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Sustaining Lean Six Sigma to Maintain Cost Savings and Profitability

Rob Bryant, CSC Lean/Six Sigma Program Leader Corporate Vice President of QualityApril 30, 2008

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Making it Stick

• The company has to have the desire to change (baseball story)

• Align the change with a strategic initiative

• Passionate Executive sponsorship

• An endorsed Project charter

• Knowledgeable and excited team

• Process ownership shared by the team and formal owner

• Provide an amnesty program

• Provide an effective award program

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•Set realistic goals

•Apply Lean first

•Assemble a passionate team willing to visualize the steps, count the cost, pay the price, and never give up!

•Flattering introduction of team members

•Develop a phased approach

• Integrate motivational messages into events

•Conduct follow-up meetings

•Share the results of projects and the entire program

Making it Stick

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My Own Walk Through Change

• The fall that took it all

• My three thoughts on the way down– This is really going to hurt

– Did I kiss my family goodbye?

– I will survive

• Paralysis

• Surgeries

Hard times do not dictate the outcome — you do.

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The Resistance to Change

• The best and worst day of my life (Dr. and Jon)

• The parallel bars — Mike

• The risk of not having a plan — Pop

The first step toward change is the hardest.

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Taking the First Step Toward Change

• Who moved that leg?

• The first step is the hardest — the 30’ hall

• The daddy book

• The miracle walk

• The row across America

• Don’t give up until the change is in place

• You have to crawl beforeyou can walk, run, or fly

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LEAN your processes to measure productivity and sustain your deployments. This will reduce:

• Loops

• Non-value added approvals

• Bottlenecks

• Series steps

• Unnecessary complexity

• Non-value added steps

• Process time/cycle time

• Problem steps

• Set-up time

• Manual effort

• Rework

• Pushes (insert pulls)

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Measuring the results using Lean & Six Sigma:

Step Process Yield Step Process Yield1 0.75 0.8 0.85 0.9 0.95 0.99 1 0.75 0.8 0.85 0.9 0.95 0.992 0.75 0.8 0.85 0.9 0.95 0.99 2 0.75 0.8 0.85 0.9 0.95 0.993 0.75 0.8 0.85 0.9 0.95 0.99 3 0.75 0.8 0.85 0.9 0.95 0.994 0.75 0.8 0.85 0.9 0.95 0.99 4 0.75 0.8 0.85 0.9 0.95 0.995 0.75 0.8 0.85 0.9 0.95 0.99 5 0.75 0.8 0.85 0.9 0.95 0.99

6 0.75 0.8 0.85 0.9 0.95 0.99 Yield 23.73% 32.77% 44.37% 59.05% 77.38% 95.10%

7 0.75 0.8 0.85 0.9 0.95 0.99 8 0.75 0.8 0.85 0.9 0.95 0.99 9 0.75 0.8 0.85 0.9 0.95 0.99

10 0.75 0.8 0.85 0.9 0.95 0.99

Yield 5.63% 10.74% 19.69% 34.87% 59.87% 90.44%

Apply Lean first, then Six Sigma.

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How CSC Put Lean/Six Sigma in Place Against Resistance

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Although many successful Lean/Six Sigma companies start a program from the top down, some grow from the ground up.

Here’s our story …

The Beginning of Lean/Six Sigma at CSC

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In 2000, word came that a few of our accounts out there were improving customer satisfaction and

revenue while reducing costs and errors.

It was like a voice from the wilderness.

CSAT and Revenue

Errors and Costs

The Beginning of Lean/Six Sigma at CSC

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Six Sigma

The Master asked how?

Turns out they were using some new fangled tools and they called it

The Master said, “I don’t care what you call it, do more of it!”

The Beginning of Lean/Six Sigma at CSC

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So, in early 2001 those few accounts began training others in the use of “those new fangled tools.”

The Master asked,

“If it worked over there, will it work over here?”

And it did!And the practice spread, and it was good.

The Beginning of Lean/Six Sigma at CSC

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In early 2002 the Master asked a few of the Karate disciples

(an MBB and several BBs) to train a whole division in Lean/Six Sigma.

And they multiplied …and did statistical analysis as well.

The Beginning of Lean/Six Sigma at CSC

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By late 2002, it was working so well the Master said to all the divisions,

“We are now a Lean/Six Sigma company.

And that led to …

Embrace this new practice as it is now ours!”

The Beginning of Lean/Six Sigma at CSC

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Message from Michael W. Laphen

CSC: 45 Years of Leadership in Quality Initiatives

As a world-class company with a 45-year history of leadership in quality initiatives, CSC is constantly looking for ways to improve the quality of our processes and sharpen our focus on serving clients. The CSC Six Sigma Program is an integral part of this effort and a testament to CSC’s commitment to building process improvement into our client engagements.

No matter what the area of your work, the Six Sigma methodology will help you document, understand, and improve your processes — thereby ensuring better service to your clients, higher return on investment, and improved morale among team members.

I look forward to your ongoing involvement in this important program, which will play a critical role in CSC’s continued success. Please ensure wide and successful deployment of this initiative in your respectivebusiness units.

Michael W. LaphenPresident and Chief Operating OfficerComputer Sciences Corporation

The Beginning of Lean/Six Sigma at CSC

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Testing

Inspection Costs

Scrap

Rework

Rejects

Warranty

CustomerAllowances

Pricing andBilling Errors

RevenueLeakage

Late Delivery

Lost Sales

Late Product Introduction

Long CycleTimes

Lost CustomerLoyalty

ExcessInventory

ExcessiveOvertime

OverdueReceivables

Eng. Change Orders

Expediting Parts

Time withDissatisfiedCustomers

Morale, Productivity,Turnover

Lost Opportunity

Traditionalquality costs —

4% to 5% of sales

Lean/Six Sigma attacks the entire “iceberg” systmatically resulting in higher quality, lower cost, timeliness, and improved customer satisfaction.

Which projects do you choose? Gain momentum by aligning business problems and strategic initiatives.

Hiddenqualitycostsdifficult to measure — around 15% to 25%

Strategic Initiatives:1. Reduce time to receive parts from vendors.2. Reduce the cost of bidding.

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Three Components to a Successful Six Sigma Deployment

• Support system– Infrastructure for the project/belt selection and training– Finance engagement– Management support at all levels

• Belts– Crisp process for identifying the right belts (Green Belt,

Black Belt, Master Black Belt)– Conducting training

• Projects– Crisp process for project selection– Work with CSC to pick projects benefiting them and reducing

costs– Matching the belts with the projects– Improve processes by increasing customer/employee

satisfaction, revenue, and performance while reducing costs, waste, and defects

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Five Phases of Six Sigma Deployment

1. Decide– Executive team says "yes" to deployment of a Six Sigma program– Establish infrastructure, methodology, and tools to be used

2. Prepare – Establish infrastructure– Executives on board– Pilot effort — take successes and use as springboard for other areas

3. Launch – Initial training– Pilot projects

4. Expand — can take 1 to 2 years– Share successes within corporation to get more support– Evaluate infrastructure– Expand training – Cultural shift

5. Sustain — future– Integrate, audit, measure, assess, review

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How They All Fit TogetherMethodology Analogy

DesignforSix Sigma

Lean

Six Sigma

Kaizen

Lean/Six

Sigma

Solving Problems with Lean/Six Sigma

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Current Situation

• More than 200 Six Sigma Black Belt projects and close to 1,000 Green Belt projects already implemented

• CSC’s Lean/Six Sigma program has decreased costs, reduced SLA payment, or increased revenue by over $150M in just six years (validated by CSC Finance)

0

20

40

60

80

100

120

140

160

2002 2003 2004 2005 2006 2007

CSC has a strong Lean/Six Sigma internal program in GIS and FSG.

GIS/FSG Lean/Six Sigma Program Savings

Years

$M Savings

Savings Cumulative

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Backup SlidesAbout the Speaker

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Walking Through Adversity, Author Rob Bryant, Published by HCI

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A Few Endorsements

• Former First Lady Barbara Bush: “I am so glad to have this opportunity to send my warmest greetings and congratulations to Rob and Wanice Bryant. Rob's determination certainly is an enormous inspiration. George joins me in sending our very best wishes.”

• Governor Arnold Schwarzenegger, California: “Congratulations on your accomplishment of a cross country trip on a row-cycle. That was a monumental achievement, and I wish to congratulate you on both your mental and physical endurance. I deeply admire what you have done!”

• Tom Landry, Former Dallas Cowboys Head Coach: “Rob is a coach’s kind of guy, he never quits. Rob set two world records even though he is paralyzed from the waist down. He is a man of faith, and I am looking forward to walking with him in heaven some day.” (Quote from a network program which Tom Landry hosted.)

• Author and Speaker Zig Ziglar: “Rob Bryant is an effective speaker! He had our staff laughing one minute and crying the next. He is an inspirational man who, by example as well as a very effective presentation, is able to give encouragement and hope to those who have the privilege of listening to him. He will be a “hit” with your group. Rob’s message is timely and challenging — one that you will long remember. Rob has a champion’s heart and is an encouragement and inspiration to us all.”

• Author and Aerobics Authority Kenneth H. Cooper, M.D.: "Rob, I am overwhelmed by your accomplishment in the face of unbelievable obstacles! You are worthy of the highest praise for motivating millions of people to improve their health and fitness.”

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A Few Endorsements (Cont’d)

• Minister Joni Erickson Tada: “Rob believes that we should never give up! God has given us the ability to either accept our situation, or change it.“ (Quote from a broadcast)

• USA Today’s Ben Brown: “The next time you moan about 20 minutes on an exercise bike, think about Rob Bryant, a 35-year old aerospace engineer, who has just finished a four-month, 3,280 mile workout on an oar-equipped tricycle ... Though paralyzed from the waist down, he also pushed and pulled himself with crutches over 24 miles from Fort Worth to Dallas!“

• Former Senator Chuck Robb, Virginia: “Rob, it is with great pleasure that I congratulate you for holding two world records and am honored that I could greet you at the finish line at the Capitol. Congratulations to you and your family.“

• Former Governor William Donald Schaefer, Maryland: “It is with great pleasure that I congratulate you. This grueling journey, which more than tripled the previous world record, is an outstanding and inspirational achievement. I hope you are as proud of your Maryland roots as we are of you.“

• State Senator Roy Dyson, Maryland: “Mr. Speaker, I rise today to pay tribute to [Rob Bryant's employer] and to Rob Bryant. Rob Bryant has been a paraplegic since 1982 when he fell 55 feet from an oil rig. Despite his handicap, he has just completed a courageous 3,280 mile “Row Across America”. Mr. Speaker, it is both an honor and a pleasure to salute Rob Bryant today.“

• Former Congressman Pete Geren, Texas: “Mr. Speaker, strength and perseverance rolled into town this week in the heart of Rob Bryant. He has just completed a 3,280 mile journey from Los Angeles to Washington, DC on a hand propelled row cycle. Rob Bryant is an author and stands tall in our eyes. He is truly an inspiration to all of us.“

• Senator Kay Granger, Texas: “I commend you for your past and future accomplishments, your generosity, and for being the special person for whom we all have the greatest respect and admiration.“

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Business Accomplishments

• CSC Corporate Vice President for Quality

• Assisted DynCorp in increasing revenue from $900M to $2.1B in just four years as a direct report to the President

• Certified Six Sigma Master Black Belt Trainer; led over 100 teams and studies resulting in over $100M in savings/revenue/improvements for all divisions of CSC

• Malcolm Baldridge Sr., Examiner for the National MB Award for the Dept. of Commerce assessing quality for the President of the United States

• Served on the “President Bush Business Advisory Council” for two years

• Served as an editor for a book called Quality for Dummies and has written several published articles/papers for journals such as Quality Digest, Six Sigma Magazine, and others

• Quality Certifications include ISO-9001:2000, TQM, Process Management, ITIL, CMMI, Six Sigma Master Black Belt, Business Excellence, and Malcolm Baldridge

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Personal Accomplishments

• Published author of three non-fiction books and negotiating with literary agent on two more (a fiction thriller and fictional love stories)

• HCI (known for the Chicken Soup for the Soul series) has now released Bryant’s latest book, Walking Through Adversity

• Motivational speaker with lnternational Speakers Bureau (RobBryant.com); has spoken to over 500 business and civic organizations, churches, hospitals, universities, high schools, and many other groups

• Two world records — longest walk by paraplegic (24 miles); and rowing 3,280 miles on a row machine (Guinness Book of World Records, 1992-2000)

• Nominated for “Texas Businessman of the Year” by the Texas Republican Committee

• Nominated as a “National Republican Committee Honorary Chairman” and attended a dinner with President G.H. Bush in that capacity

• Past President of LeTourneau Alumni Association

• LeTourneau University Instructor — Principles of Self Management; Administration Theory and Practice; Strategic Management; Ethics and Entrepreneurship

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Experience. Results.