Enterprise Excellence Reduce Temp Management Equipment Repair and Scrap Expense Define TollgateKarla MackProject ManagerNovember 24, 2014

Agenda Project Charter Project Plan & RACI Communication Plan VOB & VOC SIPOC Risk Assessment Tollgate Review Schedule Next Steps: Measure Phase

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DMAIC Road MapDefine Measure Analyze Improve Control

1. What is the problem and how do we know it's a problem?

2. What is the basic process today and what are the boundaries?

3. What do we measure, what is the goal and is it reasonable?

4. Who is involved in solving the problem?

5. Have we properly planned for the project?

1. What does the current process look like?

2. How can we measure the problem?

3. Can we trust the data?

4. How has the current process performed historically?

5. How do the problem areas compare at a high level?

6. Is there anything we can fix now?

1. What are the possible causes of the problem?

2. How do we test or prove these are the causes?

3. Does the list of root causes seem reasonable?

4. Which are the biggest or most important causes?

1. How do we run our processes at their highest level of efficiency and confirm that we've found the root causes?

2. How do we generate possible solutions to the root causes and prioritize them according to their potential?

3. What does the proposed new process look like and how should it be documented?

4. Will the proposed solution meet the improvement goal?

1. How do we implement the improvement?

2. How do we make sure the problem stays fixed?

3. What are the realized savings?

Questions to Answer

Firm answers to these questions are required for every DMAIC project

=Tollgate Approval

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Project Charter

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Problem/Goal Statement

Core Team Tollgate Review Schedule

Business Impact

Belinda Cordina Project Sponsor/Process Owner Catherine Stemper Deployment Leader Karla Mack Green Belt Bob Pahl Black Belt Team members, role, % contribution, LSS training

Jim Fisher, MFG One, 10 %, CIIP Trained Ashley Lucci-Vaughn, MFG One, 10%, CIIP Trained Dave Rawlings, Marketing, 10%, CIIP Trained Jason Price, Finance, 10%, CIIP Trained Laticia Wilson, Finance, 5%, CIIP Trained Debbie Nicolas, GSC HC Finance, 5%, CIIP Trained Becky Hudgins, GSC HC Finance, 5%, CIIP Trained Erion Lanier, Quality, 10%, CIIP Trained Tia Rice ,Quality, 10%, CIIP Trained

Problem: The total spend of repairing and scraping Temp Management equipment has increased 19% over the past 12 mos. with no clear reason as to why.

In Scope: The cost related to the repair and scrap process for Loaned Equipment: Warmer, Intratemp, Auto Slush, and Purchased Equipment: Hush Slush; North America Scrap & Repair Expense; All cost related to repair and scrap process (including approval process); Definition of criteria for scrapping and repairing equipmentOut of Scope: All other Ecolab Temp Management equipment processes upstream or downstream from the repair process; Chillbuster Equipment produced in Columbus, MS; Changes to our existing contract with MFG One

Goal: Reduce total spend of repair and scrap expense Review, and possibly revise, criteria for scrap and repair

Tollgate Scheduled Revised Completed Define 11/24/14 -- 11/24/14 Measure 01/26/15 XX/XX/15 XX/XX/15 Analyze 02/23/15 XX/XX/15 XX/XX/15 Improve 03/23/15 XX/XX/15 XX/XX/15 Control 04/27/15 XX/XX/15 XX/XX/15

Review high-level schedule milestones Define Gate Complete

Estimated Type 1 OI Benefits: $50-$100 K (10%-20%) reduction in total spend

on repairs and scrap from 2014 to 2015 Estimated Type 2 OI Benefits:

% reduction in FTE time (Opportunities to work on value-add activities)

Project Plan & RACI

Communication Plan

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SSuppliers IInputs PProcess OOutputs CCustomers

•Customer•Ecolab Surgical Customer Service•Sales Rep

•Equip Failure•Contact/Message of Return•Equip No longer in use•RMA

•Return Material Authorization (RMA)•Daily Email generated of Issues•Packing list is provided to Ecolab and Sales Force is updated•Loc to Loc Move in PTMN

•Ecolab Surgical Customer Service•MFG One Service Dept•MFG One Shipping

•MFG One Receiving Dept•MFG One Repair Dept

•Request to ship unit is made to MFG One via email to Shipping Dept. (Sales Force)•Returned Unit•Service Response Form

•Service Response Form is generated at MFG One & Sent to service dpt.•Sales Rep or MFG One provides replacement unit to Customer•ORS Product Receipt Form•Service Response Form is updated with decision to repair or scrap•Scrap request is generated•Service Response Form Completed with parts, repairs and items service or scraped

•MFG One Service Dept•Customer•Ecolab Surgical Customer Service•MFG One Mfg. Dept•VP of Sales Temp Mgmt

•MFG One Mfg. Dept•MFG One Accounting

•Parts and Component •Service Response Form Completed with parts, repairs and items service

•Sales Force Updated w/ repair info•Point.Man is inventory updated•Signed Service Response Form•Scrap Ticket is created•Invoice for scrap & repairs•Service Response Form signed that scrap has been completed with in guidelines

•Ecolab Surgical Customer Service•MFG One Shipping•Ecolab Surgical Customer Service (incl. Quality)•Ecolab Finance

•VP of Sales Temp Mgmt•Ecolab Finance

•Signed Service Response Form•Invoice for scrap & repairs•Request sign off on scrap and repairs

•Point.Man is inventory updated•Request sign off on scrap and repairs•Approved Invoice•Payment to MFG One

•Ecolab Finance•Ecolab Accounts Payable•MFG One Accounts Receivable

Customer contacts CSR or Sales Rep to report return of

equipment or Sales Rep returns equipment from personal storage

Equipment is returned to MFG

One & a replacement unit is provided to the

customer from either Sales Rep

or MFG One when applicable

MFG One performs diagnostics on

returned equipment & determines if the

customer’s complaint is valid & if the

equipment will be repaired or

requested to be scrap

MFG One performs repairs on units, restocks them and requests approval to scrap the non-repaired

machines

Scrap Approval Process

Units are scraped

End of the month Finance receives

invoice for monthly repairs and a summary

of all units scrapped

Finance approves & processes payment for repairs and

records net value of scrapped units

as expensed

Voice of the Business/Customer

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Stakeholder Voice of Business Critical Business Requirement

GSC Healthcare Management

We send a lot of money repairing and scraping equipment and we don't know why

Reduce total expense for repairing and scrapingIncrease Ecolab's visibility in the scrap & repair process

Stakeholder Voice of Customer Critical Customer Requirement

MFG OneThe current repair process is smooth, but be careful no to introduce a lot of time into the process

Repair & Scrap Turnaround time (TAT)

Ecolab Finance

Not a clear criteria for scrap/repair decisionsEcolab should have more visibility into the nature of the repair & scrapDefined process and owner for the monthly repair invoicesThere is not defined cadence on when Finance receives information (access to SF.com would help)

Adherence to criteria (%)Adherence to Invoice Approval Process

Surgical Customer Service

Clear criteria for scrap/repair decisionsWe would like to know root cause of damage when it is able to be determined

Adherence to criteria (%)

Voice of the Business (VOB)

Voice of the Customer (VOC)

Next StepsPlan for Measure Phase Key Actions

Create Measure Phase work plan by December 5th Planned Tool Use

Swim Lane Flow Chart Data Collection Plan Measure System Analysis Control Chart Process Capability Analysis

Assess Kaizen Feasibility Measure Tollgate Review on January 26th

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