Tom Guthrie

1
Making Sense of Six Sigma The Journey Towards
Quality Improvement in Software and IT

• Tom Guthrie
• Vice President of I.T. Operations
• Cox Communications

2
The Burning Platform
1
THE BURNING PLATFORM
3
The Burning Platform for Cox

• Rapidly changing competitive landscape
• The need to bring products and services to market
  faster
• Expanding convergence pressure (Quadruple Play)
• Increasingly complex partnerships and new content
• Pressure to manage spending but do more/better

2
THE BURNING PLATFORM
4
The Burning Platform for I.T.

• The competitive landscape is intense the stakes
  are high!
• Pressure to do more with less
• Old measurement schemes not customer focused
• Service levels not predictable

3
THE BURNING PLATFORM
5
The Quality Dividend
Capability

Operating Costs
Quality
4
6
Key Messages
The Bad News

• We have a fascination with the current state of
  affairs
• Many commonly accepted measurements are fatally
  flawed
• Continuous process improvement incentives work
• The QUALITY DIVIDEND is achievable

The Good News
5
7
Key Assumptions

• Variation is inevitable
• Defects can be prevented by monitoring,
  controlling, and reducing variability in
  processes and products
• Continuous process improvement can be used to
  reduce variability and improve results

6
8
Process Stability as a Central Tenet
Average (m)
99.73
m 3s
m 3s
If a process in In Control, a randomly selected
item has a 99.73 chance of being between -3 and
3 standard deviations (s) from the mean.
7
STRATEGIC SIX SIGMA
9
Process Capability is the KeyDefects per Million
Opportunity analysis
Defects
Defects
Defects
Defects
(Result gt USL)
(Result lt LSL)
(Result gt USL)
(Result lt LSL)
Three SIGMA Or BUST!
USL
LSL
Six SIGMA Where APPROPRIATE
STRATEGIC SIX SIGMA
8
10
Variability at the airport
Imagine that you are at the Atlanta airport
baggage claim and on top of the baggage carousal
is a sign that says Our average luggage delivery
reliability is 99.99

• Close your eyes how does 99.99 feel?

• Close your eyes againthe carousel comes to a
  stop and your bag is no where to be found. Now
  how does 99.99 feel?

Do our Customers feel the average or their own
individual experience?
9
11
Variability on the Golf Course
Which Golfer do want in your foursome?
Golfer 2
Golfer 1
10
12
Many widely accepted measurement systems are
fatally flawed
11
13
12
14
13
15
Last 20 Rounds (thru Oct 20)
9
8
7
6
5
Number of Rounds
4
3
2
1
0
8
12
17
19
21
22
Diff
14
16
Best 10 of Last 20 Rounds (through Oct 20)
6
5
4
3
Number of Rounds
2
1
0
8
11
12
13
15
Diff
15
17
16
18
17
19
Its more than averages
Our customer dont experience averages they
experience variation
On average, I answer the phone in 30 seconds
Jane called, I answered in 45 seconds
Fred called, I answered in 90 seconds
How you doing, Fred?
Average
18
20
Averages dont represent variation
Both call centers have the same average, which
one do you want to call?
Call Center 1
Call Center 2
10
30
60
Seconds to Answer
19
21
What About Metrics?
Processes are how we execute metrics tell us
how well we execute
Speed
Oil Pressure
Temperature
40
50
30
H
L
H
L
60
20
10
70
0
80
20
22
We have a fascination with the current state of
affairs
My golf handicap this month is 11.3 First Call
Resolution this month is at 62
21
23
Performance Excellence
Control Charts
Capability Charts
After
Measuring the Right Things Right
First Call Resolution
Before
Voice of the Customer
AS-400 Response Time
USL
HELP DESK ASA
Transform
Voice of the Process
USL
Application Uptime
Upper Control Limit
Lower Control Limit
22
STRATEGIC SIX SIGMA
24
Process Operating at 3.74 Sigma
n38
Process is Capable - CpK Sigma 1.24
LSL95.0
USL100
20
18
16
14
12
10
Number of Days
8
6
4
2
0
94.274 to
94.994 to
95.714 to
96.434 to
97.154 to
97.874 to
98.594 to
99.314 to
100.034 to
94.994
95.714
96.434
97.154
97.874
98.594
99.314
100.034
100.754
of Calls Completed
25
First Call Resolution Control Chart (Feb 04 Feb
05)
Target is 50
Initial goal was 50 or better
Process is IN Control
Good
Voice of the Process is 59
70
6,000
65
64
5,000
61
59
60
VOP 59
56
55
4,000
55
53
VOC 50
50
First Call Resolution.
Total Tickets
3,000
46
45
Reorganized the tasks formerly done by
.
the System Administrator positions by
40
2,000
increasing permissions for the Help
35
Desk Coordinators.
1,000
30
25
0
Jul-04
Jun-04
Jan-05
Feb-04
Mar-04
Apr-04
Aug-04
Sep-04
Oct-04
Dec-04
Feb-05
May-04
Nov-04
Months
Final goal is 90 or better
23
26
First Call Resolution Capability Chart
Target is 3 Sigma or better
First Call Resolution
LSL50
USL100
60
50
40
Number of Days in each range
30
20
10
0
45 to
50 to
55 to
60 to
65 to
70 to
75 to
80 to
85 to
90 to
95 to
100 to
50
55
60
65
70
75
80
85
90
95
100
105
First Call Resolution
24
27
First Call Resolution Control Chart (Jul 05 Aug
06)
Phone Only - Weekdays - Control Chart
Process IN of Control
Voice of the Process 62
Good
August 2006 First Call Resolution was 60
70
4,500
4,000
65
64
3,500
62
60
61
60
60
60
3,000
59
VOP 59
2,500
57
Added First Call Resolution to monthly incentive
program. Pays out at 65
55
FCR .
55
Total Tickets .
Process Break Added FCR to
2,000
monthly incentive program. Pay
out at 65
Voice of the Customer gt 50
VOC 50
50
1,500
1,000
45
500
40
0
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
25
Return to Presentation
28
IT Helpdesk First Call Resolution
N 20
Process is operating at 5.51 sigma.
CPK 1.84
Process is in control and capable.
LSL50.0
USL100.0
September 2006
9
8
7
6
5
Days
4
3
2
1
0
50.1
54.1
58.1
62.1
66.1
70.1
74.1
78.1
82.1
86.1
90.1
94.1
98.1
to
to
to
to
to
to
to
to
to
to
to
to
to
52.1
56.1
60.1
64.1
68.1
72.1
76.1
80.1
84.1
88.1
92.1
96.1
100.1
First Call Resolution
26
29
IT Helpdesk First Call ResolutionAction Plan

• My plan is to continue to try to add FCR
  opportunities to the Service Desk. I am currently
  in the process of meeting with other groups to
  transition some of their support to the helpdesk.
  The more we can solve the problem instead of
  passing it to another group, the better.
• Ross Dominy
• Help Desk Manager

27
Return to Presentation
30
5
User Focused Reliability Engineering
49
28
31
Vendor created cost management(real example)

• Software problems driving 6M in annual cost
• Ticket backlog grew to 1000 open problems
• Contract negotiation pending
• Looking for a Win-Win solution

29
32
Vendor created cost management (cont)

• Established contract incentives based on
• Predictability of ticket resolution process
• Capability of ticket resolution process
• Open ticket volume reduced by 90 in 6 months
• Total 5 year incentive payout lt 20 of the cost
  driven by software problems in same period
• Incentives funded directly by avoided cost

30
33
What does SPC allow us to do?

• Identify critical problem areas/ solutions
• Focuses only on real issues
• Eliminates the death grip of month to month
  comparisons
• Uses the VOICE of THE CUSTOMER to gauge success
• Determine the capability of any process
• Understand and optimize any process
• Reduce variation and monitor for unusual
  conditions

SPC Statistical Process Control
31
34
Real improvements are possible but .

• We are all changing the engines in flight
• We have a fascination with the current
  measurement period
• Business leaders want Shock and AWE
• Many accepted measures are fatally flawed
• Reduce variability in things that matter
• Use process improvement incentives

Keys to Success
STAYING THE COURSE
32