6 • σ Improve Localization Efficiency Using Six Sigma (DMAIC) Methodology A case study on how the right strategy leads to a scalable, sustainable solution for global organizations
Agenda • 6 • σ • Company Introductions • Provide background into Process Excellence, Six Sigma and DMAIC • Problem Introduction • Walk you through how we used the DMAIC principles to resolve our problem as well as share with you how it was utilized to deliver much needed improvement and sustainable gains. • What actions are being but into place to continue our overall improvement moving forward. • We will provide you with key learning's that you will be able to use immediately. • Most importantly, you’ll never look at supplier selection the same way again.
Brief Evolution of Six Sigma • A business (quality) management strategy developed by Motorola in 1981. • The term SIX SIGMA originated from terminology associated with manufacturing processes where a sigma rating indicates a percentage of defect free products it creates. • Recognizing that correlation between higher quality and increased revenue, under the leadership of Jack Welch, Six Sigma was introduced at GE in 1995. From that moment, Jack Welch became the global promoter of Six Sigma. • In 2009 the value of Six Sigma was recognized by KCI’s Executive Committee and Process Excellence was listed on KCI’s Corporate Scorecard for the first time. To date, 7 Black Belts and 36 Green belts have been trained at KCI. This localization project is the 1st Black Belt project to achieve certification status at KCI.
Understanding DMAIC… • 6 • σ
Our Challenge • Define • Prior to this project, when it came to localization, each functional group was focused on what "they" need to do without any leverage across KCI’s many functional groups and geographical areas. • These inefficiencies lead to… • Inconsistency of Translated Content • Process Inefficiencies • Quality Issues • Longer Lead-times • Higher Translation Costs • Delays w/New Product Launch and Global Expansion Plans
Define TRANSLATION SPEND Impact to Patient Safety Launch Delays Loss of Market Share Delays in Global Expansion Plans Copy Inconsistency Non-Compliance Penalties Market Removal Expensive Fines Customer Dissatisfaction Market Frustration Process Inefficiencies Rework Zero Leverage Long Lead Times False Positive in Low Cost Option Higher Overall Costs Waste Missed Sales Opportunities Secondary Expenses Associated w/Rework Negative Impact to Other Projects And More….
Define The True Cost of Localization Compliance Impact to Patient Safety Launch Delays Loss of Market Share Delays in Global Expansion Plans Copy Inconsistency Non-Compliance Penalties Market Removal Expensive Fines Customer Dissatisfaction Market Frustration Process Inefficiencies Rework Zero Leverage Long Lead Times False Positive in Low Cost Option Higher Overall Costs Waste Missed Sales Opportunities Secondary Expenses Associated w/Rework Negative Impact to Other Projects And More….
We Asked Our Leadership • Define • Would it be acceptable for KCI to have 20+ suppliers for critical component items such as LCD screens for our VAC devices? • Then, why was an unmanaged, complex, multi-vendor environment acceptable for translated content directly impacting: • Patient Safety • Customer Satisfaction • Quality & Compliance • Speed to Market • Market Expansion • Increased Revenue
Project Charter Goals • Define • Our team believed setting the right localization strategy would: • Improve quality by significantly reducing variation of translated content by 30%. • Improve cycle times by 30% by standardizing processes associated with translated content • Increase translation memory leverage by 30% within and across functional groups assuring KCI the best net cost per "word". • Transition from a multi source to a single source localization provider strategy.
S I P O C • Define Process Supplier Input Customers Output Medical Professionals -Doctors -Nurses -Clinicians At: -Hospitals -Skilled Nursing Ctrs. -Rehab Facilities -Home Care Facilities Customers Regulatory Bodies Attorneys Auditors Distributors Global Sales Force OEMs Multiple Cross-Functional KCI Process Owners CTQ’s Compliance Corporate Communications Corporate Services Finance Global Product Labeling Human Resources Legal/IP LIFECELL Medical Portfolio & Branding Quality Regulatory Sales & Marketing Service Engineering Service Operations Training & Education Local KCI Affiliates Various Business Process Support Staff Business Processes Translation Request Forms Source Documents Approved Funding Business Services and Supporting Systems Resources Equipment (Hardware & Software) Need for Translated Content Key Metrics Translated Content that is… Timely Accurate Consistent Delivered at the best net cost per word. 30% Estimated Savings Global Translation Management • Vertical Alignment to KCI’s Overall G&O
Data Collection Strategy • Measure Once the problem was accurately defined, the next step was to determine the factors that have influence over our process and collect the data needed to support. The following key measures were selected: All Key Measures Tie to Deliverables Improved Cycle Time Increased TM Leverage Best Net Cost Per Word Supplier Reduction
Data Collection SummaryJun09-Feb10 • Measure MEASURE ANALYZE 55 Projects 265,169 Words IMPROVE CONTROL 117 Projects 1,404,844 Words DEFINE 39 Projects 259,850 Words
Data Evaluation Criteria • Measure Criteria & Weight Scoring Against Criteria 9 - High Impact 6 - Moderate Impact 3 - Low Impact 0 - No Impact Resulting Priorities 1 - Labeling 2 - Device Software 3 - Medical
Affinity Diagram • Analyze Contracts HR Materials Including Software Agreements Training and Education Materials Corporate Communications Journal Articles & Reports Regulatory Submissions Video Multi-Media DEFINE Clinical Reports & Manuscripts Labeling Content Sales & Marketing Literature Device Software Market Research Scientific Papers Policies, Misc. Forms & More
Cost of Quality Model • Analyze
Key Findings (1 of 3) • Analyze 1) Obtaining financial data (US & OUS) to verify translation spend was difficult at best. Issues included: • No standard GL code for translated content • Results varied between functional groups with access to financial data. • Limited capabilities of existing systems. • Independent stand-alone systems (US vs. EU and within the EU). 2) Every functional group expressed acknowledgment in their increased need for translated content. 3) Most importantly, the need for translated content will grow exponentially based on KCI expansion plans for both new and existing markets.
Key Findings (2 of 3) • Analyze • In-Country Review was the #1 reason for project delays. • KCI had no management strategy around TMs, terminology or style. • While translation costs represented 15% of KCI’s total annual localization spend, process & administration were as high as 40%. • Inconsistent writing styles and authoring make translations more expensive and impacts total translation costs by 25% or more. • Functional groups were focused on “low cost” without understanding the negative, long term consequences for both our localization strategy and organization overall.
Analyze Key Findings (3 of 3) As budgets get tighter and both competition and project timelines gets more aggressive, our ICR’s will have less available time to review translated content at a time when demand for translated content is increasing. • In short, while KCI has been operating as an international company for years, our localization strategy was far from global. • The time was right for this project!
Key Learning to KCI’s ICR Process • Analyze • Each ICR views and manages ICR differently. • Reviewers are not hired to review, it is an additional task to an already heavy workload. • Reviewers change numerous times within a calendar year. • ICR’s received no formal training or testing for their role (including minimum skill requirements (i.e. English Proficiency/Product Knowledge). • ICR had to change!
E = Expected Deliverables • Improve c x qr x tr w • ONE: Improve quality by significantly reducing variation of translated content by 30%. • TWO: Improve cycle times by 30% by standardizing processes associated with translated content • THREE: Increase translation memory leverage by 30% within and across functional groups assuring KCI the best net cost per "word". • FOUR: Transition from a multi source to a single source localization provider strategy. • E = Efficiency of our TM program • c = Total cost • qr = Quality Ratio of the Translation • tr = Time Ratio • w = Total Words Translated
Improvement Goals (1 of 2) • Improve • Redesign the entire translation process– eliminate MUDA! • Introduce Improved Technology • Develop/Execute TM Strategy – More than Trados! • Maximize Reuse of English Source Content • Create KCI Training & Education Library • Optimize ICR Process • Introduce Style Guide & Glossary of Terms • Internal Training: Write for a Global Audience • Improved cost structure/pricing for KCI jobs • Develop/implement tools to better manage terminology and style
Improvement Goals (2 of 2) • Improve • While this project • was focused on managing translated content more effectively, the long-term picture is about understanding and optimizing the entire content lifecycle, including • source authoring • and • content management.
Cycle Time – Labeling Content • Improve 37% Cycle Time Improvement • 6 • σ • After Process Excellence • 11 Process Steps • Total Cycle Time = 34.6 Business Days • Before Process Excellence • 15 Process Steps • Total Cycle Time = 54 Business Days
Cycle Time Software: Before PE • Improve • Before Process Excellence • Very Manual/Labor Intensive • Total Cycle Time = 82-104 Business Days • (w/o Counting Multiple Review Cycles)
Improve Cycle Time After PE – Pilot Project Label Copy Approval Delivery Validation .TXT Files Better Tools Improved Technology Release Estimated Revenue Savings $1,312,500 Technology Work Flow Functional Testing Translation Work Flow Linguistic Testing TM Resizing Glossary Aligned Core Competencies Dedicated FTE COESupport Screen Designer Input KCI ICR ITD’s PM Led Web EX Passolo Linguistic QA
Improvements – Translation Memory • Improve • Before PE, our TM leverage averaged at 11.5%. • At the end of 2009, we were able to increase our TM leverage to 15% and meet our goal. • As of March 1, 2010, our leveraged reached 32%. • An increase of 180%! • Our two-year goal is to reach a leverage of 75% or more. 2010 YTD Savings 43% TM $130K
Improvements Continued • Improve • Improved Communication (Completed): • Provided KCI w/an internal centralized contact for localization mgmt. • Automated Job Submission (SDL Technology – In Process): • Reduced cost of localization and improve cycle times through automation of previously manual, administrative tasks. • Promotes a unified (process driven) supply chain. • Promotes visibility into localization process which leads to improved time management, increased accessibility and overall better control.
Improvements Continued • Improve • Improve KCI’S “Net Cost” (The Big “E”): • Q110 Glossary Growth Rate: Increased 29% within 1st 9 months (Completed) • Increased TM Leverage and Glossary (On-Going) • Style Guide Creation/Translation – Creation & Growth (On-Going)
ICR Improvements (1 of 2) • Improve • Most importantly, while ICR is NOT a regulatory requirement, KCI and SDL recognize the value it provides (corporate image, regional buy in and risk reduction). • Within SDL’s normal business process, upfront involvement with each applicable ICR is key. This includes e-mail notification when a new job requiring ICR is received as well as close collaboration between SDL and KCI ICR’s throughout the course of the project.
ICR Improvements (2 of 2) • Improve • Glossary: Working closely with GPL and KCI ICR’s, SDL created a glossary of terms which are reviewed on a regular basis throughout the year. • Style Guide & ICR Training Guide - In process • WEB EX Technical Product Sessions – Active • By blending best practices between KCI and SDL, when ICR is not possible, we have successfully reduced risks associated with both late ICR and poor translations.
Improvements –Supplier Reduction • Improve • “Translation spend is a critical strategy and needs to be dealt with tactically.” • “Real candidate for supplier reduction.” • - George Bordon, KCI VP Procurement • In addition to savings obtained though PE based improvements, we engaged our legal and global procurement groups to assist in our supplier reduction efforts including: • Pricing Negotiations • Functional Stakeholder Engagement Across the Globe
Control Plan • Control • Monthly Metrics: Translation Spend, TM Leverage, Time and $$$ Saved, • On-Time Delivery, Quality) • On-Going Software & Localization Process Improvements • Weekly Supplier Meetings • Quarterly Business Reviews: GPL, Procurement and SDL • Sustaining Supplier Reduction Efforts • Legal Receipt/Contract Review – Non Approval • EC PE Presentation to Procurement Council • Global Procurement Led Initiatives • Corporate Communication Avenues
SDL: A Strategic Six Sigma Partner • Control • EDUCATION: • SDL ensures that each person in the supply chain has a clear understanding of their role and the required training to perform tasks with both accuracy and precision. • PROCESS ENGINEERING & RE-ENGINEERING: • Continual review of documented processes to mitigate potential waste from non-automated tasks, including waiting, motion and processing waste. • APPROPRIATE USE OF AUTOMATION: • Intelligent use of technology to automate the appropriate localization processes to optimize ROI, as well as focus on waste reduction in the areas of resource inventory, asset transportation and correction. SDL = COE for Language Management Helping corporations drive global revenue and reduce cost by providing software and services to deliver global content. SDL’s global infrastructure aligns well with KCI’s globalization plans.
Control Continuous Improvement Initiatives Inconsistent writing styles and authoring make translations more expensive and impacts total translation costs by 25% or more. KCI has enlisted SDL to optimize upstream processes to: • Train KCI authors to write for a global audience (controlled authoring) • Train KCI authors to write in one “KCI” voice to ensure seamless use of shared content (voice unification)
Control Continuous Improvement Initiatives The intelligent application of technology is game changing and transformational. It will improve our efficiency by an order of magnitude and drive down our costs. KCI is working with SDL to create a complete services and technology platform to optimize current and future needs • On-going author training • KCI is moving to DITA-based authoring tools, and utilizing SDL Trisoft™ for Component Content Management.
In Summary… • 6 • σ • We’ve increased your knowledge surrounding Process Excellence, Six Sigma and DMAIC • Through a real world problem, we’ve illustrated how DMAIC principles can be applied to localization and that the sustainable gains can be achieved. • Provided you with key learning's that you can apply to your business. • Most importantly, you’ll never look at supplier selection the same way again – the pain is worth the gain!
Recap Project Deliverables – Expected Results 1. Improve cycle times by 30% or more. 2. Maximize reuse of localization content by increasing Translation Memory leverage (TM) by 30% or more. 3. Supplier Reduction 4. Overall, assure KCI receives the best “net-cost” per word with our translation $$$. Show target. (Improve the big “E.”)