To Stimulate To Encourage Niet ijs, maar mismanagement is het probleem Dit zeggen ingewijden bij NS en ProRail Ketengericht denken en acteren binnen de service industrie Projectleiderschap in het kwadraat IPMA Utrecht 20 september 2012 To Challenge To Bring about the Best
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
Tired of traffic jams?
What happens in traffic and all other comparmentalized systems? - Amplification:δoutput >> δ input. I.e. the so-called Bullwhip effect as at each hand over this phenomenon occurs. - Oscillation: One disturbance oscilates thoughout the chain. - Phase lag. It takes time for the impulse to reach the back end of the organization. 1961: Jay Forrester (MIT): Industrial Dynamics - The blame game - Assumption gaming - Bounded rationality in decision making :
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
Quite a diverse luggage...
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Services Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
We are living in in interesting times!
Trends that have a profound impact on how we conduct business
Social Media & Brand Image/Identification* Positive Chat Buy Brand Brand Identification Leverage Promote Brand Positive Perception Brand as Model * Steven van Belleghem : The Conversation Manager
Calling for totally new ways of working: Dynamic, Responsive & Collaborative Old Habits Command & Control New ways Connect & Collaborate Systems is an IT term Coping by splitting up Systemic thinking as a managerial concept Coping by holistic synthesis ERP SaaS HIMS
Old habits however are hard to eradicate. DigiTimes Wrongly Claims Slow Ramp Up of ipad 3 Production Could Cause Supply Problems at Launch Killer Application
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
For these habits to dissipate we have to understand why
P o te n ti e l e Processes: boring & piece of cake!! O rd e rs rech tstreeks in OM - That s what we see from the Board Room - That s what we do not like to discuss - Processes are considered No-Brainers - These Hi-level processes cast in IT stone O rd ers via aut. in te rfa c e P o te n tie le geb ru ikers van de dien st Orders ingevo erd in e e n IT s y s te e m Orders bij h et e m a il c e n tru m O rd ers in Ord er (E M C ) M a n a g e r O rd e r m is t correcte gegeven s Order uitval - Not on our regular Mgt s Agenda - Dear Consultants disclose this minefield N i e t g e c le a n d e m o d e m s k l a n te n I P B o r d e r m e t I P B o r d e r in O M D S L p o o r t to e g e w e z e n M O C V r i j e D S L p o o r te n + s p l itte r A a n v r a a g A a n m n a k e n m u l ti m e d ia m a i l a c c o u n t V T a c o o u n t o u t U p g r a d e S e r v e r c a p a c i te i t S e r v e r c a p a c i te it i n a a n v r a a g C o c k p it K P N. C O M S e r v e r c a p a c i te it K P N > C O M P r o v i si o n e d in T S M C a p a c i te i t T S M S le u te le n M o d e m v e r z e n d c a p a c i te i t - Many local not interconnected initiatives - IT and actual Processes disconnected V o i c e p l a tfo r m P l a tfo r m i n te r n e t S n e l h e i d p r o g n o s e M o d e m v e r z e n d e n C o m p l e e th e i d te c h n is c h e sp e c i fic a tie B e sc h ik b a r e c a p a c i te it F a c tu r e r e n - Frustration all over the place. - Top level instructions are not recognized. - We cannot deliver as requested!!
CALL CENTER SERVICES KPN 2007/8 < 2007 - Focus on Cost - Cost center - 70 % of FTEs are Temps - Target: Time per call & # calls - High attrition rate - Work stress - Low Quality - Low Customer Satisfaction - High number complaints related to bad Call Centre Service > 2007 < 2009 - Focus on Quality - Profit Center - 50/50 temp & Own - Purpose: Complaint resolution - Normal attrition - High employee satisfaction - High quality - High Customer satisfaction - Fast Complaint resolution leads to Cross & Upsell: 12% extra margin
Targets, KPI s & Purpose BNR Radio 16 december 2010 08:35: De Politie moet toch worden gemeten op haar effectiviteit Naar aanleiding van het voorgenomen besluit van Minister Opstelten om de Bonnen Quota af te schaffen
The fallacy of control
Horizontal disconnect : intra-company How most of time (IT) service quality suffers from conflicting incentives. Volume Own P&L Cost Own P&L Cost Own P&L Sales Consultancy Data Centers Managed Services IT Ops Hardware
Horizontal disconnect intra-company NEED TO COLLABORATE ACROSS COMPARTMENTALIZED FUNCTIONS & PROCESSES How compartmentalized are you? Look at the Incentives & Targets Sales Service Delivery Operations Logistics Procurement Partners
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
Mgt. View of Partner network in Pin-Terminal Business
Mgt. View of Partner network in Pin-Terminal Business Processor Processor Traditional Swimlanes give a Simplistic view, but as Einstein said: Make everything as simple as possible, but not simpler
The real world in Pin-Terminal business 6 1 5 2 3 4 Plus: Retailer ( Staples ), LSP, Service Engineer, Repair = 10
BP's Oil Spill Report Lays Blame on "Multiple Companies and Work Teams"
BP's Oil Spill Report Lays Blame on "Multiple Companies and Work Teams" Top executives do not understand technologies they are using No one person in charge of the decision process Passing the buck, passing the risk, passing the blame, etc 11 decisions in month before disaster that added risk but reduced costs Excerpt MIT Report Murray Turoff
BP's Oil Spill Report Lays Blame on "Multiple Companies and Work Teams" On top of all that there is the Irrationality of Management: Efficiency (cost reduction) more important than Effectiveness (risk reduction) Top executives do not need to know details other than financial ones Public relations and lawyers are top advisors in emergency decisions No need for real lateral communications Discounting the future of compounding (non linear) variables using money (linear) as the representation variable Conflict between: Asset Utilization, Cost and Safety Excerpt MIT Report Murray Turoff
The Collaborative Response!!
Pitfall of a Rapid Market Launch Success Case study: Telecom Provider 2006 thru 2008 Financial pressure: o Fierce competition o Increased line loss rate Solution: Avoid o Decision to launch own version of VoIP services o Self-cannibalize own sales
Succes of VOIP Customer Demand (Orders/wk) Kassa & Radar in December 2006/January 2007 β GAP Demand Capacity Low customer satisfaction Excessive costs Inadequate market share growth Customer Demand VoIP services, normalized, 2006-2008 Q2
Sunny Day Capacity Mgt Service order rate New sales orders Provisioning WIP Provisioning rate Field Install WIP Field Install rate Installed Base Churn rate No capacity required. Automated systems do all the work or customers do it themselves
But most of the time it rains Primary Processes Service order rate New sales orders Provisioning Fail rate Provisioning WIP Provisioning rate Provisioning Fix rate Provisioning Rework Do-It-Yourself Field Install WIP Customer Install rate Required Technician Install rate Technician Assisted Field Install Installed Base Churn rate Technician Install rate Secondary Processes Calls from Primary Processes Incoming Calls Call Load Calls Handled Incoming Complaints Complaints Load Complaints Handled Call Workload
Focus on flows suggest processes are under control Rework 18000 Rework Inflow Data Rework Rework Outflow Data 15000 Rework Inflow Rework Outflow 12000 9000 MRP Thinking 6000 3000 0 1 9 17 25 33 41 49 57 65 73 81 89 97
Rework Stock (WIP): Another Story 20000 Int (In -out) 16000 12000 8000 4000 0 Jan 07 Jan 08 1 9 17 25 33 41 49 57 65 73 81 89
But most of the time it rains Primary Processes Service order rate New sales orders Provisioning Fail rate Provisioning WIP Provisioning rate Provisioning Fix rate Provisioning Rework Do-It-Yourself Field Install WIP Customer Install rate Required Technician Install rate Technician Assisted Field Install Installed Base Churn rate Technician Install rate Secondary Processes Calls from Primary Processes Incoming Calls Call Load Calls Handled Incoming Complaints Complaints Load Complaints Handled Call Workload
Call ratio: KPI that continued to deteriorate as key elements of drivers were not understood. Volume incoming orders Lesson difficult to digest: Know the process and its dynamics before adopting a Target/KPI or allocating Capacity. Sales rate P1 Install rate Process Type 1: Work = (Volume incoming orders) Rework rate Error rate Quality of orders Calls from regular install Problem resolution time Calls from rework P2 Cancellation rate Process Type 2: Work = (P1, Order Quality ) Call rate P3 Solution rate Process Type 3: Work = (P1, P2, Quality Problem Resoltion Time) = (V, Q & QPRT)
Impact Failure Demand 1: Av Quality 2: Worklo all center 3: FTE Call handling 4: New s sales rate 5: Calls offered 1: 1 2: 3 Incoming 3: order 150volume 1 4: 20000 5: 15000 is perfectly stable in this scenario. Quality drop of 10 % 3 1 1 1 FTE more than doubles 2 months after initial quality drop, then have to be brought back down again. 1: 2: 3: 4: 5: 1 2 75 10000 7500 2 3 5 2 5 3 5 3 5 4 4 4 4 2 2 1: 2: 3: 4: 5: Page 4 0 0 0 0 0 0.00 12.50 25.00 37.50 50.00 Weeks 18:52 woe, 2 apr 2008 Untitled Workload in the call center bounces up and down, leading to higher complaint rates and higher staff turnover. Incoming call volume peaks several weeks after drop in order quality. *) Bron: Analyse SCEC / UvT
Aannemen EMC medewerkers Verandering stabiliteit IT systemen Nieuwe release IT systemen EMC nieuwe medewerkers Productiviteit EMC nieuwe medewerkers Stabiliteit IT systemen Updated IT systemen Verandering stabiliteit Interfaces Verandering kwaliteit EMC medewerker Nieuwe release Interfaces Stabiliteit Interfaces Updated Interfaces Kwaliteit EMC medeweker Capaciteit EMC Workload bij EMC medewerkers Stabilisatie IT systemen Capaciteit IT systemen EMC ervaren medewerkers IT systemen Stabilisatie Interfaces Uitstroom EMC medewerkers Productiviteit EMC ervaren medewerkers Capaciteit Interfaces Interfaces <Orders bij emailcentrum (EMC)> Verandering kwaliteit IT systemen Kwaliteit IT systemen Verandering stabiliteit Ordermanager Nieuwe release OrderManager Kwaliteit Interfaces Workload bij verkopers Stabiliteit OrderManager Updated OrderManager Verandering kwaliteit KPN verkoper Aannemen KPN verkopers Kwaliteit van KPN verkoper Nieuwe KPN verkopers Verkoop productiviteit nieuwe KPN Verkopers Stabilisatie OrderManager Inhuren outbound capaciteit Capaciteit OrderManager Order Manager Opleiding en ervaring KPN Verkopers Verkoop Capaciteit Nieuwe call agents (Outbound) Verandering kwaliteit Order Manager Ervaren KPN verkopers Potentiele gebruikers van de dienst Verkoop productiviteit ervaren KPN verkopers Afstoten outbound capaciteit <Potentiele gebruikers van de dienst> Kwaliteit Order Manager Uitstroom KPN verkopers Inkoop dslam <Verkoop Capaciteit> <Capaciteit IT systemen> Uitvaal interface Nieuwe dslam slot Orders in IT systeem Aannemen monteurs wijkcentrale Nieuwe monteurs wijkcentrale <Capaciteit OrderManager> Orders rechtstreeks in OM Definitieve uitval Orders via automatische interface Orders bij emailcentrum (EMC) <Kwaliteit van KPN verkoper> <Kwaliteit EMC medeweker> <Kwaliteit Interfaces> Opleiding en ervaring monteurs wijkcentrale Productiviteit monteurs wijkcentrale Verandering kwaliteit monteurs wijkcentrale Capaciteit monteurs wijkcentrale 0 Nieuwe dslam kaart Bouwtijd dslam slot verandering stabiliteit dslam Workload monteurs wijkcentrale Kwaliteit monteurs wijkcentrale Stabiliteit dslam Uitval OHW Order rework <Kwaliteit IT systemen> <Kwaliteit Order Manager> Bouwtijd dslam kaart Ervaren monteurs wijkcentrale <Capaciteit Interfaces> Orders in OM Uitstroom monteurs wijkcentrale Bestaande dslam Productiviteit ervaren monteurs wijkcentrale Aannemen vp specialist Productiviteit nieuwe VP specialist Devaluatie dslam Re-worked orders Verandering stabiliteit VP <Capaciteit EMC> Nieuwe vp specialist Stabiliteit VP Orders in OFM Opleiding en ervaring vp specialist Capaciteit VP specialist 0 Aannemen FT out specialist Productiviteit nieuwe FT out specialist Workload VP specialist Verandering kwaliteit VP specialist VP in bestelling IP in bestelling Ervaren vp specialist Nieuw VP Nieuw IP <Capaciteit monteurs wijkcentrale> OHW dslam <Capaciteit voice platform> Nieuwe FT out specialist Uitstroom vp specialist Productiviteit ervaren VP specialist Kwaliteit VP specialist Bouwtijd VP Bouwtijd IP Opleiding en ervaring FT out specialist <dslam capaciteit> <Capaciteit VP specialist> <Capaciteit internet platform> Capaciteit FT out specialist 0 Bestaand VP Bestaand IP Capaciteit internet platform 0 <Kwaliteit monteurs wijkcentrale> Ervaren FT out specialist Verandering kwaliteit FT out specialist Devaluatie VP Devaluatie IP OHW voice platform account Rework account platform Uitstroom FT out specialist Geen werkend voice account Productiviteit ervaren FT out specialist Workload FT out specialist Kwaliteit FT out specialist Werkend voice account 2 Aannemen TSM specialist Productiviteit nieuwe TSM specialist KPN.com server in bestelling Verandering stabiliteit KPN.com Werkend voice account 1 <Kwaliteit VP specialist> OHW FT out account Cockpit of email werkt niet Rework FT out account Nieuwe TSM specialist Mail server in bestelling Nieuw mail platfom Nieuw KPN.com Bouwtijd KPN.com Stabiliteit KPN.com <Kwaliteit FT out specialist> Opleiding en ervaring TSM specialist Capaciteit TSM specialist Workload TSM specialist Bouwtijd mail platform Bestaand KPN.com Capaciteit mail server- Capaciteit KPN.com- Bestaand mail platform dslam capaciteit- Capaciteit voice platform- Devaluatie KPN.com Ervaren TSM specialist OHW RG Distributie orders Verandering kwaliteit TSM specialist Devaluatie mail platform <Voorraad RG's> Uitstroom TSM specialist <CEVA Logistics Capaciteit> Productiviteit ervaren TSM specialist <Capaciteit KPN.com> <Capaciteit mail server> <Capaciteit FT out specialist> Kwaliteit TSM specialist TSM in bestelling Verandering stabiliteit mail server Nieuwe TSM release RG afgeleverd Nieuw TSM Stabiliteit mail server Updated TSM system RG Retour Voice platform set up <Kwaliteit CEVA Logistics> Stabilisatie tijd TSM systeem Bouwtijd TSM Capaciteit TSM TSM systeem Inhuren Bestaand TSM OHW IPB installaties DHZ OHW Service opdracht voor installatie OHW IPB installaties door monteur CEVA Logistics Capaciteit Devaluatie TSM <TSM-configuratie kwaliteit> <Kwaliteit van monteur installatie> RG's Bestellen <Service Capaciteit Monteurs> Afstoten van capaciteit <OHW IPB installaties door monteur> <Service opdrachten bestaande aansluitingen> Verandering kwaliteit CEVA Logistics RG's in bestelling <Kwaliteit Doe-het-Zelf Installatie> Workload bij monteurs Kwaliteit CEVA Logistics Kwaliteit RG Hardware Verandering kwaliteit RG Hardware <TSM-configuratie capaciteit> OHW activatie voice account <Installatie Capaciteit Monteurs> Service Productiviteit Nieuwe Monteur Voorraad RG's Reguliere opzegging - niet werkende dienst Aannemen monteurs Installatie Productiviteit nieuwe monteur Inhuren monteurs Oplossing rate Verzenden Niet werkende IPB aansluiting Werkende IPB aansluiting Nieuwe KPN Monteurs (installatie en service) Nieuwe AP Monteurs (installatie) Reguliere opzegging Service Productiviteit Ervaren Monteur Service opdrachten bestaande aansluitingen Fail rate Service Capaciteit Monteurs Percentage monteurs voor service Afsluitingen Ervaren KPN Monteurs (installatie en service) Installatie Capaciteit Monteurs Ervaren AP Monteurs (installatie) Verandering kwaliteit monteur installatie <Service Capaciteit Monteurs> Verandering kwaliteit monteur service Verandering kwaliteit DHZ-installatie Uitbreiden TSM server Uitstroom KPN monteurs Installatie Productiviteit ervaren monteur Verandering kwaliteit RG Software Verandering kwaliteit TSM-configuratie Klanten te factureren Afstoten AP Monteurs Kwaliteit van Kwaliteit van Installatie Kwaliteit RG Software <Capaciteit Facturering> TSM-configura tie capaciteit TSM-configura tie kwaliteit OHW factureren <Kwaliteit Facturering> <Capaciteit FastTrack> <Kwaliteit Collections werk> Afstoten TSM configuratie capaciteit IPB openstaande facturen Betaling <Capaciteit Vergoeding systemen> Facturen zonder klachten Productiviteit Facturering nieuwe medewerkers IPB verlopen facturen Facturering nieuwe medewerkers <OHW factureren> <Capaciteit Billing & Collections Systemen> Facturen met klachten Capaciteit Facturering Workload bij facturering Kwaliteit Facturering Nieuwe release FastTrack IPB geincasseerde / betaald facturen OHW bij Collections OHW Facturen met klachten Facturering ervaren medewerkers Updated FastTrack betaal afspraken gecorrigeerde facturen Stabiliteit FastTrack Verandering stabiliteit FastTrack klacht n.a.v. Collections Productiviteit Facturering ervaren medewerkers <Capaciteit Collections> Gecancelde facturen Facturen om af te boeken <Capaciteit Klant Reactie> Nieuwe release Vergoeding Systemen afboeken Updated Vergoeding Systemen <Kwaliteit klachten behandeling> Productiviteit Collections nieuwe medewerkers Stabilizatie Vergoeding systemen Collections nieuwe medewerkers <OHW bij Collections> Kwaliteit Collections werk Capaciteit Collections Workload bij Collections Collections ervaren medewerkers Vergoeding systemen - VVV, VVA, VVE <OHW IPB installaties DHZ> Productiviteit Collections ervaren medewerkers <Fail rate> Melden van storingen <Capaciteit ATS> <OHW 1e Lijn support> Capaciteit Billing & Stabiliteit Billing & Capaciteit Collections Systemen Collections FastTrack Verandering stabiliteit systemen Billing & Collections systemen Updated Billing & Billing & Collections FastTrack Collections Stabilizatie Nieuwe release Billing & systemen Systemen Stabilizatie Billing & FastTrack Collections systemen Collections systemen Capaciteit Vergoeding Verandering Stabiliteit systemen Vergoeding systemen systemen OHW 1e Lijn support Workload bij support Opgelost in 1e lijn 1e, 2e, 3e lijn Productiviteit 1e, 2e, 3e lijn nieuwe medewerkers <OHW 2e Lijn support> Calls door monteurs OHW 2e Lijn support <Capaciteit 1e, 2e, 3e lijn> Verandering stabiliteit ATS Nieuwe release ATS Opgelost in 2e lijn Kwaliteit support Capaciteit 1e, 2e, 3e lijn <OHW 3e lijn support> <OHW IPB installaties door monteur> OHW 3e lijn support <Kwaliteit support> 1e, 2e en 3e Stabiliteit ATS Updated ATS Opgelost in 3e lijn Productiviteit 1e, 2e, 3e lijn ervaren medewerkers Stabilizatie ATS Capaciteit ATS <IPB openstaande facturen> Klacht komt eraan ATS <Niet werkende IPB aansluiting> OHW Klachten te routeren klacht moet opnieuw gerouteerd worden Productiviteit Klant Reactie nieuwe medewerkers <Capaciteit Klachten systemen> Routeren <Kwaliteit klachten behandeling> Klant Reactie nieuwe medewerkers OHW Klachten Kwaliteit Capaciteit Klant Reactie Workload bij klachten behandeling <OHW Klachten> Klant Reactie ervaren medewerkers <OHW Facturen met klachten> <Capaciteit Klant Reactie> opgelost Productiviteit Klant Reactie ervaren medewerkers <Capaciteit Reparatieteam> Stabiliteit Klachten systemen Updated Klachten Nieuwe release systemen Stabilizatie Klachten systemen Klachten systemen <Werkende IPB aansluiting> <Niet werkende IPB aansluiting> <Capaciteit Reparatieteam> <Reguliere opzegging - niet werkende dienst> <Reguliere opzegging - niet werkende dienst> Capaciteit Klachten systemen Klachten systemen <Reguliere opzegging> Annulering na zichttermijn na 7dgn Kwaliteit reparaties Reparatieteam Productiviteit Reparatieteam nieuwe medewerkers Workload bij reparaties <Reguliere opzegging> Capaciteit Reparatieteam Reparaties Reparatietea m ervarenme nsen <Annulering na zichttermijn na 7dgn> Productiviteit Reparatieteam ervaren medewerkers Integral responsibility was lacking NOBODY HAD INSIGHT OVER THE TOTAL CHAIN PROCES MENSEN monteur installatie monteur service Kwaliteit Doe-het-Zelf nieuwe medewerkers lijn ervaren medewerkers klachten behandeling nieuwe mensen PRODUCTEN SYSTEMEN RG's ontvangen Stabiliteit Vergoeding
Conclusion The VOIP Supply Network was totally and at every level out of control - Operational Execution: Crisis Management - Tactical Coördination: Stovepiped - Strategic Design: Grown, not built
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Services Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
Feed Back & Issues Wat zijn de belangrijkste issues, die SC samenwerking in de weg staan en hoe zouden jullie dat oplossen
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
Paar weken Sessies zelf: 2 dagen Uitwerken:2-3 weken Blinde vlekken: 8 weken 3 à 4 maanden Afhankelijk van org support: tot vier maanden
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom
Know how is not enough. The Square Hare from Delaware
Know Why is however a rigorous process Crisis Mgt. Mgd. Results Symptom Problem Root Cause Remedy
Logic of Root Cause Analysis: via Collaborative Diagnostic Sessions Symptoms: 1. 2.. 3.. Root Causes 1. 2.. 3.. 1 2 2 Collaborative Diagnostic Sessions 3 Managed Results 1. 2.. 3.. 4 Remedies 1. 2.. 3..
Logic of Root Cause Analysis: What time and again is disclosed! Symptoms Managed Results Poor Services High Cost Root Causes Compartmentalized Systems/Processes 1 2 2 Collaborative Diagnostic Sessions 3 Quality Up Cost Down 4 Remedies Collaborate
Same logic in virgin situations Desired Outcome Measured Results What is needed 1 2 2 Collaborative Diagnostic Sessions 3 4 Anchoring
Logic of Collaborative Diagnostic Sessions Collaborative Diagnostic Sessions Starting point: Service Design & Delivery Processes as seen from Customer point of view Assessment of types and frequencies of demand. Regular demand Failure demand as result of poor quality (rework etc). Collaborative Design of Service Delivery Processes by zeroing in on: Who does what Interdependencies between X and partners Identification of third party dependencies Engagement conditions of these third parties What it takes to collaborate in joint Service Delivery Determine transparent and measurable Collaborative KPIs to drive joint Service Delivery
Effective Change Management Work pressure + Attention given to dealing with error lists Customer order changes + - Fullness of file systems Customer queries - Intensity of monitoring of interfaces Disturbances resulting from human intervention - + + BREAKDOWNS of + interfaces between systems in day process - Up-to-dateness of 3. Capability to respond databases Ability to sort + - out queries Interruption interception Agent time investment 5. System Conditions that create Waste of service order (as a (40) circumvention) + - Ability to key in 6. Obsolete and conflicting Measures - - complete order + Appear on work Agent queries Correctness of + list for backoffice + confirmation letter + + Customer calls - CUSTOMER SATISFACTION - - Backoffice activity Confusion with customer Correction of errors Unfreeze, Move, Freeze Quality of delivery + People's competence + Revenues - Predictability of consequences of local changes to other systems 1. Purpose (in customer terms) Time-outs of systems 2. Types and frequencies of Demand 4. Value work (Muri) & Waste (Muda) Coding complexity No of critical customer process applications 7. Change towards Collaborative Measures 8. Building blocks Design for Purpose - + + Control of system network No interfaces between systems Backup systems available - Interrelatedness of system performance Stability of interfaces between systems Prevention quality - - SLAs on interfaces Focus on system-specific performance - Owners of interfaces + + Budgets Upgrade skill levels +
2001 Internet
DELIVERY PROCESS TELEPHONE + SUPPORTING SYSTEMS Work orders PLANTAS SERVERS Order Entry Order Preparation Switching CIA / AWO / KIOSK KANVAS / SYMONE CONNECT / ASAP SOPHIA AXE / 5ESS KPI 2004 situation: SLA per server box ; % Complaints = +/- 15% ( norm < 5%); First Time Right = 82% (norm = 95%)
Root Cause Analysis: the Delivery process (1) Problem & Symptoms Root Causes 'storing' interceptie serviceorder (als omzeiling) complexiteit van vraag van de klant klant wijzigt wensen time-out filesysteem is vol agent gaat uitzoeken change door menselijk handelen storingen in koppelingen tussen systemen in dagproces kost tijd van agent klant stelt vragen klant bellen mensen niet kunnen uitzoeken geen volledige order inleggen STRESS Roeien met de riemen klant niet meteen helpen die we hebben verkeerde bevestigingsbrief verwarring klant intensiteit van monitoren koppelingen systemen niet bijgewerkt verschijnen op lijst voor back-office ontevreden klant vertrek van deskundigheid tijdsdruk CAPABILITIES GONE back-office komt in actie kennis van mensen reactie monteur aandacht voor afhandelen foutlijsten INSOURCING LEVEL 1 PROBLEM COMPLAINTS LEVEL 2 PROBLEM RESOLUTION COMPLAINTS agent niet aanvullen van complexe codering fouten in bijwerken uiteindelijk toch fout geleverd bellen klant financien netwerken van systemen ook niet beheerst geen inzicht in gevolgen voor rest 40 kritische klantproces-applicaties kwaliteit van preventie enkelvoudig uitvoeren <financien> koppelingen tussen applicaties focus op technische performance zeer nauwe verwevenheid van alle systemen geen eigenaren van koppelingen geen SLA's over koppelingen change BOXES
What turned into working together: delivery process telephone + supporting systems SERVERS Work orders Joint Smart Outsourcing PLANTAS Complaints in 4 Room Partners Order months to Manage Order the Entry collaborate to Switching Preparation 9 % and within Process as a improve year to 5 % CIA whole / AWO / KIOSKKANVAS Customer Sat / SYMONECONNECT / ASAP SOPHIA AXE / 5ESS 16% 14% 13,4% 12,9% 12% 10% 11,8% 11,4% 10,9% 11,1% 9,9% 9,3% 8,6% 10,3% 8,4% 8,9% 10,3% 8,7% 9,7% 9,3% 11,0% 8% 7,2% 6% 4% 2% 0% 2004.06 2004.07 2004.08 2004.09 2004.10 2004.11 2004.12 2004.13 2004.14 2004.15 2004.16 2004.17 2004.18 2004.19 2004.20 2004.21 2004.22 2004.23
ROOT CAUSES OF SERVICES COLLAPSE : T-Mobile and all Cost driven Service Organizations Two vicious cycles create problems: - R1: Highler worklaods leads to more errors, leads to less output leads to higher workload, leads to... - R2: Higher worklaods lead to lower employee satisfaction leads to more churn leads to less capacity leads to higher workloads etc.. Three balancing feedback loops fix this: - B1: sad but wiser.. - B2: at higher costs - B3: at lower revenues Killer Applicati on Market reputation Selling new services + Hiring of new staff Customer satisfaction + + B3 Errors chase customers away-loop + Work in Progress Processing capacity required B2 We'll put more people on this-loop + Workload - Delivery performance - + Services up and running R1 Stress creates errors-loop Processing capacity available + + R2 Unhappy staff walks out-loop - Rework Error rate + Work Stress + + - Employee satisfaction B1 People learn from mistakes-loop + Employee skill level + Employee learning + New hires Staff Quits
There is a very strong logic, linking Collaborative Diagnostics to. Outstanding Business Performance Method Outcome 1 st Tier Effects Performance Effects Collaborative Diagnostics Insight in Interdependencies Transparency Mobilization of Teams Common Purpose No more Gaming Managed Trust Measurable & Expanding Collaboration between Parties. Aligned Incentives Improved Service and Customer Sat Streamlined and Effective Processes Decrease of Cost of Poor Quality NPS, EVA, CFROI CVA UP
AGENDA 1. Lessons from Driving a busy road 2. Background speaker 3. Interesting Times: Trends, issues, habits and root causes 4. Story behind the Scenery 5. The Good, the bad and the ugly 6. Your feed back & issues 7. Building Service Supply Chains Roadmap Detailed dive into Diagnostics Services S&OP Methodologies & Tools 8. Takeaways, 9. Relevant Sources of Wisdom