lean service update – cwu 29 th may 2012 in confidence
TRANSCRIPT
Lean Service Update – CWU 29th May 2012
IN CONFIDENCE
CE Benefits from Wave 1LEAN is expected to deliver 0.4% RFT improvement at Group-level
– 0.3% L2C and 0.5% T2R during 12/13– Two sub-waves impact RFT basket
UK Voice•CT has reduced by 14%
– driven by Lean and openreach’s reduced appointment book
– Further analysis will confirm impact of Lean on CT and RFT
UK Mobile•CT reduced from 83 to 47 days
– Further analysis will validate that CT improvement is sustainable and confirm impact on RFT
CE Impact of the sub-waves• Wave 1 CE commitments are all forecast to be met during realisation phase
– CE Journey Owners engaged to assess RFT impact of Wave 1
Wave 1 sub-wave TC1 Commitment Delivered so far Forecast RFT Impact
UK Data: Managed WAN CT: 20% reduction Reduced from 5 to 4 days (20%)
Target met Mgd WAN not in RFT basket
UK Data: DWDM CT: from 90 to 60 days 60 day capability now in place
Target met DWDM not in RFT basket
UK Mobile - SMEAS CT: 5.1% reduction to 60wd
Currently 47 days Target met In RFT basket
UK Voice – ISDN, PSTN, Big/Large Switch
CT: 2%-3% reduction e2e 14% reduction – incl. reduced openreach appointment book
Target met In RFT basket
UK Voice– ISDN, PSTN, Big/Large Switch
RFT: 0.5%+ improvement Journey Owners to assess RFT during benefits realisation phase
In RFT basket
Switch:Managed Bus. Networks
CT: Reduce dwell time by 33% (30 mins/tkt)
Currently 70% Target met MBN not in RFT basket
TIS: VoIP(Data Management Access)
CT: Reduce from 19 to 13 days (-30%)
12.26 days Target met VoIP not in RFT basket
TIS: VoIP(Data Management Access)
RFT: Improve CRD failure rate – from 91.5% to 99%
Currently 98.7% Will hit 99% target
VoIP not in RFT basket
Progress on wave 1 – FTE and efficienciesWave Director Domain
FTEs in Scope
Wave 1 commit-ment
Benefit FTE & OvertimeBy June
Benefit FTE & Overtimeafter June
Benefit FTE & Overtime Total
Paul TaylorUK Voice 202
Peter StewartUK Data
314
Mike CookMobile
172
Dougie AndersonBusiness Svces
98
Paul WeirVOIP Services
207
Wave 1 Total 993 195 14 209
32
38
12
67
46
Additional Wave 1 Cash BenefitsSub-con Opex: £0.3m p.a.Switch: £297k p.a. from Wipro (11 sub-contract FTE reduction effective from 31/05/2012)
Other Opex: £0.9m p.a.Switch: £600k p.a. from c3,000 fewer FE visits @£200 (being validated with FE)UK Mobile: £313k p.a. reduction in ASG costs through fewer Bridge cases (to be validated)
Vendor Opex: £TBC p.a.VoIP: Reduction of Vendor Spend (ALU on BBT, TCS for NOAS and Verint for Call Recording); Further reduction in IPX ; (TBC)– awaiting confirmation via Finance
Capex: £1.8m p.a.UK Data: Cisco kit worth £0.9m now recovered for re-use on customer premises. Further £1.1m available to recover
13
0
0
0
1
45
38
12
67
47
49
38
12
66
42
Wave 1 Closure Plan
Benefits RealisationOps & PMO finalise Actuals for all Lenses in line with month end process
Operations PIR - Operations hold review workshops & complete
Closure template
11 -13 JuneIndividual Director sign off calls
Communications & RecognitionDirectors communicate to in scope teams about the end of
wave and recognise star contributors
20 June - Steering Board Sign-off
14 June – Programme Board sign off of overall Wave 1 Closure Report
Wave 1 Closure Report
finalised per sub wave
Wave 1 Sustainability
Maintaining and building momentum after the end of a wave: MD role and resourcing
Operational Change AgentsWave 1: OCAs to coach and build Lean in FLM teams (20% time)M. CookP. Stewart VoiceP. Stewart DataP. WeirD. AndersonHR BPs working with GMs to close outstanding gaps
Lean Practice Support
Wave 1: 2 FTE to support GMs and directorsFurther 2 FTE to support mid-June onwards
Wave 2: 7 FTE to support GMs and directors
Coaching cascade MD Process confirmation cascade
Questions to ask your directors in their 1:1s
•When was your last performance dialogue with GMs?•What key improvements are you working on with your team as a result? •What Lean tools are you using? •When did you last attend a performance dialogue with your GMs’ teams and how did you coach them? •What is your schedule for attending your GMs’ performance dialogues? Can I arrange to attend one•What is your schedule for doing Go See with your wider team?
Start doing this!Plan your schedule of director performance
dialogue visits (1/ month/ director)
Reinforce requirement
with directors
Process confirmation: the method we use for ensuring standards are maintained and improved
Wave 2 Readiness
Wave 2 - Method Changes and Progress updateManager Boot Camp 9th-11th May
FeedbackFeedback
StatisticsStatistics
Method Update
Wave Approach – the Re-design period has been extended to two weeks following learning from Wave 1 that there was too much to cover within the time allocated. Week 1 current condition playback, Week 2 True North, target condition and commitment focussed.
Process Tool – taking Wave 1 learning and method input from KPMG the process mapping tool of choice has been changed for Wave 2 from IDEF to Four Fields Mapping and has been well received at boot camps.
Hypothesis based data collection – following method recommendations from KPMG Wave 2 data collection is more closely targeted ,based on hypothesis agreed with Operations. Wave 1 collected significant amounts of data that was not directly helpful for waste identification.
Data book- KPMG have recommended the creation of a data book per sub-wave that is being used for Wave 2. The data books are split in to value streams and LWOW .
Commitment deck – significant joint work undertaken between BT method team and KPMG to provide detailed commitment templates for current state and future state to provide greater clarity on the ‘Ask’ at the start of each sub wave.
Feelings after manager boot camp
Rating of training sessions
Excitement
Confidence
Understanding of role
“Awesome - should happen more than once.”
“A lot of information to take on board. Size of the task is immense but left feeling energized and looking forward to starting!”
“The airplane exercise puts the message of how small changes can make big improvements across very powerfully. “
“Still concerned on how I will be able to allocate 50% of my time”
“My biggest concern is conveying LEAN to my team members - changing their culture and re-iterating that LEAN is here to stay and everyone will play a vital part in the on-going process change”
“Coaching session was too short . It was at the end of day when energy levels were lowest”
Current State Commitment deck : Current Process Performance - specific data now required covering speed, quality and costs of the current operation.
Current State Commitment deck : Effort Loss Waterfall – data required showing how total FTE time is spent today.
A full learning review of Wave 1 has been undertaken between the BT Method team and KPMG. Minor improvements have been required to the LWOW method with the following changes implemented around waste identification and commitment approach for Wave 2:
How Wave 2 Operational Change Agents are feeling (end of Bootcamp)…
“One of the real benefits this week is having the
opportunity to listen to the people who went through this
on wave 1”
“Lean is the realisation for positive on-going work
improvement”
“I’m really excited to be going back and taking the learning
back to my own team”
“Looking forward to continuous improvement”
“I feel safe to make a mistake”“Really, really excited!!! Nervous, but excited”
“I doubt the sustainability of Lean”“Day 1 confusedDay 2 bemusedDay 3 enthused”
“An amazing experience”
“Ready to help the company change”
“Time spent as an OCA is the best time I’ve ever had in my 7
year career with BT”
“Really looking forward to rolling Lean out to my team
after the great time in Wave 1”
“Fantastic week, excited and energised for the Lean
journey ahead”
“Happy with the methods, nervous
about getting started. I believe it
will work if truly supported from
above”
“It’s a little step every day. How hard can it truly be?”
“Positive ”
“Very excited about the potential for positive change
with this unified team approach”
“It’s great to see BT take the leap of faith and buy into the long term journey
to exceed your competition and put Telco’s on the map when it comes to
operational excellence”
“First time excited that BT will be the best place to work and provide best quality services
for the customer”
“Great – first time BT has challenged the process being a failure rather than
people”
“This feels like a real opportunity to make a
difference”
“I have been pleasantly surprised by the enthusiasm shown by the teams
within my area and other areas”
“Ready to help the company change”
External insight from Nestlé Visit
Nestle visit to BT
In March, approximately 40 BT people visited the Nestle factory in York to learn more about Lean and get fresh ideas, Nestle are ten years into their lean journey…
…On Monday 14th, Nestle came to visit BT to learn more about virtual working in a Lean environment as they explore introducing virtual working for their teams
In March, approximately 40 BT people visited the Nestle factory in York to learn more about Lean and get fresh ideas, Nestle are ten years into their lean journey…
…On Monday 14th, Nestle came to visit BT to learn more about virtual working in a Lean environment as they explore introducing virtual working for their teams
As part of a reciprocal knowledge sharing relationship we’re developing with Nestle, they share the following insights with us about our Lean implementation.
They recognised:
•Our focus on Lean•Buy-in from business•Buy-in from Senior leaders•Ability to execute virtual huddles & performance boards•The standard automated performance boards•Our team members are motivated and behind the Lean programme•Involvement of teams and how our teams feel passionate about solving issues
As part of a reciprocal knowledge sharing relationship we’re developing with Nestle, they share the following insights with us about our Lean implementation.
They recognised:
•Our focus on Lean•Buy-in from business•Buy-in from Senior leaders•Ability to execute virtual huddles & performance boards•The standard automated performance boards•Our team members are motivated and behind the Lean programme•Involvement of teams and how our teams feel passionate about solving issues
Back-up
BT Mobile - SMEAS
The top graph shows all orders thatwere in the system prior to the Lean
wave and their cycle time. The sampleis made up of 573 orders with an
average cycle time of 83 days minus customer delays
The bottom graph shows the cycle timeof orders entered following the waveand is based on a sample size of 219
orders with an average cycle time of 47 days minus
customer delays
Additional orders and time are required to confirm whether the cycle time improvement
is stable and sustainable
UK Voice – Big & Large Switch
Due to the complex nature of the CSS (workflow) system data is only available for all of the queues (4000+) back until 31/12/11.The sample size from 31/1/2011 to 28/01/12 is 269 with an average of 26.8 days
Since the 28/01/12 the average cycle time is 12 days with a sample size of 13146
UK Voice – ISDN30
Due to the complex nature of the CSS (workflow) system data is only available for all of the queues (4000+) back until 31/12/11.The sample size from 31/1/2011 to 28/01/12 is 1012 with an average of 17.5 days
Since the 28/01/12 the average cycle time is 14 days with a sample size of 35970 transactions
UK Voice – PSTN/ISDN2
Due to the complex nature of the CSS (workflow) system data is only available for all of the queues (4000+) back until 31/12/11.The sample size from 31/1/2011 to 28/01/12 is 4781 with an average of 21 days
Since the 28/01/12 the average cycle time is 10 days with a sample size of 702485
Switch sub-wave: -Managed Business Networks - CT
TIS: VoIP CE Target Condition 1 Implementation
RefDeliverable Len
sOwner
Lead
OCA
Target Date
Trend Comments/Risks
6Reduce CRD failure rate from 8.5% to 1% C 20/04/2012
DMA CRD increased from 91.5% to currently at 98.7%. . Target was 99% which we will achieve. Activities completed have improved our figures. New activities have been hi-lighted to work on as part of TC2.
7
Reduce DMA cycle time from 114hrs to 80 hrs. (19 to 13 days) – 30% reduction C 20/04/2012
Cycle time reduce to an average of 12.26 days
Service Delivery - Additional Wave 1 Cash Benefits
Other Opex: £0.3m p.a.UK Mobile: £313k p.a. reduction in ASG costs through fewer Bridge cases (to be validated)
Capex: £1.8m p.a.UK Data: Cisco kit worth £0.9m now recovered for re-use on customer premises.Further £1.1m available to recover
Service Management - Additional Wave 1 Cash Benefits
Sub-con Opex: £0.3m p.a.Switch: £297k p.a. from Wipro (11 sub-contract FTE reduction effective from 31/05/12)
Other Opex: £0.6m p.a. Switch: £600k p.a. from c3,000 fewer FE visits @£200 (being validated with FE)
Service Infrastructure - Additional Wave 1 Cash Benefits
Vendor Opex: £TBC p.a.VoIP: Reduction of Vendor Spend (ALU on BBT, TCS for NOAS and Verint for Call Recording); Further reduction in IPX; (TBC) – awaiting confirmation via Finance
Wave 1 Service Delivery – Performance against Plan