Dallas, Texas Overview of Project Management & Lean Six Sigma QPI Steering Committee Meeting December 17, 2015 David Olszewski, DM Sr. Director of Industrial.

Dallas, Texas

Overview of Project Management & Lean Six Sigma

QPI Steering Committee Meeting

December 17, 2015

David Olszewski, DM

Sr. Director of Industrial Engineering – Children’s Health

Adjunct Faculty, Industrial Engineering – UT Arlington

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Project Management Defined

• A project is a temporary endeavor undertaken to deliver a unique product, service or result.

• Management is an administrative discipline designed to plan, execute and control targeted outcomes for an organization.

• Thus, Project Management is the application of best known administrative practices that result in the fulfillment of scope, schedule and budget with regard to a temporary endeavor.

• Project managers use many tools like: project charters, business requirement documents, change requests, project schedules, RACIs, communication plans, logs for issues, risks and decisions, etc.

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Initiation

Planning

Execution

Closing

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Initiation Phase

• Create Project Summary with Sponsor Why: Project goals and business drivers What: Scope and objectives, known deliverables, desired end date Who: Project participants, roles and responsibilities Verify sponsor’s role and escalation path

• Define Project Scope with Stakeholders System impacts Boundaries, constraints/dependencies, assumption and items out of scope Risks and mitigation plans Milestones and Accomplishments

• Templates Initiation phase checklist/ FAQs Project charter: Word/Excel using SMART goals

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Planning Phase

• Create Project Plan and Secure Team Commitment Engage team members

Conduct kick-off meeting

Verify communication methods

Plan tasks and due date

Assign tasks and secure commitments

Create budget estimates

Update charter, obtain sponsor approval on

charter and project plan

• Templates Planning phase checklist

Kick-off meeting agenda

Project plan: Word/Excel

Project plan – Advanced version with Gantt chart

Planning phase FAQs

who

what

where

when

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Execution Phase

• Reconfirm Plan and Collect Information Reconfirm the plan at predefined

milestones Collect information regularly

– Standard updates– Project variance

• Take Corrective Action Immediately Manage risks and issues Manage cost, schedule, and resource

variances Control change and scope creep Manage team dynamics

It keeps growing and it never ends

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Execution Phase cont.

• Keep People Informed Written reports Formal leadership update meetings Regular team meetings Obtain sponsor sign-off at the

completion of each milestone

• Templates Executive phase checklist Team meeting agenda Executive summary report Leadership meeting prep guide Project decision log Change request template

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Closing Phase

• Close the Project Obtain sponsor’s final approval Capture lessons learned Distribute lessons learned Celebrate project completion Communicate project success

• Templates Closing phase checklist Lessons learned log: Word/Excel Lessons learned survey Customer acceptance form

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What is Lean?

• “Lean” is the set of management practices based on the Toyota Production System (TPS) developed in the 1940s.

• The goals of Lean are pretty consistent across industries — to simultaneously improve: Safety, Quality, Delivery, Cost and Morale. Eliminate waste and non-value-added activity (NVA) through continuous

improvement

• The opposite of waste is value-added (VA) activities that the customer is willing to pay for, think of “value” in a patient care process to involve: Comforting the patient Examining them Diagnosing them Treating them Educating them Preventing future illness

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The 8 Types of Waste: DOWNTIME

• Waste (Muda): Activities that use resources, but add no value to the finished product or service

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Lean Tools

• There are a number of tools within the Lean toolkit you can use to help eliminate waste: Visual Controls Kaizen Events Daily Accountability Waste Walks (Gemba) 6S Cellular Flow Total Productive Maintenance

Leader Standard Work Value Stream Mapping FMEA Poke Yoke Kanban One-Piece Flow Production Heijunka/ Workload Leveling

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The term “Six Sigma” is based on a statistical concept: Defects can be minimized by maintaining 6 standard deviations between the process mean and its upper & lower specification limits.

What is Six Sigma?

Sigma Level DPMO % Conformance % Failure

2 308,357 69% 31%

3 66,807 93% 7%

4 6,210 99% 1%

5 233 99.98% 0.02%

6 3.4 99.9996% 0.0004%

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1986: Developed at Motorola by Bill Smith & Bob Galvin

1995: Jack Welch made it central to his business strategy at General Electric

Where did LEAN & Six Sigma Come From?

Developed in the 1940s at Toyota

Toyota Production System (TPS)

TPS known as Lean in the USA

2002: “Lean Six Sigma: Combining Six Sigma with Lean Speed” book written by Michael George

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What is Lean Six Sigma? (LSS)

Streamlining processes by eliminating waste

- Customer driven

- Process-centric

- Error/mistake-proofing

- Continuous monitoring & improvement in ALL areas!

Improving quality by minimizing variations and defects/errors

- Measuring defects per million opportunities (DPMO)

- Customer driven

- Process-centric

- Continuous monitoring & improvement in ALL areas!

Highly effective way to

improve processes!

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Why Do Healthcare Organizations Use LSS?

• Avoid unnecessary expenses

• Reduce overtime

• Achieve cost savings

• Shorten wait times

• Speed up patient care

• Improve accuracy

• See patients more quickly

• Reduce surgical patient wait time

• Lower appointment cancellations/no-shows

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The LSS Roles & Responsibilities

Role Responsibilities

Champion • Ensures project resources needed are available• Runs interference when the team encounters barriers, roadblocks• Facilitates collaboration across the organization

Sponsor • Supports the project’s day-to-day activities/responsibilities• Works closely with the BB &/or GB

Yellow Belt (YB) • DMAIC project core team member• May be responsible for running smaller projects

Green Belt (GB) • Leads or initiates DMAIC projects, or assists a BB or in a BB project• DMAIC resource for her/his organization

Black Belt (BB) • Leads Six Sigma projects (beyond DMAIC) / Leverages GBs & YBs• Facilitates understanding/application of tools, techniques, strategies

Master Black Belt (MBB)

• Leads strategic initiatives that increase quality maturity• Leads &/or supports highly-complex process improvement projects• Primarily coaches BBs / renowned for their situational handling & leadership

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Purpose Key Questions

The DMAIC Roadmap

Define the problem(aka Develop the project charter)

Baseline the current process performance

Identify the root causes to be addressed

Validate solutions to improve process performance

Implement controls to maintain the gains

C

on

tro

l

Imp

rov

e

An

aly

ze

Me

as

ure

De

fin

e

- Who is our customer?

- What are we trying to improve and by how much?

- What is the scope of the project?

- What is the current cost of not meeting performance targets?

- What is the estimated financial impact after solution implementation?

- What is the data collection plan?- Is our measurement system adequate (Can we trust the data?)- What is the current process flow and performance?- When does the problem occur?- Where does the problem occur?- Which roles are involved when the problem occurs?

- How many cause categories contribute towards the identified effect?- How do the causes affect process output? What’s the extent of their reach or influence?- Which root causes will we address? In which order?

- What are the expected value-adds & benefits?- What actions are in place to mitigate identified risks?- Were the implemented solutions successful in addressing the root causes?- What is the new process performance?

- Did we accomplish our goal(s)?- What were the final results? Where did our results meet, exceed or fall short?- Are Control Plans in place to assure the improved process is sustainable? Who is responsible?- Where else can the learning from this DMAIC project be applied?

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Key Tools Deliverables

Project CharterSIPOCStakeholder MatrixRASCI / Project PlanCommunication Plan

Project Charter ~~~~~~~~~~~~~~~~

~~~~~~~~~

Fishbone Diagram (5-Whys)Affinity Diagram Cause & Effect MatrixHypothesis Development & TestProcess / Graphical AnalysisFuture Reality Process MapRASCI / Project Plan

Benefit & Effort MatrixWeighted Criteria MatrixImprovement / Action Plan(s)Risk Assessment (FMEA)Pilot PlanFuture Reality Process MapProcess / Graphical AnalysisRASCI / Project Plan

Process / Graphical AnalysisMetrics Dashboard IntegrationControl PlansRASCI / Transition PlanFinal Project Documentation

• Approved Project Charter

• High Level Process Map

• Stakeholder Analysis

• Storyboard

• Data Collection Plan

• Detailed Process Map

• Measurement Systems Analysis

• Current Process Performance

Analysis

• Revised Storyboard

• Cause & Effect Analysis

• Validated, Selected & Prioritized Root

Causes

• Proposed Action / Improvement Plan

• Revised Storyboard

• Decision-Making Process Results

• Pilot Results vs. Complete Roll-Out

• New-Reality Process Map (‘To Be’)

• Risk Assessment Results on

Improved Process

• Proposed Control Plan

• Revised Storyboard

• Improved Process Performance

Analysis Results

• Metrics Integration Results

• Implementation Results

• Control Plans

• ID Next Improvement Opportunity

FMEA~~~~~

Variation in Distance

Operator

Pull back

Pin setting

rubberband elasticit

ball material

Release Technique

Tape

Vision

Draf ts

Men

Machines

Materials

Methods

Measurements

Environment

Cause-and-Effect Diagram

Data Collection PlanMeasurement System Analysis (Gage R&R)Detailed Process Map / Value Stream MapGraphical Analysis (Pareto)RASCI / Project Plan

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DMAIC Roadmap: Define Phase

Purpose Key Questions Key Tools Deliverables

Define the problem(aka Develop the project charter)

- Who is our customer?

- What are we trying to improve and by how much?

- What is the scope of the project?

- What is the current cost of not meeting performance targets?

- What is the estimated financial impact after solution implementation?

• Approved Project

Charter

• High Level

Process Map

(SIPOC)

• VOC Feedback

- Project Charter- SIPOC- VOC

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DMAIC Phase

Planned Tollgate Dates

Actual Tollgate Dates

Status

Define In Progress

Measure Planned

Analyze Planned

Improve Planned

Control Planned

Strategic Initiative (should tie to dept./area goal)

Benefit Type(Reduce cycle time, reduce costs, increase capacity or productivity, risk mitigation, etc.)

Problem Statement:The problem statement is a clear and concise statement that describes the symptoms of the problem to be addressed. It does not suggest solutions. The problem statement should include: •WHAT is wrong (e.g., solution doesn’t meet customer needs; defects reported)?•HOW do you know it’s a problem (e.g., SLAs/specs confirm non-compliance)?•DURATION: for how long has it been a problem?•WHY it is a problem (e.g., release [code] can’t be deployed as scheduled)?

Business Case:What are the compelling business reasons for embarking on this project or work effort? How does it link to key business/organizational goals and objectives? What will be the benefits to the business/organization in resolving this problem? What will be the negative impacts of not resolving the problem? (If financial positive &/or negative impacts are known – past &/or projected, please include here.)

Scope:In-scope and out-of-scope items must be stated concisely and explicitly (e.g., what is in & out of scope? Or if process-centric, where does the process start and end? Focus should be on what is needed to reach a solution to the problem.

Risks, Constraints, Assumptions: Risks: An evaluation of the risk(s) and its associated impact(s).Constraints: A limitation, either internal or external to the project/work effort, that will affect the performance of the project or work effort.Assumptions: Factors that, for planning purposes, are considered to be true, real, or certain without proof or demonstration (e.g., you will be fully supported by your Champion and Sponsor on this project/work effort until you reach your goal).

Goal Statement:What is the goal when the problem is resolved? Think of how will the project/work effort key stakeholders and impacted organizations will measure success for this project or work effort.

Name Role

X Champion

X Sponsor

X Yellow Belt (YB)

X Green Belt (GB)

X Black Belt (BB)

X SMEs – other roles (add as needed)

DMAIC Roadmap: Define Phase Project Charter

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Resources Required by the Process

SIPOCSuppliers Inputs Process Output Customers

Top Level Description of Activities Deliverables from the Process

Anyone who Receives a Deliverable from the Process

Foster Care Assessment Center

- Health passport- Public health records- Assessment requirements- Engagement values/ expectations- Bio-family information- Legal documentation- Relevant case history

- Determine past history- Identify current health status- Determine immediate/ long-term needs (child, caregiver, bio-parents)- Provide emotional support- Develop recovery plan

- Caregiver training- Comprehensive assessment- Recommended placement- Housing services- Medical intervention/ referrals

- Physicians- Kids/ Families- Caregivers- Case Workers- Kinship- Staff Agencies- Attorneys- Courts/ Judges- Schools

- CPS- Kids/ Families- CASA- CPA- Schools- Law Enforcement

Providers of the Required Resources

DMAIC Roadmap: Define Phase SIPOC Diagram

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DMAIC Phase BA: Mark

Rad

ermach

er

SA: Mary

Bet

h W

agner

Dev: Eug

ene

Walt

er

QA: Jea

n Ker

ssen

Proce

ss O

wner:

Lou

Citare

lla (S

SS)

SSS: Pra

shant

Sinha

App O

wner: B

ruce

Tep

fer

Spons

or: T

racy

Lew

chuk

PI: Rob

ert Sm

ith (B

B) & V

ivian

Lee

(MBB)

Next Steps / Notes

Target Dateor

CompleteDate Status

Define PhaseID IT release defects (warranty/post-warranty/quality breaks) R A Tickets triggered through warranty period 4/19/12 CompleteSegmentation of defects with same/similar defects/issues R A S 5 Dev tickets / 2 SSS tickets (1 SSS = major impact) 4/23/12 CompleteFinalize defect list / secure needed sign-offs R A S 5/1/12 CompleteComplete Project Charter R A A A 5/5/12 CompleteComplete SIPOC R A A A 5/5/12 CompleteComplete RASCI-High level project plan R A A A 5/8/12 Complete

Measure PhaseComplete Data Collection Plan / Gage Reproducibility & Repeatability S R All sources of truth were validated as credible. Data inputers: >95% accurate 5/12/12 CompleteComplete current process map(s) for processes affected by defects/issues S RAssign each defect to the appropriate RCA Researcher/Author (as needed) R R R R S/C S/C S/C A S ID & assign those needed to complete all facts per ticket &/or validate HPSM inputs (after the fact) 5/13/12 CompleteSecure research findings from each RCA Author (per due date) R A S Set-up needed interviews/meetings to complete write-ups to facilitate completion by Mon., 5/14 5/14/12 CompleteCompile research findings for each defect (per due date) R A S Send final RCA Results (Excel) template to CI's BB 5/15/12 CompleteRequest data/info to estimate cost per defect average (E.g., PV, HPSM) S S R R BB & Tracy to plan approach to quantification 6/8/12 CompleteEstablish date/time for RCA Prep session(s) S S R 5/9: Lou provided BB with trainees list; 3 session options to trainees. 5/10/12 CompleteHold RCA Prep session(s) to engage SMEs S S S R Session invites sent 5/10 5/16/12 CompleteSchedule RCA Workout session(s) with SMEs/Key Stakeholders S S S R Dates re-announced to 5/31 & 6/7/12 5/15/12 Complete

Analyze PhaseCapture/validate RC per defect via Fisbone/RCA/5-Whys C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 1st Session: 5/31/12 / 2nd Session: 6/11/12 6/11/12 CompleteCapture impacts to/from people, processes & technology C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/11/12 CompleteCapture RCA participants feedback on RCA C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/11/12 CompletePrioritize RCs via Cause & Effect Matrix C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/11/12 CompleteSummarize RCA Results, including Improvement Plan/QIP proposal C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/20/12 Complete

Improve PhaseCapture improvements/solutions to each RC C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/23/12 CompleteCapture metrics/control plans needed to track each RC C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/24/12 CompleteComplete FMEA on high-risk implementations C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/25/12 CompletePresent RCA Summary (including 30-60-90+ Day Improvement Plan) A A A A R 6/26/12 CompleteSecure sign-off on approved improvements for implementation S S R R C/S 6/27/12 CompleteConfirm all Owners have started the implementation of their Improvement Plan items (all plans have been finalized with target dates)

R R R R R R R R C/S7/2/12 Complete

Control PhaseComplete Control Plan C/S C/S C/S C/S A A A A R This is the 6th component of the RCA Summary deck to leaders (out of 7 components/sections) 7/10/12 CompleteConfirm metrics & control plans implementation R R R R R R R R C/S 7/30/12 CompleteFinal review of all project results (including lessons learned) S S S S A A A A R 8/15/12 CompleteImplement changes needed to improve future RCA exercises S S S S R S/A S/A S/A C/S 8/30/12 Complete

DMAIC Roadmap: Define Phase RASCI Matrix

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DMAIC Roadmap: Measure Phase

Purpose Key Questions Key Tools Deliverables

Baseline current process performance

- What is the data collection plan?- Is our measurement system adequate (Can we trust the data?)- What is the current process flow and performance?- When does the problem occur?- Where does the problem occur?- Which roles are involved when the problem occurs?

• Data Collection Plan

• Process Map

• Spaghetti Diagram

• Current Process

Performance Analysis

- Data Collection Plan

- Process Map

- Spaghetti Diagram

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Wrong Supplier

Excess Count Too Few Count

Wrong Size Wrong Sterile Instrument

Set

Missing Item Damaged Item

Other0

10

20

30

40

50

60

70

80

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

37%

62%

81%86%

91%96%

99% 100%

DMAIC Roadmap: Measure Phase Pareto Analysis

Surgical Setup Errors by Type

80/20 rule: 80% of problems are caused by 20% of causes

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DMAIC Roadmap: Analyze Phase

Purpose Key Questions Key Tools Deliverables

Identify the root causes to be addressed

- How many cause categories contribute towards the identified effect?- How do the causes affect process output? What’s the extent of their reach or influence?- Which root causes will we address? In which order?

• Cause & Effect Analysis

• Validated, Selected &

Prioritized Root Causes

• Proposed Action /

Improvement Plan

- Fishbone Diagram (5-

Whys)

- Cause & Effect Matrix

- Pareto Chart

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Root Cause Analysis for Sample ProblemRevised: <date> Team: <name> Document Author: <name>

Why are sales low?

Objectives1. Increase sales2. Reduce the time it takes to make a sale3. Be "easier to do business with"

Web site is outdated

No one in-house knows how to edit

web pages

Our webmaster is now part-time

consultant

Our phone system is difficult for

customers to use

Voice explanations are too long

Too many menu options

People are not empowered to do

what customer needs

Sales training recently cut

Competitors are cutting their costs

Competitors are implementing Lean

teachings

Sales people aren't motivated

Commissions recently cut

Competitors recently cut their

prices

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Cause

Our org structure is too fractured

CommentsComments can be printed or internal - by simply re-setting the Print Area.Or add another Comments textbox, and have both printed and internal comments!

Man Machine

Materials Methods

The Fishbone (aka Ishikawa Diagram)

DMAIC Roadmap: Analyze Phase Fishbone Diagram

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• The 5-Why analysis method is used to move past symptoms and understand the root cause.

• It is said that only by asking "Why?" five times, successively, can you delve into a problem deeply enough to understand the ultimate root cause.

• This methodology can be used to complement the analysis necessary to complete a fishbone diagram.

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DMAIC Roadmap: Analyze Phase 5 Why Technique

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• The Affinity Diagram tool is used to consolidate a large amount of information into groupings or clusters of ideas that have a natural 'affinity', i.e., that have a common thread running through them.

• The affinitizing process is best performed by bringing all the team members or stakeholders involved into a room and allowing them to post sticky notes with single ideas on a board or flipchart.

• Next, everyone gets together and silently move the notes around into related groups. Not being allowed to talk discourages arguments and justifications.

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DMAIC Roadmap: Analyze Phase Affinity Diagram

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DMAIC Roadmap: Improve Phase

Purpose Key Questions Key Tools Deliverables

Validate solutions to improve process performance

- What are the expected value-adds & benefits?- What actions are in place to mitigate identified risks?- Were the implemented solutions successful in addressing the root causes?- What is the new process performance?

• Pilot Results vs.

Complete Roll-Out

(part of your

Improvement-Action

Plan)

• Risk Assessment

Results on Improved

Process (FMEA)

• Proposed Control Plan

- Improvement / Action Plan

- Failure Mode & Effect

Analysis (FMEA)

- 6S

- Run Chart

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Owner(s)/Assigned to:

Actionable Improvements/Solutions

Descriptions

Risk Analysis Priority # (per

FMEA)

What do we measure to track progress/status on

the improvement &/or solution? 30-Day High-Level Plan 60-Day High-Level Plan

90-Day High-Level Plan 120+Day High-Level Plan Comments

Actual Start Date: Solution Implementation

Actual End Date: Solution Implementation

Next Team Status Review

Date:

Allows your team to capture the planned Actions & Improvements in the short and long-term

DMAIC Roadmap: Improve Phase Improvement/ Action Plan

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DMAIC Roadmap: Control Phase

Purpose Key Questions Key Tools Deliverables

Implement controls to maintain the gains

- Did we accomplish our goal(s)?- What were the final results? Where did our results meet, exceed or fall short?- Are Control Plans in place to assure the improved process is sustainable? Who is responsible?- Where else can the learning from this DMAIC project be applied?

• Improved Process

Performance Analysis

Results

• Metrics Integration

Results

• Implementation

Results

• Control Plan

• ID Next Improvement

Opportunity

- Control Plan- Run Chart

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Prepared by: Page: of

Approved by: Document No:

Approved by: Revision Date:

Approved by: Supercedes:

Before After

COMMENTS:

Planned / Proposed Future Process Adjustments

Process Control PlanProcess Name:

Project Name:

Dept./Division Impacted:

Documents Referenced:

Person(s) Responsible for Executing Action

Plan

Metric(s) Monitoring Frequency

Person(s) Authorized to Change

Control Plan

(TBD - CH Case)

Improved Process Step(s) Sub Process Step(s)Process Performance Person Responsible for

Monitoring Metric(s)Process Results

Recipient(s)Corrective Action for Metric Not

Meeting Target

DMAIC Roadmap: Control Phase Process Control Plan

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Key Takeaways/ Questions?

• Project Management is the application of best known administrative practices that result in the fulfillment of scope, schedule and budget with regard to a temporary endeavor.

• Lean Six Sigma (LSS) methodology combines the Lean philosophy & Six Sigma method/ tools to reduce waste and process variation.

• Define, Measure, Analyze, Design and Verify (DMADV) can be used in place of DMAIC when creating new process/ workflow.

• Any Questions?