Lean Six Sigma Black Lean Six Sigma Black BeltBelt

Final Project PresentationFinal Project Presentation““Home Inspection Report Editing Process Optimization”Home Inspection Report Editing Process Optimization”

Jane RusinJane RusinJan 2015Jan 2015

Define PhaseDefine PhaseProblem StatementProblem Statement1.1. A decrease in the bottom line and frequent negative feedback from clients were noticed since A decrease in the bottom line and frequent negative feedback from clients were noticed since

switching to electronic reporting from the manual, Binder report.switching to electronic reporting from the manual, Binder report.2.2. It was observed that bottom line was reduced by at least 20% for each inspection and the It was observed that bottom line was reduced by at least 20% for each inspection and the

delay to deliver the report increased from 0 (Binder reports were given to the clients at the end delay to deliver the report increased from 0 (Binder reports were given to the clients at the end of the inspection) to 24 hrs.of the inspection) to 24 hrs.

GAPsGAPs1.1. Customers, especially buyers and their Real Estate agents, rely on the Home Inspection report Customers, especially buyers and their Real Estate agents, rely on the Home Inspection report

in order to make decisions regarding the transaction, so a delay in the delivery of such report in order to make decisions regarding the transaction, so a delay in the delivery of such report may have a significant impact and decrease the quality of the service, especially when time may have a significant impact and decrease the quality of the service, especially when time sensitive conditions apply (Real Estate transactions are often time sensitive)sensitive conditions apply (Real Estate transactions are often time sensitive)

2.2. Home Inspectors spend more time generating the electronic reports which reduces their Home Inspectors spend more time generating the electronic reports which reduces their efficiency and earnings per inspection (inspections are paid at a flat fee based on property efficiency and earnings per inspection (inspections are paid at a flat fee based on property characteristics – in certain instances, it was claimed that the time spent on the actual characteristics – in certain instances, it was claimed that the time spent on the actual inspection + report is almost double than the time spent for a similar property when using a inspection + report is almost double than the time spent for a similar property when using a binder report)binder report)

3.3. Unable to assign more inspections, as needed, due to time consuming report writing; time that Unable to assign more inspections, as needed, due to time consuming report writing; time that was usually allocated to inspections is now blocked for editing electronic reportswas usually allocated to inspections is now blocked for editing electronic reports

Alignment to tactical and strategic GoalsAlignment to tactical and strategic Goals1.1. This initiative is perfectly aligned with the company strategic goals of optimizing the operations This initiative is perfectly aligned with the company strategic goals of optimizing the operations

and daily workload, meet or exceed client expectations, increase business without adding new and daily workload, meet or exceed client expectations, increase business without adding new Inspectors and maintain or increase profit.Inspectors and maintain or increase profit.

2.2. The cost of doing nothing (CODND) is high in terms of decreasing revenue, work overload, The cost of doing nothing (CODND) is high in terms of decreasing revenue, work overload, customer dissatisfaction and eventually loosing business due to unavailability of Inspectors. customer dissatisfaction and eventually loosing business due to unavailability of Inspectors.

SIPOC diagramSIPOC diagramHome Inspection Report process

INPUTINPUT PROCESSPROCESS OUTPUTOUTPUT CUSTOMERSCUSTOMERSSUPLIERSSUPLIERS

Home Inspectors

Inspection Notes (voice recorder)

Pictures (digital, infrared)

Videos

Information collected from Real Estate Agent, property owners

Known issues (i.e.: legal disclosures, termite treatments in the area, etc...)

Serial numbers of mechanical equipment and appliances

1.1 Introduce Client to inspection process

1.3 Walkthrough with Client and present inspection findings

1.4 Complete report on location and give to

Client

1.5 Receive payment

Property seller or purchaser

Real Estate Agent

Paper?

1.2 Inspect the property, taking notes, pictures and videos

Y

1.6 Upload additional pictures & videos

1.7 Notify Client of Report delivery

timelines

N

Electronic?

1.8 Complete & upload the electronic

report

Y

1.9 Send links to Client

N

Home Inspection report and inspector’s copy – hard copy

Home Inspection Report – soft copy

Pictures – digital download

Archived Notes and pictures

Signed copy of Contract

Process MapProcess MapHome Inspection – High Level Process map

Ope

ratio

nsH

ome

Insp

ecto

rC

lient

/ R

eal E

stat

e A

gent

Request inspection

Receive request

Check schedule for available

Inspector / enter booking

Communicate booking details back

to Client and scheduled Inspector

Acknowledge details and confirm booking

Acknowledge scheduled inspection

Present Inspection process to

Client

Present Inspection findings to Client / RE

Agent

On scheduled day / time

Acknowledge process / Sign

contract

On scheduled day / time

Acknowledge Inspection results /

answers

Perform Inspection

Answer / clarify O/S questions

Questions?

YES

Agree on Home Inspection

Report deliveryNO

Edit Home Inspection

Report

Upload photos / videos

Send links to Report &

pictures / video to Client

3 - 24 hrs

Receive Home Inspection Report and download

pictures / videos

Be present at inspection

Measure PhaseMeasure Phase► What are the pain points? What are the pain points? Loss in revenue:Loss in revenue:► dilution of inspection fee due to the increased time to complete the inspection report (same fee amount dilution of inspection fee due to the increased time to complete the inspection report (same fee amount

divided by an extended period of time compared with the Binder report editing)divided by an extended period of time compared with the Binder report editing)► decrease in number of inspections bookeddecrease in number of inspections booked

Report template:Report template:► inability to save all customized choices in the default template, leading to spending time making inability to save all customized choices in the default template, leading to spending time making

changes to every single report changes to every single report ► excessive drop downs and cascading choices to select from, without the possibility of skipping some of excessive drop downs and cascading choices to select from, without the possibility of skipping some of

them or setting defaultsthem or setting defaults► layout changes cannot be made as the electronic report template is not owned by the corporation layout changes cannot be made as the electronic report template is not owned by the corporation

(electronic reports are bought in bulk from a supplier, also a Home Inspection firm)(electronic reports are bought in bulk from a supplier, also a Home Inspection firm)

Lack of a general report editing standard for all Inspectors:Lack of a general report editing standard for all Inspectors:► it is up to the Inspector to complete certain sectionsit is up to the Inspector to complete certain sections► mandatory sections to be completed all the time by all Inspectors are not defined or enforced in any mandatory sections to be completed all the time by all Inspectors are not defined or enforced in any

way; optional sections are not definedway; optional sections are not defined► there was no comparison between the binder report content and the electronic report content to there was no comparison between the binder report content and the electronic report content to

understand the differences and extra work required to complete the latter so no pre-defined standards understand the differences and extra work required to complete the latter so no pre-defined standards were identified, communicated and / or appliedwere identified, communicated and / or applied

► no standard around # of pictures to be included in the electronic report; it was noted that there is no standard around # of pictures to be included in the electronic report; it was noted that there is tendency to include more than necessary as the electronic report allows for such inclusions; adding tendency to include more than necessary as the electronic report allows for such inclusions; adding individual pictures and comments for each takes much longer than downloading all pictures at once and individual pictures and comments for each takes much longer than downloading all pictures at once and providing an FTP link to clients in addition to the binder report providing an FTP link to clients in addition to the binder report

Measure Phase Measure Phase (continued)(continued)

Collected DataCollected DataReport Editing Report Editing ► Overall time (hours) to fully complete the editing of the report Overall time (hours) to fully complete the editing of the report ► Sub-Sections always completed Sub-Sections always completed ► Time to include pictures per reportTime to include pictures per report► Time to complete specific sectionsTime to complete specific sections

OperationsOperations► Number of hours between 2 daily inspections Number of hours between 2 daily inspections ► Number of monthly electronic reports requestsNumber of monthly electronic reports requests► Number of monthly binder reports requestsNumber of monthly binder reports requests► Number of missed downloads (download window expired) per month requesting re-uploadsNumber of missed downloads (download window expired) per month requesting re-uploads

FinanceFinance► Inspection fee per hour (inspection fee divided by the number of hours required to complete inspection Inspection fee per hour (inspection fee divided by the number of hours required to complete inspection

+ report)+ report)► Inspection fee loss due to resource unavailability because of electronic report editing overload (past Inspection fee loss due to resource unavailability because of electronic report editing overload (past

year)year)► Inspection fee loss due to Real Estate Agent dissatisfaction related to report delivery delays (past year)Inspection fee loss due to Real Estate Agent dissatisfaction related to report delivery delays (past year)

Considerations:Considerations:► All Report Editing measures can be collected during the report editing activitiesAll Report Editing measures can be collected during the report editing activities► The report editing measurements will be gathered for 3 inspectors within 7 days, when 2 electronic The report editing measurements will be gathered for 3 inspectors within 7 days, when 2 electronic

reporting inspections are scheduled on the same day; the days when measures are collected do not reporting inspections are scheduled on the same day; the days when measures are collected do not need to be consecutiveneed to be consecutive

► As measurements were never recorded before, we will only rely on information to be gathered going As measurements were never recorded before, we will only rely on information to be gathered going forward, without any historic data availableforward, without any historic data available

► Consideration must be given to the fact that there is an average of .75 hr time saving per inspection Consideration must be given to the fact that there is an average of .75 hr time saving per inspection due to the fact that the electronic report editing does not take place at the inspection site anymoredue to the fact that the electronic report editing does not take place at the inspection site anymore

Cause & Effect diagramCause & Effect diagram

Excessive report editing time

Standards Layout

Technology Inspector

Inconsistency

Level of detail

Number of photos

Availability

Performance

Off-line editing issues

Maintenance

Default templates

Pre-defined settings

Selections

Formats

Value Dependency

Repetitive

Inconsistency

Information overload

Mandatory vs. Optional

Cause & Effect MatrixCause & Effect Matrix

Current process performanceCurrent process performance►Process findings:Process findings:

- The average report editing time is expected to average 45 min; the paper The average report editing time is expected to average 45 min; the paper report editing process is within expected parameters while the electronic report editing process is within expected parameters while the electronic report takes and average of 1 hr and 45 min (times vary between 1 hr and 15 report takes and average of 1 hr and 45 min (times vary between 1 hr and 15 min to 3 hrs)min to 3 hrs)

- The most significant factor in relation to length of time it take to edit the The most significant factor in relation to length of time it take to edit the report is “standards”, mainly lack of standardized report editing; second next report is “standards”, mainly lack of standardized report editing; second next is the report layout, followed by the inspectoris the report layout, followed by the inspector

- The template itself is rigid, with pre-defined editing steps that cannot be The template itself is rigid, with pre-defined editing steps that cannot be skipped when unnecessaryskipped when unnecessary

- Property Age is a significant factor in relation to the editing time only because Property Age is a significant factor in relation to the editing time only because older properties tend to have more findings that need to be captured; older properties tend to have more findings that need to be captured; variability between inspectors is insignificant for the same layout variability between inspectors is insignificant for the same layout

Analyze PhaseAnalyze Phase►Critical factorsCritical factors

Analyze PhaseAnalyze Phase►FMEAFMEA

Improve PhaseImprove Phase►Recommended solutionsRecommended solutions

Increase report layout flexibility, make sections independent, have template Increase report layout flexibility, make sections independent, have template and defaults available by specific pre-defined scenariosand defaults available by specific pre-defined scenarios

Introduce Report completion standardsIntroduce Report completion standards

Create own Electronic report instead of sourcing from service providerCreate own Electronic report instead of sourcing from service provider

Have own report hosting capabilitiesHave own report hosting capabilities

Introduce a standard electronic Issue Summary to be delivered in time with Introduce a standard electronic Issue Summary to be delivered in time with the detailed report followingthe detailed report following

Control PhaseControl Phase►Management controlManagement controlContinue to monitor editing time and improve process on an on-going basis Continue to monitor editing time and improve process on an on-going basis

►Template managementTemplate managementLaunch the new template and monitor user experience and editing time Launch the new template and monitor user experience and editing time

►Continuous review of process Continuous review of process measurementsmeasurements

Record editing time for 50 electronic reports, by InspectorRecord editing time for 50 electronic reports, by InspectorAnalyze measurements and investigate when variability between Inspectors Analyze measurements and investigate when variability between Inspectors

exceeds expectations to determine cause exceeds expectations to determine cause