Class Notes

Contents

Step 1 : Either a problem has been identified / or improvement opportunity. 2

Step 2 : Once the problem or Improvement Opportunity has been identified. 3

Step 3: Gather their Voice. 3

Step 4: Convert Voice to CTQ – Critical to Quality. 3

Step 5: Create Project Charter. 4

Business Case. 4

Problem Statement/ Opportunity Statement. 4

Goal Statement. 4

Scope Statement. 4

Roles n responsibilities. 4

Milestone. 5

Communication Plan. 5

High Level Process Map (COPIS). 6

Define Phase

Sales Pitch

Purpose

1. Getting the Sponsor to approve our project idea
   1. Funding
   2. Data
   3. Approvals
   4. Time Allocation for resources
   5. Resources
2. Change Mgmt Strategy outline
   1. What is in it for me?
3. Project Management Framework
   1. Timeline
   2. Resources Needed
   3. Risks Associated

Project Commencement

Step 1: Either a problem has been identified / or improvement opportunity

Voice of Customer

• • • One of the customer promises (SLA)– Org hasn’t been able to achieve it (VOC)
      • Healthcare Company has promised disbursal in 48 hrs – and it hasn’t been able to achieve it
      • BPO org one SLA around Handling time is not meeting target
      • OTD promise from a firm is not being met
    • SLA Missed
    • Customer Complaints
    • CSAT/NPS Survey scores are pretty poor or you are receiving poor feedback
    • Reward and Penalty Metric
      • BPOs INTUIT – NPS Target 62% - triggered a penalty of 24000$ and if were to achieve 68% NPS – Reward of 18000$

Voice of Business

• • • Business Metric
      • Margin,- BPO std = 40%
        • Margin = Rev - Cost
      • Revenue
      • CSAT (VSAT)
      • Attrition
        • Low tenured/ lesser salaries
      • Shrinkage hasn’t been able to live its target.
      • Rejection
  • -6% - positive

COPQ (Cost of Poor Quality) will result in Cost Increase, CSAT goes down

• • • Rework
    • Repair
    • Recall
    • Rejections
    • Bad branding

First Time right (FTR) or First Time Yield

RTY (Rolled Throughput Yield)

Let’s say a BPO needs to hire 40 people at entry level positions

Advertisements were rolled out and about 4000 resumes were received

• Upon verification of these 4000 resumes – we saw that only 800 fit the bill (only 800 people fit our hiring criteria)

FTR = 800/4000  

• Typing test was done for these 800 – only 300 could achieve their score 

FTR = 300/800

• Ops Interviews were done for these folks – 200 people cleared their rounds

                FTR = 200/300

• Final interview was done for 200 – and 60 finalized

                FTR = 60/200

• Hr discussion led to 25 offers being rolled out

                FTR = 25/60

• 19 people accepted the offers made

                FTR = 19/25

• 7 actually joined.

                FTR = 7/19

Rolled Throughput Yield = 800/4000 * 300/800 * 200/300 *60/200 *25/60 *19/25 *7/19

RTY = 7/4000

ISO 13053 – Six Sigma

OTD (On time Delivery)

• • Project Planning
  • Supply chain process

Number of Problem Reports

• • Incident Tickets

Return Rate

VOE – Voice of Employee

• • Employee complaint
  • Employee Satisfaction
  • Attrition

Example:

VOC –

• Poor response Rate
• Poor CSAT
• Quality of Scans (GMB addition on Google Maps)
• Coverage
• Repeat Customer calls

Voice of Business

• Revenue Increase
• Margin
• Automation – to improve Speed/Accuracy/ Cost (Head Count Reduction)
• High Attrition
• Poor Accuracy Scores
• Shrinkage high
• Loss of Business

COPQ

• Returns
• Product Quality
• Poor FCR/FTR
• Poor Communication triggering Customer contacts
• Rejections high

FTR

• High external errors
• Cycle – OTR - Order to remittance

Project Define Phase

Sales Pitch

• Why this and not something else
• Why now?
• What is needed
• What is the timeline
• Change Management involved

Must not do:

• Tell him the cause of the problem
• Tell him the fix

Random project choices can be dangerous.

AIG Metrics

• People Cleared Projects
  • %
• How many people
• Feedback
  • Content – More user friendly
  • Training Delivery
• Relate to their work
• Examples
• 3 Important
  • Goodwill in market
  • Jobs
  • Admissions in a year 1200

Step 2:Identify Stakeholders

Once the problem or Improvement Opportunity has been identified

Identify the stakeholders involved in the project

NPS / CSAT

People involved in this theme and make list of them

Step 3: Gather their Voice

• Articulates the measurable Metric
• Generic response

Sample Comment

Twitter Comment – Unhappy with Amazon service – we should reach out to the stakeholder and seek the metric – TAT of delivery/ Quality of Product/ Customer Service…

Sr VP Ops (Verbatim – Meeting / Email / MBR / CSAT Survey)

“Cycle time is a penalty metric and not meeting the same not only yield penalty for the process but has cascading effect and results in backlog creation resulting in OT pay-out and poor customer experience. This is a very critical account not just because it has high revenue but also because of opportunities of account penetration. We need immediate action”

• Voice which has the measurable metric(CTQ) of improvement.
• Generic Statement which does not give u the Measurable Metric
  • I am unhappy with service provided – Speak to customer and find the CTQ

AIG is not meeting my expectation – CTQ not clear – Hence talk to the person and get clarity on what is the problem

AIG trainer is not training well. CTQ – Training Quality

Step 4: Convert Voice to CTQ – Critical to Quality

                If multiple CTQs, you need to prioritize and get Sponsor acceptance

Handling time is a penalty metric and not meeting the same not only yield penalty for the process but has cascading effect and results in backlog creation resulting in OT (Over Time) pay-out and poor customer experience. This is a very critical account not just because it has high revenue but also because of opportunities of account penetration. We need immediate action”

All things marked in RED are measurable metric

Handling time is too high. We need something drastic to happen and not short term fixes which don’t last. NPS (Net Promoter Score)is critical to us and most customers in the detractor zone for us owe it to high handling time and poor FCR. (First Call resolution)

3 identified CTQs marked in Red

Step 5: Create Project Charter

Sales Pitch to get approval for the project.

Getting approval from the Sponsor for the project.

During the project

• we may need financial assistance,
• data which is outside our dept,
• people to spend time on this engagement etc

Build a story board to get the Sponsor to approve the project idea.

Business Case –

Justification for why is the project necessary.

• Why now
• Why this
• What is the consequence if we don’t take it up right now

Why is the project necessary?

• Show benefits (reduce over time, increase customer experience)
  • Reducing Customer Complaints – Increase repeat business, reduce penalties, loss of business will be reduced etc.
• Show Fear (This is a 1 Million $ account – Customer may go away)

­­­­­­­­­­­­­­­­­­­­______________________________________________

BGC----- 80% not meeting its target of 15 days TAT

BlackBerry Phones

500,000 *7/100 * ¾ *

30 Min

30*25000*50000/168

___________________________________

Cost of Employee – 13.5 $ - 8$

Business Case – High level view of the process, Problem (or the improvement opportunity) and Consequences (Dollar value will be very helpful)

Example

In order to access customer loyalty and experience we conduct CSAT once every month. In the last few CSAT surveys we see that the CSAT is very low compared to what the top management wants.

As a consequence, loyalty will be low – repeat business, referral will be down – can impact market share, branding will go down, churn could increase, premium will not get paid

Problem Statement / Opportunity Statement

• High Level view of the process
• Problem – Duration of data analyzed and numeric description of the problem
• Consequence – Whatever has been mentioned in English in the Business case, convert all of that into numbers.

Std Practice

High level view of the Process

• XYZ is a large insurance firm which has outsourced its back office ops to our firm. And we have 40 seater 9 by 5 support for the same.
• AMHI is a large Healthcare Insurance Provider working pan india providing HC Insurance and it measures Customer Loyality through NPS Survey…
• In order to access customer loyalty and experience we conduct CSAT once every month

Problem/Opportunity–

• Having looked at data for past 6 months, we see that Handling time mean is at 5 min against Service Level Agreement of 3.4.
• In the past 6 months we have seen that there is 12% of attrition in the company, leading to
• In the last few CSAT surveys we see that the CSAT is very low compared to what the top management wants
• NPS at AMHI is at considerably low

Consequence of the problem–

• which is leading to 19000$ fine every month and also impacts customer experience. Leads to backlog creation and OT payout – hence a project a necessary
• High attrition could have impact on quality of work being done. Quality Score is a penalty metric and will have impact on customer experience as well. Hence project is necessary
• As a consequence loyality will be low – repeat business, referral will be down – can impact market share, branding will go down, churn could increase, premium will not get paid
•  
•  

AMHI is a large Healthcare Insurance Provider working pan india providing HC Insurance and it measures Customer Loyality through NPS Survey. The NPS Score in the year of 2019-2020 is considerably low. As a consequence loyality will be low – repeat business, referral will be down – can impact market share, branding will go down, churn could increase, premium will not get paid

XYZ is a large insurance firm which has outsourced its back office ops to our firm. And we have 40 seater 9 by 5 support for the same.

 In the past few months we have seen that there is high amount of attrition in the team, leading to impact on quality of work being done. Quality Score is a penalty metric and will have impact on customer experience as well. Backfill hiring has also impact increase in hiring and training cost. There is increase in backlog resulting in over- time payout.  Hence project is necessary.

Having looked at data for past 6 months, we see that our SD % is with these numbers: Min =, Q1, Median = , Q3=… Max =kn against a target of 90%.

As a consequence, rework cost is around 4.39 Million,

Repeat Business –

Satisfied Customer – Repeat Order value from satisfied Customer = 300 Million

3000 = 30 Cr

1 = 3cr/30000

BGC

4000 *20 * 8 * 25* 70  = 11.2 Cr

Problem Statement/ Opportunity Statement

• • Here you mention the Business case elements – numerically
  • Problem –
    • Duration of Data observed–
      • Having looked at 6 months of data
      • Having looked at past 12-month data
    • What is the problem–
      • we see that the mean of Hiring TAT is 50 days against agreed SLA of 30 Days, i.e. we are not meeting the target
      • We see that in the past one year we have 64% attrition in the process
      • Having looked at 12 months of data, we see that NPS Score is currently at -62% against a target of + 52.

• • Consequences
    • Magnitude –
      • triggering penalty of 19000 $ every months and backlog created in past 6 months is 1324 units which led to pay out of X dollars as Over Time.
      • High attrition has impacted the quality Score where we see a dip from 95% to 84%, loosing 24 skilled people has had X$ of hiring & Training cost and SLAs of Handling time and ageing have breached their SLA and has led to OT payout of 3000$ to clear the backlogs.
      • Quality of work, loosing key resources, hiring cost going up, training cost, SLA impacted, OT Payout
      • Poor NPS has resulted in low repeat business for AMHI. Against an industry avg of 1.94, AMHI is currently at .25.

Having looked at past 12 month data, HT has been at Median (Min, Q1, Median, Q3, Max)

Goal Statement – should be in verb form

• • Project Target
  • To improve the TAT from Mean of 21 to mean of 16in next 4 months
    • Some statistical concepts of Confidence Level etc. will be used to fix this.
  • To reduce the attrition % from 64 (annualized) to 36 annualized in 6 months.
  • To improve CSAT from …. To XXXX in 5 months
  • To reduce HT to 100 sec in the next 4 months
  • To improve TAT if Hiring from X to Y days in 2 months
  •  

How to decide on Goal

• Benchmarking
  • Internal Benchmarking
    • Gold SIPOC
  • Competitor benchmarking
    •  
  • Law of the land
    • IRDA
    • TRAI
    • FSA – 13 Day TAT for payout
  • Best Sub Group performance
    • Naveen J

Scope Statement

• • In Scope–
    • All hiring for XYZ corporation other than ones mentioned in out of Scope
    • All associates will be considered in scope
    • Ops team for Noida office
    • Attrition reduction for people less than 9 months tenure in the firm.
  • Out Scope–
    • Java related hiring
    • All people TL and above are out scope
    • Support team associated with the unit – HR, Admin, MIS are to be considered out of Scope
    • Teams from Pune location shall be considered out of Scope
    • This project will not consider people with greater than 9 months tenure in the firm

Roles n responsibilities

Identify the tasks or activities at hand and allocate these to people.

You must ensure that activities are broken into as discrete form as possible for them to make sense.

• RASIC
• ARMI
• RACI
•  

ARMI ,

1. Approve R – Resource M – Member I – Interested Parties

ARMI is high level showcasing of people involvement in the project and does not provide great clarity on who has to do what in the project.

Resource is a temp allotted to a project.

Hence, unless the project is small or team is very close to each other, one must not use ARMI

GRPI

RACI

Timeline

Milestone

Communication Plan

One of the most important success factors in any project shall always be communication plan.

High Level Process Map (COPIS)

In Six Sigma we use SIPOC (or COPIS) to showcase 5-6 broad steps for the process at hand,

Pls create SIPOC or COPIs for Train ticket or flight ticket booking

CTQ : Critical to Quality

Measurable attribute which will help define pass or fail

Good Employee

• Adhere to org values
  • Innovation = Min
  • TRANSPARENCY –
  • Team Player – Help the team achieve its goal.
• Good behavior
• Meeting to KPIs
•  

Org

6 yrs

Problems/ IO

>50 Failure –

Good Employee

• Delivers KPI
• No or less Unplanned absenteeism

Good Boss

• Support u to enhance your skills
• Good Appraisal- QACoE – 1.25%
• # of people promoted 
• Identify caliber
•  

Good Company

• Salary on time
• Salary should be at par with market std
• Appraisal %
• Facilities
• Perks
• Learning Opportunities
• Growth – Professional – Learning/Salary/Designation
• Stability in the firm
•