Lean Sigma Overview and its Significance to Project Management

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Lean Sigma Overview and its Significance to
Project Management

• Harjit Singh, PMP
• harjitsinghpmp_at_gmail.com

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Agenda

• Introduction
• Tools
• Training and Certification
• Training
• Improvement Model
• Lean Sigma vs. PM
• Methodology
• QA

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Lean Six Sigma

• Six Sigma
• Business management strategy developed by
  Motorola in 1981
• An approach to improve the process quality by
  identifying and removing the causes of defects
  and minimizing variation in the processes
• 99.99966 defects free
• Bell shaped normal distribution (µ LSL/USL
  6?)
• DMAIC/DMADV project methodologies based on PDSA
  or PDCA cycles
• Lean
• Eliminate waste

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Lean Sigma Tools

• 5 whys
• Process maps
• Cause effect or fishbone or Ishikawa diagram
• Control charts
• Correlation
• Cost-benefits analysis
• Histograms
• Pareto charts
• Regression analysis
• Root cause analysis
• Run charts
• SIPOC chart

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Certifications

• Green belt
• Black belt
• Yellow belt
• (Both green belt and black belt certifications
  are offered by the Institute of Industrial
  Engineers (http//www.iienet2.org/Default.aspx)
  and by the American Society for Quality
  (http//asq.org/ ) )
• Green belt and black belt are most common
  certifications

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Training

• How?
• Companies in-house training program
• Private providers
• IIE/ASQ
• Why?
• Team development and facilitation skills
• Running effective projects
• Utilizing PDSA structured improvement model
• Choosing appropriate quality tools
• Who?
• Individuals who manage teams or projects

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Certification Process

• http//www.iienet2.org/IIETrainingCenter/Details.a
  spx?grpICP
• http//asq.org/certification/index.html
• Individual companys training department
• May require to complete an improvement project

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Guidelines for a Successful Improvement Project

• Alignment with organizations business plans or
  priorities
• Sponsorship
• Importance to organizations leadership. For
  example
• Customers are experiencing problems with projects
  or services
• There is a need to improve productivity or reduce
  costs while maintaining or improving quality
• There is a need to increase sales by exceeding
  current customer expectations and capturing
  market share
• Unknown solution that requires learning and
  testing prior to implementation
• Feasibility of key measures of success
• Availability of baseline data
• Business impact (customer satisfaction, cost
  savings or revenue increases)
• Within scope

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The Model for Improvement

Learning / Action Cycles
Improvement
Implementation
Wide-scale tests
Small scale tests
Hypothesis and ideas
Supported by Lean Sigma Methods and Tools
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Three Fundamental Questions

• What are we trying to achieve?
• Understand the problem. Know what you are trying
  to achieve. Have clear and desirable aims and
  objectives
• How will we know that a change is an improvement?
• Measure processes and outcomes
• What changes can we make that will result in an
  improvement?
• What challenges do we have? What can be learn as
  we go along and how?

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PDSA
ACT What changes are to be made Next cycles PLAN Objectives Questions/Predictions Plan to carry out the cycle (who, what, where, when?) Plan for data collection
STUDY Complete the analysis of the data Compare data to predictions Summarize what was learned DO Carry out the plan Document problems and unexpected observations Begin analysis of the data
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Lean Sigma with Project Mgmt

• Project Management deals with projects for which
  the solution is already known
• Green/black belt deals with projects for which
  solution is not known
• Powerful combination
• Lean PM

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Technical Lean Sigma Tools and PM

• Initiate
• Charter, 5 whys, cause effect, pareto
• Plan
• Value stream map, 5 whys, fishbone
• Execute
• Workflow, control plans
• Manage Control
• Balance scorecard, control plans
• Close
• Update strategy, prioritize next improvement plan

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Social Lean Sigma Tools and PM

• Initiate
• Brainstorming, cause effect, case for change
• Plan
• Brainstorming, interview/survey, team building
• Execute
• Status meetings, organizational effects
• Manage Control
• Skip level meetings, balanced scorecard
• Close
• Celebrate lessons learned, rewards/recognition

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References

• HP Lean Sigma
• Quality Digest http//www.qualitydigest.com
• Wikipedia http//en.wikipedia.org/wiki/Six_Sigma
  

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Wrap Up