Transcript A Lean Six Sigma Primer for Project Managers

A Lean Six Sigma Primer for
Project Managers
Michael Roberts, PMP
Agenda
A look at process improvement…
The Evolution of Lean Six Sigma
The Lean Six Sigma Methodology
Concluding Comments / QA
A LOOK AT LEAN SIX SIGMA
PROCESS IMPROVEMENT
Process 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???
Process 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
But, 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
Lean Six Sigma Process Improvement
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.
Define
Improve effectiveness and efficiency,
Control
Measure
based on outputs that are critical to
customers.
Improve
Analyze
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.
Lean 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
Key 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
Lean Six Sigma Timeline
Guinness
Brewery
1900
Ford
Assembly Line
Shewhart
Introduces SPC
1930
Gilbreth, Inc.
•Management
Theory
•Industrial
Engineering
Deming
•14 Points
•7 Deadly Diseases
1950
Toyota Production
System
Lean Six Sigma Timeline
SPC
TQM
1980
Just – in–Time
Motorola
Introduces Six
Sigma
1990
Lean Mfg.
AlliedSIgnal
GE Adapt LSS to
Business Processes
2000
Evolution 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
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
perfection
Seven 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
VOC vs. VOP
Sigma
Capability
Voice of Customer
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%
Voice of Process
The Voice of the Process is independent of
the Voice of the Customer
What’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
Goals of Lean Six Sigma
LSL
USL
Defects
LSL
Defects
Defects
Customer Target
Prevent Defects by
Reducing Variation
USL
Customer Target
LSL
USL
Customer Target
Meet Customer
Requirements
Prevent Defects by
Centering Process
Introducing DMAIC
The 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 measured
Measure: Use measures / metrics to understand current
performance and the improvement opportunity
Analyze: Identify the true root cause(s) of the underlying problem
Improve: 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.
The 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
The Define Phase - Example
“Well begun is half done” – Mary Poppins
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.
Project Sponsor: Billy Bob Buckaroo, Exec VP IT Services
Project Team:
Sally Straightedge, Business Analyst
Wiley Poindexter, Technical Architect / Lead Developer
Reggie Rocketeer, PMP, Project Management Lead
Bruce Lee, LSS Black Belt
Objective: 50% improvement in on-time delivery; $10.5M benefit
The Define Phase - Example
“Well begun is half done” – Mary Poppins
High Level Process Map:
ScoobyDoo Enterprises utilizes PMI compliant process set.
The 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
The 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 2008
Validation 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.
The 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
The 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
The Measure Phase - Example
“Measure what is measureable, and make measurable
what is not so.” – Galileo
Potential Area of Focus Observed in Data:
Sponsoring Organization
The 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 cause
Deliverables:
• A prioritized list of potential root causes
• Data Collection / Analyzed supporting conclusions
The 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?
No; data shows no statistical difference.
• Co-location with project teams?
Best performing teams were co-located
• Different Methodologies?
Each team develops their own best practices
Which process steps differ between Best and Worst results?
Best: PERT Estimation linked to Risk Processes
Worst: Single point estimates
The 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?
No; data shows no statistical difference.
• Strong sponsorship?
Best performing groups shared objectives for project success
• Change Management?
Best: Changes required formal assessment of impact
Worst: Changes were assessed but impact was overridden 67%
The Improve Phase - Example
“This became a credo of mine...attempt the impossible in order to
improve your work.” – Bette Davis
Possible Improvements
1.
2.
3.
4.
Standardize PERT analysis with Risk Identification / Mitigation
Co-Location of project team
Sponsors share accountability with project managers for success
Standardize Change Management Processes across groups
Low Impact
High
Cost
High Impact
Improvements to be
piloted.
2
3
Low
Cost
4
1
Pilot to execute as
production for 6
months. Performance
will be assessed as
projects execute and
complete
The 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
The 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 Baseline
16% Defective
Original Goal
50% Improvement
$10.5M Benefit
Achieved Goal
80% Improvement
$16.8M Benefit
The 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:
•
•
•
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Updated process documentation with integration into existing systems
Control plan with transition to process team
Training Schedule
Next steps – further improvement recommendations, replication, etc.
The 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 THOUGHTS
Q&A