deeper © copyright ibm corporation 2010 integrated operations american society for quality –...

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© Copyright IBM Corporation 2010

Integrated Operations

American Society for Quality – April Six Sigma Meeting

April 27th, 2010

E2E Sourcing Model:Project Champion - Heather BuschMaster Black Belts - L. Erik Anderson, Kyle KovacBlack Belt - Jason Mudd

2© Copyright IBM Corporation 2010

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E2E Sourcing Model | Integrated Operations

Process Innovation Team

Process Innovation Team Engagement Model

IBM Transformation Principles

Case Study: E2e Sourcing Model Black Belt Project Lessons Learned

Agenda


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Business Values

(Gained From Process Innovation Projects)• Improve Critical to Customer Processes

• Drive Cost / Workload savings

• Drive the use of ongoing Process Metrics

- to monitor & develop continuous improvement

• Drive Lean Six Sigma into the DNA of the operations

- Employ a structured methodology to enable a culture change toward fact-based and process driven decision making

• Provide an Independent E2E view Mission: To deploy LSS across ISC/STG, providing incremental business value through the application of a “structured”

process evaluation to specific business problems

CONCEPTCONCEPT DEVELOPMENTDEVELOPMENT IMPLEMENTATIONIMPLEMENTATION GROWTHGROWTH

20052005 20062006 20072007 20082008

• Established in 3Q as a pilot team • Sponsored by Bob Moffat

• PI Pilot expansion• Education established• Management System established• Proof-of-concept

• 1st year of “Production”• Team expanded to 14 members globally• Expanded work in ISC•Savings = $13.5M

• Team expanded to 54 members WW• Production expanded• Savings= $84.4M

20092009

• Expanded into STG support• Steady production• Savings =$333.6M

Vision: LSS 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.

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Case Study: E2e Sourcing Model Black Belt Project Highlights

Agenda


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Project Request

PI Website CF/ITD Proc/BTO/Mfg GOPS Other Enterprise

Focal Point Focal PointFocal Point

Importance to Customer

• Productivity Challenges• Specific Business Problems• Establish Metric Systems

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

Focal Point

Feasibility/Complexity of

Project

Impact on other Processes

Savings Investment

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)

Project Evaluation

Project Prioritization

Focal Point

RECOGNIZE PHASE

Strategic Value

Project Pipeline

Strategy Financials

MBB

PI Team Engagement Model


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Yellow Belt Education Green Belt Education Black Belt Education

Course Characteristics

• 15hrs online course work • 100% self-learning • Exposure to DMAIC methodology • Brief exposure to tools • Not statistically intensive • Exam required

• 50-60hrs online course work (self learning)• 16 hours of supplemental instructor-led

education delivered virtually via Centra• Detailed exposure to DMAIC • Exposure to statistical tools and techniques • Learn to understand and apply tools and

techniques • Statistically Intensive • Exam required

• 140 hours of online course work or 4 weeks of classroom education

• In-depth exposure to statistical tools and techniques

• Very statistically oriented

• In-depth exposure to DMAIC process

• Exam required

Targeted Group • Lean Six Sigma Project team members • Possess Analytical Thinking • 1st Line Mgrs with a project running in

their area (not limited to)

• High Potential / Top Talent / Team Leads• Possess Analytical Thinking• Experienced Employees

• Process Innovation Team

Project Requirements

• Must participate in a Lean Six Sigma Project

• Must lead on a Lean Six Sigma Project. • Expected to devote 30% of time to leading a

project • Projects 4-6 month in duration• Benefits > $50k

• Broader scope: Cross-Geo, Cross-Org, Impacts large # of people

• Projects 9 - 12 months in duration

• Larger benefits (> $200k)

Team Structure

BB

GB

YB YB SME

GB GB

GB

PI Team Engagement Model - Education


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Specific Scope

Faster Results

Smaller Benefits

Green Belt Projects

Broader Scope

Slower Results

Larger Benefits

Black Belt Projects

IBM Lean Six Sigma 2-Pronged Approach

Specific Scope

► Single Process or Geo

► Drives Lean Six Sigma into the DNA of the Org.

4 – 6 Months Duration

Benefits > $50K

Broad Scope

► Cross-Geo

► Cross-Org

► Impact large number of people

9-12 Month Duration

Benefits > $200K

PI Team Engagement Model - Projects


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Agenda


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Achieving scalable results requires a well thought out and proven framework

Factors based upon IBM’s Lean Sigma research and experience 1996 – 2005

Str

ate

gic

fo

cus

Su

pp

ort

ing

In

fra

stru

ctu

re

Integrating Data Systems & Strategy1. Committed Leadership

Control /Implement

Analyze / Explore

Improve /DevelopMeasureDefine

6. Integrated Approach to Change

7. Benefits & Tracking Rigour

8. PerformanceManagement

9. Capabilities, Learning

& Knowledge

10. DeploymentManagement

2. Customer Focus& Requirements

3. Strategic Alignment & Project Selection

4. Full Time Resourcing& Organization

5. Business ProcessFramework

Pro

ject

M

eth

od

s

The transformation architecture is key to providing an enduring flow of benefits

IBM Initiative Deployment Success Factors


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To be successful all factors:− Must be aligned and

fully-integrated

− Must be tailored to uniqueness of each organization

“Committed Leadership” is THE central factor in implementation for any successful program

CommittedLeadership

Governance &Communicatio

n

Process Management

StrategyIntegration

Training &Staffing

Rewards & Recognition

Measurements& Metrics

RESULTS

LSS Enterprise Management Program

“Must Haves” For A Successful LSS Enterprise Management Program


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Pilot Early Success Adoption Optimization World Class LSS Culture in DNA

Program Results Case by Case Success ROI = -25 – 25%

Positive ROI on Op and Financial Benefits

ROI = 25 – 50%

Op/Financial Benefits consistently captured

ROI realized ROI = 50 – 100%

Best practice standards met ROI = 100 - 150%

ROI influences budget Build ROI > 150%

Committed Leadership Few Visionaries Burning Platform at all organizations

Sr leaders involved in project selection & execution

All project sponsors trained and engaged

LSS integrated into personnel system

Strategy Integration Transactional projects Specific scope Isolated projects

Transformational projects Large/broader scope

Systematic selection with leadership priorities as part of FP

Projects focused on E2E processes

LSS program aligned with strategic plan

Projects focused on E2E processes and may cross functional areas

LSS program integral part of strategic planning

Projects focused on E2E processes and may cross functional areas and organizations

Training and Staffing Initial training of Sr leaders, key focals

BB Training External ~1% of organization LSS trained

Full scale BB education (external)

Pilot GB internal education ~5% of organization LSS

trained

Full scale MBB training (external) Standardized GB education

deployment ~10% of organization LSS trained

Best practices used to create best-of-breed training program

Core LSS Trainers ~20% of organization LSS trained

Continuous demand for LSS Classes Continuous execution of LSS classes ~25% of organization LSS trained

Governance and Communication

Establish governance structure Create strategic plan

Refine governance and communication plan

Centrally manage LSS projects Process Owners own utilization of

YBs/GBs for CPI

All organizations leverage LSS methods/resources for continuous improvement governance

CPI governance part of decision making DNA

Process Management Ad hoc selection of low hanging fruit and key pain points

Build process management system

Process Owners manage by process management system

Projects align to Enterprise-wide processes (EPF)

Process management influences future state

Measurements and Metrics

Ad hoc reporting Project tracking system and LSS Scorecard

Initial integration with Business Intelligence System

Full integration with Business Intelligence System

Fully integrated balanced scorecard

Rewards and Recognition

Driven few Volunteer Belt Candidates 100% of candidates selected from top 25%

LSS Certification seen as career enhancing

LSS aligned to Promotions & assignments

Level 1 Level 2 Level 3 Level 4 Level 5

LSS Maturity Model Assessment


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Agenda


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1. Manage Time Zones2. Manage SMEs3. Manage Implementation Owners4. Establish Interview processes & protocol5. Data Collection & Analysis can be time consuming…It is important to identify

key measures up front & begin measurement as soon as possible6. Measure & Improve Phases were the most challenging phase due to time,

details, and coordination required7. Decided on process mapping software up front8. Understand the limitations of the mapping software9. Establish agreed upon definitions of value, non-value, and waste prior to

analyze10. Scope management e.g. break up E2E process mapping projects into smaller

components11. Involve the IT team often and early i.e. if you know that there will be IT impacts

on the project12. Review and re-review the model often as a team b/c the model will reveal

additional improvement opportunities over time

E2e Sourcing Model Project Lessons Learned


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Questions?

Jason Mudd

[email protected]

(919) 486-2884

deeper © copyright ibm corporation 2010 integrated operations american society for quality –...

Documents

process innovation projects

lss compatibility process

pilot team

structured process evaluation

year of production team

expanded work

use of ongoing process

independent e2e view