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A successful Continuous Improvement Program within your SSC
Amsterdam, 16th May 2012
Elias Miera Pfizer Inc. Managed Services Operations Quality Director [email protected]
Agenda
1. Pfizer Inc. 2. Why CI? 3. Deploying CI in a SSC 4. CI Project identification, selecting the right approach for project execution 5. Benefits realisation 6. Key Lessons Learned
3
1. Pfizer Inc.
GFS and BT support locations
Memphis, TN
GFS Americas
Markets Supported: • Canada • Mexico • North Latin America • United State & Puerto Rico
Dalian, China
GFS Asia
Markets Supported: • Australia / New Zealand • China • Japan • Singapore
Dublin, Ireland
GFS Europe
Markets Supported: • Austria • Belgium • Denmark • France • Finland • Germany • Ireland • Italy
• Luxembourg • Netherlands • Norway • Portugal • Spain • Sweden • Switzerland • United Kingdom
Delhi, India Bucharest, Romania Dalian, China
Business Process Outsourcing
Pfizer's Business Process Outsourcing (BPO) partner is Genpact . Pfizer's processes are supported from 3strategic locations.
Chennai, India Bangalore, India
Application Support Outsourcing
Pfizer's Financial Application IT Outsourcing partner is Accenture .
Shared Services Markets
Pfizer Location BPO Location
• Three shared services operations offices supported by strategically placed BPO offices
• Highly-skilled and experienced team leveraging global network to deliver standardized solutions
5
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2. Why Continuous Improvement ?
7
History of Continuous Improvement
Adapted by WPAP/WC from: http://www.leansigma.com/about.php
LeanSigma
Six Sigma Lean
1960s
1970s
1980s
1990s
2000s
2010s
Ford Deming
Toyota Production System Quality Improvement Tools
Just In Time Reduce Variation
TQM
Lean Production
Six Sigma (Motorola)
Lean Enterprise
Quality Focus
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A journey of relentlessly
seeking perfection
Everything can be
viewed as a process
Performance is judged by the customer
To manage performance you have to measure it
People closest to the work know the issues &
opportunities
5 Principles of Continuous Improvement
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What is Continuous Improvement?
Maximize Revenue
Manage Costs
Strengthen our Culture
Customer
Satisfaction
Improved Business
performance
Continuous Improvement contribution
More Effective
& Efficient
Processes For
Operating Divisions
And Enabling
Functions
Continuous Improvement techniques
Six Sigma Methods
+
Lean Principles
+
IMPACT
+
Just do It
There are 2 keys to ensuring CI improves Business Performance Identify key processes for improvement, provide colleagues with the necessary skills
10
CI is a systematic approach for driving better performance
– Bring the customer voice inside the organization
– Get rid of errors – Eliminate waste – Speed things up – Simplify work – Free up colleague time – Move diverse groups more
quickly to cohesive action
Performance
Time
Step Change • Redesign • Reengineer • Break-Through
Innovation
Maintenance No
Improvement
Without CI, most processes actually degrade
Especially true in non-manufacturing environments • Processes less visible, more difficult to manage • Individuals introduce variability & change
11
CI starts with the customer & treats the business as an integrated system
Customers Suppliers Inputs Processes Outputs
Start with Voice of the Customer. What does the customer consider important?
Take a Process Perspective • Reduce waste, errors, delays • Speed up process • Improve productivity
VA NVA
Engage everyone involved in producing the customer benefit. Work together to produce a “total” customer outcome, not just a department activity
Measure and Analyze • Input, output, process data • Process flow • Customer satisfaction
•Design Improvements • Pilot, Implement & Control
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CI links the strategic and the tactical
Ability to Share Talent, Knowledge Across Enterprise
Ability to Command a Price Premium
More Engaged, Productive Colleagues
More Satisfied, Loyal Customers
Ability to Divert Resources to Growth Opportunities
Long-Term, Sustainable Competitive Advantage
Start with your strategic business goals
… and develop tactical CI programs that enable you to reach them
Reduce errors, mistakes & rework
Reduce defects, unwanted variability
Speed up a process, improve flow
Eliminate delays, handoffs, unnecessary steps
Reduce costs, free up resources
Increase capacity / productivity of current resources
Reduce inventories
Reduce frustration
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CI Methodologies
TIME QUALITY
COST
Improved Process
Performance
Efficiency
Effectiveness
• Elimination of waste • Improvement of flow
LEAN
A set of principles and tools that help us to eliminate
process activities that don‘t add value, and to create
“flow“
• Reduction of variance • Improvement of yield
SIX SIGMA A collection of methods and
tools aimed at the significant reduction of unwanted
variation in products and processes
Lean Six Sigma
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3. Deploying CI in a SSC
SSCs and CI CI programs suit wonderfully SSC environments:
• SSCs are typically process and transactional driven centres. • Standardisation is key for repetitive tasks quality management. • Customer centred. • Performance metrics focused. • Workforce profile.
Most SSCs include a division exclusively focused in Business Process Management / Operational Excellence / CI
Customer Centred SSCs
• Customer SLA output definitions.
• Customer SLA KPI definitions.
• Critical To Quality (CTQ) metrics.
• Ongoing Voice Of the Customer (VOC) process: understanding your customer satisfaction drivers, “dissatisfiers” and “delighters”.
• VOC follow-ups, closing the gaps.
Performance Measurement
• Process KPIs.
• Metrics related to VOC: measuring quality in the eyes of the customer.
• Leading vs. Lagging Indicators: applying SIPOC.
• Traffic lights & remediation triggers: Process Control Maps.
“You cannot manage what you cannot measure”
Promoting a CI culture in your SSC
• Public visual displays of completed projects
• Public visual displays for ideas
• Public visual display for total $ achievements for the year
• Recognition at site meetings of CI achievements
• Recognition program, emails from top leadership
SSC staff and CI
• Promoting proactive behaviour when dealing with problems.
• Agreeing Strategic vs. Tactical focus for an individual.
• Sustain & Maintain vs. Improve & Change.
• Top and middle management - CI project sponsorship.
• Incentives for achievements.
• Specific initiatives individually driven / participated in the year.
Setting up appropriate individual objectives is a key driver for instilling a CI culture:
Similarly, CI focus should be part of recruitment & internal promotion process.
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4. CI Project identification, selecting the right approach for project execution
CI Project identification
• VOC process – feedback from customer, closing gaps
• Dashboard – performance issues in key metrics
• Individual employees – ideas for improvements
• Technology developments – new systems available
• Competitors & external parties – new market developments
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Difficulty of finding root causes
Qua
ntity
Lean & Six Sigma Projects
Too Hard Too Easy
“World Hunger” or
Boiling Ocean Problems
Logic & Intuition
Just Do It
CI projects typically include: • Fixing or improving current broken processes • Amending errors • Addressing efficiency issues • Shortening process cycle time • Identifying and fixing root causes for current problems • Etc.
CI Project execution
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Low Hanging Fruit: e.g. Reduce errors during monthly upload process from ERP to Consolidation e.g. Reduce the Sales Reporting Cycle Time
High Hanging Fruit: e.g. Reduce cycle time for financial month-end close
Graphical Analysis, Basic process data
analysis
Root cause validation & solution
identification
Ground Fruit: e.g. Develop an excel macro for automatic cost centre classification
Quick wins: Just Do It
Advanced process data analysis &
change management
$
$$
$$$
CI Project execution
24
5. Benefits Realisation
CI projects benefits realisation Common savings categorization for CI projects: • Hard Savings:
Headcount reduction Direct cost reduction / reduced third party payments Working capital / cash flow Revenue generation
• Soft Savings: Released capacity Cost avoidance Revenue retention
• Control / Compliance
Other benefits arising from CI projects: • Customer satisfaction • Employee satisfaction • Staff retention • Reputational risks
Employee engagement • Empowering employees to drive changes within their areas of
responsibility. • Enriching their jobs – project work outside repetitive tasks • Self-fulfilment through accomplishment • Mobilising resources in same direction towards SSC goals • Excellent project results with often incremental savings to planned strategic
initiatives • Releasing capacity / scalability through individual tasks streamlining • Training & personal development plans
27
6. Key Lessons Learned
Keys to success in your CI deployment
• Leadership passion for Continuous Improvement
• Selecting the right projects – strategy alignment, scope, impact / savings, suitable for each methodology
• Avoid using the methodology for the sake of certifications
• Select right people to drive these projects
• Creating capacity for colleagues to execute CI projects
• Proactive championing, removing barriers
• Customise the training program / right tools to your particular needs
• Internalize the training and coaching as soon as possible
• Empower your employees to continually drive change, do not turn your CI deployment into a mere PMO executing 2-3 large projects
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Thanks for your time, any questions?
Elías Miera Managed Services Operations Quality & Continuous Improvement Director Portfolio & Application Managed Services Finance & HR Business Technology The Watermarque, Ringsend Road, Ringsend, Dublin 4, Ireland
Direct Line: + 353 1 480 7692 Mobile: + 353 86 8205359 Fax: + 353 1 480 7322