/T = W/T = VA/T = 249 Hrs 18.

but not currently activated. Team recommended only those technology solutions that were available. information is directly typed into website for immediate information flow to services Based on reduced variation.Identify Lean Methods and Assign Action Items Waste Opportunity Conduct Portfolio Analysis Develop Financial Strategy Present Solution to Client Impact 5 Ease Priority 2 1 Six Sigma / Lean Method Provide Client a simple checksheet of information needed – call centers work as Concierge for this feature Using call centers in meeting with advisors. © 2001 ConceptFlow 11 . client return meeting is scheduled with confidence during first visit Work variation reduction project to understand how to get the client to yes at greater percentages at presentation 5 3 3 3 2 3 Execute Strategy 4 5 4 During Process Blitz the cross functional team identified standardization and technological solutions to waste issues.Process Blitz Action Items Step 3 .

Future State Map Previous Process Cycle Time: E/T = W/T = VA/T = 249 Hrs 18.63 Hrs 12 .63 Hrs Red – Greatest Potential Benefit Yellow – Worthwhile Opportunity © 2001 ConceptFlow Future Process Cycle Time: E/T = W/T = VA/T = 146 Hrs 15.92 Hrs 6.08 Hrs 6.Future State Map Step 4 .

Variation Reduction – DMAIC © 2001 ConceptFlow 13 .

DMAIC Managing Process Inputs … DMAIC The basic premise of variation reduction is that sources of variation can be: Identified Quantified Eliminated or Controlled A few input variables typically have extraordinary influence on the output © 2001 ConceptFlow 14 .Variation Reduction .

Email. CD Rom Reduce Number of Duplicate Copy Statements Duplicate Statements .Daily Activity Presort Statements Statement Production Cycle Time Convert IRA Accounts to Quarterly Alternate Delivery Medium .Logos. Name .Statement Efficiency Team USPC Landscape Client Statement Opportunities for Six Sigma Projects • • • • • • • • • • • • Page Space Utilization .Phase I Standardize/Reformat the Display of Individual Sections .On Line.Phase III Eliminate Redundant Information . Margins.Phase II Paper Redesign .“Household” and On Line Delivery Convert “Growth” to Portrait Format Reduce Error and Correction Statements • Reduce/Eliminate Low Balance/No Activity Accounts © 2001 ConceptFlow 15 .

Statement Efficiency Team USPC Landscape Client Statement © 2001 ConceptFlow 16 .

500.000 $ 5.000.190.000.000.14.000 650.000 $56.000 Annualized 44.690. Maint.000 $4.700.000.000 $18.7 days © 2001 ConceptFlow 17 .5 Pages Monthly Production Cycle .000 $1.000 Average Length per Client Statement .April 2001 Statement Volume Page Volume Postage Expense Supplies & Print Sub-total Direct Labor.800.000 54.000 $2.000 $ 440.000 $5.300.750. Space… Full MLPT Expense Monthly 3.000 $33.000 $38.300.300.Product Overview Client Statement Background .

25 inches before any client specific information can appear • “Fixed” information in Sections within the statement used to display client information • Spacing inconsistencies within a statement Initial Sigma Statistics for Process 2.00 . height of header net space available for statement data per image Negative Comments Sigma Level .50 minimum clear space left at bottom of image clear space at top of page for name.75 4.Page Space Usage 77% Effective Page Space Use 2.2 78% © 2001 ConceptFlow Page Utilization 1. Defect Definition: The defects include: • Top margin requirement of a minimum of 2. etc.25 8. preprint.Defective Lines Effective Line Display 0 Length 100 Delivery 200 Ease 18 .50 2.2 Sigma Level .Define Phase Highlights Problem Statement: The current USPC landscape statements are “long” in length which has a direct impact on cost and service.

Measure Phase Fish Bone Diagram Tax Information Section Daily Activity Section Headers Headers No lines skipped between title and column headers Monthly Activity Section Current Portfolio Section Headers Different headers for different categories Consolidate 4 lines to 3 Footnote Not within section Too many lines Line Spacing Spacing for first category title Inconsistent spacing Spacing for first category title Inconsistent spacing Income Information ELS Page Account Summary Cash Flow Realized Gain & Loss Size of logo shade box Location of name (pg 2+) Size and location of secondary logo Bottom Margin Length of stmt Rules on sections Pre-print on paper Inconsistent start Size of main logo Logos Inconsistent end Top Margin Regulatory information © 2001 ConceptFlow Statement Summary 19 .

5 2 1.5 4 3.5 1 0.Analysis Phase Line Reduction Projections Impact per Opportunity 140 5 4.5 0 Impact per Opportunity Impact on Different Stmt Lengths 120 100 80 60 40 20 0 10 Page Logo & Name Daily Activity Bank Dep Visa 20 Page Current Portfolio Customer Service Cap Gain Misc 40 Page Monthly Activity Cash Flow Tax Info © 2001 ConceptFlow 20 .5 3 2.

Improve Phase High High Medium Medium Low Low Phase 1 © 2001 ConceptFlow Phase 2 Phase 3 21 .

06 1.856 32.00 22.25 5.90 2.89 0.261 1.210 1.744.46 0.923 631.175 836.652 4.00 3.50 2.120 913.869 0 16.484 0 35.55 1.350 396.02 2.73 3.652 1.178 2.42 1.200 5 439.58 2.13 35.83 2.205 0 4.74 2.84 37.200.11 5.97 2.528 1.04 1.56 0.75 1.171 6 288.111 15 35.57 2.77 1.44 43.03 26.06 0.255 68.413 414.83 1.35 4.800 2.00 1.05 0.114.209 1.589 488.00 6.527.Solution Validation • Tested in replicated statement environment • Statistical analysis to quantify page savings • Ensure project goal alignment Pre-Project Statement Volumes by Page Count Impact of Opportunity Calculations Reduction by Page Count Post-Project Statement Volumes by Page Count Pages Stmts 2 207.735 10.358.673 © 2001 ConceptFlow 22 .00 4.86 4.393.00 2.232 86.27 3.438.124 749.821 0 277.50 2.00 1.56 2.400.39 1.24 50.80 0.72 30.34 2.77 2.650.40 5.70 4.00 4.81 3.00 1.78 5.64 1.899 47.24 3.27 5.349 1.064.877.683 106.50 207.706 757.790 557.01 8.84 3.00 5.606 4.00 1.204 0 24.728.00 1.325.258 171.241 129.00 1.459 12 60.684 3.78 2.22 3.00 4.716 11 75.515.22 5.25 2.26 0.28 4.232 0 68.00 1.733 9.673.43 2.38 6.92 33.54 1.54 2.352 1.007 532.00 2.00 5.962.505 1.00 2.81 3.367 1.06 2.518 total un Stmt MA DA CS CF BD RCG TIS Visa Misc lines Images redux 1 redux 2 affected Efficiency avg CP avg MA avg DA avg CP Lines Lines Lines Lines Lines Lines Lines Lines Lines Lines pg pg stmts Phase II occ occ occ Accts saved saved saved saved saved saved saved saved saved saved saved reduced 3.57 0.25 2.00 1.945 1.74 5.12 61.00 2.303 3.93 6.559 2.84 4.123.84 67.88 4.40 3.37 26.90 5.263.08 3.522 14 43.039.79 0.54 0.224.77 1.00 4.00 2.435 864.227.02 5.309 0 7.860 13 51.39 2.00 2.62 2.097 1.62 1.00 2.00 2.00 20.00 2.412 1.00 1.81 0.57 5.60 2.473 9 110.178 6.12 23.28 2.414 11.92 85.38 3.580 1.00 5.77 3.93 2.74 55.06 30.802 38.021 3.16 1.259 images 829.00 41.43 4.16 3.00 5.48 4.27 6.34 33.64 28.00 3.863 2.687 2.25 1.010 7.449.62 0.43 2.240 1.00 5.70 63.52 2.75 1.84 1.826 829.73 45.21 2.30 3.84 1.00 2.11 2.25 70.953 696.01 70.00 3.991 56.419 2.164 3.589 4.00 0.30 41.00 1 2 Stmts pages images 0.877.48 2.87 20.370.079.126 254.28 59.368 5.31 2.00 3.419 2.911.872.488 0 101.082 7.75 0.981.28 5.64 1.229.90 3.22 1.00 1.845 1.600 4.17 13.08 5.836 977.685.00 2.00 1.705 8.00 3.01 5.42 2.438.00 1.860 5.614 679.055.90 2.387 10 92.056 3.44 2.061 Stmt Efficiency Phase I pages 414.707 1.03 2.65 0.98 2.614 1.413 3 812.25 5.00 2.589 3.24 57.746 8 138.15 2.00 3.208 613.498.490 1.00 2.63 0.52 0.118 6.000.55 812.459.036 7 186.43 0.01 2.00 1.04 3.02 2.22 3.00 3.00 1.22 3.65 17.00 5.64 35.26 0.20 1.67 0.00 1.00 4.000.14 5.85 30.00 1.00 1.195 11.368 1.21 0.65 968.00 2.42 0.85 0.39 2.83 118.71 2.623 0 11.00 2.430 2.74 4.826 2.00 2.03 11.826.55 3.863 4 806.344 1.59 1.81 0.50 2.36 51.910 0 169.89 2.167 955.00 2.00 3.00 1.01 2.54 39.907 1.37 0.98 5.704 0 48.00 2.246.00 1.74 161.42 15.43 5.11 1.

Revised Statement Page © 2001 ConceptFlow 23 .

3 Million Phase III .Accomplishments Phase I .9 days © 2001 ConceptFlow 24 .5.11.Header Consolidation .1 Million Phase II .August 2001 • Page Reduction 6% Savings $1.March 2002 • Page Reduction 5% Savings $600.Top Margin .November 2001 • Page Reduction 10% Savings $1.000 Average Length per Client Statement .Modify Paper .8 Pages Monthly Production Cycle .

Growth – Design for Six Sigma © 2001 ConceptFlow 25 .

services.Design For Six Sigma DFSS Know client requirements … Design products.Growth . and processes that satisfy both client and business needs at Six Sigma quality  Approach for understanding and translating client requirements for new products and services  Client is involved at each stage  Avoid developing products with no market Integrate client and business needs and wants before launching products and services © 2001 ConceptFlow 26 .

Employee Benefit The current frustration of not having a process to follow is placing undue stress on the support team and the proposal leaders.3M $2.3 Client Benefit Creating a systemic repeatable proposal process will allow the Client to have a repeatable proposal process which should simplify the sourcing function at the Client. Financial Benefits • Revenue Increase • Other Cost Savings • Total Benefits $2. Project Objective Statement To create a repeatable process that takes into consideration the needs of the Clients.Marketing Proposal Process Identify Phase Overview Problem Statement Currently there doesn’t exist a repeatable process to develop a marketing proposal on any of the 45 major products… (major products sell for $9000 or higher and have volume sufficient to provide at least $1Million in revenue).0M $0. © 2001 ConceptFlow 27 .

Cost of Poor Quality • Estimated at 5% of the deals lost ($75Million) 3.0 M Rev © 2001 ConceptFlow 28 . and repeatability / reproducibility are critical components.Project Overview CTQ Identification • The CTQ’s will be identified during the QFD process.75 M Rev • Lost Productivity of Team 0.3 M Cost • Lost Productivity of Sales Force 1. delivery of the proposal on time. but it appears that Win rate at a particular margin is appropriate.

Preliminary Baseline Metrics Boxplots of Costs A and Costs B (means are indicated by solid circles) 10500 The evidence showed there was an issue that went beyond waste elimination or even variance reduction. Was one the entitlement? Reviewing the winning proposals and noting that the 20% win rate was scattered among the 4 proposal leaders . Four Proposal Leaders were asked to write down the process that they follow to prepare a proposal… as expected. © 2001 ConceptFlow 9500 8500 Costs A Costs B Variation of cost between similar products Define D Measure A Analyze I Improve C Control M Does the process/ product exist? Yes Will achieving entitlement accomplish goals? Yes Is the Improvement a new or redesigned process or service? No No No Yes DFSS 29 . it was painful and the processes were very different between the proposal leaders.we identified no difference in proportions.

IRR. Implemented the process and simulated proposals to ensure low variation among the proposal leaders © 2001 ConceptFlow 30 . Developed a stakeholder meeting team that acted as tollgate reviewers 4. NPV. Redesigned the proposal process to a 7 step tollgate process with electronic templates for each step 3. Sign-in and metric validation for each RFQ 5. Created templates for all Cost and Price Waterfalls to ensure that the Client and company addressed each issue surrounding title transfer and risk of loss 9. Validated Clients and developed a link to Client contact / history 6.Key Actions 1. and other specific financial calculations needed determine the stakeholders CTQ’s 8. Completed SIPOC to determine true stakeholders…developed plan to make sure that only “appropriate Clients received proposals” 2. Created pivot tables / access queries to pull latest cost information from legacy systems 7. Trained Proposal Leaders and created templates on Margin Analysis.

SIPOC / QFD & Tollgate Requirements Requirements Suppliers Inputs Process Input Boundary Outputs Clients Output Boundary Proposal signed And returned by Due date Shareholders Sales Force Manager External Clients General Manager External Clients Operating Business Supply Chain Financial Analysts Signed documents Cost System System entry Client Requirements Proposal Process Determine NPV Gather data Match requirements To opportunities Validate supply chain Can support the deal Sign off the deal © 2001 ConceptFlow 31 .

2m CM percentage stable Boxplots of Costs A and Costs B (means are indicated by solid circles) 10500 Boxplots of C4 by C5 (means are indicated by solid circles) 9700 9600 9500 9400 9500 C4 8500 Costs A Costs B 9300 9200 9100 9000 8900 8800 New Costs A New Costs B Note scale difference C5 Visually and statistically there is a difference between the original set of costs.Achievements / Validation • • • • • Win rate – actually have a metric (trending up) Frustration reduced at Client / selling team Revenue increase up $5m CM $ increase $2. while after the implementation there is no visual nor statistical difference © 2001 ConceptFlow 32 .

find and address the issues  Confer frequently with Black Belts:   Outside of formal project reviews Early in a project Black Belt success is ultimately the responsibility of the Project Champion & Process Owner © 2001 ConceptFlow 33 .Project Reviews – Key Points  Ensure that the Process Owners attend the reviews  Be an active participant – these projects impact the performance of the business  If projects are not progressing.

Module Learning Objectives  Understand that the projects will streamline processes utilizing one or more of the 3 elements of Six Sigma®  Discuss the Black Belt Project Reviews particulars  Recognize that Project Reviews ensure consistency and timing of project completion  Provide project examples to demonstrate Six Sigma methodologies © 2001 ConceptFlow 34 .

FOR A MORE PERFECT WORLD is a federally registered trademark of Six Sigma Academy. FASTART is a trademark of Six Sigma Academy. SigmaFlow is a trademark of Compass Partners. SigmaTRAC is a trademark of DuPont. MINITAB is a trademark of Minitab. Inc. Inc. SigmaCALC is a trademark of Six Sigma Academy.Trademarks and Service Marks Six Sigma is a federally registered trademark of Motorola. ESSENTEQ is a trademark of Six Sigma Academy. Legal Lean is a trademark of Six Sigma Academy. Breakthrough Design is a trademark of Six Sigma Academy. Inc. . SSA Navigator is a trademark of Six Sigma Academy. Breakthrough Lean is a trademark of Six Sigma Academy. Breakthrough Strategy is a federally registered trademark of Six Sigma Academy. VISION. Design with the Power of Six Sigma is a trademark of Six Sigma Academy.