successful continuous improvement

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  • 1. A successful Continuous ImprovementProgram within your SSC Elias Miera Pfizer Inc. Managed Services Operations Quality Director Elias.miera@pfizer.com Amsterdam, 16th May 2012

2. Agenda1. Pfizer Inc.2. Why CI?3. Deploying CI in a SSC4. CI Project identification, selecting the right approach for project execution5. Benefits realisation6. Key Lessons Learned 3. 1. Pfizer Inc.3 4. 5GFS and BT support locations Three shared services operations officessupported by strategically placed BPOApplication Support Outsourcing Business Process OutsourcingofficesChennai, India Bangalore, IndiaDelhi, India Highly-skilled and experienced teamBucharest, Romania Dalian, Chinaleveraging global network to deliver Pfizers Financial Application IT Outsourcing partner is Accenture .standardized solutions Pfizers Business Process Outsourcing (BPO) partner is Genpact . Pfizers processes are supported from 3strategic locations. GFS EuropeGFS Americas Dublin, IrelandMemphis, TNMarkets Supported:GFS Asia Austria Luxembourg Markets Supported: Belgium Netherlands Denmark Dalian, China Canada Norway Mexico France Portugal Finland Markets Supported: North Latin America Spain Germany Australia / New Zealand United State & Puerto Rico Sweden Ireland China SwitzerlandPfizer Location Italy Japan United Kingdom BPO Location SingaporeShared Services Markets 5. 2. Why Continuous Improvement ?6 6. History of Continuous Improvement Lean Six SigmaFord Deming 1960s Toyota Production System Quality Improvement Tools 1970s Reduce VariationJust In Time TQM 1980sLean Six Sigma Production (Motorola) 1990sLean QualityEnterprise Focus 2000s 2010sLeanSigmaAdapted by WPAP/WC from: http://www.leansigma.com/about.php7 7. 5 Principles of Continuous Improvement People closestto the workA journey of know therelentlessly issues &seeking opportunitiesperfection To manage Everythingperformancecan beyou have toviewed as measure ita processPerformance is judged bythe customer8 8. What is Continuous Improvement?Continuous ContinuousImproved ImprovementImprovementBusinesstechniques contribution performanceSix SigmaMore Maximize EffectiveRevenueMethods &+Efficient Manage Lean Processes CostsPrinciplesForOperatingStrengthen+ Divisionsour Culture IMPACTAnd Enabling Customer+FunctionsSatisfactionJust do ItThere are 2 keys to ensuring CI improves Business PerformanceIdentify key processes for improvement, provide colleagues with the necessary skills9 9. CI is a systematic approach for driving better performance Bring the customer voice insidethe organization Get rid of errorsPerformance Eliminate wasteStep Change Speed things up Redesign Reengineer Simplify work Break-Through Free up colleague timeInnovationNoMaintenance Improvement Move diverse groups morequickly to cohesive actionTime Without CI, most processes actually degrade Especially true in non-manufacturing environments Processes less visible, more difficult to manage Individuals introduce variability & change10 10. CI starts with the customer & treats the business asan integrated system Suppliers Inputs Processes OutputsCustomersStart with Voice of theCustomer. What does the Engage everyone involved incustomer consider important? producing the customer benefit. Work together to produce a total customer outcome, not just a department activity Take a Process Perspective Reduce waste, errors, delays Speed up process Improve productivityVA NVA Design Improvements Pilot, Implement & Control Measure and Analyze Input, output, process data Process flow Customer satisfaction11 11. CI links the strategic and the tacticalStart with your strategic business goals More Satisfied, Loyal Ability to Divert Resources to More Engaged, Productive Customers Growth OpportunitiesColleaguesAbility to Command a Price Ability to Share Talent,PremiumKnowledge Across EnterpriseLong-Term, SustainableCompetitive Advantage and develop tactical CI programs that enable you to reach them Reduce errors, mistakes & rework Reduce costs, free up resources Reduce defects, unwanted variability Increase capacity / productivity of current Speed up a process, improve flowresources Eliminate delays, handoffs, unnecessary Reduce inventories steps Reduce frustration12 12. CI Methodologies LEAN SIX SIGMA A collection of methods and A set of principles and toolstools aimed at the significantthat help us to eliminate COSTreduction of unwanted process activities that dontvariation in products and add value, and to create processesflow Elimination of waste Reduction of variance Improvement of flowImproved Improvement of yield Process Performance EffectivenessEfficiency TIME QUALITY13 Lean Six Sigma 13. 3. Deploying CI in a SSC14 14. SSCs and CICI 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 divisionexclusively focused inBusiness ProcessManagement / OperationalExcellence / CI 15. Customer Centred SSCs Customer SLA output definitions. Customer SLA KPI definitions. Critical To Quality (CTQ) metrics. Ongoing Voice Of the Customer(VOC) process: understanding yourcustomer satisfaction drivers,dissatisfiers and delighters. VOC follow-ups, closing the gaps. 16. Performance Measurement You cannot manage what you cannot measure Process KPIs. Metrics related to VOC: measuringquality in the eyes of the customer. Leading vs. Lagging Indicators: applyingSIPOC. Traffic lights & remediation triggers:Process Control Maps. 17. Promoting a CI culture in your SSC Public visual displays of completedprojects Public visual displays for ideas Public visual display for total $achievements for the year Recognition at site meetings of CIachievements Recognition program, emails from topleadership 18. SSC staff and CISetting up appropriate individual objectives is a key driverfor instilling a CI culture: 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.Similarly, CI focus should be part of recruitment & internalpromotion process. 19. 4. CI Project identification, selecting the right approach for project execution20 20. CI Project identification VOC process feedbackfrom customer, closinggaps Dashboard performanceissues in key metrics Individual employees ideas for improvements Technology developments new systems available Competitors & externalparties new marketdevelopments 21. CI Project execution 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. Quantity World HungerorBoiling OceanLean &Problems Logic & Six Sigma Projects Intuition Just Do ItTooDifficulty of findingToo HardEasyroot causes22 22. CI Project execution High Hanging Fruit: $$$ Advanced process e.g. Reduce cycle time for data analysis & financial month-end closechange management Low Hanging Fruit: $$Root cause validation e.g. Reduce errors during & solution monthly upload processidentification from ERP to ConsolidationGraphical Analysis, e.g. Reduce the SalesBasic process data Reporting Cycle Time analysis Ground Fruit: $ e.g. Develop an excel Quick wins: macro for automatic cost Just Do It centre classification23 23. 5. Benefits Realisation24 24. CI projects benefits realisationCommon 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 / ComplianceOther benefits arising from CI projects: Customer satisfaction Employee satisfaction Staff retention Reputational risks 25. Employee engagement Empowering employees to drive changes within their areas ofresponsibility. 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 strategicinitiatives Releasing capacity / scalability through individual tasks streamlining Training & personal development plans 26. 6. Key Lessons Learned27 27. 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 CIdeployment into a mere PMO executing 2-3 large projects 28. Thanks for your time, any questions?Elas MieraManaged Services Operations Quality & ContinuousImprovement DirectorPortfolio & Application Managed ServicesFinance & HR Business TechnologyThe Watermarque, Ringsend Road,Ringsend, Dublin 4, IrelandDirect Line: + 353 1 480 7692Mobile:+ 353 86 8205359Fax: + 353 1 480 7322Elias.miera@pfizer.com29

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