using xerox lean six sigma to create real value for customers
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Smarter…Quicker…BetterUsing Xerox Lean Six Sigma to create real value for customers
Donna DunlapVice President
North American Solutions GroupSales & Marketing
Lean Six Sigma Deployment
2
Discussion topics
Today’s business challenges
Xerox’s experience with Lean Six Sigma
Translating the Xerox experience into real value for customers
3
Business challenges we all share
Retain and gain customers to grow revenue
Manage costs by reducing waste
Increase overall business productivity
Improve employee development, motivation and engagement
4
Xerox’s Profile Today $15.7B (US) in Revenue 58,000 employees
worldwide Broadest portfolio of
technology and services in document management and production
Our Mission:
Help organizations achieve their business goals through
Smarter Document Management SM
5
Xerox’s challenges
Maximize customer value Create growth opportunities Reduce costs Increase productivity
The critical challenge:
How to accomplish all four
in a sustainable way
6
1949-1960 1960- 1990 1990-2000 2002 and beyond
Birth
Birth
Growth
Maturity
Birth
Growth
Maturity
LTQ Lean New Quality Lean Six SigmaLTQ Lean New Quality Lean Six Sigma
Transforming Our Company
Birth
Growth
Xerography
Knowledge- intensiveSolutions & Services
Laser Printing, Faxing,EthernetColor Copying/ Printing, Production Publishing,Digital technologies
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XeroxOrganizationStructure
Business Operations
Research & Technology
Customer Operations
Operations Support
Fuji Xerox
Xerox Global Services
Xerox Innovations
Group
Business Group
Operations
Xerox North America
Developing Markets
Operations
Chief Financial Officer
Chief Staff & Ethics Officer
External & Legal Affairs, Gen. Counsel
Chairman and CEO
Production Systems Group
Xerox Office Group
Paper, Supplies & Supply Chain
Operations
Xerox Europe
Xerox Lean Six Sigma
Fuji Xerox
Global Accounts and
Marketing Ops.
Corporate Strategy & Alliances
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Xerox’s quality leadership journey
1994
The Xerox Management Model
The Xerox Mgmt. Model is
introduced as partof Leadership
Through Quality.
1996
The Xerox Management Model
The “evergreen” model is
continuously assessed & improved.
1997
Xerox 2005
Senior Mgmt documents the Xerox
2005 Leadership Through Quality
strategy.
All major Xerox manufacturing
sites worldwide receive ISO
14001 certification
1997
Xerox ISO
1998
Xerox Six Sigma
Six Sigma deployed in mfg. ops.
New quality policy, and
procedures refreshed to be focused/faster
2002
Xerox Lean Six Sigma
2000
Xerox new quality
Lean Six Sigma concepts & principles become
corporate standard
2004
Xerox Lean Six Sigma
Launch of design for Lean Six Sigma
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Meeting our challenges through Xerox Lean Six Sigma
Understanding what customers truly value and need
Transforming our culture Positioning us for growth Improving processes through
fact-based, disciplined decision-making and measurable outcomes
It’s becoming “the way we work”.
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Goal – Reduce waste and increase process speed
Focus – Identify non-value add steps and causes of delay
Method – Value Stream Tools, Kaizen events
LeanSpeed + Low Cost
Goal – Improve performance on customer CTQs (Critical To Quality)
Focus – Use DMAIC process with various tools to eliminate variation
Method – Management engagement, 1% - 3% dedicated as Deployment Champions and Black Belts
Six SigmaCulture + Quality
Six Sigma QUALITY Enables Lean Speed
(fewer defects means less time spent on rework)
Lean SPEED Enables Six Sigma Quality
(faster cycles of experimentation/learning)
Combining two powerful approaches
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Our commitment starts at the top.
“I’m convinced that Xerox Lean Six Sigma
is a way to rebuild value in our company
because it is about substance, not
form; it’s about discipline and infrastructure so projects can produce
business results.”
—Anne MulcahyChairman & CEO
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Enterprise-wide deployment
Sales and Marketing
XeroxAdministration
Information Technologies
Facilities
Customer Communications
Operations
Finance
ManufacturingEngineering
Human Resources
Our view: Not just a tool for operational efficiency, but an enterprise-wide business strategy for creating real value
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Majority of Xerox Lean Six Sigma Resources Integrated Into the Business Operations
Anne MulcahyAnne MulcahyChairman / CEOChairman / CEO
BusinessBusiness LeaderLeader
BusinessBusiness LeaderLeader
BusinessBusiness LeaderLeader
Deployment Deployment ManagerManager
DeploymentDeploymentManagerManager
DeploymentDeploymentManagerManager
BBsBBsBBsBBsBBsBBsMBB / BBsMBB / BBs
DeploymentDeploymentManagersManagers
BBsBBsBBsBBsBBsBBsMBB / BBsMBB / BBs
BBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBs
BusinessBusiness LeaderLeader
BusinessBusiness LeaderLeader
BusinessBusiness LeaderLeader
DeploymentDeploymentManagersManagers
VP, Corporate Lean VP, Corporate Lean Six SigmaSix Sigma
Deployment Deployment
BBsBBsBBsBBsDeployment Deployment TeamTeam
BBsBBsBBsBBsBBsBBsMaster BBsMaster BBsSponsors Sponsors
Chief FinancialChief FinancialOfficerOfficer
Note: VP, Corporate Lean Six Sigma Deployment reported to CEO at initial launch of Lean Six Sigma
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32 full-time deployment managers
1500 projects underway or completed worldwide contributing to Xerox profitability
Over 600 Master Black Belts and Black Belts have achieved certification, completed, or started training.
2,000 executives and managers have completed leadership workshops
2,500 Green Belts trained/500 certified
22,000 Yellow Belts trained and many other on-line courses
Worldwide Deployment Status
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Successful Lean Six Sigma Deployment Requires Company-Wide Involvement
All Employees• Basic understanding• Minimum Yellow Belt• Apply concepts to
their job and work area
• Owns vision, direction, integration, business results
• Leads change
• Project owner• Implements solutions• Owns financial results• Part time as part of job
• Leads Lean Six Sigma projects • Trains and coaches Project
Teams• Full-time position
• Participate on Black Belt teams and/or lead projects
• Part time on projects
• Provide project-specific support
• Can be yellow or green belt• Part time on projects
• Leads business unit performance improvement
• Prioritizes projects• Full time position
DeploymentDeploymentManagersManagers
ProjectProjectSponsorsSponsors
Project TeamProject TeamMembersMembers
OperationsOperations LeadershipLeadership
Green BeltsGreen Belts
Black BeltsBlack Belts
Centralized Centralized Coordination Coordination
& Training& Training
• Trains Black Belts / Green Belts
• Coaches Black Belts / Green Belts
• Leads Lean Six Sigma projects • Full-time position
MasterMasterBlack BeltsBlack Belts
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Phased Xerox Deployment Plan
Nov02
Seeding XeroxSeeding XeroxLean Six SigmaLean Six Sigma
• Articulate Burning Platform• Create Deployment Team• Establish Goals/Success Metrics• Process Management Approach• Define “Recipe” based on Lean Six Sigma Deployment
Principles• Develop Deployment Plan using Lean Six Sigma Planner
Executive Launch
Leadership Training
Deployment Design Deployment Design & Launch& Launch
• Select Deployment Leaders, Black Belts and/or Green Belts
• Define Project Selection/Prioritization Process based on ROIC and Benefit/Effort Matrix
• Establish Project Tracking Process • Identify/Select Initial Projects and Project
Champions/Sponsors
DeploymentDeploymentExecutionExecution
& Sustainability& Sustainability
• Deploy Resources on Highest Priority Projects• Conduct Training
• Kaizen• Lean Six Sigma
Manage the EffortManage the Effort
• Risk Management• Build Self Perpetuating
Capability• Benchmark• Leverage Best Practices• Integrate with
Suppliers/Customers• Communicate to
Stakeholders
Sponsor Training
Jan03 Feb03
BB Training
Jun03 Nov03
GB Training
MBB Training
DFLSS
May04 Aug05
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Lean Six Sigma: The next phase in our journey
Internal Operations Methodology & Tools
Internal Manufacturing Quality Methodology & Tools
External and Internal Methodology and Tools: Creating real value for
our customers
Xerox
customer
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Capable,DisciplinedProcesses
Accountability
Bottom LineResults
Focus on inputs
Sense of UrgencyCommitment to
Training & Development
for all employees
Fact-based,Data- driven
decisions
ManagementPassion
Values
CUSTOMERS
Top Line Growth requires developing Lean Six Sigma competency and culture before starting…
Communications
Leadership
Industry Competencies
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Top Line Growth: Customer Centric use of Lean Six Sigma-based Processes
Define the Problem
Characterize Requirements &Performance
Identify &Characterize Key Elements in the Solution
Determine the BestSolution
Validate & Implement the Solution
DesignNew DevelopDevelop ImplementImplementDefineDefine MeasureMeasure ExploreExplore
DefineDefine Measure
Measure
Analyze
Analyze
ImproveImprove ControlControlImprove Existing
Customer Engagement DefineDefine MeasureMeasure AnalyzeAnalyze ‘Recommend’‘Recommend’ ‘Close’‘Close’
DFLSS ValidateValidateIdentifyIdentify Develop Develop Optimize
Optimize
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Types of Growth-enabling Projects
Sales and Marketing
Customer Experience• Quote to Cash (umbrella project)
Sales Productivity
Retention/Same Account Growth
New Business
Technology and Services upgrades
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Sales and Marketing Deployment - the Infrastructure
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Donna Dunlap, VP LSS NASG Sales & Marketing585-423-5572 / 8*223-5572, XRX2-029
Linda Hatch, Administrative Assistant585-423-1237 / 8*223-1237, XRX2-028
2005 Xerox Lean Six Sigma2005 Xerox Lean Six Sigma
Sue Coia-AhlmanMBB - 14
8*223-2475585-423-2475
XRX2-019
Al RyanMBB - 15
8*221-2431585-231-2431
XRX2-008
Bob LabanowskiMBB - 13
8*223-6932585-423-6932
XRX2-011
Marty DuffyMBB - 12
8*223-3204585-423-3204
XRX2-009
Ragni MehtaMBB - 8
8*223-2087585-423-2087
XRX2-028
Robert C. Brasser – IPClare Browning-Tuch – IPWilliam M. Flom – IPKatrina Lamphier – IPKaren Loughlin - IPShari Mann – IPFernando Martinez – IPNancy Nam – IPJason Rider - IPLarry Scheerschmidt – IPJames Wagner – IPMichael P. Wiseman – IPSue Comer – FTKelly Lindenmayer – IP
Jon D. Allen – IPMark Burris – IPKay Carroll – IPBruce Collier – IPSara DeMuzio – IPKristen Eisenman – IPHelen Fong – IPRaj Garg – IPDan Holahan – IPKevin Horey – IPSilvia Neves – IPMichele Russell – IPIlona Smith - IP
Barry Barnes – FTButch Bland – FTKevin Groff – IPTodd Lester – FTSusan McGlinchey – IPDierdre Scott – IPShawn Whipple – IPJeff Whisler - QTCTony Hampton – FTLaura Norris – IPTerri Yamauchi – FTMike Jones - FT
Wanda Droz – IPBernie Durman – IPAnita Fonseca – FTCharles Gallagher – IPMike Knox - IPTim Kray – IPTyrone Scott – IPKevin Zielinski – IP
David Beckerle – FTDiane Burley – FT Linda Fosdick – IPRebecca Futral-Anderson – IPTerry Garigen – IPChris G. Graham – FTDeborah Hall – FTJohn Kenney – FTAnthony Mason – FTPatrick Porter – IPBonnie Stramer – IPMatt Stusick – FTEric Whyte – FT Frank Licata – FT Jasper Richardson - IP Certification Required
HR Loretha McCullough – RMBGO Anne Thorne – Certified 6/05MAO Terry Kochanski – Certified 8/10
Chris Tipton – PBPSO Warren Losey – AREast Scarla Gilbert – AR
Aaron Monke – ARJasper Richardon - AR
West Bo Beslach – MDJeannette Monachello – MD
Corporate MBBsCheryl Adas
04/07/23
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PEP Expectations:
AnalyzeAnalyze ControlControlImproveImproveMeasureMeasureDefineDefine
Individual Objectives Measures Good Better Best
Improve Customer Experience
Support customers through projects,events and presentations 1 2 3
Grow Revenue and Improve Profitability Deliver Economic Profit 610 800 1000
Great Employee Experience Achieve CertificationMentor/Certify Green Belts on your teams
183
155
<=12>5
Live our Values Deliver DMAIC Projects-2nd yr BB
FT BB-HQ Project Involvement
Deliver DMAIC projects –1st Yr BB + IP
2 3 4
1 2 3
1 2 3
Targets
2005 PEP Update
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Requirements for Success: Industry experience Business process experience Implementation experience
A Focused Industry Approach
Financial Services
Financial Services HealthcareHealthcare High Tech and
CommunicationsHigh Tech and
Communications
Manufacturingand Energy
Manufacturingand Energy Public SectorPublic Sector Retail and
Consumer GoodsRetail and
Consumer Goods
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SubstituteOther
Technology
FSMA Losses
CustomersNot satisfied
Customer Equipment
Trades / Upgrades
New Customers
ProcessChanges
Economy/Bankruptcy
AllOthers
Moves toCompetition
Customer FSMA / Services Renewals
Added Business
With CurrentCustomers
RevenueRevenue
Revenue Growth
Most LSSProjects
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Match the tools & methodology to the problem
Low Sigma
1 - 2 Sigma
3 - 4 Sigma
5 - 6 Sigma
Climbing the Benefit Tree
Design for Lean
Six Sigma(DMEDI &
IDOV)
DMAIC
Kaizen
ImprovementProjects
Workshops
Flashes
Courtesy Bombardier
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“Hard Metrics”
Increased growth Reduction in cost Improvements in quality of
your offerings Increased productivity Gains in process efficiency
due to reductions in errors and defects
“Soft Metrics”
Increases in customer satisfaction
Improved employee development, motivation, and engagement
+
What is “real value”?
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Translating our experience into real value for customers
InterContinental Hotel Group Brooklyn Public Library Monroe County Sheriff’s
Office
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Lean Six Sigma consulting engagement Implemented remote control Created standard operating system and
environment Moved administration offsite Eliminated redundancy among vendors
Case Study: InterContinental Hotels Group
Client ChallengesClient Challenges
Needed to cut costs to stay competitive during post-9/11 travel downturn
Improve customer satisfaction with IT support services
Measurable ResultsMeasurable Results
SolutionSolution
Leading hospitality company, managing brands such as Holiday Inn
Play video
30
Lean Six Sigma consulting engagement focused on front of process to achieve quick results
Designed and implemented a comprehensive Patron Access Management System
System includes Access Brooklyn Card, innovative kiosks and Web site
Patrons use card to reserve computer time, pay for print, copies and other services
Client ChallengesClient Challenges
Case Study: Brooklyn Public Library
Recover print costs lost due to free print policy Make more effective use of librarians’ time Provide patrons with better service, more
equitable computer access
SolutionSolution
Measurable ResultsMeasurable Results
Largest Public Library in the five boroughs of New York
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Lean Six Sigma consulting engagement Digitized and streamlined accident report
process in Records Management Division Created Web-based document access
system Integrated existing customer systems
Client ChallengesClient Challenges
Balance $100M budget Improve quality of service to the
community Free deputies from paperwork, so they can
spend more time ensuring public safety Eliminate backlog of more than 3,000
records and over four months of data entry
SolutionSolution
New York State’s largest sheriff’s office
Case Study: Monroe County Sheriff’s Office
Play video
Measurable ResultsMeasurable Results
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Lessons Learned
Right ToolsRigorously
applied
Right People Dedicated 100%
Right BusinessOpportunities
Right ResultsRight ResultsHold people accountable for business results validated to the bottom line
VOC, marketing, DfLSS, data analysis, process improvement, etc
• The most strategically important projects (growth, for the customer, retain share, increase price, improve profitability, improve effectiveness, etc)
• Projects with financial impact
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Key factors differentiating “A” curve from “F” curve
Ability to change Culture & Leadership Behavior
Project selection link to business strategies
Project selection link to Customer Value
* Chart adapted from Strategic Six Sigma: Best Practices from the Executive Suite by Dick Smith and Jerry Blakeslee
Pro
fit
($)
1 2 3 4
Year
Initial LeadershipCommitment
0
C
Sustained Commitment A
F As many as 50% end up here at “F”
*
Long Term Goal – Sustained Commitment & Results
Xerox
34
Lean Six Sigma… our next steps
Collaborate with companies that embrace this methodology Share best practices Benchmark Joint projects
Leverage the potential Continue to measure success
internally and externally
35
Thank You!
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Videos
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Case Study: InterContinental Hotels Group
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Case Study: Brooklyn Public Library
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Case Study: Monroe County Sheriff’s Office