4.

5 million fixed line

connections plus 1.5 million
broadband connections
21.9 million telephone and
internet connections across
Argentina
16 million mobile phone
customers sending average
93 million SMS per day
20,000 direct and 14,000
indirect employees
 Stars of Excellence Ranking GPTW 2011 ASQ Ranking
prizes
Tgestiona Argentina #14 2010: Gold
2010: Gold and Bronze in 1000+ employee 2011: Gold and Bronze
2011: Silver and Bronze category
 Our Mission
To develop professional services for
our clients which are characterized by
Our Vision
innovative solutions, the use of cutting-
edge technology in all of our
We strive to be a business
processes and the expertise and
process outsourcing company
commitment to excellence of our work
recognized in the market for
teams
the excellence of our services
and our staff
 Description of types of information and quality tools used for the selection of the project
and why they were used (1/3) D M A I C
1. Performance
2. Diagnosis 3. Improvement
analysis
Customers
A. Opportunities
Customer
satisfaction Develop and
Surveys B. Potential implement
projects improvement
projects
Operation
C. Project
KPIs Selection
2Aa
 Description of types of information and quality tools used for the selection of the project
and why they were used (2/3) D M A I C
Master Black Belt , Executive Committee and process owners
2. Diagnosis Data Tools Why
Visually assess process issues
Strategic Plan PROCESS MAPPING
and problems
Customer satisfaction
surveys
Opportunities CONTROL CHARTS Detect KPIs deviations
Strategic and
Operational Indicators
Audit results BRAINSTORMING Detect multiple potential projects
Define what opportunity
Strategic Plan Axes
DECISION DIAGRAM detected needs a structured
Knowledge about the
Potential methodological approach
opportunity
Projects (known root cause
Align projects with
and Solution?) AFFINITY DIAGRAM
organizational goals.
Impact on strategic PROJECT Weight each potential project
goals SELECTION MATRIX using impact criteria
Selected
Investments
Projects Simplicity
Urgency PARETO CHART Select prioritized projects
 Description of types of information and quality tools used for the selection of the project
and why they were used (3/3) D M A I C
Master Black Belt , Executive Committee and process owners
Project evaluated against company’s Strategic Plan
Criteria Pareto of project
Impact on innovation
Impact on strategic

Resources (time,
Relationship with

selection
Financial impact

Benefit to other
Impact on end

other projects

Work climate

departments
budget etc.)
objectives
customer

Urgency
300

Total
250
200
Projects 150
100
Weighting 10 10 9 9 2 3 8 7 6 50
Transport 0
optimization
5 5 5 5 5 5 3 5 5 304
Six Sigma Six Sigma
Methodology PRT
Green Belt Black Belt
• Up to 50 points: PRT (Problem
Resolution Techniques)
• 100 - 250: DMAIC (Green Belt) 304
• More than 250: DMAIC (Black Belt)
50 100 250 320
 Explanation of reasons why the project was selected (1/2)
D M A I C
Tons Destinations Distance
EQUIVALENT TO 36
EQUIVALENT TO 87 1,600 IN
TIMES AROUND
JUMBO JETS ARGENTINA
THE WORLD
SUPPLIER PLANNED AND
PLANNED AND WAREHOUSING
WAREHOUSING TRANSPORT
TRANSPORT CLIENT
STOCK
STOCK
Improvements
FINANCIAL OPERATIONAL ENVIRONMENTAL
Organizational goals 1B
Customer Operational Growth and
Human Capital
satisfaction efficiency leadership
 Explanation of reasons why the project was selected (2/2)
D M A I C
Project evaluated in terms of company’s annual strategic plan
High frequency of visits to same location: for example 15 times per month
Excessive administrative burden on staff, resulting in loss of management focus
Extremely complex processes
Scope of project is optimization of Telefónica and Movistar transport arrangements
Needs Replenishment Supply Reverse
Transport and
planning logistics management logístics
Distribution
and storage
Supplier

Client
Preparation of

Management of

Management
Management of
Identification of

Identification of

deliveries

of returns
Inventory
Receipt of

Transport
Purchase

materials

Dispatch
demand

Storage
Budget

Budget

orders

needs
need
Level of compliance with Time taken to process Fill rate of delivery
service agreements invoices received vans
54% 47 days 60%
 Describe the involvement of potential stakeholders in project selection
D M A I C
Sponsor VOC
(Voice of the internal customer)
Departmental Impact
Champion Black Belt
1Ca
Potential stakeholders Involvement and contribution Aspirations
Sponsored project
Promoted the project Increased
CEO / Board of Directors Overall vision of the business operational
Approval of project objectives efficiency
Participation in project selection meetings
Movistar Detailed what was necessary to satisfy end
Internal

90%
client Compliance with
Internal
Supplied sensitive information for the project
Customers service level
selection
Telefonica agreements
Participation in project selection meetings
Contributed methodological support for project
selection Promotion of
Quality Department
Approval of project objectives excellence projects
Participation in project selection meetings
 Identify the affected organizational goals, performance measures, and/or strategies
D M A I C
Team, in regular meetings determined the degree of impact on organizational goals using
Operational Impact Matrix with information from stakeholders
Six Sigma team
Organizational
Strategic pillars Project Objectives
Goals
To increase level of
1- Customer
1- Customer compliance with service
satisfaction
agreements
To improve delivery van
fill rate
2- Operational
2- Platforms
efficiency To reduce CO2
emissions
3- Culture 3- Human Capital To improve invoice
time
processing time
4- Growth and To reduce administrative
4- Offer
leadership burden on staff
 Identify the types of impact on each goal, performance measure, and/or strategy
D M A I C
Six Sigma team
1Ba
Organizational
Operational impact How Project Objectives
Goals
Increase in customer Verifying high
1- Customer satisfaction correlation between To increase level of
Customer segmentation lead time and
satisfaction satisfaction compliance with
according to needs
service agreements
Reduction of delivery
time To improve delivery
2- Operational Reduction of transport Transport costs van fill rate
efficiency costs analysis
Increase in delivery van To reduce CO2
fill rate
emissions
Verifying correlation
3- Human Increase in employee betweeen achieving To improve invoice
Capital satisfaction goals and employee processing time
satisfaction
To reduce
Automation of Total operational costs administrative
4- Growth and processes analysis and
leadership enviromental impact burden on staff
Efficient production
 Identify the degree of impact on each goal, performance measure, and/or strategy, and
how this was determined D M A I C
Team,
Team, in
in regular
regular meetings
meetings determined
determined the
the degree
degree of
of impact
impact on
on organizational
organizational goals
goals using
using
Operational
Operational Impact Matrix with
Impact Matrix with information
information from
from stakeholders
stakeholders
1Bb 1Ba
Organizational
Operational impact Project Objectives
Goals
1- Customer Increase in customer To increase level of
satisfaction
satisfaction H compliance with service
Customer segmentation
according to needs agreements
Reduction of delivery To improve delivery van
time fill rate
2- Operational Reduction of transport H
efficiency costs
Increase in delivery van To reduce CO2
fill rate emissions
Increase in employee H
3- Human Capital satisfaction To improve invoice
processing time
4- Growth and Automation of processes M To reduce administrative
leadership Efficient production
burden on staff
High impact: H Medium impact: M Low impact: L
More than 20% of performance Between 10% and 20% of Less than 10% of performance
indicators affected performance indicators affected indicators affected
 Identify the potential internal and external stakeholders and how they were identified
D M A I C
The team used SIPOC + Process Mapping + Brainstorming and Team Meetings
The team analyzed 2Aa
Opportunities offered by the project
Positive and negative impacts on other activities
Positive and negative impacts on other activities
Possible conflicts of interest Possible conflicts of interest
Departments likely to improve through involvement
Potential stakeholders Tools Participants
CEO / Board of Directors
Movistar 1Ac
Identified in 1Ac
Internal
Customers
Telefonica
Internal IT
SIPOC + process mapping 6 sigma team
Dispatch and Transit + Brainstorming
Financial Management
Quality Department 1Ac
Identified in 1Ac
External Transport companies SIPOC + process mapping
 Identify the types of impact on potential stakeholders and how they were identified
D M A I C
Impact of project on potential stakeholders
Meetings between team and potential stakeholders + Benchmarking + stakeholders analysis
matrix
1Ca 4Ab
Stakeholders Positive Impact Negative Impact
CEO / Board of Directors Positioning within the group None
Internal Movistar None
Orders implemented within
Customers Telefonica None
established
services
IT None
Internal Resistance to possible
Dispatch and Transit Focus on core business Structural changes and
less work
Financial Management Reduction of transport costs None
Processes more efficient through
Quality Department None
use of 6 sigma methodology
Resistance to possible
External Transport companies Faster payment of invoices
changes in processes
 Identify the degree of potential impact on stakeholders and how it was determined (1/2)
D M A I C
Impact of project on potential stakeholders
Meetings between team and stakeholders and Impact Matrix to evaluate their relationship with
the project objectives and ease of implementation
Impact Matrix
100 %
Medium High Very High
Ease of
Medium High High
implementation

40 %
Medium Medium Medium
40 % 100 %
Alignment with organizational goals
 Identify the degree of potential impact on stakeholders and how it was determined (2/2)
D M A I C
Impact of project on potential stakeholders
Meetings between team and stakeholders and Impact Matrix to evaluate their relationship with
the project objectives and ease of implementation
1Ca Stakeholders
Degree Positive Impact Negative Impact
of Impact 1Cb 1Cb 4Ab
CEO / Board of Directors Medium Positioning within the group None
Internal Movistar None
Customers Telefonica Orders implemented within
Very High None
established services
IT None
Internal Resistance to possible
Dispatch and Transit Very High Focus on core business structural changes and
less work
Financial Management Medium Reduction of transport costs None
Processes more efficient
Quality Department High through use of 6 sigma None
methodology
Resistance to possible
External Transport companies Very High Faster payment of invoices
changes in processes
 Describe the methods and tools used to identify possible root causes/improvement
opportunities. (1/2) D M A I C
6 sigma team and stakeholder representatives
Potential causes were identified in two steps: Analysis of initial situation and Identification of
potential root causes
Data Step Tools Why
Identification of
SIPOC process inputs and
outputs
Experience of the 1Ca
process Identification of
Stakeholder Process map activities producing
commentaries delays
Analysis of complaints
1- Analysis of
Delivery delays initial situation Determination of
Capability dissonance between
Charts process and
customers’ needs
Value stream Work and wasted
map time analysis
 Describe the methods and tools used to identify possible root causes/improvement
opportunities. (2/2) D M A I C
6 sigma team and stakeholder representatives
Potential causes were identified in two steps: Analysis of initial situation and Identification of
potential root causes
Data Step Tools Why
Identification of
Brainstorming potential root causes
Experience of the
process Exploration of causes
Stakeholder 5 Whys in depth
commentaries 2- Identification
Analysis of complaints of potential root
Delivery delays
causes Fishbone + Identification of all
failure modes and
affinity diagram associated causes
Quantitative
Multivoting prioritization of
potential root causes
Potential root causes
 Describe the methods and tools used to identify possible root causes/improvement
opportunities. (1/2) D M A I C
6 sigma team and stakeholder representatives
Potential causes were identified in two steps: Analysis of initial situation and Identification of
potential root causes
Data Step
SIPOC and Process Mapping
2Aa
Experience of the
process 1- Analysis of
Stakeholder initial situation
commentaries Capability chart Value streap map
Analysis of complaints
Delivery delays
Conclusions
Complex processes Duration of invoice
Absence of focus on core processing
business High frequency of visits to
Fill rate 60% same locations
On-time deliveries 54%
 Describe the methods and tools used to identify possible root causes/improvement
opportunities. (2/2) D M A I C
6 sigma team and stakeholder representatives
Potential causes were identified in two steps: Analysis of initial situation and Identification of
potential root causes
Data Step 1 Brainstorming 5 Whys
2Aa
Potential causes
Experience of the
process 2- Identification
Stakeholder of potential root
commentaries
2 Fishbone Affinity diagram
Analysis of complaints
causes
Delivery delays
3 Multivoting
Potential causes
 Describe how or if any of the stakeholders were involved in identifying the possible root
causes/improvement opportunities D M A I C
6 sigma team + stakeholders
Meetings between project team and stakeholders to identify possible root causes
1Ca Potential Stakeholder
People involved Stakeholder roles
stakeholders involvement
Contributed his vision to
CEO / Board of Director of Logistics
Involved in strategy overcome obstacles
Directors Project Champion
when they occurred
Provided data and
Movistar examples
Internal Departmental directors Contributed Green Belt Contributed ideas
Customers Operational staff to the project
Telefonica Compiled information
with focus on objectives
Internal Participated in certain Contributed ideas for
IT Systems Analysts
team meetings new developments
Managers and Provided Green Belt and Contributed information
Dispatch and Transit
Supervisors Depot staff Black Belt to the project and new ideas
Participated in meetings Contributed information
Financial Management •The lack
Financial of route optimization
Analyst software
as team member and new ideas
and
Quality experts Participated in team Supplied the
Quality Department •Poor customer planning
Coordinators meetings methodology
Account Executive Participated in meetings
External Transport companies
Transport manager and completed surveys
Compiled information
 Describe the methods and tools used to identify the final root causes/improvement
opportunities D M A I C
Using tools like : Box Plots, Impact Matrix and Pareto. Listed in Telefonica’s Improvement
system
To reduce number of potential causes and to identify causes with greatest impact
Potential causes 2Aa
1 Lack of route optimization software Problems with invoice processing 6
2 Lack of communication between teams, supervisors and managers Unclear lines of regional responsibility 7
3 Deficiencies in document monitoring Having to do other people’s work 8
4 Poor customer planning Difficulties in generating remittance advices 9
5 Insufficient time to complete tasks Reactive manual correction of data errors in the system 10
Tools used Why Who
Performance variation between
Box Plots Six Sigma Team Six Sigma Team
geographical areas
Root cause To evaluate the impact of
impact Six Sigmacauses
potential Team on 5 causes
Six Sigma Team
Matrix Stakeholders goals
organizational validated
Stakeholders
representatives representatives
To identify
andthe most significant
experts and experts
Pareto Diagram
causes
 Describe the team’s analysis of data to select the final root causes/improvement
opportunities D M A I C
2Ab How data were used
10 Potential
causes Box Plots
Lack of route optimization
software
Lack of communication
between teams,
supervisors and managers 5 Final root causes
Variation between geographical areas
Deficiencies in document
monitoring 1 Poor customer planning
Poor customer planning Impact Matrix 2 Problems with invoice
Insufficient time to processing
complete tasks
Problems with invoice 3 Lack of route optimization
processing software
Unclear lines of regional
responsibility Evaluated the impact 4 Deficiencies in document
Having to do other monitoring
people’s work
Pareto 5 Difficulties in generating
Difficulties in generating
remittance advices remittance advices
Reactive manual
correction of data errors in
the system
Identify the most important causes
 Identify the root causes/improvement opportunities and explain how the team validated the
final root causes/improvement opportunities D M A I C
6 sigma team, stakeholders and experts
Statistical validation tools + stakeholders meetings
5 Final root Validation tools 5 Root causes Validation
causes A Correlation / regression validated tools
1-Poor customer 1-Poor customer
planning planning B D
2-Problems with 2-Problems with
invoice invoice C D
processing B Hypothesis Tests processing
3-Lack of route 3-Lack of route
optimization optimization B D
software software
4-Deficiencies in 4-Deficiencies in
document C Pilot Test document B D
monitoring monitoring
5-Difficulties in 5-Difficulties in
generating generating
A D
remittance remittance
advices advices
D
Meetings between team and
stakeholders
 Describe the methods and tools used to develop possible solutions/improvement actions
D M A I C
Identification of one or more possible solutions for each root cause
6 sigma team + stakeholders and expert
2Bb Sequence of Anticipated
Final root causes Why
tool use Benefits
1 Poor customer
planning To develop Expert best practice
Brainstorming potential solutions recommendations
2 STEP 1
Problems with invoice Affinity To organize the
Analysis more
processing ideas and actions
Generation diagram streamlined
arising in meetings
3 of ideas
Lack of route To identify practical Logistic costs within the
Benchmarking improvements market
optimization software
4
Deficiencies in
document monitoring
5
Difficulties in To validate and select Focus on most
STEP 2 Multivoting
generating remittance solutions relevant solutions
advices
Selection To implement solutions
and Pilot test
in focused Ensured viability of
environments and verify selected solutions
validation
their effectiveness
Potential Solutions
 Describe the team’s analysis of data to develop possible solutions/improvement actions
(1/2) D M A I C
6 sigma team + experts
Combining benchmarking industry best practices among national transport companies +
data of transport module + unplanned deliveries
5 validated Data Tools for
root causes Delivery van fill rate generating ideas
Level of compliance
with service agreements Brainstorming
Time taken to process
STEP 1 invoices Affinity
Diagram
Number of unplanned
Generation
deliveries
of ideas Benchmarking
Information from
experts
Possible solutions
Better delivery planning