0. BRM to Kaizen Process Selection
October 13th, 2006
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Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.
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1. Starting at the right level
Peeling the Onion:
Business Relationship Maps “BRM” tools that systematically help companies “analyze the business at 30,000ft level, 15,000ft level, 5,000ft level and 2000ft level”
Targeted to key strategic issues
Customizable to Business Segments specific situation and culture
Experience with financial services clients, e.g., Merrill Lynch, AXA, Anthem- Wellpoint, Chubb
Loan Origination processes
Call center support processes
Financial product management
IT infrastructure evaluation
Claim handling processes
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.
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2. Data request for start of project
Organization chart for leadership and key departments
Recent 3 Yrs P&L/ Balance Sheet (If you can share with us)
Raw data to develop Cost Pareto
Headcount distribution information
Raw high level monthly data to trend revenue by key product
List of current key projects
Customer satisfaction metrics
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

3. Key Steps for Business Relationship Map
Informal Chat with key support contact
Meeting with Key leadership champions/ kick off
Facility Tour
One on One meetings with key managers
Meeting with key mid level managers
Meeting with key front level supervisors and some associates
Get data to fill gaps in plan
Meeting with training leader
Prepare go forward plan
Go forward plan discussion with champions
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

4. Supplies & Logistics
Conference room (or office) for John and Raj (Will share office)
Multiple colored flip chart pens
3M Post it flip charts and flip chart stand
Tape
Post it notes, few colors and sizes
Roll of paper that is about 3 to 4 feet high that we can paste on the conference room wall end to end and start developing maps
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

5. Illustrative Deployment A transactional Process Company
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

6. Background The Company Company strategy;
A $5B revenue finance company
100 % transactional processes
Very successful company in a growth mode
Company strategy;
Double the business without adding any additional headcount by 2010
Translates to reduction in Opex of $60M annualized
Launched program on a “pilot basis”
Project continued with customization to full deployment
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

7. BRM Transactional Example (A $4B Revenue Company/ 30,000 ft level)
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

8. BRM Level II (25,000 ft level) VSM 1 VSM 3 VSM2 VSM4 B A
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Six Sigma Academy International, LLC
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9. Enterprise End to End VSM (15,000 ft level)
$20M Cost Base Value Stream
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

10. Other - End to End Enterprise VSM Examples (15,000 ft level)
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

11. Analysis Methods Used Nodes Chart (ECIR) VA/ NVA/ BVA Analysis (ECIR)
QTC (Quality, Time, Cost) Charts
Batching Analysis
DOTWIMPI (Mudas)
Task Level Analysis
Sigma-Mu analysis (Variation analysis)
Alpha-Beta analysis (repeatability)
Green Field Brainstroming
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

12. Sample Analysis Tool - Nodes
Host
12,435
Adjust claim
SCR
8,073
SF from Host
Pure adjudication
750,886
304,689
771,394
Send DF to Host
393,089
Pac adjudication
Review claim
4,389
44,725
Put provider on system
401,472
401,198
48,330 74
Member ID#
Apply benefits & create DF
High dollar
200
389
October 2005
Medical review
Other
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

13. …Prioritization and SAVINGS
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

14. Sample - Key Blitz Outcomes (Actions)
50% reduction in contract handling time (Loan origination process steps)
By eliminating NVA tasks
By using best practices
Reduction in helds (quality defects)
By eliminating NVA forms that drive helds
By using Standard operating Procedures
By utilizing Held Tracking Database to identify and educate dealers
Reduction in concurrence volume and tasks
By removing systematic concurrence through off-line monitoring
By increasing approval authority levels to match TFS’ purchasing practices
Reduction in NVA credit investigation (550 FICO)
Elimination of checking NVA wholesale pay off information
Best practices sharing (Credit and Contract Analysts)
Reduction in re-decision by changing thresholds when booking
Right-Fax time efficiencies
Ship UPS ground instead of 2-day delivery
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Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

15. Sample2: Key Resulting Actions…
30% screen reduction on high cost pareto steps
DDE steps elimination
Call center scheduling
Misrouted documents error elimination
Increase pure & pac adjudication rates (currently 41% & 6% respectively)
Reduce hands-on time for claim review and for applying benefits
Reduce adjustment volumes / inquiry tracking inventory
Reduce high dollar sign-off and medical review queue times
Results is a series of Discreet Improvement Projects
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

16. Black Belt Projects and Lean Kaizens (5,000 ft level)
Post blitz opportunities
Just do it actions
Lower level focused Kaizen events
BB/ GB variation reduction projects using DMAIC
Maintaining gains
Process controls need to be established
5S to enhance productivity
Standard work to reduce variation
Follow-up
Never ending cycle of continuous process improvement
Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.

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New York, NY 10111
Tel. (212)
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Copyright © 2006
Six Sigma Academy International, LLC
All rights reserved; for use only in compliance with SSA license.