Six Sigma/PM Integration

Six Sigma/PM Integration
“Rules of Engagement”
Prepared By:
Dr. Abhay V. Trivedi, Ph.D., PMP, CSSBB, PMI-RMP
trivediabhay@gmail.com
Phone: 770-315-0139
October 20, 2011
Dr. Trivedi and Associates
Because Performance Matters
Dr. Abhay Trivedi - Credentials
Dr. Trivedi is a project management and systems
engineering consultant with over 20 years of experience
assessing project management needs for complex
businesses, evaluating alternatives, and implementing
technology solutions in multiple industries: automotive, oil
& gas, transportation, consumer, electronics and
manufacturing, government, banking and services. His
clients have included BP, Xerox, BMW/MG Rover, Visteon,
Ford, Intel, Siemens, ABB, and Motorola. He has the
unique ability to combine multiple technologies and
philosophies to implement cost reduction strategies for
large corporations. Over the years Dr. Trivedi has also
trained more than a 1000 senior project managers on
obtaining certifications including PMP, RMP, and Six Sigma
Green Belt and Black Belt. He is PMP certified by PMI;
RMP certified by PMI; Certified Six Sigma Black Belt and
holds a Professional Logistics/Supply Chain Certification
from The Logistics Institute at Georgia Institute of
Technology. Dr. Trivedi has also accomplished many
awards including the SME’s “Educator of the Year.” In
addition he is a NASA Summer Research Fellow and Oak
Ridge National Laboratories Visiting Scientist.
5
Because Performance Matters
Dilbert on Six Sigma
The Changing Project Management Scenario Today…
• 72% projects fail…
• Project profitability is low (ROI)
• Project managers are under pressure
• High degree of expectations
• Successfully manage “Change”
• Significant desire for Certified Project Managers
• New requirements -- Earned Value Management, Risk Management,
Agile Scrum, Lean Six Sigma
• Skills in Program/Portfolio Management Tools
Lets look at some statistics
• 60% of the Global IT decision-makers ranked the project
manager job role as critical
– What happened with the remaining 40%?
• 72% of all Projects fail to meet the objectives
– Should the team define the objectives?
• Many managers prefer transparency and awareness
over hiding information
– No wonder we have an ethics problem
• Cost reduction projects should be accomplished with
minimum personnel
– Yes it should be!!!
Dr. Trivedi - All Rights Reserved
Top Reasons for Project Failure
•
•
•
•
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Inadequately trained and/or inexperienced project managers
Failure to set and manage expectations
Poor leadership at any and all levels
Failure to adequately identify, document and track requirements
Poor plans and planning processes
Poor effort estimation
Cultural and ethical misalignment
Misalignment between the project team and the business or other
organization it serves
• Inadequate or misused methods
• Inadequate communication, including progress tracking and
reporting
Author: Frank Winters – retired PM after 40 years in IT industry
Translation…
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•
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Don’t hire dummies
Don’t hire dummies specifically if you are a dummy
Don’t copy job requirements from the DICE advertisements
Provide PMs with a case study to solve
Don’t threaten PMs with the 10% unemployment scenario
– they will leave
• Don’t lead, just manage
• If the PM has experience with MS Project 98 transfer them
to the PMO
• Don’t hire PMs with a “below proficient” score on ethics on
their PMP exam
The Decade of the Customer
• Old Model
– Cost + Profit = Selling Price
• New Model
– Selling Price = Customer’s Wish
• What does this mean?
–
–
–
–
–
–
–
Built in Efficiency
Out of the box thinking
Global reach
Culture Adjustment
Systems Integration
New Technology
New Processes
The New Dilemma…
• Being politically correct…
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–
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Can’t fire
Can’t not fire
Can’t outsource
Can’t not outsource
Can’t respect loyalty
Can’t not respect loyalty
Can’t respect long term employee commitment
Can’t not respect long term employee commitment
Can’t not forge partnerships
Can’t forge partnerships
Can’t change the culture
Can’t not change the culture
The New Buzz Words…
•
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Earned Value Management
Capital Reengineering
Practical Innovation
Continuous Effortless Change
Selective Competitiveness
Rule Based Leadership
Voice of the Instance
Experienced Interpretation
Need Based Knowledge
Highly Paid Underachiever
Dilbert on Project Management
Generic Product Development Process
Product Portfolio and Pipeline Management
Innovation
Engine
Voice of
the
Marketplace
Technology Bookshelf
Company/
Product
Strategy
Concurrent Applications
Development and
Engineering
Voice of
the
Customer
Voice of
the
Supplier
Continuous
Improvement
Benchmarking
• Implementing successful programs also can be a result of
benchmarking processes and other attributes with the best in
class. The following is a broader classification of
benchmarking:
– Process Benchmarking: Works to implement the most effective
work processes and operating systems.
– Performance Benchmarking: Generally used for product and
service comparisons amongst peers.
– Project Benchmarking: Used for innovation in planning, execution
and control of projects.
– Strategic Benchmarking: Benchmarking across multiple industries.
Out of the box thinking to capture the very best out there.
Project Management Hierarchy
Deliverables
Stages/
Milestones
(When)
Artifact
(What)
Tasks
(How)
Resources
(Who)
Typical Business Metrics
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
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Reduction in Time to Market (50%)
Increase In Engineering Productivity (2.5x)
Reduction in Product Development Costs (30%)
Improvement in Product Quality (40% less COQ)
Increased on-time Customer Deliveries (50%)
Implement a Global Product Development Process
Establish a Systems Engineering Capability
Defining Major Metrics
What are Project Metrics?
•
•
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Project metrics are measurable indicators used to track the progress of the project
versus some subset of the objectives and requirements outlined in the project scope.
Within a project Metrics generally relate to
– Timing
– Cost
– Resources
– Risk
– Quality
Business Level Metrics
– Financial, Employee Satisfaction, Growth
•
Operations Level Metrics
– Cost, Cycle Time, Effectiveness, Efficiency
•
Process Metrics
– Measurement data for people, machines, methods
The DMAIC Six Sigma
process breakdown
Define
Lead
Problem
Measure
Lead
Parameters
Analyze
Lead
Issues
Improve
Lead
Processes
Control
Lead
Problems
Customer Demands
Process Capability
Motivation
18
Role of PM in Six Sigma Implementation
Execution & Control
- Preventive Strategies
- Roles and Responsibilities
Planning
- Voice of the Customer
- Goal centered objectives
Exceptional Quality
Exceeding Value
Market Based Cost
Project Scope
- Vision of Perfection
- Team Buy In
Review and Sign Off
- Conformance
- CQI Policy
Quality Function Deployment (QFD) An
Important tool to capture the stated and
unstated needs of the customer
How many of you use this?
The QFD Matrix Template
Tip: A brainstorming technique
Can also be an important tool to
Generate ideas and come up with
Solutions as a team effort
20
Product or Service Impacted
Black Belt or Green Belt
Champion
Master Black Belt
Start Date
Element
Expected Project Savings
($)
Business Unit
Phone Number for Belt
Email for Belt
Target Completion Date
Description
1. Process:
The process in which opportunity
exists.
2. Project Description: what is
the “Practical Problem”
Problem and goal statement
(project’s purpose)
3. Objective:
Team Charter
Project
Metrics
The “Statistical Problem” - the
measurable variable(s
SIGMA
DPMO
COPQ
4. Business Cases:
Expected financial improvement, or
other justification.
5. Team members:
Names and roles of team members?
6. Project Scope:
Which part of the process will be
investigated and excluded.
7. Benefit to External
Customers:
Who are the final customers, what
are their key measures, and what
benefits will they see?
8. Schedule:
Give the key milestones/dates.
Project Start
M- Measurement
“M” Completion
A- Analysis
“A” Completion
I- Improvement
“I” Completion
C- Control
“C” Completion
Project Completion
9. Support Required:
Will any special capabilities,
hardware, trials, etc be needed?
Baseline
GOAL
Getting to the “To-Be” Process
It’s Hard for an
Insider to Challenge
the System
Map extended
environment and
select process
Model As-Is
Process
Challenge
Define
Performance:
Goals and Actual
Define To-Be
Process
As-Is
The
Easy
Part
70% of the Work
Plan and Do
Implementation
Process Capability
Process
Capability
LSL
± 6s
USLUSL
Process shift over time by 1.5 σ
m
3.4 ppm
T
LSL
USL
4.5s
Understanding the Flow
How Does It Work?
Program Manager
Product Development
Process
“Honor the process”
Project Management
Tools
“Worship the schedule”
Team Leadership “The power of many as one”
• establishes
discipline
• uses best
practices
• leverages prior
experience
• promotes
corporate learning
• documents
lessons learned
• communicates to
all parties
Pareto Priority Index Example
Project
Saving
Prob
success
Cost
Time to
Complete
PPI
PO Cycle
Time
$220k
90%
$5k
3.5 months
11.3
Shipping
Damage
$400k
70%
$9k
6 months
5.2
Design
Change
$770k
50%
$30k
10 months
1.28
Cost of Quality (COQ)
Project Planning
140%
120%
100%
80%
60%
40%
20%
Logic Network
Definition
k 22
k 19
k 20
k 18
k 17
k 16
k 15
k 14
k 21
ee
W
ee
W
ee
W
ee
W
ee
ee
ee
ee
ee
W
W
W
W
W
k9
k 13
ee
W
k8
k 12
ee
W
k7
k 10
k6
k5
k4
k2
k3
k 11
ee
W
ee
ee
W
ee
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ee
W
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ee
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W
W
ee
Deliverable
Decomposition
W
W
Project Definition
& Approach
W
k1
0%
Resource Loading
and Plan Tuning
Risk Plan
Development
Core Processes
Quality
Planning
Communications
Planning
Organizational
Planning
Facilitating Processes
Procurement
Planning
Project Management “V” Model
Customer
Requirement
s
Customer
Satisfaction
Customer Focused
Customer Experience & Feedback
Project Assumptions
Definition / Translation
Corporate
Knowledge
System
Project
Planning
System
Plan
Execution
Project
Goals
• Lessons Learned
• Product
Roadmaps
• Technology
Roadmaps
• Resource &
Facility Planning
• Product
Development
Process
• Generic Planning
Templates
Attribute Target Setting
and Timing Cascade
Feasibility
Feedback
Integrate Milestones
& Status Reports
Subsystem
Project
Planning
Project
Goals
Attribute Target Setting
and Timing Cascade
Feasibility
Feedback
Component
Project
Planning
Subsystem
Plan
Execution
Integrate Milestones
& Status Reports
Component
Plan Execution
Note: Applies to Functional
and Modular Systems
Mapping of PM Phases to Concept Development Process
Idea
Generator
VOC
Program Planning
Review
Technology
Assessment
Gate 1
Decision on
Implementation Readiness
Decision on
Customer Readiness
Concept
Evaluation
Gate 2
Product
Implementation
Gate 3
VOS
Bookshelf
•PM Team Set-Up
•Roles & Responsibilities
•Alternative Approaches
•PM Team Set-Up
•Roles & Responsibilities
•Alternative Approaches
•PM Team Set-Up
•Roles & Responsibilities
•Alternative Approaches
•Deliverable Decomposition
•Risk Plan Development
•Resource Loading
•Deliverable Decomposition
•Risk Plan Development
•Resource Loading
•Participants & Roles
•Go/No Go Decisions
•Participants & Roles
•Go/No Go Decisions
•Deliverable Decomposition
•Risk Plan Development
•Resource Loading
•Participants & Roles
•Go/No Go Decisions
•Overall Change Control
- Cost Control
- Schedule Control
•Overall Change Control
- Cost Control
- Schedule Control
•Overall Change Control
- Cost Control
- Schedule Control
•Performance Evaluation
•Project Profitability
•Performance Evaluation
•Project Profitability
•Performance Evaluation
•Project Profitability
Critical PM
Activities
Process - Project
Planning Cycle
PROJECT INITIATION
PHASE
PROJECT PLANNING
PHASE
Build Execution
Team
Initiate
Project
Jack Star
Project Manager
Assign Real
Resources
PMO or
Resource Managers
Project Sponsor
Resource
Assignments
Generic Resource
Assignments
PMO
Plan_name.mpp
Create Execution
WBS
Execution
Tasks
Plan_name.mpp
Create New
Project Plan from
Template
Project Manager
Phase
Transition
Execute Planning
Tasks
Plan
Updates
Resource/Task Assignment
Execute
Plan Updates
Assign Project
Manager
Next
Phase
Project Manager
Plan_name.mpp
Resource
Assignments
Project Manager
Create Initiation
WBS
Assign Real
Resources
Initiation
Tasks
Plan_name.mpp
PMO or Resource
Managers
Assign Initiation
Tasks
Resource
Assignments
Build Planning
Team
Plan
Updates
Generic Resource
Assignments
Plan_name.mpp
Plan_name.mpp
Execute Initiation
Tasks
Phase Transition
Create Planning
WBS
Planning Tasks
RESOURCE ASSIGNMENT
WORKFLOW
Phase is Baselined
Dr. Trivedi - All Rights Reserved
Process - Project
Execution Cycle
PROJECT EXECUTION
PHASE
Execution Optimization
Activity
Plan_name.mpp
Jack Star
Project Manager
Project Manager
Project Manager
Baseline
Publish
Plan &
Assignments
Track
Progress
Plan_name.mpp
NO
Implement
Filters
Schedule Variance
(KPI)
Budget Variance
(KPI)
Analyze
Schedule
Analyze
Resources
Team Members
Accept?
YES
On Target?
Republish Plan
YES
NO
NO
Overload?
YES
Update Tasks
ReScheduling
Load Leveling
Submit Time Sheet
Critical
Tasks
PMO or Resource
Managers
Non-Critical
Tasks
Task Splits
Success?
NO
NO
Approve?
Execution
Optimization
Activity
PMO or Resource
Managers
Critical
Tasks
Project Manager
Approve?
Baseline
Revision?
YES
Update Tasks in
Project
Professional
Resource
Substitution
External
Resources
NO
YES
Set Revised Baseline
Republish Plan
Dr. Trivedi - All Rights Reserved
Plan_name.mpp
Process - Project
Update Cycle
PROJECT EXECUTION
PHASE
DAY 1
Week 1
Jack Star
Project Manager
Project Manager
Publish
Plan &
Assignments
Plan_name.mpp
NO
Team Members
Execution
Optimization
Activity
Accept?
YES
Update Tasks
Submit Time Sheet
Monday
Week 2
PMO or Resource
Managers
Update Tasks in
Project
Professional
NO
Friday
Week 2
Approve?
Wednesday
Week 2
Resource
Manager Meeting
Project Manager
YES
Approve?
Dr. Trivedi - All Rights Reserved
Thursday
Week 2
Some of our clients – Team Soaring Eagle
“We are delighted to be judged by the company we keep!”
8
Because Performance Matters