Featuring: Joe Hulseman, Lean Six Sigma Master Black Belt, Avis Budget Group You’ve done a great job improving a process in one area of the business. In an ideal world, that successful process change would be adopted at all site locations. But what usually happens next? All too often, the answer to that question is, unfortunately, “not much.” That’s not the case, though, at Avis Budget Group (ABG), a leading global provider of vehicle rental services. ABG utilizes a dedicated team of 90 PEX Leaders around the globe to improve and standardize the customer car rental experience. This model uses projects that are replicated at multiple locations and is designed to enhance the customer experience. But how do they achieve that when they have over 30,000 employees and more than 10,000 rental locations? And why is project replication so important to the customer experience?

1. Effective Strategies for
Replicating Projects Globally
1

2. Performance Excellence
Joe Hulseman
Avis Budget Group
Joseph.Hulseman@AvisBudget.com

3. Performance Excellence
Topics
Quick Overview of our deployment
Going from Original project to replication
Measuring Project implementation &
success
Managing Project Pipeline

4. Performance Excellence
Our Brands

5. Performance Excellence
Why “Lean / Six Sigma”?
Challenging Operating Environment due to:
Vehicle costs dramatically increased in 2 year
time period
Difficulty in recapturing increasing expenses
through pricing
Cost cutting measures only took us so far.

6. Performance Excellence
Performance Excellence
New way to evaluate & improve processes,
removing waste and defects
Ability to take new “methods” and
implement throughout company

7. Performance Excellence
Deployment Status
Started in May 2007
Currently have 90 PEx Leaders worldwide
3 Master Black Belts
9 Black Belts
15 Green Belts
14 Green Belts in training
PEx commitment of 2 – 3 years
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8. Project Growth Since Inception

9. Performance Excellence
Projects
Running a project in one location is good
Replicating those benefits elsewhere is GREAT!!!
 Standardized process steps
 Faster project execution time
 Addresses unique issues at each location
Formal method and tools to replication world-wide

10. Performance Excellence
Why the path of Replication?
Shorter cycle time to complete the project
Our airport locations should have SOPs
Almost 2,500 local market stores
Majority of savings is from replications

11. Performance Excellence
Chosen for Replication
Obvious replication candidate
Discussed the opportunity with
management at several other locations
Final review – Senior Leadership
Approval
Next step – Replication Package
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12. Performance Excellence
Replication Package
12

13. Performance Excellence
Replication Package
13

14. Performance Excellence
What’s included in the Replication
package?
Project Background
Areas impacted by project
Instructions to implement
Objective
Helpful hints
Financial Metrics
Lessons Learned
Original Team Members
Management tools
Data
Reporting Mechanisms
Key Measurements
14
New Process Steps
List of who is necessary to
be on the project team

15. Performance Excellence
Testing the Package
Test package in at least two locations
- First location with original team
- Second location with different team
If successful, move into Replication status
Hold replication call
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16. Performance Excellence
Who Replicates?
PEx Replication Leaders
JDI – Location Management
Specialists
16

17. Performance Excellence
Replication “SCORE” checklist
17

18. Performance Excellence
Replication
“SCORE”
checklist
Pre-S
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19. Performance Excellence
Sustainability
Weekly calls helps to identify problems &
“Golden Nuggets”
One page monthly report review
Monthly Area by Area Scorecard review
Finance updates Actual results monthly
Monthly Business Metrics Review
19

20. Performance Excellence
How do we track & measure?
Power Projects
“One Pagers”
Score Card
Minitab Statistical Testing
20

21. Performance Excellence
21

22. Check-In Standardization
ORD Avis
Performance Excellence
Run Date
July 2008
November 1st, 2007
Champion
100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
650
550
450
350
250
150
AUG
SEP
Rick Thiele
Keys Replaced / Lost & Found Items
750
50
Juanita Chaidez
PEx Leader
CSR Behavior Observations
Robert Jarrett
Process Owner
OCT
NOV
DEC
150
15
10
110
90
70
5
50
Keys Goal:
Less than 5
0
JAN
FEB
MAR
APR
MAY
JUN
JUL
Total Observations
565
349
395
694
267
287
295
Keys Replaced
% Correct
94%
95%
98%
93%
93%
93%
97%
Lost & Found Items
% Check Ins Charged Fuel
130
L&F Goal:
Less than 120
30
JAN
FEB
MAR
APR
MAY
JUN
JUL
8
6
3
4
4
4
148
135
125
134
103
99
AUG
SEP
OCT
NOV
DEC
10
3
82
# of Damage Vehicles w/o Reports
55%
60
50%
50
45%
40
40%
Goal:
Over 40%
35%
30
30%
20
25%
10
20%
Check Ins Charged Fuel
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Goal:
Less than 10
JAN
FEB
MAR
APR
MAY
JUN
JUL
49%
50%
45%
49%
45%
42%
44%
AUG
SEP
OCT
NOV
DEC
0
# of Damage Vehicles w/o Reports
JAN
FEB
MAR
APR
MAY
JUN
JUL
57
60
65
30
15
9
10
AUG
SEP
OCT
NOV
DEC

23. Performance Excellence
Score Card
One Place to view results
Tracking all current projects
Tracks Performance metrics separate
from financial metrics
Easy to read “Red”, “Yellow” or
“Green” status for projects.
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24. Example “ScoreCard”

27. Performance Excellence
Business Metrics
Statistical Review using Minitab
Comparing:
 Run v Non Run Locations
 Pre Run v Post Run
Ensures project success and
sustainability beyond financials
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28. Performance Excellence
Business Metrics – Run v nonRun
Optimize Flow - nonRev's as % of Total
Run v nonRun
Statistics
Mean Test
Is Non Rev % Ru less than Non Rev % no?
0
0.05 0.1
> 0.5
Yes
No
P = 0.000
The mean of Non Rev % Ru is significantly less than the
mean of Non Rev % no (p < 0.05).
Non Rev % Ru
Non Rev % no
Sample size
Mean
90% CI
Standard deviation
14
0.20571
(0.1683, 0.2432)
0.079137
14
0.31621
(0.29968, 0.33275)
0.034940
Difference between means*
90% CI
-0.1105
(-0.15072, -0.070280)
* The difference is defined as Non Rev % Ru - Non Rev % no.
90% CI for the Difference
Does the interval include zero?
Comments
-0.16
-0.12
-0.08
-0.04
0.00
Distribution of Data
Compare the data and means of the samples.
Non Rev % Ru
-- Test: You can conclude that the mean of Non Rev % Ru
is less than Non Rev % no at the 0.05 level of significance.
-- CI: Quantifies the uncertainty associated with estimating
the difference from sample data. You can be 90% confident
that the true difference is between -0.15072 and -0.070280.
-- Distribution of Data: Compare the location and means of
samples. Look for unusual data before interpreting the
results of the test.
Non Rev % no
0.1
0.2
0.3
0.4
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29. Performance Excellence
Business Metrics – PreRun v Post Run
Select & Go VOTC 'Rental Car Received'
Current Period v Prior Period
Statistics
Mean Test
Is Car Rec Ru_1 greater than Car Rec Ru_2?
0
0.05 0.1
> 0.5
Yes
No
P = 0.011
The mean of Car Rec Ru_1 is significantly greater than the
mean of Car Rec Ru_2 (p < 0.05).
Car Rec Ru_1
Car Rec Ru_2
Sample size
Mean
90% CI
Standard deviation
16
5.5411
(5.514, 5.569)
0.062739
16
5.4698
(5.4263, 5.5134)
0.099340
Difference between means*
90% CI
0.071323
(0.021149, 0.12150)
* The difference is defined as Car Rec Ru_1 - Car Rec Ru_2.
90% CI for the Difference
Does the interval include zero?
Comments
0.00
0.03
0.06
0.09
0.12
Distribution of Data
Compare the data and means of the samples.
Car Rec Ru_1
-- Test: You can conclude that the mean of Car Rec Ru_1 is
greater than Car Rec Ru_2 at the 0.05 level of significance.
-- CI: Quantifies the uncertainty associated with estimating
the difference from sample data. You can be 90% confident
that the true difference is between 0.021149 and 0.12150.
-- Distribution of Data: Compare the location and means of
samples. Look for unusual data before interpreting the
results of the test.
Car Rec Ru_2
5.3
5.4
5.5
5.6
5.7
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30. Performance Excellence
The Path to Replication
Managing the
Pipeline of
Projects

31. Performance Excellence
Manage the replication schedule

32. Performance Excellence
Manage the New Project Pipeline

33. Performance Excellence
Recapping the path to replication
Idea
Assignment of “Original Project”
Shepherd towards replication
Test in other locations
Develop Info Map Package
Replication Instruction call
Begin Replicating

34. Performance Excellence
Key Components
Communication
Accountability
Tracking System
Measurement
Reporting
Financial
Manage Project Pipeline
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35. Performance Excellence
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Thank You
Joe Hulseman
Avis Budget Group
Joseph.Hulseman@AvisBudget.com

36. PDU Credits
This webcast session entitles you to obtain 1 PDU towards your PMP as
per the PMI Organization.
This session appears on www.pmi.org web site page. Continuing
Certification Requirements System: https://ccrs.pmi.org/search
Course information:
• Rep #: 2750
• Provider Name: Upland Software
• Course ID: 11132013
• Program Name: Effective Strategies for Replicating Projects Globally