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UTILIZE SIX SIGMA<br />

STRATEGIES FOR<br />

BUSINESS PROCESS<br />

IMPROVEMENT WITHIN<br />

MEDICAL AFFAIRS<br />

September 20, 2012


About <strong>Kendra</strong><br />

2<br />

BS Pharmacy, University of Kansas,<br />

MS Organic Chemistry, University of Michigan<br />

Various leadership roles in Medical Affairs<br />

including when Lilly established a US Medical<br />

Affairs group<br />

Six Sigma Black Belt – 3 years<br />

About 1.5 years into Lilly’s initiation of Six Sigma<br />

Currently Bio-Medicines Medical Affairs<br />

Strategy and Operations Advisor<br />

Copyright © 2012 Lilly


Definition of Six Sigma<br />

from Wikipedia<br />

3<br />

<br />

<br />

<br />

Six Sigma is a business management strategy, originally developed by Motorola<br />

in 1986. [1][2] ] Six Sigma became well known after Jack Welch made it a central focus<br />

of his business strategy at General Electric in 1995, [3] and today it is widely used in<br />

many sectors of industry.<br />

Six Sigma seeks to improve the quality of process outputs by identifying and<br />

removing the causes of defects (errors) and minimizing variability in<br />

manufacturing and business processes. [4] It uses a set of quality management<br />

methods, including statistical methods, and creates a special infrastructure of<br />

people p within the organization ("Black Belts", "Green Belts", etc.) who are experts in<br />

these methods. [4] Each Six Sigma project carried out within an organization follows a<br />

defined sequence of steps and has quantified financial targets (cost reduction and/or<br />

profit increase). [4]<br />

The term Six Sigma originated i from terminology associated with manufacturing,<br />

specifically terms associated with statistical modeling of manufacturing processes.<br />

The maturity of a manufacturing process can be described by a sigma rating<br />

indicating its yield or the percentage of defect-free products it creates. A six sigma<br />

process is one in which 99.99966% of the products manufactured are<br />

statistically expected to be free of defects (3.4 defects per million). Motorola set a<br />

goal of "six sigma" for all of its manufacturing operations, and this goal became a<br />

byword for the management and engineering Copyright © 2012 Lilly practices used to achieve it.


How Can Lean Six Sigma<br />

Help?<br />

<br />

<br />

<br />

Customer perceptions are driven by how well our products and<br />

services fulfill their requirements<br />

Lean Six Sigma focuses on defining those<br />

requirements and improving speed and quality to<br />

meet them<br />

Poor quality increases cost and customer lead time<br />

A 10% error rate can increase cycle time by 40%<br />

and reduce available working capacity<br />

In most value streams, > 95% of customer lead time is spent<br />

waiting<br />

Removing Lean Six non-value Sigma optimizes added capacity, time reduces and cycle effort time reduces<br />

cost performance, and improves and eliminates customer variability perceptions<br />

in all processes<br />

4<br />

Copyright © 2012 Lilly


How it all started<br />

5<br />

Employee Survey Data<br />

9<br />

8<br />

7<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

Q1 Q2 Q3<br />

Our employee survey data says we are not<br />

managing change well…..<br />

Can you use Six Sigma to fix this?<br />

Copyright © 2012 Lilly


6<br />

What We Found (during data<br />

collection)<br />

<br />

<br />

<br />

What changes were most painful:<br />

Process changes (new or updated d SOPs, Six Sigma, etc…)<br />

Re-organizations<br />

Root causes for poor change implementation:<br />

Poor communication: no rationale, seems secretive<br />

Inadequate stakeholder involvement (input)<br />

Failure to test/pilot before implementing<br />

Lack of follow-up<br />

Large number of changes that don't seem coordinated<br />

• Various Six Sigma and Business projects were ongoing from different sources<br />

• No one knew what projects were all ongoing!<br />

• There was duplication and overlap<br />

• There was re-work and confusion due to multiple projects working on the<br />

same process<br />

From a business perspective:<br />

e<br />

We didn’t know what resources we were using<br />

Priorities weren’t clear<br />

Copyright © 2012 Lilly


Solutions<br />

Phase 1 - Address communicating/influencing<br />

g<br />

change<br />

<br />

Implement new internal internet collaboration to include:<br />

Centralized coordination for all communications<br />

<br />

Collection of input for changes across the organization<br />

<br />

Share tools to ensure good Change Management<br />

Phase 2 – Address the coordination/prioritization<br />

of change<br />

Change Advisory Board to review and approve change<br />

projects (six sigma and non-six sigma) and implementation<br />

timingi<br />

Timeline and other Tools<br />

What projects are going on?<br />

<br />

<br />

<br />

When are current projects scheduled to roll-out<br />

out<br />

Assess capacity<br />

Combine solution roll-outs<br />

Copyright © 2012 Lilly


The “Change” Process…..<br />

8<br />

Identify<br />

Projects<br />

Prioritize<br />

Projects<br />

Implement<br />

Projects<br />

Sustain the<br />

Change<br />

Communication<br />

Copyright © 2012 Lilly


9<br />

Identify yprojects<br />

Lots of sources: employees, leaders, other<br />

projects<br />

You need to get all the ideas into one place<br />

Internal website with a simple form is one method<br />

Identify<br />

Projects<br />

Can see if an idea has already been submitted/being worked on<br />

Allow anyone to submit<br />

Best Practice - Six Sigma Consultant<br />

Best Practice -capture all projects, then sort<br />

out if Six Sigma<br />

Copyright © 2012 Lilly


Six Sigma Consultant<br />

10<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Black Belt assigned to various areas of the business<br />

Joins team and/or leadership meetings<br />

Listens for “pain” or problem areas<br />

Can proactively identify “good” projects<br />

Can help with charters<br />

Can help with prioritization iti and scope<br />

Will know the impact to the business because they are<br />

part of the business<br />

For the Belt it is an opportunity to learn more about the<br />

business and make potential career connections<br />

Belt may or may not do all the projects coming out of the<br />

assigned area of business<br />

Copyright © 2012 Lilly


11<br />

Efficiently Prioritize Projects Pi<br />

Once you have a list…….<br />

Best practices<br />

Six Sigma Consultant<br />

Prioritize iti<br />

Projects<br />

• Partners with business to understand the project<br />

• Writes charter (six sigma and non-six sigma)<br />

• Determines if truly a six sigma project or they just need<br />

someone to lead the project<br />

Advisory Board<br />

• Composed of leaders across the business<br />

• Owns the resources (team members)<br />

Copyright © 2012 Lilly


Advisory Board<br />

Meets every 2-3 weeks<br />

Composed of leaders from the various<br />

business functions<br />

Why this works:<br />

These leaders have accountability for the success of<br />

their functions and the business unit<br />

These leaders can make decisions<br />

These leaders can work together to make better<br />

prioritization decisions then any tools - JUDGEMENT<br />

Copyright © 2012 Lilly


Advisory Board<br />

<br />

<br />

<br />

Reviews ongoing projects<br />

Monitors status t updates and timing<br />

i<br />

Reviews new projects<br />

Decides prioritization<br />

Determines whether h to use Six Sigma resources<br />

Evaluates timing to start projects<br />

Consolidates similar projects<br />

Approves initiation iti of a project<br />

Reviews Projects for Implementation<br />

Approves implementation timing (not actual changes)<br />

Considers consolidating similar il projects solutions<br />

Reviews Feedback from Employee Surveys on<br />

“Change”<br />

<br />

Output: t a prioritized iti project list (what is most<br />

important) ordered by timing for implementation<br />

Copyright © 2012 Lilly


Potential Considerations for<br />

Prioritization<br />

Relative Benefit to Cost Ratio:<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Does it align with business priorities or objectives – is it important to<br />

the organization?<br />

Does it address a right to operate issue, e.g. a regulatory<br />

requirement?<br />

Does it increase productivity or save money?<br />

The cost or resources needed for the project<br />

Alignment with other initiatives<br />

iti Need to work in parallel or in series<br />

How broad is the impact or scope<br />

<br />

How many people does it impact<br />

Timing<br />

Something may be the most important project but resources may<br />

not be available<br />

Does it lead to transformational or incremental change?<br />

One may not be better then the other, not everything can be<br />

transformational!<br />

Copyright © 2012 Lilly


When to Use Six Sigma<br />

<br />

<br />

<br />

<br />

<br />

<br />

You have an important issue or goal<br />

Problem or goal must be clearly defined!<br />

You are willing to commit resources<br />

Your black belt is a precious commodity and will need a<br />

project team to work on the project<br />

The answer is not already known<br />

There is a process involved or a process needs to be<br />

created<br />

Six Sigma doesn’t plan resources or budgets but could be used<br />

to improve processes to free up resources or dollars<br />

You want a data driven solution<br />

Customer input is important<br />

Copyright © 2012 Lilly


16<br />

Implement and Sustain Change<br />

Across an Organization<br />

Impleme<br />

<br />

<br />

<br />

<br />

<br />

Communication is key<br />

nt<br />

Projects<br />

Early and often<br />

Collect input and keep broader group informed<br />

Best Practice: News site on collaboration space<br />

• Teams create brief updates at key milestones<br />

• RSS feed creates weekly news synopsis for organization<br />

Sustain<br />

the<br />

Change<br />

Best Practice: Challenge Teams: non-project team<br />

members who preview solutions and provide insight and<br />

challenges<br />

Best Practice: Pilot before broad implementation<br />

Best Practice: Advisory Board monitors progress and<br />

coordinates similar roll-outs<br />

Validate: 6 months post-implementation team gathers<br />

data and tweaks if necessary<br />

Copyright © 2012 Lilly


Using the Process for<br />

17<br />

Transformation<br />

Identify Prioritize Implement Sustain the<br />

Projects<br />

Projects<br />

Projects<br />

Change<br />

Copyright © 2012 Lilly


Example Capability<br />

Today<br />

Trusted<br />

Information<br />

• Tailored Dissemination<br />

Tomorrow<br />

Make available or disseminate relevant<br />

Let insights lead<br />

internal or external data and information in<br />

an accurate, timely, and preferred manner<br />

and channel to external customers<br />

Act in a more<br />

consultative<br />

information<br />

and<br />

collaborative<br />

From<br />

of customer way information into<br />

• Collection of customer<br />

• Synthesis and integration<br />

Information is<br />

disseminated in an<br />

accurate but “one<br />

insights and knowledge<br />

Tailor • Dissemination our of actions insights<br />

throughout the torganization<br />

b t “<br />

• Integrated size information fits all”<br />

generation and organization<br />

method.<br />

Lead the change<br />

To<br />

Make available or<br />

disseminate relevant<br />

data and information<br />

in an accurate,<br />

timely, and preferred<br />

manner and channel<br />

to all customers.<br />

Copyright © 2012 Lilly


Transformation Map<br />

2010<br />

2011 2012<br />

2013<br />

Strategic Intent:<br />

Truste ed Source<br />

Med Letter<br />

Transformation<br />

Benefit: Risk Communication<br />

Manuscpt Cycle<br />

Time Reduction<br />

Key Theme<br />

Key Theme<br />

Key Theme<br />

Copyright © 2012 Lilly


Example Medical Affairs Projects<br />

Medical Letter<br />

Revision<br />

• Use customer input to redesign medical letters<br />

• Content creation process<br />

• Fulfillment process<br />

Medical Website<br />

• Use DMEDI (Design) to create core content structure<br />

based on customer input<br />

• Functionality – Search, Email, Phone, w/enhanced content<br />

Call Center<br />

Escalation Process<br />

• Streamline escalation process from call center to Medical<br />

Affairs team<br />

Customer Focused<br />

Employees<br />

• Desire to have more customer focused employees<br />

• Identify what is “good” through VOC<br />

• Root cause analysis and solutions developed<br />

Data Integration<br />

• Data resides in multiple places, hard to integrate<br />

• Leverage SS to indentify what data the customer needs<br />

integrated (not all data needs to be integrated)<br />

• Identify root causes and develop solutions for key data<br />

integration<br />

Copyright © 2012 Lilly


Conclusion<br />

21<br />

<br />

<br />

<br />

Medical Affairs is the perfect place to leverage Six<br />

Sigma<br />

Medical Affairs organizations must be close to the customer,<br />

understand the customers needs, and meet those needs in a<br />

quick and efficient manner; exactly what Six Sigma is<br />

designed to do!<br />

Organizations can leverage Six Sigma Consultants t and<br />

Advisory Boards composed of functional leaders to<br />

maximize Six Sigma efforts<br />

Look outside the typical process box, can Six Sigma be<br />

used for a project you are currently facing?<br />

Copyright © 2012 Lilly

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