This document provides an overview of a project to address issues with cost data integrity. It includes a project charter, problem statement, metrics, impacts, business case, roles and timeline. It outlines the Define, Measure, Analyze, Improve, and Control phases. Baseline data on costs and defects is presented along with goals. Measurement results show the project achieved its targets and realized annual savings of $98,328 by reducing invoice payment cycle time.

1. 1

2. Insert Project Title
Project Leader:
Project Champion:
Project Team Members:
Insert
Company
Name/Logo
2

3. Define
Measure
Analyze
Improve
Control
3

4. Project Charter
Insert completed project charter template of your
choice
4
DEFINE

5. Project Problem and Scope
Problem Statement/Scope:
EXAMPLE: Lower than expected billability, also described as
Excessive Bench Capacity, results in chargeability variances and
negatively impacts services margins by approximately $100,000,000
per year.
5
DEFINE

6. Relevant Metrics: (Usually these are associated with quality-
effectiveness, efficiency, time or cost.)
Improvement Targets:
EXAMPLE: 50% reduction in cycle time
Increase System Availability from 88% to 98%
Operational/Strategic Impact:
EXAMPLE: $60,000 improvement to bottom line
Business Case
6
DEFINE

7. Operational and Strategic Impact:
Hard Benefits: EXAMPLE: $145k or 1.82 FTE can be delivered in
AMP from improved customer contact data. Wasted labor time spent
in AMP on finding correct contact data for problem resolution
estimated to be 5 min/defect on approx 1656 defects per month or
$100k per annum. Wastage of labor in the customer satisfaction survey
of 3 mins per defect or $24k per annum.
Reduced wastage in billing disputes (125/month @ 15 mins each) or
$20k per annum
Soft Benefits:
EXAMPLE: Improve customer satisfaction from less wrong contacts.
Improved service performance through less time loss in tickets
including wait time.
EXAMPLE of Business Case
7
DEFINE

8. Project Champion or Sponsor:
Project Team Leader or Black Belt:
Project Team Members:
Ad Hoc Members or SMEs:
Roles and Team Membership
8
DEFINE

9. 17-Mar 24-Mar 31-Mar 7-Apr 14-Apr 21-Apr 28-Apr 5-May 12-May 19-May 26-May 2-Jun 9-Jun
Define 1-Apr
Measure 9-Apr
Analyze 1-May
Improve 7-May
Control 11-Jun
Project Plan
9
DEFINE

10. Define
Measure
Analyze
Improve
Control
10

11. Baseline - EXAMPLE
CURRENT
COPQ: $1,177,000
PPM or DPMO: 572,840
Sigma Level: 1.29
GOAL
COPQ: $588,500
PPM or DPMO: 286,420
Sigma Level: 2.05
11
MEASURE

12. Define
Measure
Analyze
Improve
Control
12

13. Define
Measure
Analyze
Improve
Control
13

14. Define
Measure
Analyze
Improve
Control
14

15. Baseline
COPQ = $1,177,000
DPMO = 572,840
Sigma Level = 1.29
Actual Achieved
COPQ = $516,000 (i.e.,
saved more than goal)
DPMO = 250,000
Sigma Level = 2.15
Goal
COPQ = $588,500
DPMO = 286,420
Sigma Level = 2.05
Project Results - EXAMPLE
15
CONTROL

16. Project Results-Insert visual of some sort
Confiscation of Errors on the Proposal Development
0
1
2
3
4
5
Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04
Process Change
Implemented
16
CONTROL

17. • The following slide needs to be in your
presentation as the VERY LAST SLIDE in
your PowerPoint.
• Replace the red words with your own
project information and then change the
font color to BLACK.
• Save your presentation with the following
naming nomenclature:
– Last Name, First Name – Company Name – Project Title
17

18. Project Summary
• Problem Statement: In the last 3 months,
12% of our customers are late by over 45
days in paying their invoices. This
represents 20% of our outstanding
receivables and negatively affects our
operating cash flow.
Metric to be
Measured
Cycle Time
Goal Reduce cycle time by 50%
Metrics
Baseline Target Realized
45 days 20 days 18 days
Savings $482/day/process
Annualized Savings $98,328
18

19. Extra Tool Slides
Do NOT have to be used. Just for your convenience!

20. High Level Process Map (SIPOC)
SIPOC Help
Employees Employee Setup Data Active Employee Record Project Manager and Team
Contractors Contractor Setup Data Active Contractor Record Project Manager and Team
Employees & Contractors Planning Meeting Project Schedule Project Manager and Team
Contracting Officer Statement of Work Project Schedule Project Manager and Team
Payroll Department Employee Pay Rates Rate Table System Administrator
Contractors Contractor Pay Rates Rate Table System Administrator
Employees Timesheets Labor Cost Report Project Manager and Team
Contractors (Time & Materials) Timesheets Labor Cost Report Project Manager and Team
Contractors (Fixed Priced) Invoices Contractor Cost Report Project Manager and Team
Project Management System Timesheet & Invoices Monthly Performance Reports CIO, Program Managers, VP Finance
Instructions for Preparing the SIPOC Diagram:
1. Go through the process step by step, describing the major activities. List each of this activities under the Process column.
2. Add two columns, one to the left of the Process column Input and one to the right of the Process column Output.
3. Work to the left of each activity in the Process and describe the Input into this Activity.
4. Now work to the right of the activity in the Process and describe the Output from this Activity.
5. Add two more columns, one to the left of Inputs labeled Supplier and one to the right of Ouput labeled Customer.
6. Now work down the Input column and describe each source or supplier of the Input.
7. Do the same for the Output column and work down, describing who gets the output.
Some points to consider:
1. The SIPOC Diagram should describe the existing process and not the "to be" process.
2. Have some Subject Matter Experts who know the process review the SIPOC Diagram for accuracy and completeness.
3. Include Sub-Processes and other key system interfaces within your SIPOC Diagram.
4. You can include additional descriptive information where appropriate such as applications involved, functional owners, etc.
5. If you need more detail, then create lower level SIPOC Diagrams.
SIPOC DIAGRAM - High Level
► ►
Cost Data Integrity Project
► ►
Supplier Input Process
Setup Resources
Assign Activities to
Resources
Assign Rates to
Resources
Enter Time Sheets
Enter Vendor
Invoices
Summarize and
Report Costs
Output Customer
20

21. Detailed Process Map
Queue
Coordination
Customer Support
Services
Technician
Service Delivery
Coordinators
Customer
Assign
Ticket
yes
Resolve
Request/
Verify
Solution
Update
Ticket
Validate
Customer
Satisfaction
Solution
Accepted
Close Problem
Ticket
WARP Implementation
Create
Monet
Ticket
Approved
Work Order or
Approved
Request
MMO
Billable
Request?
No
Create
Buy
Ticket
Route Buy
Ticket for
Internal Approval
yes
Create P.O.
Receive
Equipment
Insert Swim Lane Flow Chart, if applicable
21

22. What is the process
step?
What are the
Key Process
Inputs?
(KPIV's)
In what ways can Key
Inputs go wrong?
(Process fail to meet
requirements)
What is the impact on the
Key Output Variables
(customer requirements) or
internal requirements?
How
Severe
is
effect
to
the
customer?
What causes the Key Input to
go wrong? (How could the
failure mode occur?)
How
frequent
is
cause
likely
to
Occur?
What are the existing controls
that either prevent the failure
mode from occurring or detect it
should it occur?
How
probable
is
Detection
of
cause?
Risk
Priority
#
to
rank
order
concerns
What are the actions for
reducing the
Occurrence of the
cause, or improving
Detection?
Should have actions on
high RPN's or Severity
of 9 or 10.
CFS rep. will monitor
accounts at least
weekly to determine
risk and appropriate
course of action if
needed.
SOP for the CFS
rep., reporting
plan and follow-
up by
supervision.
CFS rep. does not monitor
accounts on a timely
basis, no SOP in place to
set time frames for
notification.
Money is not collected on a
timely basis, effecting cash
flow and profitability.
8 Lack of training, performance
expectations not set, no
regular reporting system and
lack of follow-up by
supervision.
8 Data warehouse account
receivables reports. These are
not generated automatically but
need to be requested by user.
Weekly conference call with sales
to discuss top ten delinquent
accounts.
8 512
All invoices are
deemed past due after
30 days, even when
different terms are
specified in the
contract
SOP for the CFS
rep., reporting
plan and follow-
up by
supervision.
Customers are contacted
even when not past due
according to contract
terms
Customer satisfaction is
lowered. Unnecessary time
and effort by CFS rep. is
spent following up on
amounts not past due.
8 This policy has not been
reviewed on a regular basis to
update to reflect the current
customer base
8 None 8 512
No difference in the
current process for
channels of
distribution or project
type to reflect different
contract terms
SOP for the CFS
rep., reporting
plan and follow-
up by
supervision.
Contract terms vary to
type of project and
customer.
Customer satisfaction is
lowered. Unnecessary time
and effort by CFS rep. is
spent following up on
amounts not past due.
8 This policy has not been
reviewed on a regular basis to
update to reflect the current
customer base
8 None 7 448
Entering PO dollar
information accurately.
Accurate
Invoices
Incorrect invoice entered
into system.
Customer will not pay
inaccurate invoices on a
timely basis.
8 Lack of training, performance
expectations not set, no
regular reporting system and
lack of follow-up by
supervision.
8 None 8 512
Frequency of
customer contact
SOP for the CFS
rep., reporting
plan and follow-
up by
supervision.
No current standard work
or SOP to specify
standards for frequency of
customer contact
Money is not collected on a
timely basis, effecting cash
flow and profitability.
8 Lack of training, performance
expectations not set, no
regular reporting system and
lack of follow-up by
supervision.
8 No regular reporting and follow-up
system established.
9 576
Process FMEA
22

23. Validate Measurement System
Insert Minitab Gage R&R Results
23

24. Process Capability
Insert Minitab Capability Results
24

25. Pareto Diagram
Non Masterbook Issues
Masterbook Issues
PO
Issues
13
35
36
15.5
41.7
42.9
100.0
84.5
42.9
80
70
60
50
40
30
20
10
0
100
80
60
40
20
0
Defect
Count
Percent
Cum %
Percent
Count
Order Prep Material Issues
25

26. Cause-Effect Diagram
Problem:
Tg Shift
Machine
Method
Mother Nature
Man
Materials
Measurement
New lot of raws
Out of spec raws
New technician
in testing lab
New operator in
plant
Grade change
in plant
Need to calibrate DSC
Dryer down in plant
SOP for analytical lab –
where to take Tg on curve?
Material prep for test
Clean out after
grade change
Power outage
26

27. Impact-Effort Matrix
• Quote sheet
• Training
• One person to quote
• Products made in house
• Single source • Improve non-X service
margins
Cost / Effort
Low
Low
High
High
Impact
27

28. Implementation Plan
28
Task Description Resource
Task
Status
Start
Date
Finish
Date
Adjusted
Date
Get Agreement on
Proposal
Meeting with management of business units B
and F, as well as, representatives from the Project
Management group to get agreement on proposal
and set a start date for implementing
recommendation.
Smith Complete 4/13/16 4/21/16
Discuss Tools and
Guidelines
Meeting with Project Management group to
discuss what types of feedback questions are
asked currently. Write up a guidance document
that may contain possible feedback questions and
data analysis examples.
Smith,
Project
Mgmt
Group
Represent
atives
In
Process
4/21/16 4/26/16
Communicate
System
Communicate to business units B and F and upper
management on new feedback rule
Jones In
Process
4/26/16 4/30/16
Monitor
Effectiveness
Obtain feedback data from next business process
change to test whether the feedback loop helped
in implementation process.
Error
Proofing
Team
Not
Started
4/30/16 TBD

29. Control Plan
Process Name: Processing of Expedite Orders Date: 4/14/2003
Control
Subject
Subject
Goals
Unit of
Meas.
Sensor
Frequency of
Measurement
Sample Size
Recording of
Measurement/
Tool Used
Measured
by Whom
Processing
and Entry of
Expedite
Orders
90% on-time
Entry of
Expedite
Orders
% Expedite
orders not
entered before
12:30PM
Sorter Calculate Daily
All Expedite
Orders
P-Chart
Sorter/
Supervisor
Adequate Fax
Machine paper
level to print
faxes
No late orders
due to fax
machine out of
paper
N/A Sorter 4 Times per day
Population
(Two Fax
Machines)
N/A Sorter
Adequate Fax
Machine Toner
level to print
faxes
No late orders
due to fax
machine out of
toner.
N/A Sorter 4 Times per day
Population
(Two Fax
Machines)
N/A Sorter
Distribution of
faxed expedite
orders to
XCC's
Sort and
distribute all
submitted
Expedites
every 30 min
before
10:30AM.
Every 15 min.
10:30 to 12:00
Elapsed Time Clock/Watch
1 Delivery per
30 min, 1
Delivery per 15
min.
All Faxed
Orders on two
fax machines
Sorter stamps
date/time of
distribution on
orders
XCC's
Usage of
Message
Board when
XCC is not
available
Return time of
XCC indicated
on message
board for every
absence >15
min.
Message
board used per
absence
Sorter
Check every fax
distribution
cycle
All fax
distribution
cycles
N/A Sorter
Elapsed Time
to Enter Order
XCC/Keyer
enters with-in
30 minutes of
receipt
(delivery by
Sorter)
Elapsed Time
Stamped time
and Computer Entry
Time
Whenever
performance
level drops
below 90% on a
given day
30 Expedite
Orders
Data Collection
Form
Supervisor
29

30. Communication Plan
Stakeholder
Level of
communication--
Storyboard,
paragraph update,
tollgate summary
How information is
communicated--1:1,
meeting, email,
newsletter
Where information is
communicated--e.g. if
during a standing
meeting, which is the
most appropriate
forum?
Frequency of
communication--
every other week,
at tollgate, at end
of project
Who is responsible for
doing the
communication?
Dates for
communication
to occur
On Agenda
Meeting set on
individuals
calendar (Mark
when established)
CFO
Champion
Staff within
departments
represented on the
team
Managers who have
staff represented on
the project team
Staff within the
project department
Executives
Steering Committee
Process Owners
Overall Organization
Individual responsible
for validating project
ROI (CFO, assigned
analyst, etc.)
30