Deploying lean six sigma at different_levels

© Copyright 2010 Hewlett-Packard Development Company, L.P.1
Vikas Gera
World-wide Quality Head
HP Global Business Services
Deploying Lean Six Sigma at
different levels
11th Annual Lean Six Sigma & Business Excellence

5/25/2010 2
HP at a Glance
HP at a glance
• Fortune 9 U.S.
• Fortune 32 Global
• 304,000 employees
• $114.6 billion USD in revenue for FY09
• Operates in approximately 170 countries worldwide
Touching lives every day
• HP manages over 200 data centers, 380,000 servers, 5.4 million desktops, and 17
million IP addresses.
• We handle over 68 million credit card accounts and process 3.5 billion transactions
annually.
• We service about 1 billion Medicaid claims and administer $100 billion USD in benefits a
year.
• We book 500 million travel reservations annually.
• Our software examines and stops 1.7 billion spam messages per month.

Not having a common
understanding of quality puts more
pain into an organization than
anything else I have ever known
Philip Crosby Let's Talk Quality, 1989

AGENDA
Working with Internal Customers
Working at Enterprise Level
The Maturity Curve of an
Organization
Summary

Quality S –Curve for a Cost Centre
Diminishing Returns in a Cost Center Environment
TIME
Returns
Maximise through
•Technology
•Methodology
•Scope

WORKING WITHIN A COST CENTER
Where Quality is deployed only in a manufacturing plant or in cost centers,
the gains from the Quality program are limited
The “sponsor” for such program is typically the function head
Business Excellence program is more “enabling” rather than directly
impacting organization’s revenues or top line growth
Focus is mostly on cost reduction programs even though the program can
inherently contribute to top line growth
In a cost center environment, ROI from the Business Excellence program
keeps on reducing
Goal for Business Excellence is to be cost effective and to enhance internal
customer satisfaction

Quality S –Curve for a Enterprise
TIME
Returns
Link to Revenues & Enterprise needs
Focus on Real Customer

WORKING AT ENTERPRISE LEVEL
Where Quality is deployed at the Enterprise level, the Quality program is an
effective tool for organization’s success
CEO or someone in Leadership Team is the sponsor in this case
It is relatively easier to link Business Excellence program to end-customer
needs
Since we link with customers, we can directly link to revenues/top line
growth/Balance Sheet/Cash Flow and Business results
Goal for Business Excellence is to enable the organization to become
market leader

THE MATURITY CURVE OF AN
ORGANIZATION
TIME
Returns
DecliningMaturityGrowthEmergent

THE EMERGENT PHASE
During this stage, new services are evolving to meet brand new,
emerging customer needs.
Just about every engagement requires a substantial amount of
innovative and original thought, and precedents are few.
It is difficult to price services accurately
The goal is to understand customer needs accurately and to transform
those into an innovative service
Quality, through its tool and approaches such as DFSS, DFX, QFD
and Innovation and with enterprise-wide deployment experience
and understanding of internal stakeholder needs, is an integral
partner in the cross-functional team

THE GROWTH PHASE
This stage emerges once the new service becomes entrenched and
more firms start offering the service.
Revenues increase and the service becomes profitable.
As profits rise, so more clients enter the market too, and the overall
demand for services in the area increases too.
The role of Quality here should not be limited to cost reduction,
effective deployment of Quality at the enterprise level will lead it to
enhance revenues while reducing costs

THE MATURITY PHASE
Maturity is reached once a critical mass of customers and service
providers are active in a particular area.
Revenues plateau as sales growth slows and then levels off.
Competition of price becomes more pronounced as more and more
firms reach the point where they can offer a good quality service.
Deployment of Quality at enterprise level will lead to increased
competiveness of the organization.
The organization will proactively reduce its cost, be closer to the
customer, understand and translate customer needs to process
features and re-engineer its processes to gain competitive edge

THE DECLINING PHASE
Oversupply in the market leads to a reduction in the number of players
and competition on price becomes extreme.
The service becomes highly commoditized. The service may continue in
the market, and firms that specialize in low margin, high volume work
still compete. In some cases, the service may disappear gradually.
The role of Quality when deployed at an enterprise level becomes
important to reduce costs, re-engineer processes and to forecast
and plan for the future.

14 25 May 2010
•Engineering
•New Product Development
•Manufacturing
•Purchasing
•Supplier Management
•Sourcing
•Receiving
•Account Payable
•Logistics
•Marketing
•Sales
•Distribution
Where can we deploy Lean Sigma?
•After Sales Support
•Administration
•Accounting & Finance
•HR
Lean Six Sigma can be used in
all business functions, to
identify and solve business
problems and to become more
competitive

15 25 May 2010
• Leadership
• Clarity
• Defination
• Scope
• Priorties
• Common Understanding
• Communication
• SMART Goals
• Alignment
• Cost Center vs Enterprise
• Maturity S Curve
• Top-Down Cascading
Enablers to Successful Business Excellence
• Organisation(Too many cooks
• Relevant Skills
• Budget/ROI
• Management of Change
• Sponsership
• Big Picture
• Strategy
• VISION
• MISSION
• Framework
• Rewards/ Recognition

Summary
Sponsers/Quality Deployment Leader for an organisation should make
sure :
• Quality is deployed at enterprise level to maximise gains and not
limited to a cost center
• Different Phases of an Organisational Maturity Curve are considered
before setting expectations from Quality Function
• Quality Function should be agile to different phases and expectations
of an Organisation

–The key I believe is not to share tools
but to share understanding.
–The key to successful change does not
lie with the tools, but with the people
who will use them, and the key to
effective use is understanding

Deploying lean six sigma at different_levels

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