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: δ output >> 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*
Buy Brand
Positive Chat
Brand Identification
Leverage
Positive Perception
* Steven van Belleghem : The Conversation Manager
Promote Brand
Brand as Model
Calling for totally new ways of working: Dynamic, Responsive & Collaborative
Old Habits
New ways
Command & Control
Connect & Collaborate
“Systems” is an IT term
Systemic thinking as a managerial concept
Coping by splitting up
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…
Processes: boring & piece of cake!!
-
O rd e rs re c h ts tr e e k s in O M
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 e r s v ia a u t. in t e rf a c e
P o te n t ie le g e b ru ik e rs v a n d e d ie n s t
O r d e r s b ij h e t e m a il c e n t ru m (E M C )
O r d e r s in g e v o e r d in e e n IT s y s te e m
- Not on our regular Mgt’s Agenda - Dear Consultants disclose this minefield
O rd e rs in O r d e r M anager
O r d e r m is t c o r r e c te g e g e v e n s O r d e r u itv a l
N i e t g e c le a n d e m odem s
P o te n ti e l e k l a n te n
I P B o r d e r in O M
IP B o rd e r m e t D S L p o o rt to e g e w e z e n
A a n v ra a g m u l ti m e d i a acoount
Aa nm naken m a ila cc o u n t V T out
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 i t KPN>COM
M OC
P r o v i si o n e d i n TSM
C a p a c i te i t T S M
S le u te le n U p g ra d e V ri j e D S L p o o rte n + s p l i t te r
S e r v e r c a p a c i te i t
M odem v e rz e n d c a p a c i te i t
S e r v e r c a p a c i te i t in a a n vra a g
- Many local not interconnected initiatives - IT and actual Processes disconnected
S n e lh e id p r o g n o se V o i c e p l a tfo rm
M ode m ve rz e n d e n
P l a t fo r m i n t e r n e t C o m p l e e th e i d te c h n i s c h e sp e c i f i c a t i e B e sc h i k b a r e c a p a c i te i t
F a c tu r e re n
- Frustration all over the place. - Top level instructions are not recognized. - We cannot deliver as requested!!
CALL CENTER SERVICES KPN 2007/8
< 2007
> 2007 < 2009
- Focus on Cost
- Focus on Quality
-
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
-
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
Sales
Own P&L
Consultancy
Cost
Data Centers
Cost
Own P&L
Own P&L
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 o
Fierce competition Increased “line loss” rate
•Solution: Avoid o o
Decision to launch own version of VoIP services Self-cannibalize own sales
“Succes” of VOIP
β
GAP
Customer Demand (Orders/wk)
Kassa & Radar in December 2006/January 2007
• Low customer Demand satisfaction • Excessive costs • Inadequate market Capacity 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
Churn rate Installed Base
• No capacity required. • Automated systems do all the work or customers do it themselves
But most of the time it rains
Service order rate
Primary Processes Provisioning rate Provisioning WIP New sales orders Provisioning Fail rate
Do-It-Yourself Field Install WIP
Provisioning Fix rate
Churn rate Installed Base
Required Technician Install rate Technician Assisted Field Install
Provisioning Rework
Technician Install rate
Calls from Primary Processes
Secondary Processes Incoming Calls
Customer Install rate
Call Load
Calls Handled Call Workload
Complaints Load Incoming Complaints
Complaints Handled
Focus on flows suggest processes are under control
Rework Rework Inflow Data
18000
Rework Outflow Data
Rework
Rework Inflow 15000
Rework Outflow
12000
MRP Thinking 9000
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 107
9
17
25
33
41
Jan 49 08 57
65
73
81
89
But most of the time it rains
Service order rate
Primary Processes Provisioning rate Provisioning WIP New sales orders Provisioning Fail rate
Do-It-Yourself Field Install WIP
Provisioning Fix rate
Churn rate Installed Base
Required Technician Install rate Technician Assisted Field Install
Provisioning Rework
Technician Install rate
Calls from Primary Processes
Secondary Processes Incoming Calls
Customer Install rate
Call Load
Calls Handled Call Workload
Complaints Load Incoming Complaints
Complaints Handled
Call ratio: KPI that continued to deteriorate as key elements of drivers were not understood. Lesson difficult to digest: Know the process and its dynamics before adopting a Target/KPI or allocating Capacity.
Volume incoming orders Sales rate
Process Type 1: Work = ⌠ (Volume incoming orders)
P1 Install rate
Rework rate
Error rate
Quality of orders
Problem resolution time P2
Calls from regular install
Cancellation rate
Process Type 2: Work = ⌠ (P1, Order Quality )
Calls from rework
Call rate
P3 Solution rate
Process Type 3: Work = ⌠ (P1, P2, Quality Problem Resoltion Time) = ⌠ (V, Q & QPRT)
Impact Failure Demand
Quality drop of 10 % 1: Av Quality
2: Worklo…all center
1: 2: 3: 4: 5:
1 3 150 20000 15000
1: 2: 3: 4: 5:
1 2 75 10000 7500
1 Incoming order volume is perfectly stable in this scenario.
4 2
3: FTE Call handling
3
1
5
FTE more than doubles 2 months 4: New s…sales rate Calls offered after initial5: quality drop, then have to be brought back down again. 1
1
5
2
5
3
4
5
3
4
4
3 2 2
1: 2: 3: 4: 5:
0 0 0 0 0 0.00
Page 4
12.50
25.00 Weeks 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.
37.50 50.00 18:52 woe, 2 apr 2008
*) Bron: Analyse SCEC / UvT
Integral responsibility was lacking
NOBODY HAD INSIGHT OVER THE TOTAL CHAIN PROCES
Service opdrachten bestaande aansluitingen
Orders rechtstreeks in OM
Orders via automatische interface
Potentiele gebruikers van de dienst
Orders in OM
Orders in OFM
OHW voice platform account
OHW dslam
Werkend voice account 1
OHW RG Distributie orders
OHW FT out account
RG afgeleverd
Definitieve uitval
OHW Service opdracht voor installatie
Voice platform set up
OHW activatie voice account
Geen werkend voice account
Cockpit of email werkt niet
Werkend voice account 2
Nieuwe monteurs wijkcentrale
Verandering kwaliteit EMC medewerker
Aannemen EMC medewerkers
Kwaliteit van KPN verkoper
EMC nieuwe medewerkers
EMC ervaren medewerkers
Aannemen KPN verkopers
Uitstroom EMC medewerkers
Opleiding en ervaring KPN Verkopers
Verkoop productiviteit nieuwe KPN Verkopers
Productiviteit EMC ervaren medewerkers
Productiviteit EMC nieuwe medewerkers
Nieuwe KPN verkopers
Ervaren KPN verkopers
Uitstroom KPN verkopers
Verkoop productiviteit ervaren KPN verkopers
Workload bij verkopers
Inhuren outbound capaciteit
Ervaren FT out specialist
Aannemen FT out specialist
Nieuwe call agents (Outbound)
Productiviteit ervaren monteurs wijkcentrale
Nieuwe vp specialist
Aannemen vp specialist
Workload monteurs wijkcentrale
Verkoop Capaciteit
Capaciteit EMC Workload bij EMC medewerkers
Nieuwe FT out specialist
Ervaren monteurs wijkcentrale Uitstroom monteurs wijkcentrale
Capaciteit monteurs wijkcentrale 0
OHW bij Collections
Facturen om af te boeken
klacht n.a.v. Collections IPB verlopen facturen
Service Productiviteit Ervaren Monteur
OHW Facturen met klachten
OHW 1e Lijn support Melden van storingen
afboeken
OHW 3e lijn support
OHW 2e Lijn support
Opgelost in 1e lijn
<Werkende IPB aansluiting> Annulering na zichttermijn na 7dgn
OHW Klachten te routeren
OHW Klachten Routeren
Klacht komt eraan
Opgelost in 3e lijn
Opgelost in 2e lijn
Gecancelde facturen
opgelost
gecorrigeerde facturen
Reparaties
Facturen met klachten
Service Capaciteit Monteurs
Calls door monteurs
betaal afspraken Facturen zonder klachten
IPB geincasseerde / betaald facturen
Betaling
klacht moet opnieuw gerouteerd worden
Opleiding en ervaring FT out specialist
Uitstroom FT out specialist
Percentage monteurs voor service
Inhuren
CEVA Logistics Capaciteit
Afstoten van capaciteit
Aannemen monteurs
Productiviteit monteurs wijkcentrale
Kwaliteit EMC medeweker
IPB openstaande facturen
Service Productiviteit Nieuwe Monteur
Opleiding en ervaring monteurs wijkcentrale
Verandering kwaliteit KPN verkoper
OHW factureren
Aannemen monteurs wijkcentrale
MENSEN
Klanten te factureren
Rework FT out account
Rework account platform
Afsluitingen
Werkende IPB aansluiting
OHW IPB installaties door monteur
OHW Order rework Re-worked orders
Fail rate
Reguliere opzegging
RG Retour Uitval
Uitvaal interface
<Service Capaciteit Monteurs>
Niet werkende IPB aansluiting
<Service Capaciteit Monteurs>
Reguliere opzegging niet werkende dienst
Oplossing rate
Orders bij emailcentrum (EMC)
Orders in IT systeem
OHW IPB installaties DHZ
Productiviteit nieuwe FT out specialist
Afstoten outbound capaciteit
Ervaren vp specialist
Opleiding en ervaring vp specialist
Uitstroom vp specialist
Nieuwe TSM specialist
Aannemen TSM specialist
Productiviteit ervaren VP specialist
Productiviteit nieuwe TSM specialist
Workload VP specialist
Opleiding en ervaring TSM specialist
Kwaliteit VP specialist
Ervaren TSM specialist
Workload bij monteurs
Kwaliteit reparaties
Ervaren KPN Monteurs (installatie en service)
Installatie Capaciteit Monteurs
Uitstroom KPN monteurs
Installatie Productiviteit ervaren monteur
Verandering kwaliteit CEVA Logistics
Nieuwe AP Monteurs (installatie)
Ervaren AP Monteurs (installatie)
Kwaliteit Collections werk
Facturering ervaren medewerkers
Productiviteit Facturering nieuwe medewerkers
Collections nieuwe medewerkers
Productiviteit Facturering ervaren medewerkers
Verandering kwaliteit monteur service
Kwaliteit CEVA Logistics
Kwaliteit van monteur installatie
1e, 2e, 3e lijn nieuwe medewerkers
Productiviteit Collections ervaren medewerkers
Kwaliteit Facturering
Klant Reactie nieuwe medewerkers
Productiviteit Klant Reactie nieuwe medewerkers
Workload bij reparaties
Workload bij klachten behandeling
Kwaliteit Doe-het-Zelf Installatie
Kwaliteit TSM specialist
PRODUCTEN Kwaliteit RG Hardware Verandering kwaliteit RG Hardware
Inkoop dslam
Nieuwe dslam slot
Nieuwe dslam kaart Bouwtijd dslam slot
Bouwtijd dslam kaart
Bestaande dslam
Nieuw VP Devaluatie dslam
VP in bestelling
Verandering kwaliteit IT systemen
Nieuwe release IT systemen
Updated IT systemen
Capaciteit IT systemen
IT systemen Stabilisatie IT systemen
Verandering kwaliteit Order Manager Kwaliteit IT systemen
Verandering stabiliteit Ordermanager
Nieuwe release OrderManager
Nieuwe release Interfaces
Stabiliteit Interfaces
Updated Interfaces
Updated OrderManager
Kwaliteit Order Manager
verandering stabiliteit dslam
Stabiliteit VP Verandering stabiliteit VP
Bestaand IP
Bouwtijd KPN.com Nieuw KPN.com
Capaciteit internet platform 0
Stabilisatie OrderManager
Bestaand KPN.com
Capaciteit KPN.com-
Capaciteit OrderManager
Order Manager
Capaciteit Interfaces
Interfaces Stabilisatie Interfaces
Bouwtijd TSM
Devaluatie TSM
RG's Bestellen
KPN.com server in bestelling
RG's in bestelling
RG's ontvangen
Voorraad RG's
Verzenden
Devaluatie KPN.com Capaciteit TSM
Stabiliteit mail server
Verandering kwaliteit RG Software
Verandering stabiliteit mail server
Stabiliteit KPN.com
Uitbreiden TSM server
Verandering stabiliteit KPN.com Updated TSM system Nieuwe TSM release
Kwaliteit Interfaces Verandering stabiliteit Interfaces
Stabiliteit OrderManager
Stabiliteit dslam
Devaluatie IP
Bouwtijd IP Nieuw IP
Stabiliteit IT systemen
Bestaand TSM
Nieuw TSM TSM in bestelling
Capaciteit mail serverIP in bestelling
Verandering stabiliteit IT systemen
Bestaand mail platform
Capaciteit voice platform-
dslam capaciteit-
SYSTEMEN
Nieuw mail platfom
Devaluatie VP
Devaluatie mail platform
Bouwtijd mail platform
Mail server in bestelling
Bestaand VP Bouwtijd VP
Kwaliteit RG Software
TSM-configura tie capaciteit
Verandering stabiliteit FastTrack
Nieuwe release FastTrack
Stabiliteit FastTrack
Updated FastTrack
Capaciteit FastTrack
FastTrack Stabilizatie FastTrack
Verandering stabiliteit Billing & Collections systemen Nieuwe release Billing & Collections systemen
Afstoten TSM configuratie capaciteit
TSM systeem
Stabilisatie tijd TSM systeem
Verandering kwaliteit TSM-configuratie
TSM-configura tie kwaliteit
Verandering Stabiliteit Vergoeding systemen Updated Vergoeding Nieuwe release Systemen Vergoeding Systemen
Stabiliteit Vergoeding systemen
Stabilizatie Vergoeding systemen
Stabiliteit Billing & Collections systemen
Capaciteit Billing & Collections Systemen Capaciteit ATS Stabiliteit ATS
Updated Billing & Collections systemen
Stabilizatie Billing & Collections systemen
Capaciteit Vergoeding systemen
Vergoeding systemen VVV, VVA, VVE
Billing & Collections Systemen
Stabiliteit Klachten systemen
Verandering stabiliteit ATS
Nieuwe release ATS
Capaciteit Klachten systemen
ATS
Updated ATS Stabilizatie ATS
Nieuwe release Klachten systemen
Productiviteit Reparatieteam ervaren medewerkers
Capaciteit Reparatieteam
Productiviteit Klant Reactie ervaren medewerkers Capaciteit Klant Reactie
Workload bij support
Workload bij Collections
Reparatietea m ervarenme nsen
Productiviteit Reparatieteam nieuwe medewerkers
Klant Reactie ervaren medewerkers
Productiviteit 1e, 2e, 3e lijn ervaren medewerkers Capaciteit 1e, 2e, 3e lijn
Kw aliteit van monteur service
Reparatieteam nieuwe mensen
Kwaliteit klachten behandeling
1e, 2e en 3e lijn ervaren medewerkers
Productiviteit 1e, 2e, 3e lijn nieuwe medewerkers
Capaciteit Collections
Workload bij facturering
Afstoten AP Monteurs
Kwaliteit support
Collections ervaren medewerkers
Productiviteit Collections nieuwe medewerkers
Verandering kwaliteit DHZ-installatie Verandering kwaliteit TSM specialist
Verandering kwaliteit FT out specialist
Facturering nieuwe medewerkers
Capaciteit Facturering
Inhuren monteurs
Verandering kwaliteit monteur installatie
Workload TSM specialist
Kwaliteit FT out specialist
Verandering kwaliteit VP specialist
<Service opdrachten bestaande aansluitingen>
Uitstroom TSM specialist
Productiviteit ervaren TSM specialist
Capaciteit TSM specialist
Workload FT out specialist
Kwaliteit monteurs wijkcentrale Verandering kwaliteit monteurs wijkcentrale
Installatie Productiviteit nieuwe monteur
Productiviteit ervaren FT out specialist
Capaciteit VP specialist 0
Productiviteit nieuwe VP specialist
Capaciteit FT out specialist 0
Nieuwe KPN Monteurs (installatie en service)
Updated Klachten systemen
Stabilizatie Klachten systemen
Klachten systemen
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.
Symptom
Mgd. Results
Problem
Root Cause
Remedy
Symptoms: 1. … 2. …. 3. ….
Root Causes 1. … 2. …. 3. ….
1
2
2
Collaborative Diagnostic Sessions
Logic of Root Cause Analysis: via Collaborative Diagnostic Sessions
Managed Results 1. … 2. …. 3. ….
4
3
Remedies 1. … 2. …. 3. ….
Logic of Root Cause Analysis: What time and again is disclosed!
Poor Services High Cost
Root Causes
Managed Results 1
2
Compartmentalized Systems/Processes 2
Collaborative Diagnostic Sessions
Symptoms
Quality Up Cost Down
4 Remedies 3
Collaborate
Same logic in virgin situations Measured Results 1
What is needed
2
2
Collaborative Diagnostic Sessions
Desired Outcome
4 Anchoring 3
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
Attention given to dealing with error lists -
1. 2. 3. 4. 5. 6. 7. 8.
Fullness of file systems
Work pressure +
Agent time investment +
Agent queries +
Customer queries +
+
Intensity of monitoring of interfaces
Disturbances resulting from human intervention
Predictability of consequences of local changes to other systems
-
+
Purpose (in customer terms) Types and frequencies of Demand Capability to respond Value work (Muri) & Waste (Muda) System Conditions that create Waste Obsolete and conflicting Measures Change towards Collaborative Measures Building blocks Design for Purpose
+
+ BREAKDOWNS of interfaces between systems in day process
-
-
Correctness of confirmation letter
No of critical customer process applications (40)
Ability to key in complete order
-
+
-
-
Appear on work list for backoffice
No interfaces between systems
Stability of interfaces between systems
Focus on system-specific performance
Confusion with customer
-
Correction of errors
Unfreeze, Move, Freeze -
Interrelatedness of system performance
Backoffice activity
-
Customer order changes +
-
Up-to-dateness of databases
Ability to sort + out queries Interruption interception of service order (as a circumvention)
+
Customer calls --
Control of system network
Time-outs of systems
+
-
Prevention quality
+ Quality of delivery
Owners of interfaces
People's competence
CUSTOMER SATISFACTION
+
+ Coding complexity
Backup systems available SLAs on interfaces
+ Revenues Upgrade skill levels
+ Budgets
+
2001
Internet
DELIVERY PROCESS TELEPHONE + SUPPORTING SYSTEMS
Work orders PLANTAS
Order Entry SERVERS
CIA / AWO / KIOSK
Order Preparation
Switching
KANVAS / SYMONE SOPHIA
CONNECT / ASAP 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) Root Causes
Problem & Symptoms
change door menselijk handelen
time-out filesysteem is vol
mensen
financien
vertrek van deskundigheid
niet aanvullen van
INSOURCING tijdsdruk CAPABILITIES GONE systemen niet
storingen in koppelingen tussen systemen in dagproces
'storing' interceptie serviceorder (als omzeiling)
geen volledige order inleggen
geen inzicht in gevolgen voor rest
40 kritische klantproces-applicaties
complexe codering
verschijnen op lijst voor back-office
STRESS kost tijd van agent Roeien met de riemen klant niet meteen helpen die we hebben
koppelingen tussen applicaties
fouten in bijwerken back-office komt in actie
kwaliteit van preventie
enkelvoudig uitvoeren
agent gaat uitzoeken verkeerde bevestigingsbrief klant wijzigt wensen
geen eigenaren van koppelingen
geen SLA's over koppelingen
niet kunnen uitzoeken
klant stelt vragen
zeer nauwe verwevenheid van alle systemen
bijgewerkt kennis van mensen
complexiteit van vraag van de klant
netwerken van systemen ook niet beheerst
aandacht voor afhandelen foutlijsten
intensiteit van monitoren koppelingen
ontevreden klant
reactie monteur
uiteindelijk toch fout geleverd
verwarring LEVEL 1 PROBLEM COMPLAINTS klant klant bellen
bellen klant agent
LEVEL 2 PROBLEM RESOLUTION COMPLAINTS
focus op technische performance
change
“BOXES”
What turned into working together: delivery process telephone + supporting systems
Work orders PLANTAS Joint Smart Outsourcing Complaints in 4 Room Partners months to Order Manage collaborate to Orderthe Entry Switching 9 % and within Preparation Process as a improve year to 5 % SERVERS whole Customer Sat CIA / AWO / KIOSKKANVAS / SYMONECONNECT / ASAP SOPHIA AXE / 5ESS 16%
14%
13,4% 12,9% 11,8%
12%
11,4%
10,9%
11,1%
11,0% 10,3%
10,3%
9,9%
9,7%
9,3%
10%
8,9%
8,6%
8,7%
8,4%
8%
9,3%
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
Customer satisfaction
+ Delivery performance +
B3
+ Market reputation
Errors chase customers away-loop Work in Progress
Selling new services
Services up and running
-
+
Killer Applicati on
Rework +
R1
Processing capacity required
Stress creates errors-loop +
Error rate +
+
Employee B1 learning Work Stress People learn from + mistakes-loop
Workload -
+ Employee skill level
Processing capacity available + +
+ Hiring of new staff B2
R2
We'll put more people on this-loop
Unhappy staff walks out-loop
+ Staff New hires
Quits
Employee satisfaction
There is a very strong logic, linking Collaborative Diagnostics to…. Outstanding Business Performance
Method
Outcome
1st Tier Effects
Insight in Interdependencies Transparency Collaborative Diagnostics Mobilization of Teams
Common Purpose
No more Gaming
Managed Trust
Measurable & Expanding Collaboration between Parties. Aligned Incentives
Performance Effects
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
Sales & Operations Planning (S&OP)
Sales & Operations Planning is het management proces dat moet zorgen voor een optimale afstemming tussen verkoop en realisatie
Solution: Collaborative Planning & KPI’s
Collaborative S&OP Meetings: - Monthly meeting w/ representatives of SC players - Based on actual data: - Volume and quality standards
-
a)
monitored
b)
forecast
c)
interrelated & consistent
d)
within fixed parameters
Based upon quantitative model connecting all parts of chain and performance to the customer
Strategic and financial planning
Call Center capacity
Engineers planning
Forecasting
one consensus plan
Hardware availability
Connection capacity
Distribution Planning
Installation capacity Out of control!
Call centre workload
1: Call center 1:
3
1
Desired Level!
1:
2
1
1
1
1:
0 1.00
Page 4
OverCapacity!
13.75
26.50
39.25
Months
time
Call center workload
52.00
Het S&OP besturingsmodel S&OP Masterteam • • • • • • • • •
Marketing
Retail
Responsible Finance Responsible Marketing Responsible Retail Responsible Sales Responsible Connectivity Responsible Installation Responsible Service Responsible Billing Responsible IT
Sales
Connectivity
Installation
Service
Billing
Het Master S&OP proces bestaat uit 5 stappen
Afdeling
Innovatie Management
Marketing & Sales
Input
Procesflow
Marketing / Sales
Review introductie nieuwe diensten
Marketing / Sales
Verzamelen van forecast cijfers
Output
Demand review Marketing / Sales
Capaciteitsgroep
S&OP
Capaciteits groep
Capaciteits review per capaciteitsgroep
Capaciteits groep Pre-S&OP meeting
Opstellen JaarEinde Verwachting (JEV)
S&OP
S&OP meeting
Doel: In de (Master) S&OP meeting wordt het S&OP plan (demand en capaciteitsplan) vastgesteld op basis van de analyse uit de Pre-S&OP meeting
62
The Sales and Operation Process sits at the tactical level between Business Planning and Detailed Planning
Annually/ Quarterly
•
Agreed resource constraints and output levels
Business planning
• •
Defined and/or re-defined objectives, policies, decision guidelines
•
S&OP Tactical Framework Monthly
Weekly
Capacity Review Meeting Service Service Service planning planning planning
S&OP Meeting
D&S Meeting
• Monitored Service Capacity performance • Reviewed Resource Plan • Production and Resource Plan
Daily
Resource Scheduling
• •
Strategic
Service Chain performance related actions Agreed Sales plan Agreed Production and Resource plan
Tactical
Demand Review Meeting
Agreed Consensus Demand Forecast
Sales & Demand Planning
Operational • Monitored performance to customer • Unconstrained demand info
• Actual Capacity • Actual Materials • Service back-log and waiting times
Forecasts Request mgt
Execution
The S&OP tactical planning process is carried out through a rigorous - typical monthly - cycle Every period the S&OP meeting takes place, which consists of: • Formal review of deviations and corrective actions • Formal review & acceptance of sales forecast and capacity • Formal assessment of impact on service levels, waiting times and back-log, utilization and output, inventory and lead times • Formal resolution of demand vs. capacity imbalances
S&OP Tactical Framework Monthly
Capacity Review Meeting
Every period a capacity review takes place per capacity group in which: • Master Plans versus Output is reviewed • Capacity is reviewed • New Master Plan (recommended option) is introduced and discussed
S&OP Meeting Demand Review Meeting
Every period, demand and capacity plans are consolidated so that: • Master Plan (+ options/scenarios if necessary) is generated • Capacity, Service back-log and Inventory projections are determined • Conflict scenarios are determined and highlighted for S&OP
Service Chain KPIs and Projections must be aligned to Strategic and Operational metrics to ensure effective decision making
Strategic Level Business KPIs Tactical level Performance monitoring
‘Looking back’
Operational level
Tactical Planning Projections and KPIs
‘Looking forward’
Functional KPIs
KPIs and Projections focus on critical areas of the Service Chain tactical framework, such as demand and service resources
Decisionmaking and planning
Extending the Planning Horizon: Deplugging the traditional Bottlenecks! Short term planning
Long term planning
Week Planning
S&OP 12 months forward
Capacity
Fixed
Variable
Service Level
Plan Plateaus & Influence
Variable
Fixed
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
Tools of the trade -
System Dynamics Ishikawa Fishbone Theory of Constraints SCOR 6σ Factory Physics BPM
COMMAND & CONTROL THINKING VS CONNECT & COLLABORATE PURPOSE - MEASURES - METHOD
Connect & Collaborate
Command & Control -
Creates inside out Purpose
-
Imposes targets
-
Dictates method
Purpose
Measures
Method
-
Thinks from Customer point of view
-
Derives measures
-
Freedom of Choice
Command & Control vs Systemic (Post Modern) Thinking
Post modern thinking is slightly older than the hills (Read Confucius and Tao)
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
What sets Services Supply Chains apart?
Value & Failure
Service: (S= P– E) = ⌠( QUSP) IT MRP thinking: Stress Traditional Accounting & Reporting: WIP??? Ashby: Vs ≥ Ve Recipe Changes: Installed Base
Wat betekent dit voor de dag van morgen?
Killer Application
# $
Purpose, Measures Methods Lucas; Spreuken XXII-2
KPIs
FOCUS ON COST: QUALITY GOES DOWN FOCUS ON QUALITY: COST GOES DOWN
There is an old expression,
“Seeing is believing”. But it’s more accurate to say that
“Believing is seeing”.
Carl Sörenson, Stanford
To Stimulate
To Encourage
“We will not be able to solve our problems with the same way of thinking that we used when we created them” Albert Einstein
To Challenge
To Stir up on Purpose
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
Sources of Wisdom
-
Jeff Conklin: Dialogue mapping, Building Shared Understanding of Wicked Problems. Dennis Sherwood:“Seeing the Forest for the Trees” A Managers Guide to Applying Systems Thinking. Peter Senge: the Fith Discipline “The Art & Practice of the Learning Organization” Kurt Lewin: Action Research and Minority Problems (Journal of Social Issues, 2: 34-46, 1946). John Seddon: Freedom from Command & Control “Rethinking Management for Lean Service John Sterman: Business Dynamics: Systems thinking and modelling for a complex world. Keith Harrison-Broninski: Human Interactions: The Heart and Soul of Business Process Management Robert Johnson & Graham Clark: Service Operations Management Morten T. Hansen: Collaboration “How Leaders avoid the Traps, create Unity and reap big Results” Peter Fingar: Dot Cloud “the 21st Century Business Platform” Raj Sisodia, Jag Seth, David Wolfe: Firms of Endearment; How world class Companies PROFIT from Passion and Purpose Aaker Smith: the Dragon Fly Effect “Quick, Effective and powerful ways to use social media to drive social change” Steven van Belleghem: De Conversation Manager “De kracht van de hedendaagse consument”
-
Begin 2013: Van Oppen & Van Oppen: Collaborative Business Practices “A Dialogue between generations”
-