Six Sigma in the Contact CenterNorthwest Call Center ProfessionalsHelp Desk NorthwestMay 17, 2006

Mike Stone

AgendaIntroduction to Six SigmaFull Life-Cycle Case Study

Introduction Six Sigma was invented by Motorola, Inc. in 1986 as a metric for measuring defects and improving quality. Since then, it has evolved to a robust business improvement methodology that focuses an organization on customer requirements, process alignment, analytical rigor and timely execution. http://www.motorola.com/content/0,,3074-5804,00.html

Six Sigma, the GE WaySix Sigma - A vision of quality which equates with only 3.4 defects per million opportunities for each product or service transaction. Strives for perfection. DFSS (Design for Six Sigma) is a systematic methodology utilizing tools, training and measurements to enable us to design products and processes that meet customer expectations and can be produced at Six Sigma quality levels. (DMADV - Define, Measure, Analyze, Design, Verify)DMAIC (Define, Measure, Analyze, Improve and Control) is a process for continued improvement. It is systematic, scientific and fact based. This closed-loop process eliminates unproductive steps, often focuses on new measurements, and applies technology for improvement. Source: http://www.ge.com/sixsigma/glossary.html

Other Quality SystemsTotal Quality Management (TQM)Toyota Production System (TPS)KaizenLeanTheory of ConstraintsAgilePDCA Plan, Do, Check, ActGood Manufacturing Process PharmaISO 9000

Key ConceptsA process is all the activities involved in producing a product or service for a customer. It is cross-functional in natureQuality is defined by customer requirements for the chosen processDefects are defined and countedInconsistencies in the process, known as variation, are studiedCauses of variation are identified and addressed

Key Terminology

Critical to QualityAttributes most important to the customerDefectFailing to deliver what the customer wantsOpportunityEvent where success or failure can be determinedProcess CapabilityLevel of quality your process can deliverXUnderlying factors that affect YsYMeasures being addressed by the project

Key Terminology

VariationWhat the customer sees and feelsStable OperationsEnsuring consistent, predictable processes to improve what the customer sees and feelsCommon Cause of VariationA source of failure that is always present as part of the random variation inherent in the process Special Cause of VariationA source of failure that lies outside the Process, and so is intermittent, unpredictable, unstable

DMAIC Define Measure Improve Analyze ControlTeam CharteringCustomer FocusProcess MappingMeasurementVariationData CollectionData AnalysisProcess Analysis and FocusRoot Cause AnalysisQuantify OpportunityGenerate SolutionsSelect SolutionsImplementation PlanningMonitor the ProcessDocumentationInstitutionalize

Case StudyIT services businessCustomer service call center

Project SelectionBusiness strategyHow important is customer satisfaction?How important is it to attract new customers?Competitive positionHow do we compare to our competitors?BenchmarkingBest projectsIssue is well-defined with supporting dataScope is well-definedObjectives are stated in business terms and are measurable

Project SelectionCustomer satisfactionAverageLower than best-in-class in industryPositive correlation with account growthCustomer satisfaction and new accounts are statistically related to one anotherBusiness judgmentNo correlation with customer service spendingPer call costs were not higher at strong competitorsGoals: Reduce support costs while improving new account growth

DefineTeam CharteringGoal statement: "Increase the call center's industry-measured customer satisfaction rating from its current-level (90th percentile = 75 percent) to the target level (90th percentile = 85 percent) by end of the fourth-quarter without increasing support costs.Milestones, tasks, responsibilities, schedule and communication plan.

DefineCustomer FocusSIPOC diagram identify customers (stakeholders)CustomersStaffBusinessVoice of the Customer interviews"What influences your level of satisfaction with our services?"Summarize customer requirementsIdentify measures for each requirementNext slide

Define

RequirementMeasure (CTQ)Quickly connect with a helpful personWait TimeGet the information I needTransfers; Service TimeApply the information, with help if neededCustomer Satisfaction, Support CostUnderstand how to avoid problems recurringDays to Close

DefineProcess mappingHelpful during the Measure phase, as the project team considers how and where to gather data that will shed light on the root cause of the issues most pertinent to the project's goals.

MeasureDefine measures and how the data will be gatheredExample:Customer SatisfactionBy industry standard monthly surveyThe project will require additional, more frequent, case-by-case customer-satisfaction data. A measurement system that tracks with the industry survey will be devised and validated.

MeasureDefine performance standardsExample:Customer SatisfactionCurrent Baseline90th Percentile / 70-80% SatisfiedPerformance Target90th Percentile / 85% Satisfied

MeasureIdentify segmentation factors for data collection planFocus data collection effortUse cause-and-effect toolsHow is Y naturally segmented?Call center, product type?What factors may be driving the Ys?Take a guess at what your important Xs might beCall type, customer type?

MeasureAssess measurement systemAccuracyDoes the measure agree with the truth?RepeatabilityDoes the system always produce the same value?ReproducibilityWill different people get the same results?StabilityIs the system accurate over time?

MeasureCollect the dataAutomatedManualNew metrics may be neededDisplay the dataLook for clues into causes of variationSimple charts and graphs

AnalyzeMeasure process capabilityCompare current performance to standardsRefine improvement goalsAdjust goals if data shows departure from expectationsSegment dataSlice and dice data to look for patterns to find causes of variation

AnalyzeIdentify possible XsLikely suspect causes of variationIdentify and verify the critical XsNarrow down to most important causes of variationWhy do Problems and Changes cost more than other call types?Why are calls processed on Mondays and Fridays more expensive?Why do transfer rates differ by call type? (higher on Problems and Changes, lower on others)Why are wait times higher on Mondays and Fridays and on Week 13 of each quarter?

AnalyzeRefine the benefit forecastUpdate the forecast of how much improvement can be expectedFound that key support cost drivers (the delays and interruptions during call-servicing) were the same as those known to drive down customer satisfaction so a win-win seemed to be possible.

ImproveIdentify Solution Alternatives

Driving XsSolution AlternativesStaffingAdd staff Mondays and Fridays, reduce staff on SundaysDevelop staffing modelCreate on-call list to fill-in for absenteesWeb Service PercentageFocus on services that can be done best on the WebDefine and communicate the value prop to customersEvaluate incentives to move traffic to the WebTransfers and CallbacksImprove call center processes to reduce transfers and callbacks without impacting customer satisfaction

ImproveVerify the Relationships Between Xs and YsSolution Selection MatrixSolution AlternativesCustomer Requirements (CTQs)Regression AnalysisDetermine the strength of each solution against the CTQs

ImproveSelect and Tune the Solution Details of the plan for the Monday staffing pilot program:Xs to adjust: Staffing level (add five for pilot, full increment to wait for evidence plan works)Ys to measure for impact and unintended side effects:Wait time, v/s ratio, customer satisfaction, transfers, callbacks, service time.Compare "new staff" versus "old staff" (hypothesis test).Measure monthly to observe learning curve effect, if any(continued on next page)

ImproveDetails of the plan for the Monday staffing pilot program:Measurement system issues: Revise existing sampling plan and data collection process to distinguish new staff from old staff.Because the current customer satisfaction sampling gives only 1 data point per month (not enough to see a change), arrange a special sample five per day for the first 60 days of the pilot (80 percent from existing staff, 20 percent from new staff).People and logistics issues: Communicate what is happening and why. Emphasize evaluation is not of individuals, only overall impact.

ImproveImplement SolutionPilot, if possibleCollect data during pilotXs and YsWatch for unintended impactsReport out and obtain approval for full implementation

ControlDevelop Control PlanManagement control dashboards YsOperational control indicators XsDetermine Improved Process CapabilityBusiness GrowthCustomer SatisfactionSupport Cost per CallDays to CloseWait TimeTransfersService Time

ControlImplement Process ControlOngoing data collection and presentationClose ProjectRoll out process changesTrainingTransition control to managementValidate resultsRefinementsProject post mortem

Tools

ToolsANOVA ANalysis Of VAriance (ANOVA), a calculation procedure to allocate the amount of variation in a process and determine if it is significant or is caused by random noise. Cause and Effect Diagram A cause and effect diagram is a visual tool used to logically organize possible causes for a specific problem or effect by graphically displaying them in increasing detail. It helps to identify root causes and ensures common understanding of the causes. It is also called an Ishikawa diagram.

ToolsControl Chart A graphical tool for monitoring changes that occur within a process, by distinguishing variation that is inherent in the process (common cause) from variation that yield a change to the process (special cause). Kano Analysis Kano analysis is a quality measurement tool used to prioritize customer requirements based on their impact to customer satisfaction.

ToolsPareto The Pareto principle states that 80% of the impact of the problem will show up in 20% of the causes. A bar chart that displays by frequency, in descending order, the most important defects. Run Chart A performance measure of a process over a specified period of time used to identify trends or patterns.

ToolsX-Bar and R Charts This set of two charts is the most commonly used statistical process control procedure. Used to monitor process behavior and outcome overtime.

Resourceshttp://www.isixsigma.com/http://www.sixsigmainstitute.com/http://www.motorola.com/motorolauniversityhttp://www.ge.com/sixsigma/

The Six Sigma Way: How GE, Motorola, and Other Top Companies are Honing Their Performance by Peter S. Pande, Robert P. Neuman, Roland R. CavanaghFourth Generation Management by Brian L. JoinerLeading Six Sigma by Ronald D. Snee and Roger W. HoerlThe Pocket Idiots Guide to Six Sigma by Marsha Shapiro and Anthony Weeks

Six Sigma in the Contact CenterMike StoneMobile: (206) 779-3105mgstone2020@yahoo.com

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