Best Practice for Enterprise Six Sigma ProgramsCisco Systems, Inc.Customer and Partner Services (CPS)Continuous Improvement / Six Sigma+ FY16 Summary
June 13, 2017
Dino MarsiliCisco Systems, IncCertified Master Black Belt
Six Sigma and DMAIC Definition
Six Sigma uses DMAIC methodology to solve
business problems:
DEFINE: What is broken
MEASURE: How broken it is
ANALYZE: Why it is broken
IMPROVE: Fix it
CONTROL: Keep it fixed
No. 1
Voice
41%
No. 1
TelePresence
50%
No. 1
Web
Conferencing
43%
No. 1
Wireless LAN
50%
No. 2
x86 Blade
Servers
29%
No. 1
RoutingEdge/Core/
Access
47%
No. 1
Security
31%
No. 1
SwitchingModular/Fixed
65%
No. 1
Storage Area
Networks
47%
Market Leadership Matters
Foundational /
Incubation
Contact Center
Enablement
Primarily Regional Operations delivered
Primarily Customer Services delivered
Global Services Ops / EFDS delivered
CPS delivered
Opportunity &
Campaign
Enterprise
Foundational
Data (Pricing, Product,
Master Record)
FY17 CPS Service Catalog
Leveraged AssetsServices delivered to
CPS consumers to enable
Consumer-Facing Services
Consumer Facing
ServicesServices delivered to
consumers outside of CPS
Deal
Management
Commit
Management
Operations
Management (Partner, Customer,
Segment)
Asset
Management
Partner
Enablement
Goal to
Commission
Contract &
LicenseQuoting
Order
Management
Demo LoanGlobalization &
Translation
CPS Organization ChartManagement
Commitment at
ALL LEVELS!
Automation
Opportunities!
Organizational maturity for continuous improvement requires:
The ability to be self-sustaining in the areas of strategy, portfolioselection, governance and mentoring support
Consistent business value generation
Sufficient infrastructure and commitment to sustain and grow the continuous improvement program
Continuous improvement requires organizational maturity
There are 12 maturity criteria in four assessment categories
BEHAVIOR AND
COMMITTMENT
INFRASTRUCTURE SUSTAINABILITY BUSINESS VALUE
Decide and Support Enable Adopt Business Benefit
Communicate Identify and Select Integrate Return on Investment
Plan Resources
Implement
Assess
Automate
Organizations are assessed annually against all 12 criteria
Organizational maturity requires the improvement activities, tool usage and business
value generated by individuals’ improvement projects
There are three organizational maturity levels
Organizations must be operational before an assessment can be conducted. The minimum score to qualify is 69.2% for each of the 12 criteria.
Once the organization is operational, maturity levels are attained as the following scores are achieved:
80% to < 90% BRONZE
90% to < 95% SILVER
95% or higher GOLD
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Customer & Partner Services – FY17 HighlightsCPS Six Sigma Program
3 Black Belts in progress
1 Black Belt sustaining project in progress
1 Lean Activity completed
12 Green Belts certified
16 Active Green Belt Projects in progress
Dino Marsili earns Master Black Belt Certification from his EVP Olivier Kohler
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
External Benchmarking Analysis% of Green / Black Belt to employees
November 2014
CPS Organization Maturity Assessment Gold
CPS Employee Base = 856
Employee Engagement
As of Q4 FY17 (estimated) Employee # Employee %
MBB (Certified) 2
MBB (Candidate) 0
BB (Certified)* 7
BB (Candidates) 3
* Total BB and MBB 11 1%
GB (Certified) 49
GB (Candidates) 17
Total GB 66 8%
YB (Certified) 535
YB (Candidates) 209
Total YB Engagement 744 87%
Overall TOTAL 821 96%
Belt Utilization Rate 100%
Champion / Sponsor Training Rate 80%
Certification Rate 85%
* Red Badge CPS Black Belt Contractor
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SS+ Program Snapshot: CPS
FY13
Operational Bronze
FY14
Operational Silver
FY15
Operational Gold
FY16
Triple Crown
Awarded –September 2016
Certified GB: 39 GB in training: 16
Certified BB/MBB: 11 BB in training: 2
Current Belt utilization rate: 100%
Business Impact Summary:
Financial and Non-Financial Benefits
• FY16 $3.2M Cost Avoidance
• FY16 $0.9M Cost Savings
• FY16 $60.6M Revenue Enablement - Multiple Years
Non-Financial
Benefits
Case Volume Reduction 18.1K
Productivity Gains re-deployed $4.974M
“Making the Complex Easy ” – 16 Green Belt Certifications
Lean Kaizen
Workshops
Completed
SW Enabled Services
EMEAR Kaizen Challenge
CPS Metrics
Global Service Provider Optimization
Global Customer Service Kaizen Challenge
Current
Status
Sustaining Program Benefits
Gold level results sustained to earn Triple Crown Recognition!
100% Continuous Improvement participation CPS wide 80% Employee Engagement 85% belt certification rate - 100% belt utilization rate Best in Class Cisco program results in sustaining financial
and non-financial benefits. Sustained Financial and Non-Financial Benefits FY13 – FY16 Sustained Org Maturity Certification – 3 Years (FY14-FY16)
Business Impact Summary:
Financial and Non-Financial Benefits
FY15 FY16
21 Completed Projects and Activities 26 Completed Projects and Activities
$3.906 million Cost Avoidance $3.225 million Cost Avoidance
$0 million Cost Savings $0.9 million Cost Savings
$48.0 million Revenue Enablement $60.6 million Revenue Enablement
2 workshops 5 workshops
322 Employee Engagement 761 Employee Engagement
Non-Financial Benefits for Productivity
Gains $0.3M re-deployed
Non-Financial Benefits for Productivity
Gains $4.974M re-deployed
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CPS FY17 CI Role Based Targets
# Six Sigma Belt LevelCS
Norm
Evolution
Rehman
GSO
Steve
RO AMER
Brenda
RO EMEAR
Rita
RO APJC
Nuno
GSP
Swati
SPBC
Dean
SLT
GillesOn Leave
1 Q3FY17 Head Count 133 1 123 225 120 77 77 75 10 15
2 Yellow Belt Trained TARGET 100% 100% 100% 100% 100% 100% 100% 100% 100% 0%
3 YB Trained Current Status 98% 100% 96% 96% 93% 91% 99% 99% 100% 93%
4 Yellow Belt Certified TARGET 100% 100% 100% 100% 100% 100% 100% 100% 100% 0%
5 YB Certified Current Status 73% 100% 70% 84% 51% 55% 94% 59% 100% 73%
6 Green Belt Commitment 20% 0% 20% 1% 2% 10% 10% 5% 0% 0%
7 # Certified Green Belts 6 0 15 2 4 17 5 3 0 1
8 Green Belt Current Status 5% 0% 12% 1% 3% 22% 6% 4% 0% 7%
9 Black Belt+ Commitment 2% 100% 2% 0% 0% 1% 1% 4% 0% 0%
10 # Certified Black Belts+ 2 1 2 0 0 0 0 4 0 0
11 Black Belt+ Current Status 2% 100% 2% 0% 0% 0% 0% 5% 0% 0%
Q4FY17 Blue Badge HC
Total Head Count 856
% YB trained 96%
% YB certified * 71%
* includes 85 GBs, BBs, MBBs
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FY17 Goals – CPS
Execute: Project Selection / Completion
Capabilities targets for GB and BB certifications 100% Yellow Belt Complete (CPS Foundational training) 70 – 100% Yellow Belt Certified (Targets to be verified) Lean / Kaizen training and application Streamline Training Delivery Include New Hires
Continuous Improvement
Financial ($2M) and non-financial benefits to 5% OPEX equivalent
Continue program and portfolio processes from FY16
100% belt utilization
Operational Maturity Status
Annuities / Global Customer Success (GCS) – CPS Alignment / Renewals
Deal Management GTS Localization Optimization Simplification (reduced hand-offs,
process efficiency, etc.) CPS Evolution
CPS Key Strategic Initiatives
FY17 Launch Black Belt projects based on prioritized business goals
Workshop / Kaizen facilitators Support training and mentoring
bench strength to help with Yellow Belts
Skills Development and Bench Strength
1) Deal Management Office (DMO) / Regional Ops (RO)2) Global Services Organization (GSO)3) Customer Service (CS)4) Strategy, Planning, and Incubation (SPI)
Link closely with Digitization Initiatives
Business Goals
Program Goals
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Integrating Agile and Data Science into Six Sigma
Identify problems, goals, scope of
changeSTART
Evaluate problems and scope of
changes
Map approachApproach
Type?DMAIC
5 Tollgates
Agile Lean +Kaizen3 Tollgates
Iterative MAI
Agile DMADV3 Tollgates
Iterative MAD
Entire root cause analysis required
Incremental root cause analysis
New process design
Certification Project?
Complete Requirements and confirm benefits
Yes
No
Select applicable tools and confirm
benefits
Update Portfolio and apply for
Certificate
Update Portfolio End
CI Methodology Selection Process
CRISP-DM
Big Data Analytics
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CPS
Champions
League – Dino
Marsili and Pat
McMahon
needed a cart
for all the
awards!
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Thank You!
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Back-Up
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BLACK BELT
Lead projects with cross-functional
scope
Advise leadership on key metrics and
strategy
GREEN BELT
Coach and mentor project
teams
YELLOW BELT
Lead improvement efforts within
manager’s scopeBASIC SKILLS
Lean and Kaizen
Apply a tool or technique to a current business problem
SIX SIGMA AND DMAIC METHODOLOGY
Yellow Belt training provides the first level of skills within the Six Sigma business problem solving approach
Using Basic Tools and Techniques
Leading Improvement Projects
Managing Cross-functional Initiatives
Easy: Readily apparent solution agreed by all. Ensure Solution is truly known before proceeding.
Quick: Solution implemented within few weeks.
Low Cost: Minimal capital investments for full implementation.
Team’s full authority: Within the team’s control, with no additional buy-ins or approvals needed.
Low Risk: Implemented Solution should be easily reversible and has to be low risk for Stakeholders. Impact assessment and risk mitigation plan to be in place. Control measures to be adopted for sustained improvements.
Recommended <10% of bandwidth
Complete Yellow Belt Training:
Contains 5 Basic Training Modules : Understanding DMAIC Methodology, Basic Facilitation Skills, Measuring Performance, Process Mapping, and Primary Root Cause Analysis (RCA).
Application of ANY ONE TOOL from Yellow Belt Training
Solution is usually not pre-determined, unlike Quick Wins. NOTE: Solution does NOT need to be implemented.
Yellow Belt training and certification application processes can be completed within 1 Month (8 – 24 hours work time).
Needs confirmation from local BB or MBB and/or Manager (preferred) to complete the Certification process.
Recommended 10-15% of bandwidth
Needs 6 remaining DMAIC Training Modules (1 week)
Involves submission of Project Charter signed off by the BU Sponsor and/or Manager.
DMAIC Exam Green Belt (Passing Score Achieved)
Completed DMAIC project with business benefit Sign-Off. Certification review by Business Unit
Solution is determined during “Analyze” Phase of DMAIC Process.
Green Belt training & certification requires about 6 Months.
Phase wise guidance & Sign-off by Mentor
Recommended 25% of bandwidth
Quick Wins Yellow Belt Green BeltKey differences between Quick Wins, Yellow Belt & Green Belt
Green Belt certification completed. Business nomination.
Intermediate DMAIC Training + Soft Skills (3 weeks)
DMAIC Exam Black Belt (Passing Score)
2 Completed DMAIC projects with business benefit sign off. Initial Green Belt project from Cisco can count as 1 project (w/Master Black Belt review).
Black Belts actively support business unit for mentoring and learning & development (Not required for certification).
Recommended 40% of bandwidth
Advanced Technical and Soft Skills training (3-4 weeks)
Business nomination. Review Board (VP, Sponsor, 2 MBB Reviewers)
2 Completed projects with business benefits sign off
Teach 1 Green Belt wave (~40 hours as a trainer) (Successful evaluation)
Mentor 5 completed GB or BB projects to certification
Black Belt Master Black Belt
Certification Standard for Engaged Orgs
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“Roll the Credits” – Non Financial Benefits YTD FY16
Cisco Lisbon Office –
Key to workshop
successes
Activity Goal Benefits
Software Enabled
Services (SWES) Lean
Workshop
Implement Rapid Response team for Software and Hybrid
Cloud Sales – Deal Preparation and Quoting, Order and
Booking, Advanced Services, E2E Guidance, Contract
Management and Partner Readiness
56% decrease in transaction cycle time (PO to
Invoice date)
EMEAR Kaizen
Challenge
Regional Operations FY16 goal - Making the Complex
Easy. Idea generation and quick wins implementation.
$78K in productivity gains
Global Service Provider
(GSP) Optimization Lean
Workshop
Optimize Global Service Provider support processes for
Ease of Doing Business. Sales Commit, Quote Failure,
Order pre-booking, Install site data reconciliation, E2E
Case Management, Credit & Re-bill.
154 hours productivity gains. Build R12
requirements for bridge orders
Global Customer
Services Kaizen
Challenge
Develop and execute budget reduction initiatives – Idea
generation (217 ideas submitted) and quick wins for FY16
budget
37 improvements implemented including 3
strategic vendors (Convergys, Infosys, and
Concentrix). $311K Cost savings and $200K
productivity gains.
CPS Services Metric
Lean Workshop
Metrics planning for Service Reviews 17 Offerings prepared
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“Roll the Credits” – Black Belt Benefits YTD FY16Activity Goal Benefits
Black Belt Certification
– Connie Im
Setup the most revenue generating GTAM accounts
80% data accuracy
Differentiate between Small Business (SB) and GTAM accounts; Refine
coverage models and territory proliferation
New data governance process for business will be created
Complete the project by Jan 23rd, 2016 (end of Q2FY16)
$55.2M Revenue Uplift over 3 years
Black Belt Certification
– Sam Martinez-Arango
Improve Cycle Time Attainment on IT-dependent CPS cases for cases
closed in 48 hrs from 20% to 65%.
IT-dependent CPS Case reduction by 25%, with corresponding
reduction in IT cases opened by CPS.
Improve collaboration between CPS and IT cross-functional
Tool access and training for common IT tasks that can be done by CPS.
Cost Saving : $128K Savings Quarterly / Cost
avoidance will be achieved via the Remedy IT case
(INC) reduction as a result of this project.
Black Belt Certification
– Munirah Hall
To have 100% visibility of revenue generating internal orders including
XaaS and other New Business Models orders globally. Doing this will
improve transparency for these orders by 100% across our finance
systems and asset tracking systems.
AS PMO teams are seeing an increase in time
savings as well as a shared savings of $380K a year.
Black Belt Sustaining –
Pat McMahon
Reduction of Order booking errors, invoice verification, and corrective
action costs. Reduced incorrect shipments and RMA costs, invoice
disputes, and resulting credits and rebills. Improved overall order
processing cycle time. Vodafone ONLY
$65,271 estimated first year productivity improvement
savings
Master Black Belt
Certification
– Suresh Vellanki
Reduce “NPI Set-up Time To Orderability” variation for CAT4K / UCS /
CTG by 25%, 20% & 40% respectively and reduce asynchronous
activity between Product & Services NPI Process
Improved Cycle Time - 32%, 28%, 42%
improvement ifor CAT4k, UCS, CTG
Productivity Gains – Based on cycle time savings
from the business, $1.1 MM soft savings with gains in
productivity
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“Roll the Credits” – Non Financial Benefits YTD FY16Green Belts
FY16 Customer
Services Kaizen
Event Awards
Ceremony
Activity Organization Results
Making the Complex Easy Regional
Operations
• 42% order resolution cycle time improvement for APJC
• 50% CCW quote config improvements
• Increased tool adoption for CHR to 86%
• Case reduction 10K for APJC Partner quote validation cases
• Comstor ETA accuracy improvement and productivity gains $20K
• First contact resolution improvement of 4% for SCM
• 90% cycle time improvement for entitlement on full contract renewals
• Logistics Process improvements resulting in Customer savings
Partnership with Marketing and Sales
Connect
EFDS Improved Sales Connect and Marketing for APJC Security processes.
74% productivity improvement $65K
Partnership with IT – Credit and Re-bill GSO / SPI Eliminated 3000 Post Invoice Dispute cases
Deal Management - Eliminate
Unnecessary Cases/Tasks as related to
DSAs for Crediting & Tracking
AT&T and Verizon Accounts ONLY
GSP Estimated 12% reduction in Order Booking Cycle Time