Deploying lean six sigma at different_levels

© Copyright 2010 Hewlett-Packard Development Company, L.P.1

Vikas GeraWorld-wide Quality Head

HP Global Business Services

Deploying Lean Six Sigma at

different levels

11th Annual Lean Six Sigma & Business Excellence


5/25/2010 2

HP at a Glance

HP at a glance

• Fortune 9 U.S.• Fortune 32 Global• 304,000 employees• $114.6 billion USD in revenue for FY09• Operates in approximately 170 countries worldwide

Touching lives every day

• HP manages over 200 data centers, 380,000 servers, 5.4 million desktops, and 17 million IP addresses.• We handle over 68 million credit card accounts and process 3.5 billion transactions annually.• We service about 1 billion Medicaid claims and administer $100 billion USD in benefits a year.• We book 500 million travel reservations annually.• Our software examines and stops 1.7 billion spam messages per month.


Not having a common

understanding of quality puts more

pain into an organization than

anything else I have ever known

Philip Crosby Let's Talk Quality, 1989


AGENDA

� Working with Internal Customers

� Working at Enterprise Level

� The Maturity Curve of an Organization

� Summary


Quality S –Curve for a Cost Centre

Diminishing Returns in a Cost Center Environment

TIME

Retu

rns

Maximise through•Technology•Methodology•Scope


WORKING WITHIN A COST CENTER

� Where Quality is deployed only in a manufacturing plant or in cost centers, the gains from the Quality program are limited

� The “sponsor” for such program is typically the function head

� Business Excellence program is more “enabling” rather than directly impacting organization’s revenues or top line growth

� Focus is mostly on cost reduction programs even though the program can inherently contribute to top line growth

� In a cost center environment, ROI from the Business Excellence program keeps on reducing

� Goal for Business Excellence is to be cost effective and to enhance internal customer satisfaction


Quality S –Curve for a Enterprise

TIME

Retu

rns

Link to Revenues & Enterprise needsFocus on Real Customer


WORKING AT ENTERPRISE LEVEL

� Where Quality is deployed at the Enterprise level, the Quality program is an effective tool for organization’s success

� CEO or someone in Leadership Team is the sponsor in this case

� It is relatively easier to link Business Excellence program to end-customer needs

� Since we link with customers, we can directly link to revenues/top line growth/Balance Sheet/Cash Flow and Business results

� Goal for Business Excellence is to enable the organization to become market leader


THE MATURITY CURVE OF AN ORGANIZATION

TIME

Retu

rns

DecliningMaturityGrowthEmergent


THE EMERGENT PHASE

� During this stage, new services are evolving to meet brand new, emerging customer needs.

� Just about every engagement requires a substantial amount of innovative and original thought, and precedents are few.

� It is difficult to price services accurately

� The goal is to understand customer needs accurately and to transform those into an innovative service

� Quality, through its tool and approaches such as DFSS, DFX, QFD and Innovation and with enterprise-wide deployment experience

and understanding of internal stakeholder needs, is an integral

partner in the cross-functional team


THE GROWTH PHASE

� This stage emerges once the new service becomes entrenched and more firms start offering the service.

� Revenues increase and the service becomes profitable.

� As profits rise, so more clients enter the market too, and the overall demand for services in the area increases too.

� The role of Quality here should not be limited to cost reduction,

effective deployment of Quality at the enterprise level will lead it to

enhance revenues while reducing costs


THE MATURITY PHASE

� Maturity is reached once a critical mass of customers and service providers are active in a particular area.

� Revenues plateau as sales growth slows and then levels off.

� Competition of price becomes more pronounced as more and more firms reach the point where they can offer a good quality service.

� Deployment of Quality at enterprise level will lead to increased

competiveness of the organization.

� The organization will proactively reduce its cost, be closer to the customer, understand and translate customer needs to process

features and re-engineer its processes to gain competitive edge


THE DECLINING PHASE

� Oversupply in the market leads to a reduction in the number of players and competition on price becomes extreme.

� The service becomes highly commoditized. The service may continue in the market, and firms that specialize in low margin, high volume work still compete. In some cases, the service may disappear gradually.

� The role of Quality when deployed at an enterprise level becomesimportant to reduce costs, re-engineer processes and to forecast

and plan for the future.

© Copyright 2010 Hewlett-Packard Development Company, L.P.1414 25 May 2010

•Engineering

•New Product Development

•Manufacturing

•Purchasing

•Supplier Management

•Sourcing

•Receiving

•Account Payable

•Logistics

•Marketing

•Sales

•Distribution

Where can we deploy Lean Sigma?

•After Sales Support

•Administration

•Accounting & Finance

•HR

Lean Six Sigma can be used in all business functions, to identify and solve business problems and to become more competitive

© Copyright 2010 Hewlett-Packard Development Company, L.P.1515 25 May 2010

• Leadership

• Clarity

• Defination

• Scope

• Priorties

• Common Understanding

• Communication

• SMART Goals

• Alignment

• Cost Center vs Enterprise

• Maturity S Curve

• Top-Down Cascading

Enablers to Successful Business Excellence

• Organisation(Too many cooks

• Relevant Skills

• Budget/ROI

• Management of Change

• Sponsership

• Big Picture

• Strategy

• VISION

• MISSION

• Framework

• Rewards/ Recognition


Summary

Sponsers/Quality Deployment Leader for an organisation should make sure :

• Quality is deployed at enterprise level to maximise gains and not limited to a cost center

• Different Phases of an Organisational Maturity Curve are considered before setting expectations from Quality Function

• Quality Function should be agile to different phases and expectations of an Organisation


–The key I believe is not to share tools

but to share understanding.

–The key to successful change does not

lie with the tools, but with the people

who will use them, and the key to

effective use is understanding

© Copyright 2010 Hewlett-Packard Development Company, L.P.18 © Copyright 2010 Hewlett-Packard Development Company, L.P.18

Thanks & Questions

[email protected]

[email protected]

Documents

Deploying lean six sigma at different_levels