GB Project Report Template Review

Student Name: Larry Pereira

City Liaison to Project / Project Coordinator: CoCo Good
Project Champion: Frank Ragan
Master Belt Mentor: H. T. Hsia
Date: Oct 23, 2009
Version 7.0

2009 © C4iSN Six Sigma Green Belt Project

General Requirement
• Dated
• Revision Controlled, especially on the Project
Charter
• Slide numbered
• All charts accompanied with Observation and / or
Conclusion
• An index is needed
• A list of demonstrated tools with GB Candidate’s
name attached
• It is students’ responsibility to retain the hand-
written note from the review session and complete
the assignment on time

2
Guideline: Six Elements

• For the Business Case, Decision Making

– Time
– Cost
– Scope
– Risk
– Quality
– Customer Satisfaction

3
Index
• Topics
• Slide Guide

To be completed later

4
Project Charter-1

Rev 6.0
5
Project Charter-2
•Why should we do this? •What pain are we experiencing?
•Tax Payer Savings • Investment (sunk cost) in a strong & nationally recognized
• Opportunistic Timing brand for McKinney is currently being diluted
• Win-Win for all entities • What is wrong?
•Overall Messaging & Brand coordination •Each city taxpayer funded entity creates their marketing plans
(add’l on #8) and missions independently at the direction of their Board on
behalf of the City of McKinney (add’l on #14)

•What are the Improvements & Targets? •What authority do we have?

•Approx 10% -15% Cost Savings • The City Council approves the budgets. The Council has
•Establish Marketing Responsibilities asked the City Manager to find a solution to the problem
•Avoid Duplication (add’l on #15)
•Agree Approval Process •What processes are we addressing?
• Allow for Target Market specific Branding •Marketing budget expenditures and approvals
(add’l on #10) •Division of duties and responsibilities (which city taxpayer funded
entities market to whom) (add’l on #16)
•What is not within scope?
•Anything outside of communications and marketing, including
overall scope/mission of the city taxpayer funded entities
•(add’l on #17)
•How are we going to get this done? Team Selection
•Appropriate meetings David Pitstick - Director (MEDC)
•Data gathering Ray Eckenrode/Bill Campbell - (MCDC)
•Appropriate #s crunched Diann Bayes - Director (MCVB)
•Proposal(s) made Ty Lake - Main Street Director (Downtown McKinney)
(add’l on #11) Ken Weigand - Director (MADC)
•When are we going to complete the work? •Champion, Frank Regan, City Manager
•TBD •Member-CoCo Good, Dir Marketing, City Mgr’s Office
•GB Candidates-Larry Pereira, BB-H. T. Hsia
(add’l on #12)
(on #18)
What responsibilities will they have? (On #19)
Rev 6.0 6
 McKINNEY CITIZENS

McKINNEY CITY COUNCIL

City Tax Pay’s Entities

MAIN STREET MADC MCVB MEDC MCDC

CITY OF BOARD BOARD BOARD BOARD (4A)* BOARD (4B)*
McKINNEY Appointed from (Council (Council (Council (Council
Various sources Appointed) Appointed) Appointed) Appointed)

MEDC Sets
CITY MAIN STREET AIRPORT & Manages MCVB MEDC MCDC
MANAGER DIRECTOR DIRECTOR Airport DIRECTOR DIRECTOR DIRECTOR
(CM makes director (Board makes director (Board makes director (Board makes director (Board makes director
(CM) staffing decisions) staffing decisions)
Marketing staffing decisions) staffing decisions) staffing decisions)
Budget

Mkting Budget Mkting Budget Mkting Budget

Communications
& Marketing
Director Frank Ragan - City Manager and City Council representative to the team – Project Champion
CoCo Good - City Communications and Marketing Director
Will also act as Liaison between Larry and others mentioned here as required.
David Pitstick - McKinney Economic Development Corporation Director (MEDC)
Mike Gibson - McKinney Community Development Corporation Director (MCDC)
Diann Bayes - McKinney Convention and Visitors Bureau Director (MCVB)
City
Departments Ty Lake - Main Street Director (Downtown McKinney)
Approx 900 Ken Weigand - McKinney Airport Development Corporation Director (MADC)
Employees

*MEDC & MCDC are state regulated 4a and 4b entities, funded by ½ cent sales tax
7
Why should we do this?
Why should we do this?
Via coordination of objectives, defining duties and processes, leveraging on
opportunities to pool resources, utilizing economies of scale via common suppliers
where possible, demanding volume discounts and other such business measures will
result in cost savings of 10 - 15%? (RANGE, OR SOLID AT 15%) - a much BIGGER
bang for the buck for the Tax Payers of the City of McKinney…!!

• Total available Marketing dollars for the City and where do they currently reside?
– Collectively, through our city taxpayer funded entities, we have substantial marketing
dollars that can be used to market and promote McKinney in the marketplace.
– The housing of those budgets and resources independently throughout each
organization requires that we work closely together in order to maximize our impact and
get the most bang for the buck – thereby complementing each other’s efforts. This
process is lacking in its current state.

• Potential Customer’s perception (image) of McKinney and subsequent potential

impact
– Every experience a customer or prospect has with McKinney contributes to their
respective image (perception) of our city as a whole.
– Marketing plans for each city taxpayer funded entity should be coordinated
– As the combination of those plans is what is effectively should be the formal marketing
approach for the city overall – which results in being “our” “face” to the marketplace.
8
Why should we do this? – cont.

• Potential Impact
– McKinney is currently at a point of enormous opportunity (ie. growth/explosion)
– With 2/3 of our community still left to build-out, we are officially one of the fastest growing
communities in America (5th fastest) and have received multiple national recognitions such as
appearing on Money Magazine’s “Best Places to Live” list.
– With the current, national/global economic slow down, and with a strong brand in place that unifies
the city, this is an opportunistic time to leverage on the “total picture” by making the most
effective use of Tax Payer’s dollars and resources moving forward - as we collectively
promote a sustainable, well-rounded community and its niches, keeping us a highly sought-after
community for residents, businesses, visitors and others – both, domestic and international.
– By coordinating our brand and messaging from an overall perspective, in a strategic and
organized fashion, we will speak with one voice about McKinney, all the while continuing to
deep-dive within the overall brand to reach specific sub-target audiences and niche markets
using specific focused/targeted messages for those groups as determined by subject matter
experts tasked with that responsibility.
– The goal is to provide a win-win for both the city as a whole and the city taxpayer funded
entities tasked with reaching target markets.
– In addition, coordination of objectives, defining duties and processes, and leveraging on
opportunities to pool resources results in a much BIGGER bang for the buck…!!
– Ample opportunities exist to leverage resources and save costs through combined purchasing
agreements, possible shared resources, better use of internal resources (less duplication of
effort), more effective outsourcing agreements and other similar aspects of cost savings. 

9
What are our improvement objectives & targets?
What are our improvement objectives and targets?
 
• Establish marketing responsibilities for each city taxpayer funded
entity to avoid duplication of effort – who “owns” what marketing
initiatives and communications aspects.
 
• Agree on an approval process for marketing plans, communications
materials and other public outreach that will allow for target-market
specific messaging and customization tailored to reach specific niche
audiences, while continuing to ensure McKinney is presenting a
coordinated voice, image and brand that is also representative of the
community as a whole and satisfactory to the City Council.
 
• Establish operating procedures and processes that will enable
marketing budgets and expenses to be coordinated for maximum
Returns across organizations on behalf of the City of McKinney
and its Tax Payers.

• Identify cost savings of 10 - 15%, allowing the opportunity to

reinvest those dollars in additional marketing opportunities and/or
resources.

10
How are we going to get this done?
How are we going to get this done?

Process
• Via coordination of objectives
• Defining duties and processes
• Leveraging on opportunities to pool resources
– financial, human, electronics-machine, contractors/consultants
• Utilizing economies of scale via common suppliers where possible
• Negotiating volume / group discounts from vendors/suppliers

Tools
• DMAIC
– (Define, Measure, Analyze, Improve, Control Opportunities)
• Process Mapping
– Current
– Desired
– Best Practices
• Fish Bone Diagram

11
How are we going to get this done? cont

Measures of Success (yet to be completed)

• Score Card (What are the measures of success?)
– XXX
– XXX
– XXX

12
When are we going to complete the work?
When are we going to complete the work?

Begin Date Oct 26, 2009

End Date – May 24, 2010

DMAIC (this schedule is work in progress and NOT finalized)

• DEFINE in 4-6 weeks (by Dec 7th – end of 6th wk)

• MEASURE in 4-6 weeks (by Jan 18th – end of 6th wk)

• ANALYZE in 4-6 weeks (by March 1st – end of 6th wk)

• IMPROVE in 4-6 weeks (by April 12th – end of 6th wk)

• CONTROL in 4-6 weeks (by May 24th – end of 6th wk)

Trying to shrink schedule to complete by end of Feb 2010

13
What 'pain' are we experiencing?
What 'pain' are we experiencing?
• Uncoordinated use of limited budget dollars can result in unnecessary and/or
duplicated expenses that could be put to better use
• Non-clearly defined roles and responsibilities are unnecessarily causing “turf”
issues among some organizations
• Investment (sunk cost) in a strong and nationally recognized brand for McKinney
is currently being diluted
• Duplication of efforts and stretched or lack of resources in certain areas
• Communication and marketing 'gaps' or needs that may not be being addressed
by any organization’s perceived mission – for example, there has been
discussion that golf courses are not marketed by any of the city taxpayer funded
entities and there needs to be a decision as to where that fits; the Airport is
another example as marketing dollars are housed within MEDC but airport and
MEDC do not always agree on marketing needs and goals
• Mixed messages being sent to McKinney target audiences potentially causing
confusion to consumers who view multiple materials and interact with different
city taxpayer funded agencies within the community
• Inefficiencies in use of resources; both personnel and financial, limiting what can
be achieved with current available resources
• Lost opportunities, such as media effectiveness, when organizations speak or
make decisions independently, rather than as part of a larger, whole entity.

14
What is wrong?
What is wrong?

• Each city taxpayer funded entity creates their marketing plans and missions
independently at the direction of their Board on behalf of the City of McKinney
• City Council and Boards of Directors may conflict in their view of what an organization’s
mission - and therefore associated marketing plan - should include – for example the
MCVB board has determined marketing dollars should only be used to attract visitors
who will stay overnight (heads in beds) while some City Council members believe
mission should include visitors who come to McKinney for day trips, festivals etc.
• Partner entities have no direct reporting structure to Council, yet Council has final
approval of their budgets, which can lead to an unintended lack of understanding by
Council of how each marketing budget interrelates or if there is any inter-relation or
collaborations at all
• Different approval processes exist within each city taxpayer funded entity
• Different interpretations of McKinney brand being implemented and conveyed
• Lack of communication prior to decision-making process on marketing activities so that
opportunities and costs can be considered and leveraged across other groups
• Resource shortages in some cases
• Outsourcing expenses for organizations that cannot cost-effectively support entirely
dedicated resources
• Media buys, outsourcing agreements etc. are not considered cohesively resulting in lost
opportunities to pursue cost savings and group discounts

15
What authority do we have?
What authority do we have?
 
• All organizations involved are city taxpayer funded entities
• City Council appoints the board members for these city taxpayer
funded entities and has final approval of their budgets.
• SEE SEPARTE POWERPOINT CHART ILLUSTRATING FLOW;
COMMON DEMONINATOR FOR ALL CITY TAXPAYER FUNDED
ENTITIES IS CITY COUNCIL; BUT NO FORMAL INTERRELATION
CURRENTLY

16
What processes are we addressing?
What processes are we addressing?
 
• Marketing budget expenditures and approvals
• Division of duties and responsibilities (which city taxpayer funded
entities market to whom)
• Approval of city taxpayer funded entity marketing plan(s), goals and
tactics
• City taxpayer funded entity marketing and communications content
and messaging approvals
• City taxpayer funded entity marketing and communications graphics
approvals (visual identity)

17
What is not within scope?
What is not within scope?
 
• Anything outside of communications and marketing, including overall
scope/mission of the city taxpayer funded entities
• Continuation of brand; existing nationally recognized brand will
continue to be used

18
Who are the team members?
Who are the team members?

• Frank Ragan - City Manager and City Council representative to the

team – Project Champion
• CoCo Good - City Communications and Marketing Director
– Will also act as Liaison between Larry and others mentioned here as required.
• David Pitstick - McKinney Economic Development Corporation
Director (MEDC)
• Ray Eckenrode/Bill Campbell - McKinney Community Development
Corporation (MCDC)
• Diann Bayes - McKinney Convention and Visitors Bureau Director
(MCVB)
• Ty Lake - Main Street Director (Downtown McKinney)
• Ken Weigand - McKinney Airport Development Corporation Director
(MADC)
• Chamber has been invited to participate

19
What responsibilities will they have?
What responsibilities will they have?
 
• Frank Ragan will serve as the City Council representative and Project
Champion
• CoCo Good will serve as coordinating point of contact for gathering
information required to proceed through the project
– Also Larry’s Liaison as required
• David Pitstick, Ray Eckenrode/Bill Campbell, Diann Bayes, Ty Lake
and Ken Weigand will serve as subject-matter experts for their specific
target audiences and organizational objectives, speaking to their
needs for marketing and communicating to reach respective goals;
these members will also gather and supply data points for their
organizations as requested

20
Background Info
• City Council – Elected body with four Council members representing specific districts and three serving
at-large, including the Mayor – All of Council sets policy and direction citywide and hires and fires the City
Manager who serves as the chief executive for the organization and oversees the 900 city personnel
 
• McKinney Convention and Visitors Bureau (MCVB) – (promotes citywide tourism in McKinney) Board
members are appointed by City Council; Board has sole authority to hire and fire their executive director;
funds are from hotel/motel tax that the city diverts to this organization
 
• McKinney Economic Development Corporation (MEDC) – (promotes the economic growth of McKinney) –
4a funded – ½ cent sales tax - Board members are appointed by City Council; Board has sole authority to
hire and fire their executive director
 
• McKinney Community Development Corporation (MCDC) – (promotes quality of life in McKinney) – 4b
funded – ½ cent sales tax - Board members are appointed by City Council; Board has sole authority to
hire and fire their executive director
 
• McKinney Main Street – (promotes historic downtown McKinney) – Staff are city funded (i.e. salaries),
City Manager has authority to hire and fire the executive director; marketing and programming funds are
raised privately (sponsors) – Board of Directors are partially appointed by the City Council and partially
function specific or self-appointed by other board members
 
• McKinney Airport Development Corporation – Airport operations are city funded; marketing dollars are
currently housed and managed by MEDC – Board members are appointed by City Council; Board has
sole authority to hire and fire their executive director

21
WHERE TO START?

Define: Define: Define: Define:

Product Customer Requirement Standard

Define:
Define: Define:
VOC
Process Data
CTQ

• Define Product and Characteristics

– Tangible, Service, Information

• Define Customer and CTQ

– Customer  Requirement  Driver/Need  CTQ

22
Process Map To be Considered

Corporate
Intrebos Intrebos

Buyers determine POs and SOs are

allocation quantities created for specific
to stores titles

Brand Manager
New Release
Report

Provia Provia Tess Provia DMS Provia WCS

Completed orders
Components are Residuals
DC
Waves are Rental Ready units Auto are sent to
Product is received Product is Putaway Letdown to Disc processing semi-
generated by are processed and QIP Consolidation or are
into inventory into 616 racks Automation finished state for
Production Planning orders fulfilled Audit expedited directly to
Department future allocations
shipping
PO Rec. & Vendor Operations Order 100% Work Order
Daily Vendor
Compliance - Random Management Visual CONX QIP Report - ADR or
Concealed
Reporting Putaway Report Audit/ Audit Build
Shortage Report
Audit Signoff
Customer Service

Title
Secondary Rec.
Transportation/

Reconciliation
Report - Weekly
Report
Bear
Provia Provia Ware
Pool Points sort the
Missing Containers Are all Yes Containers are floor
No containers into
researched and outbound loaded on trailers Proactive Customer
smaller shipments to
reentered into containers and distributed to Service Intervention
be sent to specific
shipping cycle verified? Pool Points
stores Transportation
New Release ASN Failure
Open OS&D Detail
Reconciliation Reporting
Container Reporting
Report
Report

POS POS
Store

Store receives Units stocked on

orders shelves

ASN
Reconciliation

Legend Audit Current Report Future Report System

•Overall Process Map: Two Steps Forward, Two Steps Backward

•Swim-lane
•Highlight your area of influence
•No Floating Ends
23
Cause and Effect Diagram To be Completed

•Cause and Effect diagram = Ishikawa = Fishbone

MACHINE / EQUIPMENT MAN
Pulling experienced trainer off picking
Over allocations to slot on cart to train new associates
(ex. Slot 1 holds 30 units and
Pickers scan location instead of UPC
order asks for more than 30) High turnover of carts due to low compaction
Unpack done incorrectly
System was down
Lack of cross training
Conveyor lines not running
Miss pick of product that is not caught
Have to remove hard lock everytime & corrected at the time of unpack
RF gun restarts on its own Insufficiently trained staff in building
Consolidation down to help make up shortfall in
production of floor pick
No building cluster carts Not enough trained associates
to pool points when needed
Production Planning not making
Slow response time from RF guns
adjustments to current staffing levels
High turnover of full time
Problems in ConX that cause lines to back up and temporary employees
Document + Label Temporary
Printers Employees Training
Viaware
Picking Carts QC Auditors Employees / Temps

Radio Frequency w/ other departments

Scanners
INCORRECT PRODUCT
Floor layout
SHIPPED TO STORES
No defined
pick path print rooms / aisle
Scan Location Corrugated / Totes
Replenishment Media
commands (DVD / Games)
Label printing to inventory Humidity Pallets
when requested
Waiting on RTP stores Synopsis
(worked only on day shift) Inserts
The environment
Chance of picking wrong product
Not making capacity model number each shift (too hot or too cold)
when old sticker is covering up the UPC code
If pick path is wrong, and has to scan the location
slows down pickers Heat
Not making adjustments to capacity model Product that comes out of totes
when we don’t make production goals while on the lines to ConX

Broken allocations in wave MEDIUM Too many “no product”

Replenishment issues cause
delayed picking or pick short
Wave dropped incorrectly or items canceled off kit wave Mixed product in location
but not on sales order wave dekits
Late drop of wave Wrong product or mixed product in location

Digipacks and multiple disk titles = massive dekits

Product lost between floor pick No disc in vendor artwork
& manual during BSI wave
Titles with no UPCs
Exception research
Dekit for BSI
MATERIALS
Short picks
Orders came down late
Over picks

Waiting on replenishment
Reprints for R-Planes CAUSES EFFECT
Too many dekits Problem
Waiting on replens and multiple replens to a single location Statement
Waiting on orders
from print room
Not following M&P’s

METHODS

Participants: XXX, XXX, XXX

24
5-WHY’s To be Completed

Example Source: University of Iowa Hospital & Clinics, 2004

25
Action Plan (I)
Critical Few
from Pareto Chart
1. Mixed Product in Location
4. Not Following M&Ps
2. Too Many "No Product"
3. Insufficient Trained Staff in building
to make up shortfall
in production of floor pick.
Actions
Accuracy Accountability Program
-- Developed by department managers and functional managers from all Shifts
Focus: training, auditing, consulting, and retraining associates
Status: developing: program education, database development, employee training
Next Steps: educate and train, roll-out, assess for 2 weeks in May
Product Picking
Currently: Picker scans location bar code to verify pick
Proposal: Picker scans product UPC code to verify pick
Impact: practically fool-proof pick product step
Status: Code change defined.
Next Steps: Code change, test, and roll in May. M&P change and train in June.
Cross-Training
Currently: 2006 cross-training and HR strategy being implemented
Proposal:
Impact:
Status:
Next Steps: Evaluate the plan (above) and the assess impact to floor pick (May)
26
Process Capability Analysis

27
 “Quick Win” To be Considered

Before:
• Process was …..

After:
• Now process is ……

Viaw are TESS Freight

WMS Logic

KTO Plan
KTO
&
Canx "No Release
Production Planning Fills"

Pick Cmnds
Created

28
List of Tools in Demonstration
• List the tools and techniques
• Identify the team members along with the above
• Document team member’s contribution to each tool
or technique

Partially completed in other charts

To be Completed

29
Backups

Backups
(none so far)

30