seven years of lean, six sigma - amazon s3€¦ · seven years of lean, six sigma ... drive lean...

© Copyright IBM Corporation 2010

ISC

Dan Lofaro, Senior Manager of Process Innovation - Integrated Supply Chain - IBM Corporation Matt Raymond, IBM Corporation Colin Marshallsea, IBM Corporation

Seven years of Lean, Six Sigma


Process Innovation | ISC 2 2

Agenda

Who we are • Mission & Vision • Global Team & Global Reach • ROI

How we work • Engagement Model • Project Types • Training and Education

Some of what we do − Project Stories

• Global Process Services • Transformation and Lean, Six Sigma • Paper Reduction

Growing Pains and Lessons Learned Success Factors

Q&A’s + Discussion



Who we are • Mission & Vision • Global Team & Reach • ROI


Process Innovation | ISC 4

IBM ISC Process Innovation Team

4

IBM has a long tradition of process improvement and innovation In 2012, the IBM’s Integrated Supply Chain, (ISC) Engineering Design and Operational eXcellence (DOX) Team celebrates 10 Years of Excellence In 2005, the IBM ISC Leadership Team initiated and sponsored a lean, six sigma pilot. The goal was to use analytical tools and methods to deliver measurable improvements to transactional processes performed by supply chain operations



5

Team Vision, Mission and Values

To deploy Lean Six

Sigma across ISC/STG,

providing incremental

business value through

the application of a

“structured” process

evaluation to specific

business problems

Lean Six Sigma will be

integrated into the fabric of

ISC/STG, resulting in a

standardized approach for

problem-solving, fact-based

decision making, and a

process driven culture.

MISSION VISION

Expected Business Values

Improve Critical to Customer Processes

Drive Cost / Workload Savings

Drive the use of process metrics to monitor and develop continuous improvement

Drive Lean Six Sigma into the DNA of the operation to employ a structured methodology to enable

a culture change toward fact based and process-driven decision making

Provide an independent E2E view of process and problems



Management, Mentorship and Delivery Model

6

Manager

Customer

Fulfillment

USA

Manager

ISC Global

Operation

Ireland

Manager

ISC Global

Operation

Singapore

Senior Manager

ISC Process

Innovation

Master

Black Belt

Master

Black Belt

Master

Black Belt

Master

Black Belt

Australia

1 BB

Malaysia

1 BB Singapore

7 BB’s

China (Sth)

1 BB

China (Nth)

1 BB’s

Brazil

3 BB’s

Hungary

2 BB’s

Slovakia

1 BB

Ireland

11 BB’s

Mexico

2 BB’s

USA

8 BB’s

India

2 BB

Resource Allocation / Workload Management / HR Functions

Project

Guidance

Mentor

Expertise

• Global reach

• Mix

Experience

Skill

Capabilities

SC Knowledge

Language

Resource

Flexibility and Adaptability



Return On Investment

7

2007 14HC WW

Start Up 2006 7 HC

US Projects ROI = x3

2011

53 HC

WW Projects

ROI = x3

2010

63 HC

WW Projects

ROI = x4

2009

58 HC

WW Projects

ROI = x5

2008

55 HC

WW Projects

ROI = x5



How we work • Engagement Model • Project Types • Training and Education



Process Innovation LSS Engagement Model

Project Requests

• Improve Critical Customer Processes • Reduce cost and improve efficiency • LSS Education & Deployment

Communications Focal Process Innovation Resource Managers

and Master Black Belts Process Innovation Senior

Manager

PI Website Integrated Supply Chain Other Enterprise

• Audience:

Any IBM resource can submit project ideas to the team for consideration

• Audience:

Organization and Functional Managers -- New and follow-on engagements

• Audience:

IBM Organization and Functional Executives

1. Work with Executive/Sponsor to understand • Strategic goals • Business problem & scope • Objectives of the project/initiative and linkage to strategy

2. Evaluate LSS compatibility - process related, data driven, unknown solutions

• Need for LSS education/deployment (GB/YB) vs. pin pointed problem resolution (BB)

• Productivity Challenges

• Specific Business Problems

• Establish Metric Systems



Project Type 1: Small Projects, low on complexity, typically should take 3-4 months to complete. Expected benefits > $50k

Project Type 2: Medium sized project complexity, typically should take 5-8 months to complete

Project Type 3: Large Project, WW impact, multiple functional areas or geos, typically should take 9-12 months to complete. Expected benefits > $200k Transformation Type 4: Large Project, WW impact, multiple functions across value-chain 12+ months to complete. Expected benefits long-term tied to Initiative Business Case

Financial Impact:

How many Full Time Equivalents does the process touch?

Is there a Productivity Target?

Is the operational metric easily defined?

Project complexity?

How many Geographies/Locations impacted?

Number of Functional Groups?

Questions to ask:

Several Functional Groups

Ge

og

rap

hie

s / L

oc

ati

on

s

•Data Availability

•Complexity Factors

Limited

Several

3 months

12 months...

Project Categorization and Selection

Project Selection Scorecard

Project Complexity Rubic



Project Engagement, Management and Training

Data: PTD – Nov 2011

Value Statement: “Drive Lean Six Sigma into the DNA of the operation to employ a structured methodology to enable a culture change toward fact based and process-driven decision making”



Community vitality, communication and listening post



13

Lean Six Sigma Training, Certification & Development

Design for Six Sigma:

Completed DFSS deliverables by phased and education to extended PI Team

New D*MAIC Approach:

Develop methodology to meet needs of PI customers requesting method to identify short term actions

Theory of Constraints

Determine applicability of Theory of Constraints, completed training module and expand skills throughout Process Innovation Team

Industrial Engineering

Investigated various IE tools, including: Queuing Theory, Simulation Mathematical modeling.

Trained team on introduction to simulation using WBM

Kaizen

Delivered education on Kaizen Events

How & when to Kaizen, Tools used

Agile

Determine applicability of Agile technique and researched application of agile including development of agile metric

•Investigate opportunities to expand the technical skills and tools of the PI team

•Create comprehensive set of materials to educate and assist the PI Black Belts and Green Belts in process improvement tools and methods

•Research Industry best practices to ensure PI BBs are abreast with latest skills/toolset

Ongoing Team Skill Development

•Online 140+hrs •Mentor / Review 36hrs •Group Project 36+hrs • Exam • 2 x Projects $250 ea. Within

2 years from exam date • Certification Review Board

MBB

BB Team Lead

BB Team Peers

BB Candidate

Deliverables by phase

• Standardized work product templates

• Work products examples

• Work product owners (experts)

• On-line References

Skill Building and Knowledge Development

BB Candidate



Some of what we do • Project Stories

• Global Process Services • Transformation and Lean, Six Sigma • Paper Reduction



Global Process Services

Global Process Services IBM Global Process Services (GPS) partners innovative

companies to manage business processes which deliver

strategic value that contributes to their growth and operational

efficiency. Our business process innovation, advanced

analytical capabilities, human talent and technology give GPS

a practical business expertise help clients identify measurable

growth opportunities and calibrate their business processes to

capitalize on them for immediate gain and sustained long-term

performance.

Lean Experience Value: “Improve Critical to Customer Processes”

• Call Center TAT (Turnaround Time)

• Order Management Cycle time

• Invoice Management

• Sourcing

Value: “Drive Cost / Workload Savings”

• Reduce wait time / re-work

• Checkers / Checking Checkers

• Hand-offs between functions

• Customer hand-offs

Value: “Drive the use of process metrics to monitor and

develop continuous improvement”

• Workload balancing

• Transparency to Management System and

Cadence

Value: “Drive Lean Six Sigma into the DNA of the

operation to employ a structured methodology to

enable a culture change toward fact based and

process-driven decision making”

• Externalization (difference based on facts not

‘culture’)

• Standardization

• 15% of resources to be YB / GB certified

Value: “Provide an independent E2E view of process

and problems”

• Common, simplified, best practice

Philippines

China (Nth)

Brazil

Hungary

India

IBM Delivery Centers with Active LSS Projects



Value Chain Transformation

16

Order to Cash Value Chain

Opportunity to Order

Manage Client Contracts

Manage Orders

Plan Demand Supply

Manufacture products

Distribute & manage global logistics

Deliver solutions & services

Manage invoicing

Manage post-sales Admin support

ISC Process Innovation Team

Business Problem / Voice of the Customer: The end-to-end Solutions process

and management system are complicated requiring coordinated integration of

deliverables from multiple stakeholders. The result is a significant amount of resource

time spent executing an order as well as delays in meeting customer expectations.

Challenges:

• Value Chain extends horizontally across multiple processes under multiple functional groups or verticals.

•More than improvement of existing processes with defined boundaries

Approach:

•Co-ordination of experienced Black Belts skilled in applying the principles of structured problem solving.

• Application of Organizational Change Mgmt in addition to the Lean Six Sigma methodology

Master Black Belt

Process Owner

Executive Sponsor

Black Belt Black Belt



Green ISC

17

The mission of the Green ISC team is

to: Raise awareness and leverage the

skills and talents across the ISC, to

execute One Green Strategy through

the implementation of programs and

projects that advance IBM's overall

environmental objectives.

Areas of opportunity Energy Reduction (Green Sigma®)

Packaging & Logistics

Solid Waste

Supplier Initiatives

Software Operations

Employee Involvement

Packaging & Logistics

Voice of Customer “ You say you are green but I want you to see for

yourself”

Black Belt went on “Ridealong” and

observed the amount of packaging and paper waste associated to

delivering and installing product

“Green Customer” with a Customer Satisfaction

Issue Black Belt with an opportunity to reduce

waste



Publication Reduction Scope/Objectives: Reduce the percentage of paper products created & shipped to clients by 10% within 12 months.

Baseline Metric/Target: Reduce costs for material and shipping by 10%.

PowerSystems (System i &

p) at Rochester plant

BASELINE

Average Monthly

Pages Shipped

Avg Monthly Pages

Per Order

Mean 2,293,727 207

Improvement Actions included:

-Work with legal council to obtain & support of recommendations hard copy

documentation elimination and strategy.

- Worked with Information Development to support to remove docs & set up

proactive meetings.

- Reduce size of Safety Manual book from 238 sheet. (Regionalization Plan)

Paper / Print Reduction

Objective: Reduce the volume of printed documents on Network Printers for Ten of the RTP building locations by 20% by end of 2010. Scope: Expand the Bldg. 205 pilot to other building/locations in RTP.

Use Global Print Application to measure distribution of image volumes by building location Use RESO information to determine organizations access to print locations within buildings Use RESO information to determine organizations access to print locations within buildings. Create pareto of volumes by org. then by team (where possible) Contact Org. Leaders develop, implement print reduction plan Making the paper consumption available and personal ….”Did you know this printer…. “ Measure / monitor image volumes and report month to month

RTP, NC

Reduce 3.65 M pages

POK, NY

Reduce 2.1 M pages

Hard savings in material & transportation costs



Success Factors Growing Pains and Lessons Learned



• Learn by doing • Meeting demand • Growth / Design (Management System,

Team Design, Mentoring /Training, Quality)

• Creating / meeting demand • Mechanics of Global Team • Adjust (Management System, Team

Design, Mentoring /Training, Quality)

• Engagement in SC ‘Initiatives’ • LSS + PM

20

2007

Start Up 2006

2011

2009

2008

Lessons Learned

• Learn by doing • Meeting demand • Every opportunity is

a LSS opportunity

• Meeting demand • Learning, Mentoring and Certification • Developing skills within team • Program balance across IBM BU and

Functions • Connecting projects upstream / down

stream • Leverage Experience and

specialization

2010 • Talent retention / market forces • Career path • Skill development DMAIC to DFSS • Continued expansion across IBM

BU’s • Low hanging to deeper / broader

scope

• Talent retention / market forces • Limited expansion across IBM

BU’s maintain and mature relationship (repeat work)

• Low hanging to deeper / broader scope to engagement with business transformation



Success Factors

21

Establish paired and dedicated project leads Black Belt – Unbiased view with fact-based / data-driven process training Process Sponsor – Influential power that is within the organization that needs the process transformation Supported by Subject Matter Experts (SME's) – Bring process knowledge to partner with the Black Belt’s knowledge of process and data analytics

Establish a Steering Committee for Exec support and a clear escalation path Include key executives from all areas in which you will need work done & buy-in gained Ensure that the project is linked directly to the company’s top strategic priorities

Set ground rules up front Ensure management support at all levels and adequate commitment of resources Ensure roles and responsibilities are defined and understood

Communicate, communicate, communicate Clearly and frequently; communicate internally and with stakeholders Creatively look for what motivates people, use rewards, incentives, and tailor your techniques to each area

Keep the E2E project ‘optimization plan’ whole

Use a data-driven methodology to break the project into manageable sub-components Use a standard approach for each sub-team and coordinate outputs and root causes across the e2e project

Pick the right people... who will… Exhibit strong leadership, partnership, and collaboration across functions to focus on the E2E solution Hold the line despite resistance & maintain determination to institutionalize the process changes



Q&A’s + Discussion

seven years of lean, six sigma - amazon s3€¦ · seven years of lean, six sigma ... drive lean...

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