Michael Roberts, PMP. “A project is a temporary endeavor undertaken to create a unique product, service, or result.” An ongoing work effort is generally.

A Lean Six Sigma Primer for Project Managers

Michael Roberts, PMP

L6s

L6s

A look at process improvement…

The Evolution of Lean Six Sigma

The Lean Six Sigma Methodology

Agenda

Concluding Comments / QA

L6s

A LOOK AT LEAN SIX SIGMA PROCESS IMPROVEMENT L6s

L6sProcess Improvement

“A project is a temporary endeavor undertaken to create a unique product, service, or result.”

An ongoing work effort is generally a repetitive process because it follows an organization’s existing procedures.”

PMBOK, 4th ed.

So… why should project managers care about process improvement???

L6sProcess Improvement

• 4 Reasons…– Project Management is a discipline built on processes

– Project plans link processes together to achieve project results

– Improving process efficiency and effectiveness, in both dimensions, is fundamental to improving overall project management performance

–Project managers typically must include quality assurance processes for project deliverables

L6sBut, typically, what can be said about our processes?

“We don't know what we don't know. We can't act on what we don't know.We won't know until we search.We won't search for what we don't question.We don't question what we don't measure.Hence, we just don't know.”

– Dr. Mikel Harry

L6s Lean Six Sigma Process Improvement

Define

Measure

AnalyzeImprove

Control

Lean Six Sigma seeks to :• Improve the effectiveness (quality) of manufacturing and

business processes by identifying and removing the causes of defects (errors) and variation.

• Improve the efficiency of manufacturing and business processes by identifying and removing sources of waste within the process.

• Improve effectiveness and efficiency,based on outputs that are critical tocustomers.

L6s Lean Six Sigma Process Improvement

• It is a management philosophy - a commitment to managing through process, not function, and making decisions based on facts and data.

• Lean Six Sigma seeks to understand performance concerns through a methodology and toolset focused on understanding customer through process, value flow and data driven analysis.

L6sLean Six Sigma Practitioners

• Most Lean Six Sigma programs seek to drive a quality culture change through a multi-level based program.

Level Training

Green Belt LSS Methodology and basic tool set

Black Belt Green Belt content plus advanced data analysis

Master Black Belt Black belt content plus program management, leadership skills, some advanced tools

L6sKey Factors for Success

• Establish goals and objectives for the program up front.

• Strong Executive and mid-level management support.

• Integrate the program into existing operations not as a separate organization.

• Shared goals and objectives between practitioners and leadership.

• Build the program to change the culture so that at some future point, everyone is a practitioner.

THE EVOLUTION OF LEAN SIX SIGMA L6s

L6s

1930 19501900

L E A N

S i x S i g m a

Ford Assembly Line

Guinness Brewery

Shewhart Introduces SPC

Gilbreth, Inc.•Management Theory•Industrial Engineering

Deming•14 Points•7 Deadly Diseases

Toyota Production System

Lean Six Sigma Timeline

L6s

1990 20001980

Motorola Introduces Six Sigma

S i x S i g m a

L E A N

Just – in–Time

SPC

Lean Mfg.

TQM

AlliedSIgnalGE Adapt LSS to Business Processes Lean

Six Sigma

Lean Six Sigma Timeline

L6sEvolution of Lean Six Sigma• Lean Six Sigma evolved over a century• It is built upon proven quality and process

improvement tools and techniques• Lean Six Sigma introduced three new principles or

methods:• Focus on quality and efficiency as defined by the

customer• Focus on financial impact to the bottom line• An enhanced problem solving methodology that

looks for sustainment of performance gains

THE LEAN SIX SIGMA METHODOLOGY L6s

Five Principles of Lean Thinking

• Specify value in the eyes of the customer• Identify the value stream and eliminate waste• Make value flow at the pull of the customer• Involve and empower employees• Continuously improve in the pursuit of

perfectionL6s

L6sSeven Types of Waste• Defects (the effort involved in inspecting for and fixing

defects)• Overproduction (making more than what is needed, or making

it earlier than needed)• Transportation (moving products further than is minimally

required)• Waiting (products waiting on the next production step, or

people waiting for work to do)• Inventory (having more inventory than is minimally required)• Motion (people moving or walking more than minimally

required)• Processing Itself

L6sVOC vs. VOP

Voice of Customer

Voice of Process

The Voice of the Process is independent of the Voice of the Customer

SigmaCapability

Defects per Million Opportunities

% Yield

2 308,537 69.15%

3 66,807 93.32%

4 6,210 99.38%

5 233 99.98%

6 3.4 99.99966%

L6sWhat’s good enough?

99% Good (3.8 Sigma) 99.99966% Good (6 Sigma)

20,000 lost articles of mail per hour (based on 2,000,000/hr)

7 articles lost per hour

Unsafe drinking water for almost 15 minutes each day

1 unsafe minute every 7 months

5,000 incorrect surgical operations per week

1.7 incorrect operations per week

2 short or long landings daily at an airport with 200 flights/day

1 short or long landing every 5 years

2,000,000 wrong drug prescriptions each year

680 wrong prescriptions per year

No electricity for almost 7 hours each month

1 hour without electricity every 34 years

L6sGoals of Lean Six SigmaLSL USL

Customer Target

DefectsDefects

Prevent Defects byReducing Variation

LSL USL

Customer Target

Defects

Prevent Defects byCentering ProcessLSL USL

Customer Target

Meet Customer Requirements

L6sIntroducing DMAICThe foundational methodology to Lean Six Sigma’s Success is, DMAIC. It’s

uniqueness as a problem solving methodology is it’s intentional focus on data and requirement of a sustainment strategy.

Define: Describe the problem quantifiably, and the underlying process to determine how performance will be measuredMeasure: Use measures / metrics to understand current performance and the improvement opportunityAnalyze: Identify the true root cause(s) of the underlying problemImprove: Identify and test the best (cost, time to implement, impact, etc.) improvements that address the root causes. Control: Identify sustainment strategies that ensure process performance maintains the improved state.

L6sThe Define Phase“Well begun is half done” – Mary Poppins

Purpose:• Identify the problem and underlying process to be improved• Understand the customer, their needs / requirements (CTQs)• Quantify the performance gap and its impact• Define the performance standard or measures• Set project success criteria• Ensure sponsorship and resources are in place

Deliverables:• Approved charter• Project plan with milestones• Planned benefit analysis• Team formed and engaged• High level process map• Customer performance requirements (CTQs) linked to process outputs

and value stream

L6sThe Define Phase - Example“Well begun is half done” – Mary Poppins

Problem:Project execution is poor at ScoobyDoo Enterprises.

Problem:Project execution is poor at ScoobyDoo Enterprises.Projects are always late and overbudget at ScoobyDoo

enterprises costing lots of money.60 out of 80 IT projects completed in 2008 at ScoobyDoo

enterprises exceeded time estimates by more than 25% at a cost of $21.1M dollars in expense and lost opportunity.

Problem:Project execution is poor at ScoobyDoo Enterprises.Projects are always late and overbudget at ScoobyDoo

enterprises costing lots of money.

Project Sponsor: Billy Bob Buckaroo, Exec VP IT ServicesProject Team: Sally Straightedge, Business Analyst

Wiley Poindexter, Technical Architect / Lead DeveloperReggie Rocketeer, PMP, Project Management LeadBruce Lee, LSS Black Belt

Objective: 50% improvement in on-time delivery; $10.5M benefit

L6sThe Define Phase - Example“Well begun is half done” – Mary Poppins

High Level Process Map:ScoobyDoo Enterprises utilizes PMI compliant process set.

L6sThe Measure Phase“Measure what is measureable, and make measurable what is not so.” – Galileo

Purpose:• Identifies / establishes data sources to be used for project• Identifies process steps for project focus• Establishes baseline process performance against CTQs

Deliverables:• Validated project problem definition• Data Collection plan• Detailed process map with ins/outs and associated measures• Measurement Accuracy / Consistency Assessment (MSA)• High level Root Cause Analysis to identify process focus• Stability assessment of the process

L6sThe Measure Phase - Example“Measure what is measureable, and make measurable what is not so.” – Galileo

Data Source: Project Tracking Database – 80 IT Projects, closed in 2008Validation of Data Source: Data is collected via automated time tracking.

Sampled 14 project confirmed project start and stop dates were accurate based on confirmation with accounting systems and email tracking.

L6sThe Measure Phase - Example“Measure what is measureable, and make measurable what is not so.” – Galileo

Baseline Performance: 63 out of 80 – 78.75%Total Cost of Poor Quality: $21.1M

L6sThe Measure Phase - Example“Measure what is measureable, and make measurable what is not so.” – Galileo

Potential Area of Focus Observed in Data: Project Manager Team

L6sThe Measure Phase - Example“Measure what is measureable, and make measurable what is not so.” – Galileo

Potential Area of Focus Observed in Data: Sponsoring Organization

L6sThe Analyze Phase“It requires a very unusual mind to undertake the analysis of the obvious.” – Alfred North Whitehead

Purpose:• Identifies actionable root causes – tied to discrete process

steps• Connects the Process Outputs (Ys) to Process Inputs (Xs) to

identify root causeDeliverables:

• A prioritized list of potential root causes• Data Collection / Analyzed supporting conclusions

L6sThe Analyze Phase - Example“It requires a very unusual mind to undertake the analysis of the obvious.” – Alfred North Whitehead

Why would the team a project manager came from make a difference?

• Different Experience Levels?

• Different Methodologies?

No; data shows no statistical difference.

Each team develops their own best practicesWhich process steps differ between Best and Worst results?

Best: PERT Estimation linked to Risk ProcessesWorst: Single point estimates

• Co-location with project teams?

Best performing teams were co-located

L6sThe Analyze Phase - Example“It requires a very unusual mind to undertake the analysis of the obvious.” – Alfred North Whitehead

Why would the sponsoring organization make a difference?

• More difficult projects?

• Change Management?

Best: Changes required formal assessment of impactWorst: Changes were assessed but impact was overridden 67%

• Strong sponsorship?

Best performing groups shared objectives for project success

No; data shows no statistical difference.

L6sThe Improve Phase - Example“This became a credo of mine...attempt the impossible in order to improve your work.” – Bette Davis

Possible Improvements1. Standardize PERT analysis with Risk Identification / Mitigation2. Co-Location of project team3. Sponsors share accountability with project managers for success4. Standardize Change Management Processes across groups

Low Impact High Impact

High Cost

Low Cost 1

2

34

Improvements to be piloted.

Pilot to execute as production for 6 months. Performance will be assessed as projects execute and complete

L6sThe Improve Phase - Example“This became a credo of mine...attempt the impossible in order to improve your work.” – Bette Davis

Pilot Results

Impact of improvements showed in time

L6sThe Improve Phase - Example“This became a credo of mine...attempt the impossible in order to improve your work.” – Bette Davis

Pilot Results

Previous Baseline 78.75% Defective

Improved Baseline16% Defective

Original Goal 50% Improvement$10.5M Benefit

Achieved Goal80% Improvement$16.8M Benefit

L6sThe Control Phase“The greatest potential for control the ends to exist at the point where action takes place. .” – Louis Allen

Purpose:• Document an approved control plan that contains all necessary items –

documentation, activities, etc. to sustain the improved performance.• Include a process monitoring capability which will prevent and/or alert

process owners should the process begin to deviate from improved performance levels.

Deliverables:• Updated process documentation with integration into existing systems• Control plan with transition to process team• Training Schedule• Next steps – further improvement recommendations, replication, etc.

L6sThe Control Phase“The greatest potential for control the ends to exist at the point where action takes place. .” – Louis Allen

Control Plan should include some kind of performance monitoring system on process variables that will alert process owners of drift.

It should also identify an appropriate reaction plan in such an event

CONCLUDING THOUGHTSQ & A L6s