Project Charter

Project Authorization Status:

Project ID: Company: SBU: Dep't: Process:
Project Description:
Dept\Title: Phone
Champion:
Process Owner (1):
Process Owner (2):
Six Sigma Black Belt
Six Sigma Green Belt
Est. Start Date: Duration (days): 0 Est.Completion Date:
Opportunity Statement
Quality

Delivery

Cost

Regulatory &
Compliance

Customer Satisfaction Statement

Financial Benefits Summary (Annual) Qty UOM % Change Amount

Rework - person hours reduction:
Scrap reduction - time & materials:
Warranty reduction - time & materials:
Averaged inventory reduction:
Other savings (see schedule):
Increased sales:
Total Benefit:

Authorization to Proceed

Champion: Master Black Belt:

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CFO\Controller: Process Owner:
Note: Authorization to proceed must be signed appropriate authorities or their appointed designates

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Project Definition
Current Situation

Desired State

Project Limits

Project Constraints

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Process History

Process Metrics
Description Value Measure Target Validated? Notes

Stakeholder Assessment
Process Customers Needs and Expectations

Process Suppliers Needs and Expectations

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Project Team Composition
Name Expertise Supervisor/Manager Approval (Signature)

Additional Resources
Name Expertise Notes Phone #

Misc. Information & Notes

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Phone

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tes

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Approval (Signature)

Phone #

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 Project Charter
Project Authorization Status:
Project #: 3052 Organization: CastCo SBU: Oakville Dep't: M&P Process:
Project Description: Reduce frequency and severity of rusting on shipments to customer XYZ
Dept\Title: Phone
Champion: Chandra K Director-Materials&Procurement (203) 358-1234

Process Owner (1): Kim Stockwell Materials Manager (203) 358-1560

Process Owner (2):

Six Sigma Black Belt Mark Howard Product Engineering (203) 358-1222

Six Sigma Green Belt

Est. Start Date: 6-Jun-06 Duration (days): 91 Est.Completion: 5-Sep-06

Opportunity Statement
Quality Reduce or eliminate the rusting occurring on parts shipped to customer XYZ.

Delivery Reduce or eliminate the number expedites generated as a result of NC parts due to rust.

Cost Reduce or eliminate costs of expedites and related rework/scrap due to rusted parts.

Regulatory Comply with existing regulatory requirements (HAZOP, Environmental, etc).

Customer Satisfaction Statement

Customer notification of defective shipments at Detroit and Ohio requarding rust, have been forwarded to our Customer service. Varying
degrees of rust have been noticed in the shipments, with a light environmental rust to a corroded appearance. Nissan is requesting an expedite,
and will salvage what they can, possibly utilizing a subcontractor, to maintain production A quality reject will be received, uncertainties at this time
as to whether it will be 1 defect or per part. Photographs are available for review. Detroit is requesting VCI protection on all shipments until root
cause is defined, at our expense. Parts are not to be preloaded. A rust removal ( acid bath ), for the parts returned to our facilities, to be
reviewed with customer XYZ. A total of 1344 pcs have been returned for cleaning. We have an in-house policy of no rust to the customer.

Financial Benefits Summary (Annual) Change Amount

Rework - person hours reduction: 4000 hours 50.0% $112,000.00
Scrap reduction - time & materials: 125000 $ 70.0% $125,000.00
Warranty reduction - time & materials: % ------ $0.00
Averaged inventory reduction: % ------ $0.00
Other savings (see schedule): % ------ $0.00
Increased sales: $ 0.0% $0.00
Total Benefit: $237,000.00

Authorization to Proceed

Champion: Master Black Belt:

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CFO\Controller: Process Owner:
Note: Authorization to proceed must be signed appropriate authorities or their appointed designates

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Project Definition
Current Situation
Shipments leaving our Oakville facility, destined for customer XYZ's Michigan and Ohio facilities are arriving with excessive rusting
forming in certain locations of the castings. Measures have been taken such as shipping in heated containers, and ensuring
short-term storage does no expose parts to humid conditions ideal for rust formation, but this has not proven to be effective. We
continue to receive periodic complaints from the customer, as well as returned goods and resulting expedites to replace NC stock.
The sales account manager has indicated our relationsip with custoemr continues to deteriorate and something must be done
soon to resolve this problem. The customer is asking that all shipments be treated with an oil-based rust inhibitor but that will cost
our company $500k or more per year. Since the problem is intermittent, a structured analysis is required with a goal to identifying
root cause and from that, a long-term solution that is cost-effective for our company.

Desired State
Reduce or eliminate rust and thereby reduce or eliminate the associated expedites as well as rework and scrap. Rather than
"treating" the symptoms of the rusting, find a way to control the conditions that have led to the increase in rusting for this category
of parts and customer.

Project Limits
From the time the part is made to the time it is used by the customer in the car assembly. It is at anytime during that cycle that
rust may appear or be detected. For the start of the project, the customer side of the process will be excluded from the scope, but
at some point during the analysis, it may be necessary to include the client's processes, and as such, they have been included as
stakeholders to the project, and are aware that it is being undertaken. The project will exclude the casting/fabrication process, and
only look at the post casting/fabrication processes - typically handling, storage and associated logistics.

Project Constraints
1. Excessive rusting is detected post-shipment to customer, so cooperation and support form the customer will be required. 2.
Current historical data regarding rusting will be limited, and data collection will be a concern as it impacts project cycle time and
quality of data. 3. The customer is already pushing for their own "solution" so this expectation will need to be managed. 4. Most
of the suspected solutions will cost money, so the cost/benefit analysis will be key - include finance in this phase of the project.

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Process History
This excessive rusting has only recently (last 12 months) become an issue, and there are differing opinions as to the reasons for
this. Is it something that has changed in the casting/fabrication process, or is it the result of downstream process changes,
including that of the customer? Further investigation will be required to capture the process history - mostly through employee
and stakeholder interviews. We are also planning, through the sales account manager, to capture some more voice of the
customer to address this.

Process Metrics
Description Value Measure Target Validated? Notes
# of scrapped parts per year 1,016 unit 0 Yes Scrapped due to rusting only
Expedite shipments per year 5 unit 0 Yes Shipments due to rusting only
Inspection hours per year 372 unit 0 Yes Inspection due to rusting only

Stakeholder Assessment
Process Customers Needs and Expectations
Customer XYZ Parts received with no rusting prior to going on the line

Process Suppliers Needs and Expectations

Casting Department Feedback on quality issues related to rusting - project involvement
Design Engineering Understanding of rusting issues - project involvement
Materials Handling "Best" conditions to reduce/avoid rusting conditions

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Project Team Composition
Name Expertise Supervisor/Manager Approval (Signature)
Bill Elliott Materials Handling Brian Jones
Sam Johnston Sales Account Mgr. Susan Forrest
Eric Jones Design Engineering Jose Valasquez
Ann Hanson Logistics/Freight Bill Grumwaldt

Additional Resources
Name Expertise Notes Phone #
Ruth Randle Finance Costs Accounting (203) 358-1488

Misc. Information & Notes

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 Define
Warehouse
YZ
Phone
(203) 358-1234

(203) 358-1560

(203) 358-1222

mer service. Varying

n is requesting an expedite,
ved, uncertainties at this time
n on all shipments until root
o our facilities, to be
o rust to the customer.

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gnates

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ving with excessive rusting
ainers, and ensuring
oven to be effective. We
dites to replace NC stock.
mething must be done
t inhibitor but that will cost
d with a goal to identifying

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ng/fabrication process, and

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s project cycle time and
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s phase of the project.

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ons as to the reasons for
process changes,
stly through employee
more voice of the

ue to rusting only
due to rusting only
due to rusting only

ment

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 Approval (Signature)

Phone #
(203) 358-1488

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 Project Charter
Project Authorization Status:
Project #: 1253 Organization: SBU: Dep't: Process:
Project Description: Improve response time for incoming customer inquiries at the Call Center
Dept\Title: Phone
Champion: John Smith Director, Customer Service (203) 358-1234
Process Owner (1): Janet Wilson Manager, Customer Service (203) 358-1560
Process Owner (2):
Six Sigma Black Belt Mark Howard Sales (203) 358-1222
Six Sigma Green Belt
Est. Start Date: 21-Jan-06 Duration (days): 98 Est.Completion: 29-Apr-06

Opportunity Statement
Quality Provide accurate and timely response to customer inquiry

Delivery Reduce amount of time customer has to spend on phone waiting for response

Cost Increase capacity of Call Centre to handle incoming calls

Regulatory Meet current regulatory requirements

Customer Satisfaction Statement

Customers inquiries received by the call center are increasing in volume and resulting in increased delays for the customer while
they wait in the queue, ranging from 15 seconds to 5 minute waits during peak periods. The average wait is 1 minute, 36
seconds. When the customer is finally connected to the service desk, there is a further 1 to 5 minutes spent resolving their
question. It has been recognized by the Call Center personnel that customers are expressing more and more frustration at the
deteriorating level of service. A formal survey of customers has confirmed this, and ranked this issue as being #3 in level of
priority for customer satisfaction.

Financial Benefits Summary (Annual) Change Amount

Rework - person hours reduction: 12000 hours 15.0% $216,000.00
Scrap reduction - time & materials: % ------ $0.00
Warranty reduction - time & materials: % ------ $0.00
Averaged inventory reduction: % ------ $0.00
Other savings (see schedule): % ------ $0.00
Increased sales: $ 0.0% $0.00
Total Benefit: $216,000.00

Authorization to Proceed
Champion: Master Black Belt:

CFO\Controller: Process Owner:

Note: Authorization to proceed must be signed appropriate authorities or their appointed designates

Project Definition
Current Situation
The Customer Service Call Center receives all incoming inquiries and responses from our customers. These calls can originate
from customers transferring from our web-enabledsupport service or direct calls using our direct support phone access. Requests
are ususllay for productinformation, warranty inquiry, status of outstanding orders, general company information, and
technicalsupport requests. (The technical support requests are then transferred to the appropriate supportcenter.) Due to
increased sales, expansion of products and services, and a mature product in the field,the Call Center response time to
customers has deteriorated. This is evidenced by an increase in thenumber of calls waiting, increase in call duration as the client
inquiry is processed, and highertermination rates as frustrated customers hang up prior to connecting to the support rep. Data
has been collected on call activity to support this trend. In addition, a customer survey has been completed thathas ranked Call
Center response as #3 in terms of dissatisfaction to our customers.

Desired State
While activity levels are captured automatically by our Call Center "system", a better understanding of the incoming calls and
growth patterns is required. The objective for this Sigma Plus project is; a) Reduce mean time call duration from present
average of 2 minute 23 seconds to 1 minute 30 seconds b) Reduce call waiting for customer from current average of 1
minutes 36 seconds to 1 minute c) Reduce call termination rate (customer hanging up prior to connecting with customer
support rep) from current rate of 7% to less than 2%. Additional objectives would be to; d) Reduce level of frustration at Call
Center experienced by support staff e) Reduce overall cost of support (cost per call handled)

Project Limits
This project is limited to the process that begins with the customer dialing in to the call center, including the stages of call waiting,
call processing by the call center support staff, request resolution indicated by the termination of the call, which includes transfer
of the incoming call to the appropriate technical support center. Note: The project does not include the processing of requests at
the technical support centers - this is considered to be another process and outside of the scope of this project. Internal
resources included in this process review will be the actual customer support call center personnel and the supervisors and
managers of this same process.

Project Constraints
1. With the exclusion of supervisors and managers, all Call Center support personnel are unionized employees and enjoy the
rights and priviledges embodied in the agreement set out by their collective bargaining unit. This project must respect the terms
and conditions of this agreement. 2. Capital investment in new technologies has come under close scrutiny by the senior
management of ourorganization, and while requests for investment will be considered, return on investment (ROI) is the
decidingfactor in where our organization will be investing capital over the next 24 months. 3. Personnel continue to be leery of
the Sigma Plus initiative within our organization. Credibility for this program needs to be earned, and this being one of our initial
projects, will need to foster that acceptance. Resistance can be anticipated to the project review and any proposed changes, and
efforts need to be made in the course of the project to mitigate this exposure. 4. Many ideas and suggestions on how to
improve the process have been floating around for some time now. It will be important to remove any paradigms and get people
"out of the box" so that the full range of possibilities can be explored during the course of the project.
1. With the exclusion of supervisors and managers, all Call Center support personnel are unionized employees and enjoy the
rights and priviledges embodied in the agreement set out by their collective bargaining unit. This project must respect the terms
and conditions of this agreement. 2. Capital investment in new technologies has come under close scrutiny by the senior
management of ourorganization, and while requests for investment will be considered, return on investment (ROI) is the
decidingfactor in where our organization will be investing capital over the next 24 months. 3. Personnel continue to be leery of
the Sigma Plus initiative within our organization. Credibility for this program needs to be earned, and this being one of our initial
projects, will need to foster that acceptance. Resistance can be anticipated to the project review and any proposed changes, and
efforts need to be made in the course of the project to mitigate this exposure. 4. Many ideas and suggestions on how to
improve the process have been floating around for some time now. It will be important to remove any paradigms and get people
"out of the box" so that the full range of possibilities can be explored during the course of the project.

Process History
The Customer Support Call Center has existed in it's present state since April, 1996. Prior to this, all inquiries were handled by
the customer service reps who were located at each sales location across North America. With thecentralization of this service, a
decision that met great resistance over the initial transition year of 1996-97, all calls are now handled by the Central Call Center in
St.Louis, MO. The Center operates 7 days per week, 24 hours per day, and 365 days of the year, with the exception of official
holidays. The staff consists of 45 highly-skilled and knowledgeable customer support reps, although frequent turn-over has
created training issues as new hires are brought up to speed. A new Call Center software was implemented when the service
was initiated in April'96, and with the exception of minor enhancements, remains in it's original state. Technical information can be
obtained from our I/S group.Several improvement initiatives have been undertaken and detail on these can be obtained from the
CC manager.

Process Metrics
Description Value Measure Target Validated? Notes
# of processed calls per month 225,009 unit n/a Yes
Avg.Calls per Operator per day 172 unit 280 Yes
Average time per call 2.38 minute 1.5 Yes
Average call wait time 1.6 minute 1 Yes
Number of terminations per year 16,100 unit 4,500 Yes
% Terminations 7 % <2 Yes
Employee turnover 4.5 per month <2 Yes
Average cost per call (budget) 6.51 $ 4.85 Yes

Stakeholder Assessment
Process Customers Needs and Expectations
Incoming callers Minimum wait in queue (none if poss.) and rapid response to inquiry
Incoming callers Accurate responses for problem resolution
Technical support centers Direction of technical calls to appropriate support center (problem diagnosis)
Process Suppliers Needs and Expectations
I/S Support - internet calls Understand what call info can be captured on web-site prior to transfer to CC
Technical support team Feedback on quality and sufficiency of Technical Info Database accessed by
CC personnel as they work on incoming calls

Project Team Composition

Name Expertise Supervisor/Manager Approval (Signature)
Richard Brown CC Info Systems Dick McMurray
Sally Jenkins Call Center Supervisor Joe Black
Tom Postam Call Center (new hire) Sally Jenkins
Brigitte Fontana Call Center (2 years) Sandy Curtis
Mike Blakeney Field Service Rep Paul Murray
Evan McAllister Technical Writer Edith Krantz
Joe Pincer Sales Account Mgr. June Collinsworth

Additional Resources
Name Expertise Notes Phone #
Hugh Williams Previous CC Mgr. Hugh implemented current system (701) 433-2586 x331
Ruth Randle Finance Budget & expense support for CC (203) 358-1488

Misc. Information & Notes

 Measure

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Phone
(203) 358-1234

(203) 358-1560

(203) 358-1222

ys for the customer while

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Approval (Signature)

Phone #
(701) 433-2586 x331
(203) 358-1488