Case Studies

• Edexcel is the country's largest examination and course assessment organisation, devising syllabuses for academic and vocational courses and setting and processing external examinations at secondary and tertiary levels.
  
  For some 10 years, Edexcel had had ISO 9001 registration for some of their activities. But this quality system was operated at a relatively low level in the company and was producing no benefits or improvement.
  
  When ISO 9001:2000 was introduced, Edexcel hoped that the quality system might be re-invigorated and improvements generated as a result. Unfortunately this did not happen. Despite the employment of a consultant recommended by the IQA (institute of Quality Assurance), the result was more written procedures, complete negativity on the part of staff and no improvement. In addition to this, the external certification body audits were confrontational and petty, thus removing all enthusiasm for quality management on the part of most staff.
  
  Edexcel turned to Services Ltd for help. After a review of Edexcel's activities, Services Ltd realised that Edexcel's quality of service and output was excellent, but the quality system had become a self-perpetuating bolt-on series of non-value adding activities which failed to recognise the company's excellence. Internal audits produced no measurable benefits. Procedures demanded the carrying out of unnecessary activities. Quality management was a set of activities outside the mainstream nature of the business.
  
  Services Ltd set about a total reform of Edexcel's documented quality system to:
  
• integrate quality and business management so that they became indistinguishable
• reflect the excellence of their recent performance
• highlight the continuous improvements which the company had been engaged in and planned in future to be engaged in
• highlight the quality in and controls over every day activities
• abandon unnecessary documented procedures
  
  Following a relatively brief consultancy, staff at all levels, but particularly at the very top level, became actively involved in promoting quality management as it was seen for the first time as part of their normal drive for excellence and improvement.
  
  Services Ltd recommended that the external assessment body be changed to one which better understood the business and would be able to operate in a more positive manner.
  
  The results of the above are:
• quality management and business management seen as one and the same
• top management commited to quality management
• improvements documented and highlighted
• improved control of bsuienss activities
• value added internal auditing
• registration of the whole business to ISO 9001:2000

• TSB Homeloans was established in 1989 to provide mortgage administration to 1,300 TSB branches across the UK. During 1990-96 their business processes were completely re-engineered, with the full co-operation of their staff, resulting in a productivity improvement of 117% and a fall in mortgage packaging errors from 70% to 3%. A brief summary of this project was published in a book in the Sunday Times Business Skills series. TSB Homeloans' achievements were been independently recognised with their winning of the prestigious 1996 Quality Scotland Award for Business Excellence in the Service Sector.

• Halifax General Insurance
  During 1997 – 2000, Halifax General Insurance embarked on a major project to measure and improve their processes. The focal point for this exercise was the design and programming of a bespoke hierarchical balanced scorecard. Halifax General Insurance were voted ‘Claims Team of the Year 2000’ (British Insurance Awards).

• British Telecom
  The British Telecom Accelerator Approach uses Six Sigma tools and techniques to facilitate root cause analysis of reasons for customer dissatisfaction. These can then be addressed by improving working practices. Services Ltd have helped British Telecom to document and improve their Accelerator methodology, and to roll out the Accelerator Approach by training new BT users of the method.

• Dyson Services Ltd. designed and delivered a Six Sigma programme for a major domestic white goods manufacturer that was diversifying into a radically new product line which incurred problems on the quality of the new product. Radical rethinking on design and manufacture meant training senior design engineers to apply the Six Sigma approach using classroom assistance and in-house training. The result was a reduction in design complexity leading to an appliance which was simpler to build, which equated to a considerable cost saving.

• Arista Tubes Arista Tubes approached Services Ltd. in Jan 2000, having identified unacceptable levels of scrap and lost time in operations. A diagnosis by Services Ltd consultants led to the implementation of a tailored Six Sigma approach.

  An initial project team was trained and coached on the job in the relevant techniques by Services Ltd.'s specialised consultants. The project has been on one of the major production lines. The team has since realised major reductions in down-time and scrap rates have more than halved on this line.
  Subsequently a second group was trained to improve two other major areas of production. Although still very much in the middle of their projects, these already start to show the advantages and gains that a Six Sigma approach can make to an organisation.

  In this last year a third group, this time a multi-disciplined group from both administrative and production, is being coached in applying Six Sigma to their respective areas. Several different projects are underway.

  A complete cultural change in the organisation is underway, which already has led to increased production and profitablity. An essential ingredient to the success that the company has enjoyed has been the commitment from all the members of the top management group from the start and continued throughout the improvement programme. Keeping the rest of the organisation aware of the the programme and abreast of the successes to date has brought a belief in the approach, which is helping to cement the changes made.

• Nottingham City Council Services Ltd was asked to focus on the various invoice processes currently in operation throughout the Council and to map out the current systems, identify inefficiencies and to facilitate the invoice process improvement working group to come forward with proposals to streamline and re-engineer the invoicing process in a way which reflects best practice.

  The primary aim of the project was to engage an inter-departmental group in addressing the inefficiencies, perceived excessive costs and failure to meet required Best Value standards in the diverse invoicing processes employed by the various Council Departments. A secondary aim was to facilitate inter-departmental working more generally.

  Delivery was via one-day working group sessions over the period from July to September 2003. Some input of relevant theory and methodology by Prof. Bendell took place, particularly in the early sessions. Coverage included root cause analysis techniques, process thinking and analysis, Benchmarking, and mistake proofing techniques (Poka Yoke). A costing exercise was also instigated in each Department and reported back, reviewed and summarised in the group sessions. Affinity and Interrelationships Diagrams were employed by Prof. Bendell with the group to facilitate the development of a group mission for the project.

  Short-term outcomes included some transferring of best practices between Departments based upon Process Mapping and the development of a core team for further improving and controlling the Invoice process. Detailed recommendations were made to the Council’s central Senior Management Team (Chief Officers).