Christine Stephens Xerox Global Services, Inc.

1. Lean Six SigmaExpanding Value Inside & Outside Your Company Christine Stephens Xerox Global Services, Inc.

2. Evolution of Six Sigma at Xerox Adding {Lean} to the Six Sigma Process Lean Six Sigma Tools & Processes Extending the power of Lean Six Sigma to our clients: Intercontinental Hotel Group Electronic Classroom of Tomorrow Monroe County Sheriffs Department Discussion Topics

3. External Client Opportunities 2002 Internal Back Office 2001 Internal Manufacturing 1998 Past Present Evolution- Six Sigma at Xerox

4. 1984 Rank Xerox UK, Mitcheldean British Quality Award 1987 Rank Xerox France, Lille French Government Citation 1989 Xerox Canada Canada Award for Business Excellence: Gold Award, Quality 1990 Rank Xerox Netherlands Netherlands Quality Award 1990 Rank Xerox Australia Outstanding Service Quality Improvement Award of Australia 1992 Xerox de Colombia Colombian Quality Award 1992 Rank Xerox Belgium Belgian Quality Award 1992 Rank Xerox Hong Kong The Hong Kong Management Association Quality Award 1994 Xerox de Argentina Argentine National Quality Award 1994 Rank Xerox Portugal Portuguese Quality Award 1994 Rank Xerox Norway Norwegian Quality Award 1995 Xerox Uruguay Uruguayan National Quality Award 1996 Fuji Xerox (Wakaba QC Circle) Gold Award from 25th Annual All-Japan Invitational QC Convention 1996 Rank Xerox Middle East/Africa Dubai Quality Award Xerox Quality and Innovation 1980 Fuji Xerox Deming Prize 1997 Xerox ISO All major Xerox manufacturing sites worldwide receive ISO 14001 certification 1997 Xerox Business Services Malcolm Baldrige National Quality Award 1989 Xerox Corporation Business Products and Systems Malcolm Baldrige National Quality Award

5. XLSS - Strategy • Integrates customer focus with clear linkage to business strategy / objectives • Supported by infrastructure and resource commitment to focus on key business issues and critical to customer opportunities. • Builds on quality legacy with full arsenal of industry proven Lean and Six Sigma processes and tools

6. State-of-the-Union: 2005 • 27 Full-time deployment managers • > 500 active Black Belts have achieved certification, completed or started training in 2004 • > 2,000 Senior executives have completed leadership workshops • > 1,700 Active Green Belts • > 17,000 in Yellow Belt training + many other on-line courses

7. Lean Six Sigma Tools & Processes

8. LeanSpeed + Low Cost Six SigmaCulture + Quality • Goal – Reduce waste and increase process speed • Focus – Identify non-value add steps and causes of delay • Method – Value Stream Tools, Kaizen events • Goal – Improve performance on Customer CTQs (Critical To Quality) • Focus – Use DMAIC/DFSS processes to eliminate variation • Method – Management Engagement, Deployment Managers, and Black Belt Projects Lean Speed Enables Six Sigma Quality (faster cycles of experimentation/learning) Six Sigma Quality Enables Lean Speed (fewer defects means less time spent on rework) Adding to the Power of Lean

9. 6s Quality + Lean Process Control Overall Yield vs. Sigma (Distribution Shifted ±1.5s) • # of Steps • ±3s • ±4s • ±5s • ±6s • 1 • 93.32 • 99.379 • 99.9767 • 99.99966 • 7 • 61.63 • 95.733 • 99.839 • 99.9976 Lean Six Sigma Drives Quality, Speed and Cost Simultaneously • 10 • 50.08 • 93.96 • 99.768 • 99.9966 Lean Reduces Non-Valued Add Steps • 20 • 25.08 • 88.29 • 99.536 • 99.9932 • 40 6.29 • 77.94 • 99.074 • 99.9864 Six Sigma Improves Quality of Value Add Steps

10. Without Lean Six Sigma Discipline… Conjecture/assumption/myths about what customers want Processes based on internal convenience/cost Limited efforts at tracking customer satisfaction Customer-focused data not communicated or used With Lean Six Sigma Discipline… Customer requirements based on careful assessment Processes designed and executed to fulfill customer requirements Multi-faceted, on-going “voice of the customer” effort Customer-focused data key to managing the business, short- and long-term Focus on Customer Needs Tools: VOC, QFD, CTQ, Kano, Conjoint, etc.

11. When to use Xerox Lean Six Sigma • When to Use: • You have a challenging goal to reach or issue to solve • Driven by the Business Unit strategy • Issues that are valuable for the Business Unit to resolve • Problems that have stood the test of time • Solution is not known • You are willing to commit people to identify and resolve the issue • You want a more robust solution than traditional methods can provide • You want to encourage the upward flow of ideas and build team spirit • You want group ownership of a course of action • When NOT to Use: • You don’t have a specific challenge or clear issue to solve • You already have a solution and a course of action • You don’t have a process to improve With materials from the George Group, 2003

12. Project Types • Generic Pull Systems • Order Management • Product Development • Info Tech Repair requests • Replenishment Pull System • Purchased Part Replenishment • Stocking Strategy • Product Rationalization • Service / warranty Parts • Distribution Channel management • Value Added Time Improvement • Customer Facing Operations • Outsourcing Solutions • Setup Reduction • Finance Month End Closes • HR Hiring Procedures • Marketing Event Setup • Purchase Order Setup & Issue • receiving & Inspection • Process Flow Improvement • Office Document Assessment • Helpdesk Cycle time Improvement • Order to Install Cycle Time • Trial Equipment Recirculation With materials from the George Group, 2003

13. Selecting LSS Projects 1 2 3 4 5 Identify Value Levers Identify Project Opportunities Screen Initial List of Opportunities Scope and Define Projects Prioritize List of Defined Projects • Identify value levers in the business • Strategic • Financial • Customer • Operational (Process) • Prioritize value levers • Translate Value Levers into Opportunity Areas • Translate Opportunity Areas into Project Ideas • Score each project as High / Med / Low for Benefit and Effort • Fill in Benefit / Effort Matrix • Review plotted results • Select highest priority opportunities for further analysis • Assign opportunities to project sponsors for project definition • Complete Draft Project Charters • Evaluate projects using Evaluation Criteria • Update Benefit / Effort Matrix • Review plotted results • Prioritize projects • Schedule project launches based on resource availability • Reduce Projects-in-Process With materials from the George Group, 2003

14. Project Chartering • The charter defines the team’s mission. • It includes the following elements: • Business Impact • Opportunity or Problem Statement • Goal Statement • Project Scope • Project Plan • Team Selection • The Project Charter does NOT solve the problem • It is a living document, that will change over time... “Catch Ball” Process

15. DMAIC Process M D C A I Measure Analyze Define Control Improve Implement the solution and control plans Develop improvement solutions for the critical X’s Search for the key factors ( critical X’s) that have the biggest impact on process performance and determine the root causes Understand the process and its performance Define the opportunity from both business and Customer perspective TOOLS USED • Cause & Effect • Fishbone • Brainstorming • Basic Statistical tools • Hypothesis testing • FMEA • Regression • ANOVA • Operational definitions • Data Collection Plans • MSA or Gage R&R • Control Charts • Paretos • Histogram • Line Balancing • Benchmarking • Constraint identification • Solution Selection matrix • Pilot and Simulation • Control Charts • SOP’s • Communication Planning • Mistake proofing • Project replication • Refined Project Charter • Value Stream Map • SIPOC Map • Voice of the Customer • RACI charts

16. DMAIC Storyboard

17. Define • Complete Project Charter • Create High Level Process Map (4-6 Steps) • Adjust Scope If Necessary • Collect VOC/VOB • Translate VOB/VOC Into Measurable CTQ Metrics • Perform Stakeholder Analysis • Create RACI Diagram • Identify potential impacts to internal controls • Identify other impacts or requirements (EPA, SOX, etc.) • Define Tollgate

18. Measure • Micro Level Process Mapping • Create Data Collection Plan • Perform Measurement System Analysis (Gage R & R) • Document Operational Definitions • Determine Current State Performance Capability • Validate Proposed Business Impact • Measure Tollgate

19. Analyze • Complete Value Add Analysis of Detailed Process Maps • Brainstorm Potential Root Causes Y=f(x) • Perform Root Cause Analysis to Identify Variation & Gaps • Identify “Critical Few” inputs affecting your Output • Validate Business Impact • Analyze Tollgate

20. Improve • Brainstorm Potential Solutions • Prioritize Solutions • Select Recommended Solution(s) • Use Data to Provide Predicted Improvements • Review Potential Solutions with Sponsor & Stakeholders • Conduct FMEA • Pilot Results • Create High Level Implementation Plan • Create Communications Plan • Revisit Potential Internal and Regulatory Controls • Improve Tollgate

21. Control • Fully Implement Solution(s) • Create Dashboards • Create Control Plan • Identify Process Owner & Create Transition Plan • Monitor & Document Process Results • Create Project Storyboard & Lessons Learned • Control Tollgate • Communicate Business Results to the Organization • Celebrate With Your Team

22. Dashboard Concept Cost Quality Device Uptime Cost Per Device Actual $51.25 Actual 2.0% Target $32.50 Target 3.5% Cost Per Employee SLA Metrics Met Actual $91.50 Actual 4.5 Target $78.39 Target 9.0 Speed or Delivery Customer Satisfaction Mean Time to Repair Overall Actual 4.5 hrs Actual 4.8 Target 6 hrs Target > 4 of 5 Response Time Fix Time Actual 4.5 Actual 1 hr 4.5 Target Target 2 hrs

23. Dashboard Rollup Concept State Dashboards Region Dashboards County Dashboards City Dashboards

24. Tollgate Reviews • Ask the questions that need to be answered at each phase • Ensure due diligence with the work process • Properly address ID of critical factors that will influence results • The following people are involved in a tollgate Review: • Project Sponsor- needs to agree with the path being taken by the team, ensures CTQ’s are being addressed and proposed results will affect the bottom line • Deployment Manager ensures Customer / Sponsor and Black Belt have working relationship to attack the project and that resources are allocated • Black Belt illustrates critical thinking and organization skills, project management skills, uses statistical and lean tools and interprets results • Master Black Belt oversee methodologies used by Black Belt; statistical tool usage, Lean concepts applied

25. Sharing the Power of Lean Six Sigma • Monroe County Sheriffs Dept. • Electronic Classroom of Tomorrow • Intercontinental Hotel Group

26. Case Study Monroe County Sheriffs Department Solution • Employed Lean Six Sigma methodology • Digitized and streamlined accident report process • Created web-based document access system • Integrated existing systems • New York State’s largest sheriff’s office Measurable Results Client Challenges • Reduced cost of processing an accident report from $28 to $8, ($500K/yr savings) • Reduced cycle time from as much as 3 weeks to less than 3 days • Reduced time spent by deputies on accident reports from 30 to 5 minutes • Created revenue stream from charging for accident reports, worth $32K/year • Balance $100M budget • Improve quality of service in accident report management • Eliminate backlog of more than 3,000 records and over 4 months of data entry • Free deputies from paperwork, so they can spend more time ensuring public safety

27. Case Study ECOT Solution • Employed Lean Six Sigma methodology • Focused on front of process to achieve quick results • Automated manual processes • Streamlined process steps • Created tracking procedures to measure cycle time • First and largest online school in Ohio Client Challenges • Accelerate enrollment cycle time • Reduce overall per-student cost of enrollment • Increase revenue by increasing process capacity/enrollment • Deliver results quickly (2 month window) to impact current year’s enrollment Measurable Results • Reduced process cost from $43 to $25 per application • Increased revenue by $4.5 MM/year • Met accelerated deadline

28. Case Study Solution Intercontinental Hotels Group • Employed Lean Six Sigma methodology • Implemented remote control to minimize deskside visits • Standardized OS and IT environment • Moved administration offsite • A leading hospitality company, managing brands such as: • Holiday Inn • Crowne Plaza • Candlewood Suites Measurable Results • Achieved savings goal of $1.2 million/year • Reduced cycle time for deskside software related problems from 21 to 9 Hours. • Maintained/Improved customer satisfaction across 5 key metrics: • Overall customer satisfaction • Knowledge of staff • Professionalism • Technical ability • Fix time Client Challenges • Needed to cut costs to stay competitive during post-9/11 travel downturn… • While at the same time improving customer satisfaction with IT support services

29. Formula for Success • Select projects based on impact to the business and/or customer Identify Sponsors with the authority to break down barriers Ensure commitment for budget and team resources Operations leaders must be engaged in the process

30. Summary • Xerox is rapidly moving Lean Six Sigma concepts and tools from manufacturing and supply chain into all business areas of the company and to our customers. • Project selection process and infrastructure focused on the customer, business strategies & critical priorities • Xerox Lean Six Sigma is customer centered, data driven & the way we will achieve results in all business areas

31. Q & A ?

32. Videos Start HereIHGECOTMonroe CountyBrooklyn Public Library