Introduction to Process Improvement & Lean Six Sigma Robert Woods Elke Sanborn Elke T-Mobile Confidential

T-Mobile Confidential Introductions T-Mobile Confidential

T-Mobile Confidential To get us started OBJECTIVE Participants gain a baseline knowledge of Process Improvement that can start them down the path of applying it their working environment, while hearing real life examples of how T-Mobile’s Payroll team has been using this methodology to get results. AGENDA What is a process What is Lean Six Sigma Why Process Improvement How its done How we do Process Improvement at T-Mobile Elke T-Mobile Confidential

What is a process? proc•ess (pros′es) n. – A repetitive and systematic series of steps or activities where inputs are modified to achieve a value-added output. Understand how and why work gets done. Blame the process, not the people. Structured approach that leads to a measured outcome. Why should we focus on them? Repetitive – processes are not projects Examples of processes? T-Mobile Confidential

Perception and reality Process Perception: Most see process flow as : Do Something Do Something Do Something Reality: Delay Delay Defect ? Do Do Do Expense Report Example WIP WIP Rework T-Mobile Confidential

T-Mobile Process Improvement Goals Drive Continuous Improvement and Process Management Mindset Build end to end process knowledge and expertise across team Standardize, improve and document key processes, housed within a centralized documentation repository Develop operational metrics to run business and drive performance And we started our process improvement journey at T-Mobile very much like this… by taking the entire team through an introduction to process improvement training. We were able to help people think about their work differently. T-Mobile Confidential

What is Lean Six Sigma? Simply a set of methods and tools to help organizations become than their competition. FASTER – BETTER – CHEAPER T-Mobile Confidential

T-Mobile Confidential Why Lean and Six Sigma? Lean Six Sigma: The combination of two approaches used to continuously improve processes Lean Relentless elimination of all waste Creation of process flow & demand pull Resource optimization Simple and visual Cuts the time it takes to meet our customer’s demands Strength: Efficiency Six Sigma Focus on voice of the customer Data and fact based decision making Analytical and statistical rigor Helps find and fix mistakes, errors, and defects involved in every aspect of delivering to customers Strength: Effectiveness T-Mobile Confidential

T-Mobile Confidential Why Lean Six Sigma? DELAYS Workarounds and rework loops Unnecessary delays between steps Enemies of WORLD CLASS, CUSTOMER CENTRIC COMPANIES DEFECTS Every process produces defects Defects cause waste and rework DEVIATION Variation in processes and output Results in dissatisfied customers T-Mobile Confidential

T-Mobile Confidential Toyota’s 8 Wastes waste (v.) Anything other than the minimum amount of time, material, people, space, energy, etc… needed to add value to the product or service you are providing. Delay – unnecessary delays between process steps Overproduction – making/doing stuff that is not ordered Rework – caused by mistakes, errors, defects and deviation Non-value added processing – e.g., inspection and review Transportation – unnecessary movement of material Inventory – unnecessary raw materials, WIP or finished goods Motion – unnecessary movement of employees Employee Creativity – unused wisdom of the workers T-Mobile Confidential

T-Mobile Confidential The Signs Heroic Effort Customer Complaints Employee Complaints Blaming People, not process Knee Jerk fixes that fail Failures on the floor Too many inspectors Absenteeism and turnover When do you need Process Improvement? T-Mobile Confidential

Making Process Improvement a Reality Formal Process Improvement: In-depth Lean Training Actual Process Improvement Projects Transmit Manual Checks Putting New Tools Into Practice Charters Process Maps Measurement Root Cause Analysis Informal Process Improvement Visibility Reality – this took a lot of time Results are worth it – team has new tools New expectations for team Process Improvement is catching on T-Mobile Confidential

T-Mobile Confidential How its done Structured Approach to Problem Solving: Define the Customer, what matters to them, and the Core Process involved. D Measure the performance of the Core Process involved. M Analyze the data collected and process map to determine root causes of defects and waste. A Improve the target process by designing creative solutions to fix and prevent problems. I Control the improvements to keep the process on the new course. C T-Mobile Confidential

T-Mobile Confidential A Closer Look: Define Define Form project team and define roles Create Charter Map Process Gather & analyze customer/stakeholder data T-Mobile Confidential

T-Mobile Confidential A Closer Look: Measure Measure Analyze process for problem areas Determine process and problem measures Create data collection plan Collect and organize baseline data Without data, you’re just another person with an opinion. W. Edwards Demming Zombie Problems T-Mobile Confidential

T-Mobile Confidential A Closer Look Analysis Perform root cause analysis Determine most significant cause Solution selection T-Mobile Confidential

T-Mobile Confidential A Closer Look Improve Brainstorm solutions Solution selection Implementation plan Without data, you’re just another person with an opinion. W. Edwards Demming Zombie Problems T-Mobile Confidential

Real Life Process Improvements Examples Payroll Preview Process Tax credits Expense checks processed with payroll Stock, ESPP and NQDC Paycard program Compliance pay review Paperless pay Scheduled Off-cycles Paperless Everything: Child Support Garnishment Process Manual Check Process T-Mobile Confidential

T-Mobile Confidential Audit Improvements Maintained Payroll Accuracy Jan Feb Mar April May June July T-Mobile Confidential

Results – Reduction in Late Files T-Mobile Confidential

Results – Shortening Transmit Time T-Mobile Confidential

T-Mobile Confidential Implementation @ T-Mobile – How to Start Find a Mentor Assign a Champion Engage Your Team T-Mobile Confidential

T-Mobile Confidential Initial Steps Pilot Projects Decided on a specific project to work on and team Bi-Weekly Instructions from Mentor Worked on actual project between meetings Implemented Reported back to leadership Pilot Project Lessons Learned Choose the right project! Ours were too big Need to encompass all areas of Lean Six Sigma Start building necessary metrics early Set aside dedicated time for your team to be involved T-Mobile Confidential

T-Mobile Confidential Next Steps to Ensure Continuous Improvement Establish Metrics to monitor what has been put in place… and actually look at them… Create backlog of processes that need to go through the Lean 6 Sigma process Build a ‘core team’ that will help lead Process Improvement projects and educate others Engage team members that own the process Encourage process improvement activities of all sizes and don't forget the quick wins. Celebrate successes and create excitement around process improvement. T-Mobile Confidential

T-Mobile Confidential Questions T-Mobile Confidential