6σ
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




6σ
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…
Control
Improve
Define
6σ
Analyze
Measure
Define
Our Challenge
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
TRANSLATION SPEND
Define
Impact to Patient
Safety
Non-Compliance Penalties
Market Removal
Expensive Fines
Process Inefficiencies
Launch Delays
Delays in Global
Expansion Plans
Copy Inconsistency
Customer Dissatisfaction
Market Frustration
Zero Leverage
Long Lead Times
Higher Overall Costs
Loss of Market Share
Waste
Rework
False Positive in Low Cost
Option
Missed Sales
Opportunities
Secondary Expenses
Associated w/Rework
Negative Impact to Other
Projects
And More….
The True Cost of Localization Compliance
Define
Impact to Patient
Safety
Non-Compliance Penalties
Market Removal
Expensive Fines
Process Inefficiencies
Launch Delays
Delays in Global
Expansion Plans
Copy Inconsistency
Customer Dissatisfaction
Market Frustration
Zero Leverage
Long Lead Times
Higher Overall Costs
Loss of Market Share
Waste
Rework
False Positive in Low Cost
Option
Missed Sales
Opportunities
Secondary Expenses
Associated w/Rework
Negative Impact to Other
Projects
And More….
Define
We Asked Our Leadership
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
Define
Project Charter Goals
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
Supplier
Input
Process
Output
1. Compliance
2. Corporate
Communications
3. Corporate Services
4. Finance
5. Global Product Labeling
6. Human Resources
7. Legal/IP
8. LIFECELL
9. Medical
10. Portfolio & Branding
11. Quality
12. Regulatory
13. Sales & Marketing
14. Service Engineering
15. Service Operations
16. Training & Education
17. Local KCI Affiliates
18. Various Business Process
Support Staff
Business Processes
Translation
Request Forms
Need for
Translated
Content
Source Documents
Approved Funding
Business Services
and Supporting
Systems
Resources
Equipment
(Hardware &
Software)
Key Metrics
Customers
CTQ’s
Translated
Content
that is…
Timely
Accurate
Global
Translation
Management
C
Consistent
Delivered
at the best
net cost
per word.
30%
Estimated
Savings
Vertical Alignment to KCI’s Overall G&O
Define
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
Measure
Data Collection Strategy
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:
Metric
GPL
Entire Process
Top “3” Agencies
Current Efficiency Baseline
(Net Cost Per Word)
P
P
P
Current Percentage of TM Leverage
P
P
P
P
P
All Key Measures
Tie to Deliverables
Estimated Time Savings w/Existing Improved
P Cycle Time P
TM
Increased TM Leverage
Current % of Jobs Requiring ICR
P
P
Best Net Cost Per Word
Quantify Errors: Contextual vs.
P Reduction P
Supplier
Preferential
Estimated Cost Savings w/Existing TM
P
P
P
P
KCI ICR VOC Rating
P
N/A
2 of 3
True Cost of Quality
N/A
N/A
P
Data Collection Summary
Measure
Jun09-Feb10
120
100
80
60
40
20
0
DEFINE
39 Projects
259,850
Words
MEASURE
ANALYZE
55 Projects
IMPROVE
CONTROL
117 Projects
265,169
1,404,844
Words
Words
Data Evaluation Criteria
Measure
Criteria & Weight
Existing Control
by GPL
10%
Scoring Against Criteria
Leverage
Opportunities
10%
Impact to
Patient Safety
35%
Existing Spend
15%
9 - High Impact
6 - Moderate Impact
3 - Low Impact
0 - No Impact
Impact to Speed
to Market
30%
Resulting Priorities
1 - Labeling
2 - Device Software
3 - Medical
Affinity Diagram
Analyze
Contracts
HR Materials
Including
Software
Corporate
Communications
Journal Articles
& Reports
Agreements
Training
and Education
Materials
Regulatory
Submissions
Video
Multi-Media
Sales &
Marketing
Literature
Device Software
DEFINE
Clinical Reports
& Manuscripts
Labeling
Content
Market
Research
Scientific
Papers
Policies, Misc.
Forms & More
Cost of Quality Model
Analyze
Five Key Areas to Address When Improving the
Cost of Quality (Page 38)
Key Drivers
Basic Issue
LSP 1
SDL
LSP 3
Basic Organizational
Capabilities
Skills & tools required to implement improvements in
business processes are lacking.
6
0
9
Process Variations
Poor process capabilities results in high COPQ (rework,
multiple review cycles, longer cycle times).
6
3
9
Business Process
Variation
Product cost estimation is often widely off the mark
(additional funding is needed to complete job).
3
0
6
Process &
Documentation
Systems, processes and documentation are often
inadequate and flawed (longer cycle times, higher costs,
poor quality).
6
0
9
Supplier Capabilities
Lack of quality translators and supporting organizational
support, resulting in poor-quality translations, late
deliveries, higher costs.
6
3
9
Total – The higher the number, the lower the quality.
The higher our overall cost!
27
6
42
Analyze
Key Findings (1 of 3)
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.
Analyze
Key Findings (2 of 3)
 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.
Key Findings (3 of 3)
Analyze
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!
Analyze
Key Learning to KCI’s ICR Process
 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!
Improve
Expected Deliverables
• 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 = c x qr x tr
w
•E
•c
• qr
• tr
•w
=
=
=
=
=
Efficiency of our TM program
Total cost
Quality Ratio of the Translation
Time Ratio
Total Words Translated
Improve
•
•
•
•
•
•
•
•
•
•
Improvement Goals (1 of 2)
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
Improve
Improvement Goals (2 of 2)
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
LW VSM3.igx
T RANSLAT ION
MANAGEMENT
Quote Request
Submitted
Information
PORT AL
Customer Demand:
2000 Words/Day
Supplier
Customer
Quote
Processed
Quote
Received
T raining &
Education
Key T erms
More
Reusable
Source
Content
Lean
Opportunity
Style Guide
Increased
TM
4
Prep Files
12
1
T otal C/T = 3 days
NVA = 2.5 days
Value Add: 0.5 days
Defect = 15%
C/O = 30 mins.
Uptime = 95%
Availability: 90%
T ranslation
Portal
High
Impact
Glossary
23000 pcs
RFQ to PO
37%
Cycle Time
Improvement
Information
Information
Editing
Proofreading
12
12
T otal C/T = 1 days
NVA = 0.25 days
Value Add: 0.75 days
Defect = 5%
Uptime = 99%
Availability: 100%
T otal C/T = 12 days
NVA = 3 days
Value Add: 9 days
Defect = 5%
Uptime = 95%
Availability: 95%
T otal C/T = 2.5 days
NVA = 0.5 days
Value Add: 2 days
Defect = 5%
Uptime = 95%
Availability: 90%
T ypesetting
2
Linguistic
Proofreading
T otal C/T = 7 days
NVA = 1 days
Value Add: 6 days
Defect = 10%
Uptime = 95%
Availability: 90%
T otal C/T = 2 days
NVA = 0.5 days
Value Add: 1.5 days
Defect = 5%
Uptime = 95%
Availability: 90%
ICR
File Prep
1
1
12
T otal C/T = 2 days
NVA = 0.5 days
Value Add: 1.5 days
Defect = 5%
Uptime = 95%
Availability: 90%
Graphic
Proofrading
T otal C/T = 4 days
NVA = 0.75 days
Value Add: 3.25 days
Defect = 5%
Uptime = 95%
Availability: 90%
T otal C/T = 0.75 days
NVA = 0.25 days
Value Add: 0.5 days
Defect = 5%
Uptime = 95%
Availability: 100%
ICR
Review
12
T otal C/T = 10 days
NVA = 2 days
Value Add: 8 days
Defect = 3%
Uptime = 90%
Availability: 66.6%
Resolve
Disputes
Apply
Changes
1
1
2
8
T otal C/T = 2 days
NVA = 0.5 days
Value Add: 1.5 days
Defect = 3%
Uptime = 95%
Availability: 90%
T otal C/T = 2 days
NVA = 0.5 days
Value Add: 1.5 days
Defect = 5%
Uptime = 99%
Availability: 99%
Update
TM
Final QA
Check
T otal C/T = 2 days
NVA = 1.5 days
Value Add: 0.5 days
Defect = 5%
Uptime = 99%
Availability: 99%
Prepare & Fwd.
Completed Files
Invoice & COA
2
T otal C/T = 3 days
NVA = 0.5 days
Value Add: 2.5 days
Defect = 0%
Uptime = 95%
Availability: 95%
T otal C/T = 0.75 days
NVA = 0.25 days
Value Add: 0.5 days
Defect = 5%
C/O = 1 mins.
Uptime = 95%
Availability: 90%
3 days
1 days
12 days
2.5 days
2 days
7 days
2 days
4 days
0.75 days
10 days
2 days
2 days
2 days
3 days
0.75 days
54 days
0.5 days
0.75 days
9 days
2 days
1.5 days
6 days
1.5 days
3.25 days
0.5 days
8 days
1.5 days
1.5 days
0.5 days
2.5 days
0.5 days
VA / T = 39.5 days
2.5 days
0.25 days
3 days
0.5 days
0.5 days
1 days
0.5 days
0.75 days
0.25 days
2 days
0.5 days
0.5 days
1.5 days
0.5 days
0.25 days
Before Process Excellence
15 Process Steps
Total Cycle Time = 54 Business
Days
6σ
NVA = 14.5 days
T otal C/T = 54 days
After Process Excellence
11 Process Steps
Total Cycle Time = 34.6 Business
Days
Improve
Cycle Time Software: Before PE
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
Technology Work Flow
Translation Work Flow
Functional Testing
Improved
Release
Technology
Linguistic
Testing
Estimated
Revenue
TM
Resizing
Savings
Glossary
Screen Designer Input
Dedicated
$1,312,500
KCI ICR
Aligned Core
ITD’s
FTE COE
PM Led Web EX
Passolo
Competencies
Linguistic QA
Support
Improve
Improvements – Translation Memory
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.
2010
YTD
Savings
As of March 1, 2010,
our leveraged
reached 32%.
43%
TM
$130K
An increase
of 180%!
Our two-year goal is to reach a leverage of 75% or more.
Improve
Improvements Continued
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)
Improve
ICR Improvements (1 of 2)
 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.
Improve
Improvements –Supplier Reduction
“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
Control Plan
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
Control
SDL: A Strategic Six Sigma Partner
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
SDL = COE for and
Language
precision. Management
Helping corporations drive global revenue
PROCESS ENGINEERING & RE-ENGINEERING:
and reduce
by providing
services
Continual
review of cost
documented
processessoftware
to mitigate and
potential
waste from
to deliver
non-automated tasks,
includingglobal
waiting,content.
motion and processing waste.
SDL’s global infrastructure aligns well with
APPROPRIATE USE OF AUTOMATION:
KCI’s globalization
plans.
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.
Continuous Improvement
Initiatives
Control
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)
Continuous Improvement
Initiatives
Control
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…
6σ
 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!
Questions?
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 “netcost” per word with our translation $$$. Show
target. (Improve the big “E.”)