8 project reviews

7/27/2019 8 Project Reviews

1/36

2001 ConceptFlow 0

Project Reviews and Examples


2/36

2001 ConceptFlow 1

Module Learning Objectives

Understand that projects can utilize one or several of the 3 SixSigma 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


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2001 ConceptFlow 2

Six Sigma Projects

The Project Champions approach to reviews is consistent

regardless of the type of project

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


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2001 ConceptFlow 3

Project Reviews

Regularly scheduled reviewsdemonstrate achievements

When:

Project reviews are conducted at logical tollgates

Academic reviews occur during Black Belt training with classmates

Business reviews occur with Business Managers and ProcessOwners

Final reviews for senior leadership at project completion


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2001 ConceptFlow 4

Project Reviews

Single, concise formatcomplex business problems

How:

Use standard template

Project Champions, Black Belts, Business Managers and ProcessOwners in attendance

10 uninterrupted minutes for presentation5 minute questions &

answers

Strict time discipline ensures continued participant involvement


6/36

2001 ConceptFlow 5

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


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Elimination of Unnecessary Steps - Lean



Elimination of Unnecessary Steps - Lean

Streamlined Processes

The method of reducing unnecessary steps to reduce rework, save time,save cost, and extend capacity of valuable resources

Lean

Identifying waste and making it visible is the first step



Portfolio Reviews Project Overview

Problem Statement

The process for portfolio reviews varies in depth and time to prepare from 1 day to 8days, but the elapsed time can extend to almost 40 days from first contact to execution.

Project Objective Statement

To understand what steps are non-value added and eliminate those steps.

Financial Benefits Revenue Increase $7.0M

Other Cost Savings $0.5M

Total Benefits $7.5M

Client Benefit

Executing a consistent portfolio review process with only value added steps willreduce the time from when the Advisor and Client identify the need for a sessionand the point when the session is able to be conducted.

Employee Benefit

Advisors, call centers and service teams will be able to manage client reviews in amore organized fashion with only work important to the client being accomplished.



Step 1 -Map the As-IsValue Stream

As-Is Process

Cycl e Time:

E/T = 249 Hrs

W/T = 18.08 Hrs

VA/T = 6.63 Hrs

E/T = Elapsed Tim e

W/T = Work Time

VA/T = Value-Ad ded Tim e

Portfolio Review Duration



Step 2 - Prio rit ize Waste /Defect Opp ortun i t ies

As-Is Process

Cycl e Time:

Cross Functional Team Prioritizes Opportunities

Red Greatest Potential Benefit

Yellow Worthwh i le Opportun ity E/T = 249 Hrs

W/T = 18.08 Hrs

VA/T = 6.63 Hrs



Step 3 - Ident i fy Lean Method s and Ass ign Act ion Items

Waste Opportun i ty Imp act Ease Prior i ty Six Sigma / Lean Method

Conduct Portfolio Analysis

Develop Financial Strategy

Present Solution to Client

Execute Strategy

5 2 1

5 3 2

3 3 3

4 5 4

Provide Client a simple checksheet of

information needed call centers work as

Concierge for this feature

Using call centers in meeting with advisors,

information is directly typed into website for

immediate information flow to servicesBased on reduced variation, 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

Process Blitz Action Items

During Process Blitz the cross functional team identified

standardization and technological solutions to waste issues. Team recommended

only those technology solutions that were available, but not currently activated.


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2001 ConceptFlow 12

Step 4 - Future State Map

Future Process

Cycl e Time:

E/T = 146 Hrs

W/T = 15.92 Hrs

VA/T = 6.63 Hrs

Future State Map

Red Greatest Potential Benefit

Yellow Worthwh i le Opportun ity

Previous ProcessCycle Time:

E/T = 249 Hrs

W/T = 18.08 Hrs

VA/T = 6.63 Hrs


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2001 ConceptFlow 13

Variation Reduction DMAIC


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2001 ConceptFlow 14

Variation Reduction - DMAIC

A few input variables typically have extraordinary influence on the output

Managing Process Inputs

The basic premise of variation reduction is that sources of variationcan be:

Identified

Quantified

Eliminated or Controlled

DMAIC


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2001 ConceptFlow 15

Opportunities for Six Sigma Projects Page Space Utilization - Logos, Margins, Name -Phase I

Standardize/Reformat the Display of Individual Sections - Phase II

Paper Redesign - Phase III

Eliminate Redundant Information - Daily Activity

Presort Statements Statement Production Cycle Time

Convert IRA Accounts to Quarterly

Alternate Delivery Medium - On Line, Email, CD Rom

Reduce Number of Duplicate Copy Statements

Duplicate Statements - Household and On Line Delivery Convert Growth to Portrait Format

Reduce Error and Correction Statements

Reduce/Eliminate Low Balance/No Activity Accounts

Statement Efficiency TeamUSPC Landscape Client Statement


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2001 ConceptFlow 16

Statement Efficiency TeamUSPC Landscape Client Statement


18/36

2001 ConceptFlow 17

Product Overview

Client Statement Background - April 2001Monthly Annualized

Statement Volume 3,700,000 44,800,000

Page Volume 54,000,000 650,000,000

Postage Expense $2,750,000 $33,000,000Supplies & Print $ 440,000 $ 5,300,000

Sub-total Direct $4,190,000 $38,300,000

Labor, Maint. Space $1,500,000 $18,000,000

Full MLPT Expense $5,690,000 $56,300,000

Average Length per Client Statement - 14.5 Pages

Monthly Production Cycle - 7 days


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2001 ConceptFlow 18

Define Phase

Problem Statement:

The current USPC landscape statements are

long in length which has a direct impact on

cost and service.

Defect Definition:

The defects include: Top margin requirement of a minimum of 2.25

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

2.2 Sigma Level - Page Space Usage

77% Effective Page Space Use

2.2 Sigma Level - Defective Lines

78% Effective Line Display

Highlights

1.25 2.00 .75 4.508.50

minimum clear space left at bottom of imageclear space at top of page for name, preprint, etc.height of headernet space available for statement data per image

Page Utilization

0 100 200

Length Delivery Ease

Negative

Comments


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2001 ConceptFlow 19

Measure Phase

Length

of stmt

Statement Summary

Current Portfolio

Section

Daily Activity Section

Bottom Margin

Monthly Activity

Section

Tax InformationSection

Top Margin

Regulatory

information

Headers

Footnote

Not within sectionToo many lines

Headers

Consolidate 4 lines to 3

Line Spacing

No linesskipped

between titleand columnheaders

Spacing forfirst categorytitle

Inconsistent spacing

Headers

Different headers for

different categories

Spacing forfirst categorytitle

Inconsistent spacing

Pre-printon paper

Size of logo shade box

Location ofname (pg 2+)

Inconsistent start

Size of

main logo

Logos

Size andlocation ofsecondarylogo

Rules onsections

Inconsistentend

Income Information

Cash Flow

ELS Page

Account Summary

Realized Gain & Loss

Fish Bone Diagram


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2001 ConceptFlow 20

Analysis Phase

Line Reduction Projections

Impact per Opportunity Impact on Different Stmt Lengths

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Impact per Opportunity0

20

40

60

80

100

120

140

10 Page 20 Page 40 Page

Logo & Name Current Portfolio Monthly Activity

Daily Activity Customer Service Cash Flow

Bank Dep Cap Gain Tax Info

Visa Misc


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2001 ConceptFlow 21

Improve Phase

High

Medium

Low

High

Medium

Low

Phase 1 Phase 2 Phase 3


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2001 ConceptFlow 22

Solution Validation

Tested in replicated statement environment

Statistical analysis to quantify page savings

Ensure project goal alignment

Pre-Project

Statement

Volumes by Page

Count

Post-Project

Statement Volumes

by Page Count

Impact of Opportunity Calculations

Reduction

by Page

Count

Stmt

Efficiency

Phase I

avg CP

occ

avg MA

occ

avg DA

occ

avg

Accts

CP Lines

saved

MA

Lines

saved

DA

Lines

saved

CS

Lines

saved

CF

Lines

saved

BD

Lines

saved

RCG

Lines

saved

TIS

Lines

saved

Visa

Lines

saved

Misc

Lines

saved

Pages Stmts pages images 3.00 0.00 1.00 2.00 2.50 2.00 2.00 5.00 1.00 2.00

2 207,413 414,826 829,652 0. 89 0. 52 0. 39 1.00 2. 67 0. 00 1.39 2.00 2.50 2.00 2.00 5.00 1.00 2.00

3 812, 863 2, 438, 589 4, 877, 178 1. 54 1. 06 0. 62 1. 00 4. 62 0. 00 1. 62 2. 00 2. 50 2. 00 2. 00 5. 00 1. 00 2. 004 806, 200 3, 224, 800 6, 449, 600 2. 75 1. 37 0. 77 1. 01 8. 26 0. 00 1. 77 2. 03 2. 52 2. 01 2. 01 5. 00 1. 00 2. 03

5 4 39, 171 2, 229, 528 4, 459, 056 3. 75 1. 77 1. 25 1. 03 11. 26 0. 00 2. 25 2. 06 2. 54 2. 02 2. 02 5. 00 1. 00 2. 06

6 2 88, 036 1, 685, 210 3, 370, 419 4. 60 2. 20 1. 42 1. 17 13. 81 0. 00 2. 42 2. 34 2. 71 2. 11 2. 11 5. 00 1. 00 2. 34

7 1 86, 746 1, 325, 344 2, 650, 687 5. 15 2. 55 1. 83 1. 42 15. 46 0. 00 2. 83 2. 84 3. 02 2. 28 2. 28 5. 00 1. 00 2. 84

8 1 38, 473 1, 123, 209 2, 246, 419 5. 93 2. 97 2. 04 1. 65 17. 79 0. 00 3. 04 3. 30 3. 31 2. 43 2. 43 5. 00 1. 00 3. 30

9 1 10, 387 1, 000, 120 2, 000, 240 6. 81 3. 44 2. 22 1. 87 20. 43 0. 00 3. 22 3. 73 3. 58 2. 57 2. 57 5. 00 1. 00 3. 73

10 92,716 913,175 1,826,349 7. 86 4. 01 2. 43 2.12 23. 57 0. 00 3.43 4.24 3.90 2.74 2.74 5.00 1.00 4.24

11 75,459 836,706 1,673,412 8. 88 4. 39 2. 48 2.37 26. 65 0. 00 3.48 4.74 4.21 2.90 2.90 5.00 1.00 4.74

12 60,860 757,953 1,515,907 9. 35 4. 89 2. 78 2.64 28. 05 0. 00 3.78 5.28 4.55 3.08 3.08 5.00 1.00 5.28

13 51, 522 696, 923 1, 393, 845 10. 14 5. 56 2. 98 2. 85 30. 42 0. 00 3. 98 5. 70 4. 81 3. 22 3. 22 5. 00 1. 00 5. 70

14 43, 111 631, 790 1, 263, 580 11. 27 6. 22 3. 25 2. 92 33. 81 0. 00 4. 25 5. 84 4. 90 3. 27 3. 27 5. 00 1. 00 5. 84

15 35, 061 557, 259 1, 114, 518 11. 93 6. 77 3. 38 3. 13 35. 80 0. 00 4. 38 6. 25 5. 16 3. 40 3. 40 5. 00 1. 00 6. 25

total

lines

saved

Images

reduced

redux 1

pg

redux 2

pg

un

affected

stmts

Stmt

Efficiency

Phase II

41.00 1 2 Stmts pages images

20.56 0.50 207,413 414,826 829,652

22.75 0.55 812,863 2,438,589 4,877,17826.63 0.65 968,021 3,872,082 7,744,164

30.21 0.74 161,821 0 277,350 396,261 1,981,303 3,962,606

33.85 0.83 118,910 0 169,126 254,614 1,527,684 3,055,368

37.54 0.92 85,488 0 101,258 171,490 1,200,430 2,400,860

41.59 1 .01 70,232 0 68,241 129,945 1,039,559 2,079,118

45.84 1 .12 61 ,704 0 48,683 106,167 955,505 1,911,010

50. 84 1. 24 5 7, 484 0 35, 232 86, 435 864, 352 1, 728, 705

55. 64 1. 36 5 1, 204 0 24, 255 68, 124 749, 367 1, 498, 733

59. 11 1. 44 4 3, 869 0 16, 991 56, 614 679, 368 1, 358, 735

63. 06 1. 54 3 9, 623 0 11, 899 47, 208 613, 707 1, 227, 414

67. 16 1. 64 35, 309 0 7, 802 38, 007 532, 097 1, 064, 195

70. 64 1.72 30,205 0 4, 856 32, 589 488, 836 977, 673


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2001 ConceptFlow 23

Revised Statement Page


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2001 ConceptFlow 24

Accomplishments

Average Length per Client Statement - 11.8 Pages

Monthly Production Cycle - 5.9 days

Phase I - Top Margin - August 2001 Page Reduction 6% Savings $1.1 Million

Phase II - Header Consolidation - November 2001 Page Reduction 10% Savings $1.3 Million

Phase III - Modify Paper - March 2002

Page Reduction 5% Savings $600,000


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2001 ConceptFlow 25

Growth Design for Six Sigma


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2001 ConceptFlow 26

Growth - Design For Six Sigma

DFSS

Integrate client and business needs and wants

before launching products and services

Know client requirements

Design products, services, and processes that satisfy bothclient and business needs at Six Sigma quality

Approach for understanding and translating client requirements fornew products and services

Client is involved at each stage

Avoid developing products with no market


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2001 ConceptFlow 27

Marketing Proposal ProcessIdentify Phase Overview

Problem Statement

Currently there doesnt exist a repeatable process to develop a marketing proposalon any of the 45 major products (major products sell for $9000 or higher andhave volume sufficient to provide at least $1Million in revenue).

Project Objective Statement

To create a repeatable process that takes into consideration the needs of theClients.

Financial Benefits

Revenue Increase $2.0M

Other Cost Savings $0.3M

Total Benefits $2.3

Client BenefitCreating a systemic repeatable proposal process will allow the Client to have arepeatable proposal process which should simplify the sourcing function at theClient.

Employee Benefit

The current frustration of not having a process to follow is placing undue stress on

the support team and the proposal leaders.


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2001 ConceptFlow 28

CTQ Identification

The CTQs will be identified during the QFD process, but it appearsthat Win rate at a particular margin is appropriate, delivery of theproposal on time, and repeatability / reproducibility are criticalcomponents.

Cost of Poor Quality

Estimated at 5% of the deals lost ($75Million) 3.75 M Rev

Lost Productivity of Team 0.3 M Cost

Lost Productivity of Sales Force 1.0 M Rev

Project Overview


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2001 ConceptFlow 29

Preliminary Baseline Metrics

Variation of cost between similar products

Costs BCosts A

10500

9500

8500

Boxplots of Costs A and Costs B

(means are indicated by solid circles)

The evidence showed there was anissue that went beyond wasteelimination or even variance reduction.

Four Proposal Leaders were asked to

write down the process that they followto prepare a proposal as expected,it was painful and the processes werevery different between the proposalleaders.

Was one the entitlement? Reviewingthe winning proposals and noting thatthe 20% win rate was scatteredamong the 4 proposal leaders - weidentified no difference in proportions.

AnalyzeMeasure Improve ControlDefine M I CD A

DFSS

Yes

Is the

Improvement

a new or

redesigned

process or

service?

NoDoes the

process/

product

exist?

No No

YesWillachieving

entitlement

accomplish

goals?

Yes


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2001 ConceptFlow 30

Key Actions

1.Completed SIPOC to determine true stakeholdersdeveloped plan tomake sure that only appropriate Clients received proposals

2.Redesigned the proposal process to a 7 step tollgate process withelectronic templates for each step

3. Developed a stakeholder meeting team that acted as tollgate reviewers

4.Sign-in and metric validation for each RFQ

5. Validated Clients and developed a link to Client contact / history

6.Created pivot tables / access queries to pull latest cost information fromlegacy systems

7.Trained Proposal Leaders and created templates on Margin Analysis,NPV, IRR, and other specific financial calculations needed determine

the stakeholders CTQs8. Created templates for all Cost and Price Waterfalls to ensure that the

Client and company addressed each issue surrounding title transferand risk of loss

9. Implemented the process and simulated proposals to ensure low

variation among the proposal leaders


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2001 ConceptFlow 31

SIPOC / QFD & Tollgate

Proposal Process

Determine NPV

Gather data

Match requirements

To opportunities

Validate supply chain

Can support the deal

Sign off the deal

Requirements

Inputs Outputs Clients

InputBoundary OutputBoundary

ProcessSuppliers

Requirements

Proposal signed

And returned by

Due date

Shareholders

Sales Force

Manager

External Clients

General Manager

Signed documents

Cost SystemSystem entry

Client Requirements

External Clients

Operating Business

Supply Chain

Financial Analysts


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2001 ConceptFlow 32

Win rate actually have a metric (trending up)

Frustration reduced at Client / selling team Revenue increase up $5m CM $ increase $2.2m CM percentage stable

Achievements / Validation

New Costs BNew Costs A

9700

9600

9500

9400

9300

9200

9100

9000

8900

8800

C5

C4

Boxplots of C4 by C5(means are indicated by solid circles)

Costs A Costs B

8500

9500

10500

Boxplots of Costs A and Costs B(means are indicated by solid circles)

Note scale difference

Visually and statistically there is a difference between the original set of costs,

while after the implementation there is no visual nor statistical difference


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2001 ConceptFlow 33

Project Reviews Key Points

Ensure that the Process Owners attend the reviews

Be an active participant these projects impact the performance ofthe business

If projects are not progressing, 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


35/36

2001 ConceptFlow 34

Module Learning Objectives

Understand that the projects will streamline processes utilizing oneor 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


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Trademarks and Service Marks

Six Sigma is a federally registered trademark of Motorola, Inc.

Breakthrough Strategy is a federally registered trademark of Six Sigma Academy.

VISION. FOR A MORE PERFECT WORLD is a federally registered trademark of Six Sigma Academy.

ESSENTEQ is a trademark of Six Sigma Academy.

FASTART is a trademark of Six Sigma Academy.

Breakthrough Design is a trademark of Six Sigma Academy.

Breakthrough Lean is a trademark of Six Sigma Academy.

Design with the Power of Six Sigma is a trademark of Six Sigma Academy.

Legal Lean is a trademark of Six Sigma Academy.

SSA Navigator is a trademark of Six Sigma Academy.

SigmaCALC is a trademark of Six Sigma Academy.

SigmaFlowis a trademark of Compass Partners, Inc.

SigmaTRAC is a trademark of DuPont.

MINITAB is a trademark of Minitab, Inc.

8 project reviews

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