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Best Practice for Enterprise Six Sigma ProgramsCisco Systems, Inc.Customer and Partner Services (CPS)Continuous Improvement / Six Sigma+ FY16 Summary

June 13, 2017

Dino MarsiliCisco Systems, IncCertified Master Black Belt

Six Sigma and DMAIC Definition

Six Sigma uses DMAIC methodology to solve

business problems:

DEFINE: What is broken

MEASURE: How broken it is

ANALYZE: Why it is broken

IMPROVE: Fix it

CONTROL: Keep it fixed

No. 1

Voice

41%

No. 1

TelePresence

50%

No. 1

Web

Conferencing

43%

No. 1

Wireless LAN

50%

No. 2

x86 Blade

Servers

29%

No. 1

RoutingEdge/Core/

Access

47%

No. 1

Security

31%

No. 1

SwitchingModular/Fixed

65%

No. 1

Storage Area

Networks

47%

Market Leadership Matters

Foundational /

Incubation

Contact Center

Enablement

Primarily Regional Operations delivered

Primarily Customer Services delivered

Global Services Ops / EFDS delivered

CPS delivered

Opportunity &

Campaign

Enterprise

Foundational

Data (Pricing, Product,

Master Record)

FY17 CPS Service Catalog

Leveraged AssetsServices delivered to

CPS consumers to enable

Consumer-Facing Services

Consumer Facing

ServicesServices delivered to

consumers outside of CPS

Deal

Management

Commit

Management

Operations

Management (Partner, Customer,

Segment)

Asset

Management

Partner

Enablement

Goal to

Commission

Contract &

LicenseQuoting

Order

Management

Demo LoanGlobalization &

Translation

CPS Organization ChartManagement

Commitment at

ALL LEVELS!

Automation

Opportunities!

Organizational maturity for continuous improvement requires:

The ability to be self-sustaining in the areas of strategy, portfolioselection, governance and mentoring support

Consistent business value generation

Sufficient infrastructure and commitment to sustain and grow the continuous improvement program

Continuous improvement requires organizational maturity

There are 12 maturity criteria in four assessment categories

BEHAVIOR AND

COMMITTMENT

INFRASTRUCTURE SUSTAINABILITY BUSINESS VALUE

Decide and Support Enable Adopt Business Benefit

Communicate Identify and Select Integrate Return on Investment

Plan Resources

Implement

Assess

Automate

Organizations are assessed annually against all 12 criteria

Organizational maturity requires the improvement activities, tool usage and business

value generated by individuals’ improvement projects

There are three organizational maturity levels

Organizations must be operational before an assessment can be conducted. The minimum score to qualify is 69.2% for each of the 12 criteria.

Once the organization is operational, maturity levels are attained as the following scores are achieved:

80% to < 90% BRONZE

90% to < 95% SILVER

95% or higher GOLD

Cisco Confidential 9© 2013-2014 Cisco and/or its affiliates. All rights reserved.

Customer & Partner Services – FY17 HighlightsCPS Six Sigma Program

3 Black Belts in progress

1 Black Belt sustaining project in progress

1 Lean Activity completed

12 Green Belts certified

16 Active Green Belt Projects in progress

Dino Marsili earns Master Black Belt Certification from his EVP Olivier Kohler

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

External Benchmarking Analysis% of Green / Black Belt to employees

November 2014

CPS Organization Maturity Assessment Gold

CPS Employee Base = 856

Employee Engagement

As of Q4 FY17 (estimated) Employee # Employee %

MBB (Certified) 2

MBB (Candidate) 0

BB (Certified)* 7

BB (Candidates) 3

* Total BB and MBB 11 1%

GB (Certified) 49

GB (Candidates) 17

Total GB 66 8%

YB (Certified) 535

YB (Candidates) 209

Total YB Engagement 744 87%

Overall TOTAL 821 96%

Belt Utilization Rate 100%

Champion / Sponsor Training Rate 80%

Certification Rate 85%

* Red Badge CPS Black Belt Contractor


SS+ Program Snapshot: CPS

FY13

Operational Bronze

FY14

Operational Silver

FY15

Operational Gold

FY16

Triple Crown

Awarded –September 2016

Certified GB: 39 GB in training: 16

Certified BB/MBB: 11 BB in training: 2

Current Belt utilization rate: 100%

Business Impact Summary:

Financial and Non-Financial Benefits

• FY16 $3.2M Cost Avoidance

• FY16 $0.9M Cost Savings

• FY16 $60.6M Revenue Enablement - Multiple Years

Non-Financial

Benefits

Case Volume Reduction 18.1K

Productivity Gains re-deployed $4.974M

“Making the Complex Easy ” – 16 Green Belt Certifications

Lean Kaizen

Workshops

Completed

SW Enabled Services

EMEAR Kaizen Challenge

CPS Metrics

Global Service Provider Optimization

Global Customer Service Kaizen Challenge

Current

Status

Sustaining Program Benefits

Gold level results sustained to earn Triple Crown Recognition!

100% Continuous Improvement participation CPS wide 80% Employee Engagement 85% belt certification rate - 100% belt utilization rate Best in Class Cisco program results in sustaining financial

and non-financial benefits. Sustained Financial and Non-Financial Benefits FY13 – FY16 Sustained Org Maturity Certification – 3 Years (FY14-FY16)

Business Impact Summary:

Financial and Non-Financial Benefits

FY15 FY16

21 Completed Projects and Activities 26 Completed Projects and Activities

$3.906 million Cost Avoidance $3.225 million Cost Avoidance

$0 million Cost Savings $0.9 million Cost Savings

$48.0 million Revenue Enablement $60.6 million Revenue Enablement

2 workshops 5 workshops

322 Employee Engagement 761 Employee Engagement

Non-Financial Benefits for Productivity

Gains $0.3M re-deployed

Non-Financial Benefits for Productivity

Gains $4.974M re-deployed


CPS FY17 CI Role Based Targets

# Six Sigma Belt LevelCS

Norm

Evolution

Rehman

GSO

Steve

RO AMER

Brenda

RO EMEAR

Rita

RO APJC

Nuno

GSP

Swati

SPBC

Dean

SLT

GillesOn Leave

1 Q3FY17 Head Count 133 1 123 225 120 77 77 75 10 15

2 Yellow Belt Trained TARGET 100% 100% 100% 100% 100% 100% 100% 100% 100% 0%

3 YB Trained Current Status 98% 100% 96% 96% 93% 91% 99% 99% 100% 93%

4 Yellow Belt Certified TARGET 100% 100% 100% 100% 100% 100% 100% 100% 100% 0%

5 YB Certified Current Status 73% 100% 70% 84% 51% 55% 94% 59% 100% 73%

6 Green Belt Commitment 20% 0% 20% 1% 2% 10% 10% 5% 0% 0%

7 # Certified Green Belts 6 0 15 2 4 17 5 3 0 1

8 Green Belt Current Status 5% 0% 12% 1% 3% 22% 6% 4% 0% 7%

9 Black Belt+ Commitment 2% 100% 2% 0% 0% 1% 1% 4% 0% 0%

10 # Certified Black Belts+ 2 1 2 0 0 0 0 4 0 0

11 Black Belt+ Current Status 2% 100% 2% 0% 0% 0% 0% 5% 0% 0%

Q4FY17 Blue Badge HC

Total Head Count 856

% YB trained 96%

% YB certified * 71%

* includes 85 GBs, BBs, MBBs

Cisco Confidential 12Cisco Confidential 12© 2013-2014 Cisco and/or its affiliates. All rights reserved.

FY17 Goals – CPS

Execute: Project Selection / Completion

Capabilities targets for GB and BB certifications 100% Yellow Belt Complete (CPS Foundational training) 70 – 100% Yellow Belt Certified (Targets to be verified) Lean / Kaizen training and application Streamline Training Delivery Include New Hires

Continuous Improvement

Financial ($2M) and non-financial benefits to 5% OPEX equivalent

Continue program and portfolio processes from FY16

100% belt utilization

Operational Maturity Status

Annuities / Global Customer Success (GCS) – CPS Alignment / Renewals

Deal Management GTS Localization Optimization Simplification (reduced hand-offs,

process efficiency, etc.) CPS Evolution

CPS Key Strategic Initiatives

FY17 Launch Black Belt projects based on prioritized business goals

Workshop / Kaizen facilitators Support training and mentoring

bench strength to help with Yellow Belts

Skills Development and Bench Strength

1) Deal Management Office (DMO) / Regional Ops (RO)2) Global Services Organization (GSO)3) Customer Service (CS)4) Strategy, Planning, and Incubation (SPI)

Link closely with Digitization Initiatives

Business Goals

Program Goals


Integrating Agile and Data Science into Six Sigma

Identify problems, goals, scope of

changeSTART

Evaluate problems and scope of

changes

Map approachApproach

Type?DMAIC

5 Tollgates

Agile Lean +Kaizen3 Tollgates

Iterative MAI

Agile DMADV3 Tollgates

Iterative MAD

Entire root cause analysis required

Incremental root cause analysis

New process design

Certification Project?

Complete Requirements and confirm benefits

Yes

No

Select applicable tools and confirm

benefits

Update Portfolio and apply for

Certificate

Update Portfolio End

CI Methodology Selection Process

CRISP-DM

Big Data Analytics


CPS

Champions

League – Dino

Marsili and Pat

McMahon

needed a cart

for all the

awards!


Thank You!


Back-Up


BLACK BELT

Lead projects with cross-functional

scope

Advise leadership on key metrics and

strategy

GREEN BELT

Coach and mentor project

teams

YELLOW BELT

Lead improvement efforts within

manager’s scopeBASIC SKILLS

Lean and Kaizen

Apply a tool or technique to a current business problem

SIX SIGMA AND DMAIC METHODOLOGY

Yellow Belt training provides the first level of skills within the Six Sigma business problem solving approach

Using Basic Tools and Techniques

Leading Improvement Projects

Managing Cross-functional Initiatives

Easy: Readily apparent solution agreed by all. Ensure Solution is truly known before proceeding.

Quick: Solution implemented within few weeks.

Low Cost: Minimal capital investments for full implementation.

Team’s full authority: Within the team’s control, with no additional buy-ins or approvals needed.

Low Risk: Implemented Solution should be easily reversible and has to be low risk for Stakeholders. Impact assessment and risk mitigation plan to be in place. Control measures to be adopted for sustained improvements.

Recommended <10% of bandwidth

Complete Yellow Belt Training:

Contains 5 Basic Training Modules : Understanding DMAIC Methodology, Basic Facilitation Skills, Measuring Performance, Process Mapping, and Primary Root Cause Analysis (RCA).

Application of ANY ONE TOOL from Yellow Belt Training

Solution is usually not pre-determined, unlike Quick Wins. NOTE: Solution does NOT need to be implemented.

Yellow Belt training and certification application processes can be completed within 1 Month (8 – 24 hours work time).

Needs confirmation from local BB or MBB and/or Manager (preferred) to complete the Certification process.

Recommended 10-15% of bandwidth

Needs 6 remaining DMAIC Training Modules (1 week)

Involves submission of Project Charter signed off by the BU Sponsor and/or Manager.

DMAIC Exam Green Belt (Passing Score Achieved)

Completed DMAIC project with business benefit Sign-Off. Certification review by Business Unit

Solution is determined during “Analyze” Phase of DMAIC Process.

Green Belt training & certification requires about 6 Months.

Phase wise guidance & Sign-off by Mentor

Recommended 25% of bandwidth

Quick Wins Yellow Belt Green BeltKey differences between Quick Wins, Yellow Belt & Green Belt

Green Belt certification completed. Business nomination.

Intermediate DMAIC Training + Soft Skills (3 weeks)

DMAIC Exam Black Belt (Passing Score)

2 Completed DMAIC projects with business benefit sign off. Initial Green Belt project from Cisco can count as 1 project (w/Master Black Belt review).

Black Belts actively support business unit for mentoring and learning & development (Not required for certification).

Recommended 40% of bandwidth

Advanced Technical and Soft Skills training (3-4 weeks)

Business nomination. Review Board (VP, Sponsor, 2 MBB Reviewers)

2 Completed projects with business benefits sign off

Teach 1 Green Belt wave (~40 hours as a trainer) (Successful evaluation)

Mentor 5 completed GB or BB projects to certification

Black Belt Master Black Belt

Certification Standard for Engaged Orgs


“Roll the Credits” – Non Financial Benefits YTD FY16

Cisco Lisbon Office –

Key to workshop

successes

Activity Goal Benefits

Software Enabled

Services (SWES) Lean

Workshop

Implement Rapid Response team for Software and Hybrid

Cloud Sales – Deal Preparation and Quoting, Order and

Booking, Advanced Services, E2E Guidance, Contract

Management and Partner Readiness

56% decrease in transaction cycle time (PO to

Invoice date)

EMEAR Kaizen

Challenge

Regional Operations FY16 goal - Making the Complex

Easy. Idea generation and quick wins implementation.

$78K in productivity gains

Global Service Provider

(GSP) Optimization Lean

Workshop

Optimize Global Service Provider support processes for

Ease of Doing Business. Sales Commit, Quote Failure,

Order pre-booking, Install site data reconciliation, E2E

Case Management, Credit & Re-bill.

154 hours productivity gains. Build R12

requirements for bridge orders

Global Customer

Services Kaizen

Challenge

Develop and execute budget reduction initiatives – Idea

generation (217 ideas submitted) and quick wins for FY16

budget

37 improvements implemented including 3

strategic vendors (Convergys, Infosys, and

Concentrix). $311K Cost savings and $200K

productivity gains.

CPS Services Metric

Lean Workshop

Metrics planning for Service Reviews 17 Offerings prepared


“Roll the Credits” – Black Belt Benefits YTD FY16Activity Goal Benefits

Black Belt Certification

– Connie Im

Setup the most revenue generating GTAM accounts

80% data accuracy

Differentiate between Small Business (SB) and GTAM accounts; Refine

coverage models and territory proliferation

New data governance process for business will be created

Complete the project by Jan 23rd, 2016 (end of Q2FY16)

$55.2M Revenue Uplift over 3 years


– Sam Martinez-Arango

Improve Cycle Time Attainment on IT-dependent CPS cases for cases

closed in 48 hrs from 20% to 65%.

IT-dependent CPS Case reduction by 25%, with corresponding

reduction in IT cases opened by CPS.

Improve collaboration between CPS and IT cross-functional

Tool access and training for common IT tasks that can be done by CPS.

Cost Saving : $128K Savings Quarterly / Cost

avoidance will be achieved via the Remedy IT case

(INC) reduction as a result of this project.


– Munirah Hall

To have 100% visibility of revenue generating internal orders including

XaaS and other New Business Models orders globally. Doing this will

improve transparency for these orders by 100% across our finance

systems and asset tracking systems.

AS PMO teams are seeing an increase in time

savings as well as a shared savings of $380K a year.

Black Belt Sustaining –

Pat McMahon

Reduction of Order booking errors, invoice verification, and corrective

action costs. Reduced incorrect shipments and RMA costs, invoice

disputes, and resulting credits and rebills. Improved overall order

processing cycle time. Vodafone ONLY

$65,271 estimated first year productivity improvement

savings

Master Black Belt

Certification

– Suresh Vellanki

Reduce “NPI Set-up Time To Orderability” variation for CAT4K / UCS /

CTG by 25%, 20% & 40% respectively and reduce asynchronous

activity between Product & Services NPI Process

Improved Cycle Time - 32%, 28%, 42%

improvement ifor CAT4k, UCS, CTG

Productivity Gains – Based on cycle time savings

from the business, $1.1 MM soft savings with gains in

productivity


“Roll the Credits” – Non Financial Benefits YTD FY16Green Belts

FY16 Customer

Services Kaizen

Event Awards

Ceremony

Activity Organization Results

Making the Complex Easy Regional

Operations

• 42% order resolution cycle time improvement for APJC

• 50% CCW quote config improvements

• Increased tool adoption for CHR to 86%

• Case reduction 10K for APJC Partner quote validation cases

• Comstor ETA accuracy improvement and productivity gains $20K

• First contact resolution improvement of 4% for SCM

• 90% cycle time improvement for entitlement on full contract renewals

• Logistics Process improvements resulting in Customer savings

Partnership with Marketing and Sales

Connect

EFDS Improved Sales Connect and Marketing for APJC Security processes.

74% productivity improvement $65K

Partnership with IT – Credit and Re-bill GSO / SPI Eliminated 3000 Post Invoice Dispute cases

Deal Management - Eliminate

Unnecessary Cases/Tasks as related to

DSAs for Crediting & Tracking

AT&T and Verizon Accounts ONLY

GSP Estimated 12% reduction in Order Booking Cycle Time

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