improve localization efficiency using six sigma (dmaic) methodology

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6. σ. Improve Localization Efficiency Using Six Sigma (DMAIC) Methodology. A case study on how the right strategy leads to a scalable, sustainable solution for global organizations. Agenda. 6. σ. Company Introductions Provide background into Process Excellence, Six Sigma and DMAIC - PowerPoint PPT Presentation

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Improve Localization Efficiency Using Six Sigma (DMAIC) MethodologyA case study on how the right strategy leads to a scalable, sustainable solution for global organizations61AgendaCompany IntroductionsProvide background into Process Excellence, Six Sigma and DMAICProblem IntroductionWalk you through how we used the DMAIC principles to resolve our problem as well as share with you how it was utilized to deliver much needed improvement and sustainable gains.What actions are being but into place to continue our overall improvement moving forward.We will provide you with key learning's that you will be able to use immediately.Most importantly, youll never look at supplier selection the same way again.

6Scope has remained consistent.2

OverviewKinetic Concepts, Inc. (KCI) is a leading global medical device company devoted to the discovery, development, manufacture and marketing of innovative, high-technology therapies and products for the wound care, tissue regeneration and therapeutic support systems markets. Addressing a full range of patient needs, KCIs products are used by healthcare professionals around the world in a wide range of care settings, including acute care hospitals, long-term care and skilled nursing facilities, home health agencies and wound care clinics. Headquartered in San Antonio, Texas, the KCI employs 6,800 people and markets its products in 20 countries.

SDL

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A business (quality) management strategy developed by Motorola in 1981.

The term SIX SIGMA originated from terminology associated with manufacturing processes where a sigma rating indicates a percentage of defect free products it creates.

Recognizing that correlation between higher quality and increased revenue, under the leadership of Jack Welch, Six Sigma was introduced at GE in 1995. From that moment, Jack Welch became the global promoter of Six Sigma.

In 2009 the value of Six Sigma was recognized by KCIs Executive Committee and Process Excellence was listed on KCIs Corporate Scorecard for the first time. To date, 7 Black Belts and 36 Green belts have been trained at KCI. This localization project is the 1st Black Belt project to achieve certification status at KCI.

Brief Evolution of Six Sigma

Six Sigma = 3.4 defects per million opportunities.4Understanding DMAIC6Define: Define the problem, the process, and the project goals in clearly established quantitative terms.

Measure: Measure and collect data that will determine the factors that have influence over the outcome of the process or procedure.

Analyze: The data is analyzed using statistical tools to assess the problem.

Improve: Identify solutions to improve the process. Execute pilots that prove the selected solutions work. Deliver an improved process that is stable, predictable and meets customer requirements/project objectives.

Control: Complete project work and incorporate solutions with process owners. Put procedures in place for maintaining the gains.

5Our ChallengeDefinePrior to this project, when it came to localization, each functional group was focused on what "they" need to do without any leverage across KCIs many functional groups and geographical areas.

These inefficiencies lead toInconsistency of Translated ContentProcess InefficienciesQuality Issues Longer Lead-timesHigher Translation CostsDelays w/New Product Launch and Global Expansion PlansScope has remained consistent.6

TRANSLATION SPENDImpact to Patient SafetyCopy InconsistencyLoss of Market ShareNon-Compliance PenaltiesMarket RemovalExpensive FinesLaunch DelaysZero LeverageCustomer DissatisfactionWasteDelays in Global Expansion PlansProcess InefficienciesLong Lead TimesMarket FrustrationReworkHigher Overall CostsSecondary Expenses Associated w/ReworkMissed SalesOpportunitiesAnd More.Negative Impact to Other ProjectsFalse Positive in Low Cost OptionDefineBusiness Risks Its about more than spend.7

The True Cost of Localization Compliance Impact to Patient SafetyCopy InconsistencyLoss of Market ShareNon-Compliance PenaltiesMarket RemovalExpensive FinesLaunch DelaysZero LeverageCustomer DissatisfactionWasteDelays in Global Expansion PlansProcess InefficienciesLong Lead TimesMarket FrustrationReworkHigher Overall CostsSecondary Expenses Associated w/ReworkMissed SalesOpportunitiesAnd More.Negative Impact to Other ProjectsFalse Positive in Low Cost OptionDefineBusiness Risks Its about more than spend.8We Asked Our LeadershipWould it be acceptable for KCI to have 20+ suppliers for critical component items such as LCD screens for our VAC devices?

Then, why was an unmanaged, complex, multi-vendor environment acceptable for translated content directly impacting:

Patient SafetyCustomer SatisfactionQuality & ComplianceSpeed to MarketMarket ExpansionIncreased RevenueDefineSAAS: Taleo & Workday9Project Charter GoalsOur team believed setting the right localization strategy would:

Improve quality by significantly reducing variation of translated content by 30%.Improve cycle times by 30% by standardizing processes associated with translated contentIncrease translation memory leverage by 30% within and across functional groups assuring KCI the best net cost per "word".Transition from a multi source to a single source localization provider strategy.DefineScope has remained consistent.10SIPOCNeed forTranslated ContentGlobalTranslationManagement

Business Processes

Translation Request Forms

Source Documents

Approved Funding

Business Services and Supporting Systems

Resources

Equipment(Hardware & Software)

SupplierInputProcessOutputCustomersTranslated Content that is

Timely

Accurate

Consistent

Delivered at the best net cost per word.

30%EstimatedSavingsMedical Professionals-Doctors-Nurses-CliniciansAt:-Hospitals-Skilled Nursing Ctrs.-Rehab Facilities-Home Care Facilities

Customers

Regulatory Bodies

Attorneys

Auditors

Distributors

Global Sales Force

OEMs

Multiple Cross-Functional KCI Process Owners

Vertical Alignment to KCIs Overall G&O ComplianceCorporate CommunicationsCorporate ServicesFinanceGlobal Product LabelingHuman ResourcesLegal/IPLIFECELLMedicalPortfolio & BrandingQualityRegulatorySales & MarketingService EngineeringService OperationsTraining & EducationLocal KCI AffiliatesVarious Business Process Support Staff

Key MetricsCTQsDefine11Data Collection StrategyOnce the problem was accurately defined, the next step was to determine the factors that have influence over our process and collect the data needed to support. The following key measures were selected:MetricGPLEntire ProcessTop 3 AgenciesCurrent Efficiency Baseline(Net Cost Per Word)PPP

Current Percentage of TM LeveragePPPEstimated Cost Savings w/Existing TMPPPEstimated Time Savings w/Existing TMPPPCurrent % of Jobs Requiring ICRPPPQuantify Errors: Contextual vs. PreferentialPPPKCI ICR VOC RatingPN/A2 of 3True Cost of QualityN/A

N/A

PAll Key Measures Tie to DeliverablesImproved Cycle TimeIncreased TM LeverageBest Net Cost Per WordSupplier ReductionMeasureGoals for the Data:KCI determined that the collection of the data from our existing partners would be used to:

Identify the largest contributors to inefficiencies and wasteVerify process capability the big EPerform a root cause analysisLook for low hanging fruit quick, but effective improvementsDocument lessons Learned

What we found was surprising, although expected:KCIs ICR Process was the number one cause of project delays, leading to lost revenue in local markets

Data Collection SummaryJun09-Feb10DEFINE39 Projects259,850WordsMEASUREANALYZE55 Projects265,169WordsIMPROVECONTROL117 Projects1,404,844WordsMeasure13Criteria & WeightScoring Against Criteria

9 - High Impact6 - Moderate Impact3 - Low Impact0 - No Impact

Resulting Priorities1 - Labeling2 - Device Software3 - MedicalData Evaluation CriteriaMeasure14Affinity DiagramContractsHR Materials IncludingSoftwareAgreementsTrainingand EducationMaterialsCorporate CommunicationsRegulatorySubmissionsVideoMulti-MediaJournal Articles& ReportsLabelingContentSales & MarketingLiterature

Device SoftwareMarketResearchDEFINEScientific PapersPolicies, Misc.Forms & MoreClinical Reports& ManuscriptsAnalyzeJonathan Replaced the AS IS process map with the affinity diagram.Why? The cycle times that were used in the early define stage turned out to be inaccurate (they were longer than what was reported).

15Cost of Quality ModelFive Key Areas to Address When Improving the Cost of Quality (Page 38)Key DriversBasic Issue

LSP 1SDLLSP 3

Basic Organizational CapabilitiesSkills & tools required to implement improvements in business processes are lacking.609Process VariationsPoor process capabilities results in high COPQ (rework, multiple review cycles, longer cycle times).639Business ProcessVariationProduct cost estimation is often widely off the mark (additional funding is needed to complete job).306Process & DocumentationSystems, processes and documentation are often inadequate and flawed (longer cycle times, higher costs, poor quality).609Supplier CapabilitiesLack of quality translators and supporting organizational support, resulting in poor-quality translations, late deliveries, higher costs.

639Total The higher the number, the lower the quality. The higher our overall cost!27642

Analyze16Key Findings (1 of 3)1) Obtaining financial data (US & OUS) to verify translation spend was difficult at best. Issues included:No standard GL code for translated content Results varied between functional groups with access to financial data. Limited

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