Using Xerox Lean Six Sigma to Create Real Value for Customers

Smarter…Quicker…BetterUsing Xerox Lean Six Sigma to create real value for customers

Donna DunlapVice President

North American Solutions GroupSales & Marketing

Lean Six Sigma Deployment

2

Discussion topics

Today’s business challenges

Xerox’s experience with Lean Six Sigma

Translating the Xerox experience into real value for customers

3

Business challenges we all share

Retain and gain customers to grow revenue

Manage costs by reducing waste

Increase overall business productivity

Improve employee development, motivation and engagement

4

Xerox’s Profile Today $15.7B (US) in Revenue 58,000 employees

worldwide Broadest portfolio of

technology and services in document management and production

Our Mission:

Help organizations achieve their business goals through

Smarter Document Management SM

5

Xerox’s challenges

Maximize customer value Create growth opportunities Reduce costs Increase productivity

The critical challenge:

How to accomplish all four

in a sustainable way

6

1949-1960 1960- 1990 1990-2000 2002 and beyond

Birth

Birth

Growth

Maturity

Birth

Growth

Maturity

LTQ Lean New Quality Lean Six SigmaLTQ Lean New Quality Lean Six Sigma

Transforming Our Company

Birth

Growth

Xerography

Knowledge- intensiveSolutions & Services

Laser Printing, Faxing,EthernetColor Copying/ Printing, Production Publishing,Digital technologies

7

XeroxOrganizationStructure

Business Operations

Research & Technology

Customer Operations

Operations Support

Fuji Xerox

Xerox Global Services

Xerox Innovations

Group

Business Group

Operations

Xerox North America

Developing Markets

Operations

Chief Financial Officer

Chief Staff & Ethics Officer

External & Legal Affairs, Gen. Counsel

Chairman and CEO

Production Systems Group

Xerox Office Group

Paper, Supplies & Supply Chain

Operations

Xerox Europe

Xerox Lean Six Sigma

Fuji Xerox

Global Accounts and

Marketing Ops.

Corporate Strategy & Alliances

8

Xerox’s quality leadership journey

1994

The Xerox Management Model

The Xerox Mgmt. Model is

introduced as partof Leadership

Through Quality.

1996

The Xerox Management Model

The “evergreen” model is

continuously assessed & improved.

1997

Xerox 2005

Senior Mgmt documents the Xerox

2005 Leadership Through Quality

strategy.

All major Xerox manufacturing

sites worldwide receive ISO

14001 certification

1997

Xerox ISO

1998

Xerox Six Sigma

Six Sigma deployed in mfg. ops.

New quality policy, and

procedures refreshed to be focused/faster

2002


2000

Xerox new quality

Lean Six Sigma concepts & principles become

corporate standard

2004


Launch of design for Lean Six Sigma

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Meeting our challenges through Xerox Lean Six Sigma

Understanding what customers truly value and need

Transforming our culture Positioning us for growth Improving processes through

fact-based, disciplined decision-making and measurable outcomes

It’s becoming “the way we work”.

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Goal – Reduce waste and increase process speed

Focus – Identify non-value add steps and causes of delay

Method – Value Stream Tools, Kaizen events

LeanSpeed + Low Cost

Goal – Improve performance on customer CTQs (Critical To Quality)

Focus – Use DMAIC process with various tools to eliminate variation

Method – Management engagement, 1% - 3% dedicated as Deployment Champions and Black Belts

Six SigmaCulture + Quality

Six Sigma QUALITY Enables Lean Speed

(fewer defects means less time spent on rework)

Lean SPEED Enables Six Sigma Quality

(faster cycles of experimentation/learning)

Combining two powerful approaches

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Our commitment starts at the top.

“I’m convinced that Xerox Lean Six Sigma

is a way to rebuild value in our company

because it is about substance, not

form; it’s about discipline and infrastructure so projects can produce

business results.”

—Anne MulcahyChairman & CEO

12

Enterprise-wide deployment

Sales and Marketing

XeroxAdministration

Information Technologies

Facilities

Customer Communications

Operations

Finance

ManufacturingEngineering

Human Resources

Our view: Not just a tool for operational efficiency, but an enterprise-wide business strategy for creating real value

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Majority of Xerox Lean Six Sigma Resources Integrated Into the Business Operations

Anne MulcahyAnne MulcahyChairman / CEOChairman / CEO

BusinessBusiness LeaderLeader



Deployment Deployment ManagerManager

DeploymentDeploymentManagerManager

DeploymentDeploymentManagerManager

BBsBBsBBsBBsBBsBBsMBB / BBsMBB / BBs

DeploymentDeploymentManagersManagers

BBsBBsBBsBBsBBsBBsMBB / BBsMBB / BBs

BBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBsBBs





VP, Corporate Lean VP, Corporate Lean Six SigmaSix Sigma

Deployment Deployment

BBsBBsBBsBBsDeployment Deployment TeamTeam

BBsBBsBBsBBsBBsBBsMaster BBsMaster BBsSponsors Sponsors

Chief FinancialChief FinancialOfficerOfficer

Note: VP, Corporate Lean Six Sigma Deployment reported to CEO at initial launch of Lean Six Sigma

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32 full-time deployment managers

1500 projects underway or completed worldwide contributing to Xerox profitability

Over 600 Master Black Belts and Black Belts have achieved certification, completed, or started training.

2,000 executives and managers have completed leadership workshops

2,500 Green Belts trained/500 certified

22,000 Yellow Belts trained and many other on-line courses

Worldwide Deployment Status

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Successful Lean Six Sigma Deployment Requires Company-Wide Involvement

All Employees• Basic understanding• Minimum Yellow Belt• Apply concepts to

their job and work area

• Owns vision, direction, integration, business results

• Leads change

• Project owner• Implements solutions• Owns financial results• Part time as part of job

• Leads Lean Six Sigma projects • Trains and coaches Project

Teams• Full-time position

• Participate on Black Belt teams and/or lead projects

• Part time on projects

• Provide project-specific support

• Can be yellow or green belt• Part time on projects

• Leads business unit performance improvement

• Prioritizes projects• Full time position


ProjectProjectSponsorsSponsors

Project TeamProject TeamMembersMembers

OperationsOperations LeadershipLeadership

Green BeltsGreen Belts

Black BeltsBlack Belts

Centralized Centralized Coordination Coordination

& Training& Training

• Trains Black Belts / Green Belts

• Coaches Black Belts / Green Belts

• Leads Lean Six Sigma projects • Full-time position

MasterMasterBlack BeltsBlack Belts

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Phased Xerox Deployment Plan

Nov02

Seeding XeroxSeeding XeroxLean Six SigmaLean Six Sigma

• Articulate Burning Platform• Create Deployment Team• Establish Goals/Success Metrics• Process Management Approach• Define “Recipe” based on Lean Six Sigma Deployment

Principles• Develop Deployment Plan using Lean Six Sigma Planner

Executive Launch

Leadership Training

Deployment Design Deployment Design & Launch& Launch

• Select Deployment Leaders, Black Belts and/or Green Belts

• Define Project Selection/Prioritization Process based on ROIC and Benefit/Effort Matrix

• Establish Project Tracking Process • Identify/Select Initial Projects and Project

Champions/Sponsors

DeploymentDeploymentExecutionExecution

& Sustainability& Sustainability

• Deploy Resources on Highest Priority Projects• Conduct Training

• Kaizen• Lean Six Sigma

Manage the EffortManage the Effort

• Risk Management• Build Self Perpetuating

Capability• Benchmark• Leverage Best Practices• Integrate with

Suppliers/Customers• Communicate to

Stakeholders

Sponsor Training

Jan03 Feb03

BB Training

Jun03 Nov03

GB Training

MBB Training

DFLSS

May04 Aug05

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Lean Six Sigma: The next phase in our journey

Internal Operations Methodology & Tools

Internal Manufacturing Quality Methodology & Tools

External and Internal Methodology and Tools: Creating real value for

our customers

Xerox

customer

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Capable,DisciplinedProcesses

Accountability

Bottom LineResults

Focus on inputs

Sense of UrgencyCommitment to

Training & Development

for all employees

Fact-based,Data- driven

decisions

ManagementPassion

Values

CUSTOMERS

Top Line Growth requires developing Lean Six Sigma competency and culture before starting…

Communications

Leadership

Industry Competencies

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Top Line Growth: Customer Centric use of Lean Six Sigma-based Processes

Define the Problem

Characterize Requirements &Performance

Identify &Characterize Key Elements in the Solution

Determine the BestSolution

Validate & Implement the Solution

DesignNew DevelopDevelop ImplementImplementDefineDefine MeasureMeasure ExploreExplore

DefineDefine Measure

Measure

Analyze

Analyze

ImproveImprove ControlControlImprove Existing

Customer Engagement DefineDefine MeasureMeasure AnalyzeAnalyze ‘Recommend’‘Recommend’ ‘Close’‘Close’

DFLSS ValidateValidateIdentifyIdentify Develop Develop Optimize

Optimize

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Types of Growth-enabling Projects

Sales and Marketing

Customer Experience• Quote to Cash (umbrella project)

Sales Productivity

Retention/Same Account Growth

New Business

Technology and Services upgrades

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Sales and Marketing Deployment - the Infrastructure

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Donna Dunlap, VP LSS NASG Sales & Marketing585-423-5572 / 8*223-5572, XRX2-029

Linda Hatch, Administrative Assistant585-423-1237 / 8*223-1237, XRX2-028

2005 Xerox Lean Six Sigma2005 Xerox Lean Six Sigma

Sue Coia-AhlmanMBB - 14

8*223-2475585-423-2475

XRX2-019

Al RyanMBB - 15

8*221-2431585-231-2431

XRX2-008

Bob LabanowskiMBB - 13

8*223-6932585-423-6932

XRX2-011

Marty DuffyMBB - 12

8*223-3204585-423-3204

XRX2-009

Ragni MehtaMBB - 8

8*223-2087585-423-2087

XRX2-028

Robert C. Brasser – IPClare Browning-Tuch – IPWilliam M. Flom – IPKatrina Lamphier – IPKaren Loughlin - IPShari Mann – IPFernando Martinez – IPNancy Nam – IPJason Rider - IPLarry Scheerschmidt – IPJames Wagner – IPMichael P. Wiseman – IPSue Comer – FTKelly Lindenmayer – IP

Jon D. Allen – IPMark Burris – IPKay Carroll – IPBruce Collier – IPSara DeMuzio – IPKristen Eisenman – IPHelen Fong – IPRaj Garg – IPDan Holahan – IPKevin Horey – IPSilvia Neves – IPMichele Russell – IPIlona Smith - IP

Barry Barnes – FTButch Bland – FTKevin Groff – IPTodd Lester – FTSusan McGlinchey – IPDierdre Scott – IPShawn Whipple – IPJeff Whisler - QTCTony Hampton – FTLaura Norris – IPTerri Yamauchi – FTMike Jones - FT

Wanda Droz – IPBernie Durman – IPAnita Fonseca – FTCharles Gallagher – IPMike Knox - IPTim Kray – IPTyrone Scott – IPKevin Zielinski – IP

David Beckerle – FTDiane Burley – FT Linda Fosdick – IPRebecca Futral-Anderson – IPTerry Garigen – IPChris G. Graham – FTDeborah Hall – FTJohn Kenney – FTAnthony Mason – FTPatrick Porter – IPBonnie Stramer – IPMatt Stusick – FTEric Whyte – FT Frank Licata – FT Jasper Richardson - IP Certification Required

HR Loretha McCullough – RMBGO Anne Thorne – Certified 6/05MAO Terry Kochanski – Certified 8/10

Chris Tipton – PBPSO Warren Losey – AREast Scarla Gilbert – AR

Aaron Monke – ARJasper Richardon - AR

West Bo Beslach – MDJeannette Monachello – MD

Corporate MBBsCheryl Adas

04/07/23

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PEP Expectations:

AnalyzeAnalyze ControlControlImproveImproveMeasureMeasureDefineDefine

Individual Objectives Measures Good Better Best

Improve Customer Experience

Support customers through projects,events and presentations 1 2 3

Grow Revenue and Improve Profitability Deliver Economic Profit 610 800 1000

Great Employee Experience Achieve CertificationMentor/Certify Green Belts on your teams

183

155

<=12>5

Live our Values Deliver DMAIC Projects-2nd yr BB

FT BB-HQ Project Involvement

Deliver DMAIC projects –1st Yr BB + IP

2 3 4

1 2 3

1 2 3

Targets

2005 PEP Update

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Requirements for Success: Industry experience Business process experience Implementation experience

A Focused Industry Approach

Financial Services

Financial Services HealthcareHealthcare High Tech and

CommunicationsHigh Tech and

Communications

Manufacturingand Energy

Manufacturingand Energy Public SectorPublic Sector Retail and

Consumer GoodsRetail and

Consumer Goods

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SubstituteOther

Technology

FSMA Losses

CustomersNot satisfied

Customer Equipment

Trades / Upgrades

New Customers

ProcessChanges

Economy/Bankruptcy

AllOthers

Moves toCompetition

Customer FSMA / Services Renewals

Added Business

With CurrentCustomers

RevenueRevenue

Revenue Growth

Most LSSProjects

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Match the tools & methodology to the problem

Low Sigma

1 - 2 Sigma

3 - 4 Sigma

5 - 6 Sigma

Climbing the Benefit Tree

Design for Lean

Six Sigma(DMEDI &

IDOV)

DMAIC

Kaizen

ImprovementProjects

Workshops

Flashes

Courtesy Bombardier

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“Hard Metrics”

Increased growth Reduction in cost Improvements in quality of

your offerings Increased productivity Gains in process efficiency

due to reductions in errors and defects

“Soft Metrics”

Increases in customer satisfaction

Improved employee development, motivation, and engagement

+

What is “real value”?

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Translating our experience into real value for customers

InterContinental Hotel Group Brooklyn Public Library Monroe County Sheriff’s

Office

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Lean Six Sigma consulting engagement Implemented remote control Created standard operating system and

environment Moved administration offsite Eliminated redundancy among vendors

Case Study: InterContinental Hotels Group

Client ChallengesClient Challenges

Needed to cut costs to stay competitive during post-9/11 travel downturn

Improve customer satisfaction with IT support services

Measurable ResultsMeasurable Results

SolutionSolution

Leading hospitality company, managing brands such as Holiday Inn

Play video

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Lean Six Sigma consulting engagement focused on front of process to achieve quick results

Designed and implemented a comprehensive Patron Access Management System

System includes Access Brooklyn Card, innovative kiosks and Web site

Patrons use card to reserve computer time, pay for print, copies and other services


Case Study: Brooklyn Public Library

Recover print costs lost due to free print policy Make more effective use of librarians’ time Provide patrons with better service, more

equitable computer access

SolutionSolution


Largest Public Library in the five boroughs of New York

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Lean Six Sigma consulting engagement Digitized and streamlined accident report

process in Records Management Division Created Web-based document access

system Integrated existing customer systems


Balance $100M budget Improve quality of service to the

community Free deputies from paperwork, so they can

spend more time ensuring public safety Eliminate backlog of more than 3,000

records and over four months of data entry

SolutionSolution

New York State’s largest sheriff’s office

Case Study: Monroe County Sheriff’s Office

Play video


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Lessons Learned

Right ToolsRigorously

applied

Right People Dedicated 100%

Right BusinessOpportunities

Right ResultsRight ResultsHold people accountable for business results validated to the bottom line

VOC, marketing, DfLSS, data analysis, process improvement, etc

• The most strategically important projects (growth, for the customer, retain share, increase price, improve profitability, improve effectiveness, etc)

• Projects with financial impact

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Key factors differentiating “A” curve from “F” curve

Ability to change Culture & Leadership Behavior

Project selection link to business strategies

Project selection link to Customer Value

* Chart adapted from Strategic Six Sigma: Best Practices from the Executive Suite by Dick Smith and Jerry Blakeslee

Pro

fit

($)

1 2 3 4

Year

Initial LeadershipCommitment

0

C

Sustained Commitment A

F As many as 50% end up here at “F”

*

Long Term Goal – Sustained Commitment & Results

Xerox

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Lean Six Sigma… our next steps

Collaborate with companies that embrace this methodology Share best practices Benchmark Joint projects

Leverage the potential Continue to measure success

internally and externally

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Thank You!

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Videos

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Case Study: InterContinental Hotels Group

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Case Study: Brooklyn Public Library

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Case Study: Monroe County Sheriff’s Office

Using Xerox Lean Six Sigma to Create Real Value for Customers

Education

reserve computer

smarter document

library patrons

weve trained

cycle time

black belts

quality strategy

reduce costs