Six Sigma Application for BETES Telecom

1. Six Sigma Application for BETES Telecom ISE 250 Class Project Group Members: Batsheva Raviv Eduardo Sanchez Erica Wien Che Somasundaram Sankaran Zengbin Hao

2. Agenda • Pre-Define • Define • Measure • Analyze • Improve • Control • Appendixes

3. Background BetesTelecommunication Company produces microwave radio solutions for point to point applications

4. Problem Statement The perception of management was that the sales department for the Americas has been chronically under quota.

5. Customer Requirement Regional sales managers Pre Sales Engg. Equipment configuration Quote Approval Distributors Customer Process Flow Diagram

6. Balanced Scorecard

7. Balanced Scorecard (Cont..)

8. Balanced Scorecard (Cont..)

9. Balanced Scorecard (Cont..)

11. Charter Purpose • Reduce time to create a quote • Use resources more effectively • Increase profit Project Importance • Faster proposal delivery means more business • Cost reduction and better quality of work increases profit • Reduction in work load reduces employee turnover* • Increase in process efficiency increases market share *The number of workers hired by an establishment to replace those who have left in a given period of time

12. Charter (Cont..) Scope • Improve proposal preparation in the presales phase. • Focus on the sales support part without considering manufacture or logistics • The team will focus its work on • Simplifying the process • Finding ways to make process more efficient using current resources • Improving data collection • Identifying root causes of problems and prioritizing projects Deliverables • New process documentation • Process management chart

13. Charter (Cont..) Measures • Time to deliver quote • Booking amount* • Margin Available Resources • Team members: Batsheva Raviv Eduardo Sanchez Erica Wien Che Somasundaram Sankaran Zengbin Hao * Amount of dollars generated by orders

14. Involvement Matrix

15. Project Gantt Chart

16. CTQ Tree

17. CTQ Tree (Cont..)

18. House of Quality

19. Flow Chart E-mail Spread Sheet Propagation Software Configuration Software 1 Customer Requirement 1 min per link 20 min per link 30 min per link Sales Person RFQ Preliminary evaluation 2 1 week

20. 1 Is Customer in System? No Enter customer to system 2 minutes Yes 63 days Is Customer information complete? Get information from Customer No Correct pricing Create quote Yes Is opportunity in the system? Yes No Create Opportunity Reject quote Submit quote for approval No Discount greater than threshold ? Is quote approved ? Yes Higher level approval Yes No Generate quote

21. 3 Extract technical requirements Compare point by point requirements 3 2 1 week Is Information complete? Extract service and maintenance requirements Gather Information Yes Extract financial and insurance requirements Do we comply? No 1 week Yes Prepare technical proposal Prepare commercial proposal 2 week No 1 3 Print and ship to customer Integrate and edit proposal Prepare service and maintenance proposal

23. Internal Benchmarking

24. Internal Benchmarking

25. Internal Benchmarking

26. Internal Benchmarking

27. Pareto Chart Reasons Opportunities Lost Americas

29. Fishbone Diagram Lack of Technical Awareness In management 6 Lack of Financial support Environment Competitors are longer in the market Lack of technical and relationship skills Timing Resources Lack of Technical personnel 2 Lack of personal Competitors have better relationship Delivery time longer then competitors Complex supply chain Complex product Lack of support Competitors are bigger Lack of accurate forecasting Unreliable supplies Supplies can not keep up Fierce competition Lack of engineering in marketing Complex procedures Price too high Complex product 6 Lack of training Lack of structure Training plan Lack of importance awareness Communication problem with outsourcing Lack of awareness of opportunities Conservative view 3 Slow response 5 Workload not balanced Lack of financing customer Lack of Weekly meeting and reports Why the book value is below the goals? Responsibility don’t match employee skills Responsibility not well defined Lack of communication Management isn’t aware of employee skills Personnel not aware of customers needs 3 Slow response to customer Lack of skills Lack of appropriate Use of skills Lack of reliable data Customize CRM 2 management busy to define responsibility Not adequate response to customer Management send wrong message Better qualification of opportunity Prioritization based on size order only Bad Prioritization Wrong management conception Time wasted in low probability opportunities 3 Lack of motivation Afraid of losing job or power lack of Customer needs Understanding lack of Engineering in market lack of market understanding Lack of Horizontal communication Lack of support for objectives Each department has different agenda Lack of Understanding of how to achieve the goals Lack of cooperation between departments Lack of support among employees departments Lack of customization on CRM System Lack of Effective guidance Poor information from sales Information system too complex Lack of customization of CRM Lack of Management awareness Lack of Data collection importance awareness Lack of data Lack of knowledge Inappropriate market segment Lack of Technical understanding on skills Process Communication Information System Data is not reliable Lack of motivation

30. Outcome Driver Lack of horizontal & vertical communication Lack of motivation in collecting data Complex supply chain No periodical reports Complex product Lack of technical skills in sales people Lack of market support Importance of technical skills Magt Appreciation of Importance in training Lack of customization of CRM system Lack of appropriate skills in personnel Magt Appreciation of Importance in data Lack of understanding in Sales people Lack of team spirit In=1 In=3 In=5 In=1 In=2 In=3 In=2 In=3 In=3 In=2 In=2 In=6 In=2 In=4 Out=6 Out=2 Out=1 Out=7 Out=1 Out=3 Out=1 Out=4 Out=0 Out=4 Out=4 Out=2 Out=2 Out=2 Outcome Driver Interrelationship Digraph

32. PDCA

33. Project Plan / Do

34. Means Simplify the interface Customize the CRM system Unify the periodic report form Goal Standardize the operation process Improve horizontal & vertical communication Re-design the Operation Process Cutoff the unnecessary steps Persuasion and encourage Involve all level participation Training Enforcement Tree Diagram

35. Revised Flow Chart A Qualification Form Yes Do we comply with requirement? Customer Requirement Create an opportunity in CRM Preliminary Evaluation Prioritization Technical Data Form A No Is Informal quote required? Yes Propagation Software Configuration Software Send it to Sales/Customer No B Is Customer interested? No Close the opportunity with reasons/comments Create a formal quote Yes Submit for Approval Is Approved? Yes No Send it to Sales/Customer B

36. Request for Quotation Form For Distributors

37. Request for Quotation Form for Direct Customers

38. + + + - - - + + - ? ? - ? ? + Opportunity Assessment Form + Defined/ - Undefined + Strong/ - Weak + Yes/ - No Is there an opportunity? Can we win? Customer’s application/project Inside support Customer’s business profile Executive credibility Customer’s financial Condition Informal decision process Access to funds Corporate compatibility Compelling Event Political alignment Can we compete? Is it worth winning? Formal decision criteria Short term revenue Product fit Future sales Sales resources requirements Profitability Current relationship Degree of risk Unique business value Strategic value + + + - + ? ? + -

39. Opportunity Priority Assignment • Sales support will prioritize the opportunities based on the qualification, probability, dollar amount and margin. • Sales support will let sales know when the quote will be ready by assigning categories (urgent, high, medium, and low), and estimated delivery dates.

40. Check Indicators: • 100% complete information in RFQ forms • 80% of all direct opportunities qualified* by sales • 100% of path engineering reports attached to opportunities • Meet booking amount (US $14M for this year) • Reduce quoting time for urgent priority opportunities by 40% * qualified: Relative importance of opportunity is weighted

41. Act Corrective Actions: • If information is incomplete or incorrect in RFQ forms, correct or return to customer (or sales person) • If sales support does not meet estimated quote delivery date before approval, use comments in RFQ form to identify root causes • If qualification data does not meet strategic objectives, revise sales strategy • If qualification data does not meet market segments, revise marketing strategy

42. Act (Cont..) • Regional Sales / Distributors Managers take responsibility of creating opportunities • Sales support prepares a quarterly summary report of qualification data and lost opportunities reasons to present to stakeholders • Sales support prepares weekly report of time to deliver quote • Sales support creates monthly report of cumulative bookings each week • Have periodical intra department meetings to discuss results of reports and identify root causes

43. Improve Gantt Chart

44. Process Management Chart

45. CAP Chart

47. Control Result days

48. Control Result days

49. Q&A Thank You

50. APPENDIXES