Académique Documents
Professionnel Documents
Culture Documents
Project Name:
Project Leader:
Project Champion:
Define
Measure
Analyze
Improve
Control
Goal Statement:
Improve billability from current 60% to 70% while maintaining
planned fee adjustment. Corrective action plan will be prepared
by June 200X, implemented by July 200X. Benefits will be
evaluated 6 and 12 months following implementation.
Accounts Receivable: Monies owed to us by a customer for goods and services provided.
AP: Accounts Payable
AR Representative: Employee responsible for tracking monies owed to us by a customer.
Accounts Payable: Monies owed by us to a vendor or supplier for goods and services
received.
Backorder: Product or service that was ordered by a customer but not delivered due to out
of stock situations.
Check: Any form of payment from a customer to us.
DSO: Days sales outstanding. (Ending AR for Period * Days in Period) / Sales for Period
Progress Bill: A temporary billing file that holds the invoice until all tasks have been
completed.
Retainage: Monies that are owed to us and retained by the customer to ensure specific
performance of the contract and warranty claims are completed.
SOP: Standard Operating Procedure.
Waiver: A legal document releasing our ownership of the products and services sold.
Improvement Targets:
50% reduction in cycle time
Increase System Availability from 88% to 98%
Operational/Strategic Impact:
$60,000,000 improvement to bottom line (this would seem to be a large
undertaking)
Group
# of
pers.
Time/
Year
#
ECO/
Year
Drafting
8.9
15586.1
1066
hrs
Config.
6.9
12083.6
1066
hrs
ECC
2558.4
hrs
1066
Rate
Cost/
ECO
Time/
ECO
$77.08
$1127
14.6
hrs
$65.82
$746.10
11.3
hrs
Avg:
$89.62
$215.09
0.3
hr
Project Plan
Define
Measure
Analyze
Improve
Control
7-Apr
2-Jun
9-Jun
1-Apr
9-Apr
1-May
7-May
11-Jun
SUPPLIER
Customer
INPUT
PROCESS
CRITICAL TO QUALITY
Billing
Department
Correct Order /
OTC
Invoice
Customer
Billing Matches
PO or contract
pricing
Customer AP
Department
Process PO for
Payment
Check
AR Department
PO matches
Invoice
Payment
Apply Payment to
Invoice
AR Report
Management
Payment matches
Invoice
Place Order
JDE System
Customer
Accounts Receivable
Dept.
CUSTOMER
Order
Acknowledge
Order from
Customer
Billing
Department
OUTPUT
CTQ
Define
Measure
Analyze
Improve
Control
Customer
Validate
Customer
Satisfaction
Customer Support
Services
Service Delivery
Coordinators
Queue
Coordination
Approved
Work Order or
Approved
Request
Create
Buy
Ticket
Create
Monet
Ticket
yes
Billable
Request?
No
Update
Ticket
Assign
Ticket
Technician
MMO
Route Buy
Ticket for
Internal Approval
Create P.O.
Receive
Equipment
Resolve
Request/
Verify
Solution
Close Problem
Ticket
Process FMEA
OBSERVATION:
PROCESS FMEA
(Potential Failure Modes and Effects Analysis)
FMEA Team:
Prepared by:
Accounts Receivable
Potential Causes
O
C
C
Customer satisfaction is
lowered. Unnecessary time
and effort by CFS rep. is
spent following up on
amounts not past due.
Customer satisfaction is
lowered. Unnecessary time
and effort by CFS rep. is
spent following up on
amounts not past due.
S
E
V
Entering PO dollar
Accurate
information accurately. Invoices
Frequency of
customer contact
D
E
T
R
P
N
Actions
Recommended
What are the actions for
reducing the
Occurrence of the
cause, or improving
Detection?
Should have actions on
high RPN's or Severity
of 9 or 10.
Risk Priority # to
rank order concerns
(Rev.): 11/15/2004
How probable is
Detection of cause?
How frequent is
cause likely to
Occur?
Key Process
Input
Process Step
512
512
None
448
None
512
576
Credit requests
(backcharge reason
codes)
Account Receivables
Definition
Customers that are not on current contractual pricing.
Who
Smith
Where
Pricing Tracker Database
Smith
Smith
Smith
Data Warehouse
Data Warehouse
Jones
Credit Requests
Jones
A/R Reports
Quantity
All current
customers
Year to date
Year to date
All the back
charges, year to
date
All the back
charges, year to
date
Negligible
for the
What to Measure
Type
Measure
Data
Type
Sampling Plan
Collection
Ref
#
Measure Name
Stratification
What
How
What
Where
FMEA - 7
By Team
Survey
Email/Web
WROC
FMEA - 8
By Team
Knowledge of where
performance to the SLA
specifications is at any
time
Survey
FMEA - 9
By Team
Knowledge of when to
use additional time
without impact to SLA
values
Survey
FMEA - 11
Minutes
Continuous
By Month for
Planned and
Unplanned
Knowledge of months
that exceeded allowable
minutes that could have
been shifted to next
month to avoid
penalties
FMEA - 30
Minutes
Continuous
By OS, Planned,
Unplanned Data
Source
Sysadmin
investigation
Sysadmins
FMEA - 23
Minutes
Continuous
Sysadmin
investigation
Sysadmins
FMEA - 16
Count
Manual comparison
DW vs.
Critical server
list classifications
(test/def.
location, etc.)
employee
Smith
."
(process or product)
When
How Many
Full poulation of
outages
100% of critical
server list
Collection
Method
Email
Spreadsheet of
previous 12
month data
compared with
shifting of
minutes to next
month
Spreadsheet Sysadmins will
investigate and
report minutes.
Then compare.
Spreadsheet Sysadmins will
investigate and
report minutes.
Then compare.
Comparison
done by
employee Smith
Who collects
Source
Total Docs Inspected
# Matched
False Positives
False Negatives
Mixed
95% UCL
Calculated Score
95% LCL
Person A
12
11
99.8%
91.7%
61.5%
Person C
12
11
100.0%
100.0%
73.5%
99.8%
91.7%
61.5%
Total Inspected
# in Agreement
95% UCL
Calculated Score
95% LCL
95% UCL
Calculated Score
95% LCL
Repeatability by Individual
110.0%
100.0%
90.0%
80.0%
80.0%
70.0%
70.0%
Person C
12
11
0
0
1
99.8%
91.7%
61.5%
95% UCL
Calculated Score
95% LCL
60.0%
50.0%
40.0%
40.0%
30.0%
30.0%
20.0%
20.0%
10.0%
10.0%
0.0%
0
0
0
100.0%
100.0%
73.5%
110.0%
90.0%
50.0%
0
0
1
99.8%
91.7%
61.5%
Accuracy
Person B
12
12
100.0%
60.0%
Person A
12
11
Accuracy by Individual
Accuracy
Repeatability
Repeatability
Person B
12
12
27/02/2004
Help desk
defective contacts
help desk
0.0%
Person A
Person B
Person C
Notes
Observed that the results on Tues were less accurate than Mon
Person A
Person B
Person C
CURRENT
GOAL
COPQ: $1,177,000
COPQ: $588,500
Complian
Non Compliant
t
Americas
9.52%
38.10%
52.38%
Asia/Pac
0.00%
0.00%
100.00%
MEUA
0.00%
100.00%
0.00%
Pareto Diagram
Order Prep Material Issues
100
80
70
80
60
50
40
40
30
20
20
10
0
Defect
Count
Percent
Cum %
0
PO
Is
es
su
36
42.9
42.9
rb
st e
a
M
s
k Is
oo
35
41.7
84.5
s
ue
t
as
M
n
No
Is
ok
o
er b
13
15.5
100.0
es
su
Percent
Count
60
Communication Medium
Time
BSR did not question
Cosmetics
Functionality
Production Pricing
Multiple faxing
Same document
Fax Clarity
Timing
Need higher
level of approval
Between
Revisions
Revised
data
Turnover
Manpower
constraints
Revised/Variance PO
Verb age
Not in customers system
Dollars to high
Questions on pricing
Customer selected
different door style
Custom Pricing
Training
Verbal
Did not use IQ3
Not documented
BSR gives wrong
properly
price to CCC
Resistance to learn
Timing
Heavy Workload
Budget Constraints
Lack Of Training
Budget
New Employee
Experience Level
Prepared Incorrectly
Lack of Time
Number of options
Standard form
Other priorities
Format of the form
People
X2:
X3:
X4:
X5:
Define
Measure
Analyze
Improve
Control
Transactio
n limits on
VISA
Site not on
JDE
Acceptanc
e rate
Product/
Service
purchased
Supplier
doesnt
accept
VISA
Ref
HO
Data To Be Collected
Tools To Be
Used
HA
Manual Invoices
are not
independent of
Visa trans limits
Manual invoices
are not
independent on
site being on JDE
Sample
Size,
Number of
Samples
Where to
Collect Data
Who will
Collect Data
Contingency
Table Chi
Square Test
Location, Person,
transaction limits, total
limit, Mgrs attitude, What
was purchased, price
99
JDE,
FirstView,
Purchaser
Lisa &
Mara
Data
collection
form
Contingency
Table Chi
Square Test
76,000
JDE,
FirstView,
Purchaser
Lisa &
Mara
Data
collection
form
Manual Invoices
are not
independent of our
acceptance rate
Test of two
proportions
Vendor, goods
purchased, Why not
ERS?
100
JDE,
FirstView,
Purchaser
Lisa &
Mara
Data
collection
form
Manual Invoices
are not
independent of
product/ service
purchased
KruskalWallis
Many (1
years
worth)
JDE,
FirstView,
Purchaser
Lisa &
Mara
Data
collection
form
Manual Invoices
are not
independent of
suppliers accept.
of VISA
Contingency
Table Chi
Square Test
supplier acceptance of
VISA
99
JDE,
FirstView,
Purchaser
Lisa &
Mara
Data
collection
form
Site
Specific
The means of
each site are not
equal
KruskalWallis &
Anova
% Manual invoices by
site or operation by
period
Many (10
periods)
JDE,
Dave and
Derrick
JDE report
to Excel
Affected by
Supplier
Supplier means
are not equal
Obvious
% Manual invoices by
supplier
Many
JDE,
Dave and
Derrick
JDE report
to Excel
Ease at
time of
purchase
Manual Invoices
are not indep of
perceived ease of
use
Survey
100
JDE,
FirstView,
Purchaser
Lisa &
Mara
Data
collection
form
Training/
Awareness
Manual Invoices
are not indep of
Training/ Aware
Survey
100
Purchaser
Lisa &
Mara
Data
collection
form
Rem
arks
Test of Theories X1
Theory: Our VISA trans limits restrict usage
Ho: Transaction limits on VISA cards are independent
of defect Levels Chi-Square Test: Within Visa Trans Limits, Outside Visa Trans
Limits
Analysis:
Outside
Total
37
11
48
35.39
12.61
36
15
37.61
13.39
73
26
EC
Manual
Total
Chi-Sq =
51
99
0.073 +
0.205 +
0.069 +
0.193 = 0.539
DF = 1, P-Value = 0.463
Test of Theories X2
Theory: If a site is not on JD Edwards, manual invoices will be
higher.
Ho: Manual invoices are independent of site being on JD Edwards
Analysis:
EC
Manual
Total
38376
35226
36468.45
2872
1629.55
38098
73203
3271
76474
Total
Chi-Sq =
42.022 +940.434 +
42.329 +947.296 = 1972.081
DF = 1, P-Value = 0.000
Vital Few Xs
Manual Invoices
Y = f (x2,x4,x5 ,x6,x7)
Vital Few Xs are:
-- X2 Site not on JDE
-- X4 Category of Purchase
-- X5 Non-acceptance of VISA
-- X6 Site/Operation
-- X7 Supplier
Define
Measure
Analyze
Improve
Control
Strategies
To improve % compliance rate,
have contracts expire one year
from proposal date
Solutions Matrix
Possible Solution
Software Form
Solution
Strengths
Weaknesses
Huge to develop
No scope of work
Automatic notification
Provides current data for
analysis
Increases through put time
Decreases resource
requirements
Rating (1-10)
Extended
Contracts
10
10
7
4
7
7
10
10
+
S
+
+
+
S
+
5
1
2
38
10
28
Alternative Concepts
On
PI Support Optimize
Salesman
Material
Process
MBP
+
+
+
+
+
+
+
S
S
S
S
+
S
+
+
+
+
+
S
+
+
+
5
2
1
47
11
36
7
0
1
61
0
61
4
0
4
37
0
37
Selected Concepts
Link
Excel
Forms
+
S
S
S
+
+
S
+
4
0
4
34
0
34
Training
S
+
+
+
+
+
5
2
1
44
11
33
root cause
Redundant customer
contacts in USD causing
incorrect selection
No effective update
process exists to update
client contact
information
No effective update
process exists to update
USD contact information
No effective update
process exists to update
Regional cost center
information
No effective update
process exists to update
USD cost center
information
RESULT
weight (9
critical, 1
not
Remove
significant redundant
steps
)
Process to
bulk upload
data into
USD and
electronic
systems
Return
tickets to
help desk
and fix on fly
Develop
alternate
contact data
source
Increase
resources at
Help desk to
reduce error
rates
Improve
quality of
customer
contact data
provided
Get help
desk to
capture data
as customer
contacts
54
42
24
18
42
24
63
49
28
21
49
28
72
56
32
24
56
32
45
35
20
15
35
20
4
30
36
270
28
210
16
120
12
90
4
30
28
210
16
120
High
Training
Single source
Improve non-X service
margins
Low
High
Low
Cost / Effort
Key Factor
Description
Insufficient data
collection validation
performed on all
outages
Improvement Strategy
Solution
Implement process
enhancement in Data Collection
Process to review all valid
outages for accuracy before
monthly performance is posted.
Implement outage validation
routine with LOS staff to
improve accuracy.
Status
Completion Date
Owner
Smith
Solution
Accepted
Customer
Validate
Customer
Satisfaction
Customer Support
Services
Service Delivery
Coordinators
Queue
Coordination
Approved
Work Order or
Approved
Request
Create
Buy
Ticket
Create
Monet
Ticket
yes
Billable
Request?
No
Update
Ticket
Assign
Ticket
Technician
MMO
Route Buy
Ticket for
Internal Approval
Create P.O.
Receive
Equipment
Resolve
Request/
Verify
Solution
Close Problem
Ticket
Item Name:
Prepared by:
FMEA Date (Orig):
Process
Step or
Variable or
Key Input
Create a
ticket
Defect
Effect on
Customer
SEV
Because of
Defect
USD
Ticket has Delays in
wrong
contacting
name
customer
Potential Causes
USD
Ticket
USD
Ticket
Has wrong
cost
centre
incorrect
number
billing
Data in
account/charge
9 incorrect
OCC
(Rev.):
Current Process
DET RPN Actions Recommended
Controls
8 none
7 none
Cleans contacts DB to
10 560 reduce complexity
Resp. &
Target
Date
Removed
redundant
MS - July contacts
7 none
4 none
7 none
6 none
8 none
10 none
Billing
substantiation
9 process
Billing
substantiation
7 process
Synchronize account
with USD bulk upload
8 648 process
HD education
Self ticketing &
RMS bulk
update
Update bulk
upload process
56
56
56
56
72
72
Bulk upload
MS - July process
Implementation Plan
Improvement Summary
X1
X8
X10
X8
X3
X3
Complete
Complete
Complete
Complete
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
X
X
X
X
Aug-04
Aug-04
Sep-04
Aug-04
Jul-04
Jun-04
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Dec-03
Nov-03
Sep-03
K = KAIZEN EVENT
X1
Oct-03
START
X = TESTED THEORY
Implementation Plan
Task
Description
Resource
Get agreement on
proposal
Smith
Communicate
System
Monitor
effectiveness
Task
Status
(G/Y/R)
Start
Date
Finish
Date
4/13/0
4
4/21/0
4
Smith,
Project
Mgmt
Group
representati
ves
4/21/0
4
4/26/0
4
Jones
4/26/0
4
4/30/0
4
Error
Proofing
Team
4/30/0
4
TBD
Adjust
ed
Date
Analysis:
Before Imp. After Imp.
Late Orders
23
4
15.65
11.35
On-time Orders
Total
Total
27
119
126.35
99
91.65
218
142
103
245
Define
Measure
Analyze
Improve
Control
Control Plan
Process Name:
Control
Subject
Subject
Goals
Processing
and Entry of
Expedite
Orders
90% on-time
Entry of
Expedite
Orders
Adequate Fax
Machine paper
level to print
faxes
No late orders
due to fax
machine out of
paper
Adequate Fax
Machine Toner
level to print
faxes
No late orders
due to fax
machine out of
toner.
Sort and
distribute all
submitted
Expedites
every 30 min
before
10:30AM.
Every 15 min.
10:30 to 12:00
Distribution of
faxed expedite
orders to
XCC's
Usage of
Message
Board when
XCC is not
available
Return time of
XCC indicated
on message
board for every
absence >15
min.
Elapsed Time
to Enter Order
XCC/Keyer
enters with-in
30 minutes of
receipt
(delivery by
Sorter)
Date:
Unit of
Meas.
4/14/2003
Recording of
Measurement/
Tool Used
Measured
by Whom
Sensor
Frequency of
Measurement
Sample Size
Sorter
Calculate Daily
All Expedite
Orders
N/A
Sorter
Population
(Two Fax
Machines)
N/A
Sorter
N/A
Sorter
Population
(Two Fax
Machines)
N/A
Sorter
% Expedite
orders not
entered before
12:30PM
Elapsed Time
Message
board used per
absence
Elapsed Time
Clock/Watch
Sorter
Stamped time
and Computer Entry
Time
1 Delivery per
30 min, 1
Delivery per 15
min.
All Faxed
Orders on two
fax machines
All fax
distribution
cycles
Whenever
performance
level drops
below 90% on a
given day
30 Expedite
Orders
P-Chart
Sorter stamps
date/time of
distribution on
orders
N/A
Data Collection
Form
Sorter/
Supervisor
XCC's
Sorter
Supervisor
Communication Plan
Stakeholder
CFO
Champion
Staff within
departments
represented on the
team
Managers who have
staff represented on
the project team
Staff within the
project department
Executives
Steering Committee
Process Owners
Overall Organization
Individual
responsible for
validating project
ROI (CFO, assigned
analyst, etc.)
Level of
communication-Storyboard,
paragraph update,
tollgate summary
How information is
communicated--1:1,
meeting, email,
newsletter
Where information is
communicated--e.g.
if during a standing
meeting, which is the
most appropriate
forum?
Frequency of
communication-every other week, Who is responsible for
at tollgate, at end doing the
of project
communication?
On Agenda
Meeting set on
individuals
Dates for
calendar (Mark
communication when
established)
to occur
Analysis:
Before Imp. After Imp.
Late Orders
23
4
15.65
11.35
On-time Orders
Total
Total
27
119
126.35
99
91.65
218
142
103
245
Project Results
Baseline
COPQ =
$1,177,000
DPMO = 572,840
Sigma Level = 1.29
Goal
COPQ = $588,500
DPMO = 286,420
Sigma Level = 2.05
Actual Achieved
COPQ = $516,000
(i.e., saved more
than goal)
DPMO = 250,000
Sigma Level = 2.15
Project Results
Process Change
Implemented
0
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Ja
n
F e ua
br ry
ua
M ry
ar
ch
Ap
ril
M
ay
Ju
ne
Ju
Se Au ly
pt gus
em t
O ber
c
N t ob
ov e
D em r
ec be
em r
be
r
Month
% AR Over 60 Days
DSO
Lessons Learned
The End
Do not forget to recommend a new project
to management
Document Reports and New Processes
Schedule Your Recognition Celebration