The Dirty 30 Process for Six Sigma Software

1. The Dirty 30 ProcessforSix Sigma Software Jay Arthur (888) 468-1537 Knowware International Inc. 2253 S Oneida St, Ste 3D, Denver, CO 80224 www.qimacros.com

2. The Fix-It Factory Your Factory Your Customers Your Fix-It Factory $ $ $ $ $ $ $ $ $ $

3. Errors Errors Errors Errors The Cost of Poor Quality Order Bill Factory Purchase Pay $$$ The HiddenFactory $$$

4. Power Laws Myth: The wider you spread it, the greater the returns • To increase returns, narrow your focus • (80/20)2 - (4-50 rule) • 4% of business causes over 50% of waste and rework Normal Distribution Power Distribution

5. Dirty 30 Process for Six Sigma Software • From 17% error rate reduced to 6% in just six months • 100% elimination of top six error buckets • $250,000/month in savings • Cost: • Five days of planning • Six half-day team meetings • Three incremental software releases

6. Equipment Usage Errors Service-Feature Activation First Bill Orders Activation Errors -Delay -Defects Customer Care Calls Order Errors Billing Errors Manual Error Correction -Orders -Adjustments Service Fallout Effects

7. Order Fallout in PPM

8. Order Fallout

9. Service Affecting Fallout

10. Record Affecting Fallout

11. Dirty Thirty Process • Pick one top error category • Get 50 specific errors (phone number) • Investigate each error online to find root cause of individual error. • Grow checksheet of causes • By 30 a root cause pattern will POP OUT • Evaluate alternative solutions • Develop action plan

12. Root Causes Out Orders T/F TN Change Wireless Works With Number Duplicate orders WW Mismatch No WW Not needed on Out Orders Order already issued another system Problem Statement 60-80% of Out order errors involved WW# Wireline Link # Match not needed on Out Orders Mismatch During Jan. 2000 Service and Record affecting fallout accounted for 51% of Fallout which was 3X higher than desired and caused delay in records update, commission payout, and provisioning. Price Plan Changes New Orders in Error Wireless LK# Final Pending Order Check Not Needed on Price Plan Changes Svc Rep entered OTN Non Integrated USOCS In Orders

13. Record Order Results Eliminated Top Four of Top Five Errors

14. Service Affecting Results Eliminated Top Two Service Affecting Errors

15. Dirty 30 Process for Healthcare • From $1 million/month to $550,000 • $450,000/month in savings • Cost: • One day of planning • One half-day team meetings • One process change

16. Healthcare Example

17. Denial – No Appeal

18. Denied Claims

19. Denied Claims

20. Root Cause Medical Necessity ER Problem Stmt In Patient No Auth No Auth 64% of Denials Reauthorization One Payor accounted for 64% Payor Psych

21. Secret to Six Sigma • Focus on “mission and profit critical” problems • Set BHAGs-Big Hairy Audacious Goals to reduce defects, time or cost by 50% or more in six months or less. • Define multiple sub-problems to be solved • Initiate root cause teams to analyze each sub-problem and identify solutions • Implement solutions and verify results

22. Secret to Six Sigma Software • Pick one top error category of “fallout” • Get 50+ specific errors to investigate • Investigate each error online to find root cause of each individual error. • Grow checksheet of causes • By 30 a root cause pattern will POP OUT • Evaluate alternative solutions • Develop enhancement requirements • Develop action plan

23. Six Sigma Software Jay Arthur KnowWare International Inc. 2253 S. Oneida St., Ste 3D Denver, CO 80224 (888) 468-1537 knowwareman@mindspring.com www.qimacros.com