152 5 lean six sigma and project management go together

Lean Six Sigma and Project Management

go together

Written by Francisco Pulgar-Vidal, fkiQuality

fpulgarvidal@fkiquality.com

10/28/2013 152-5 Copyright fkiQualityLLC 2012 1

Continuing the Executive Education Series

Why Lean Six Sigma is better than ‘just doing projects.’

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Goal of this presentation: Encourage Lean Six Sigma practitioners and project managers to learn from one another.

I aim to achieve this by presenting

two similarities and two differences between both methods.

FIRST SIMILARITY: Lean Six Sigma and Project Management are

complementary methods of improvement.

The methods of Lean Six Sigma (LSS) and project management (PM)

support one another.

In fact,

some of the best LSS practitioners happen to be skilled project managers.

They are practitioners who have

blended skills of problem solving and project management.

In terms of sequence and timing, LSS and PM are

complementary.

Operational Problem

Designed solution

Implemented solution

Lean, Six Sigma methods

Project management

Even more, Lean Six Sigma

borrows much from the discipline of project management.

SECOND SIMILARITY: Lean Six Sigma applies many project management concepts

to be more effective.

LSS projects are structured

in stages, with gates.

Lean’s A3 consists of these steps Background Current conditions Goal Analysis Recommended countermeasures How to implement How to sustain

Six Sigma stages give DMAIC its name, and include Define Measure Analyze Improve Control

In both cases, to move from one stage to the next, teams must

advance their learning,

complete specific deliverables,

and

achieve defined outcomes.

At each stage gate meeting, called a ‘tollgate,’ the project directing team decides

what happens next.

Like in any well-run program, LSS projects are launched by

sponsors and champions.

Project sponsors and champions are responsible for identifying

meaningful projects.

What does it take to launch projects that

mean something?

Meaningful projects support a strategy, answer customer needs and improve core processes.

Strategy

Core processes

Customer needs

The intersections below are promising targets for improvement. How do we

fulfill our vision?

Which processes

need fixing?

What do customers want us to do better?

From these target areas, project sponsors and champions

identify, select and prioritize LSS projects.

This creates a program plan made of a

phased sequence of projects.

Balance strategy, customer

needs, core

processes

Define target areas of

improvement

Sequence projects of

improvement

Why to change? What to change? How to change?

Then each project is

chartered and launched.

This sequence is called

hoshin kanri or strategic planning.

LSS projects are led by a

project manager.

Simpler LSS projects are led by a

lean practitioner or green belt.

The lean practitioner or green belt applies an

intermediate level of LSS and project management skills.

More complex LSS projects are led by a

lean master or black belt.

The lean master or black belt applies a

deep level of LSS and project management skills.

Regardless of skill level, the project lead

is not alone and must be supported by the organization.

Sponsors and champions, an experienced coach and a program office are needed for success.

A successful

LSS program

LSS Champion

Project Managers

PMO

LSS Coach

FIRST DIFFERENCE: Lean Six Sigma projects

start with problems, not solutions.

Crucially, while most projects focus on how to

implement a solution,

… Lean Six Sigma projects focus on how to

find the solution to be implemented.

Lean Six Sigma has

three major components,

Project- based

Project- based

A continuous function

Project- based

Our focus today

So, Lean and Six Sigma projects are efforts to

improve existing processes, products, services.

Clearly, improvements are necessary because

there are problems with the current state of things.

In particular, Lean Six Sigma projects start with problems

that you don’t know how to solve.

This is so true,

that if you know the solution,

then you

don’t need Lean Six Sigma.

But if you must solve a

hard problem,

then a Lean Six Sigma project is

likely your best choice.

Lean follows a method for improving what already exists, called

A3.

A3 is based on the continuous improvement method of

testing a solution through trials.

Six Sigma follows a method for improving what already exists, called

DMAIC.

DMAIC is based on the scientific method of

testing a hypothesis through experimentation.

While most other projects focus on

delivering a solution,

… such as: relocate the trading office, develop new technology, enter a new market, prepare for a trade fair, restructure an organization, …

… recall that LSS is best for

finding and designing a solution.

SECOND DIFFERENCE: Lean Six Sigma projects emphasize

finding the solution more than schedule, budget, scope or risk.

For instance, a LSS project may have many

natural outcomes.

Which depend on the project’s

path of discovery.

So what happens after each tollgate meeting

is not predetermined.

Several outcomes are possible along the lifecycle of a Six Sigma project.

For instance, after the Define or Measure stages …

after a tollgate meeting, when the initial problem turns out to be something else.

without becoming a failure, when the supposed problem isn’t borne by facts.

when the initial scope proves too extensive.

when the team has a short time to deliver results.

Unlike most projects, all these outcomes

are fine, when they result from what the team has learned about the problem.

Most often,

Because a LSS project does not have a known solution, it is critical that the team find the right problem and the right solution.

For this reason, LSS projects emphasize

designing a solution while de-emphasize meeting schedule, budget, scope or risk requirements.

In summary, Lean Six Sigma and Project Management complement each other strengths.

Specifically, LSS projects begin with problems and emphasize finding the right solution,

… while PM brings structure and discipline to problem solving efforts.

In terms of skill sets and learning, LSS project leads, sponsors and champions

must learn project management skills to be more successful.

Conversely, project managers

have the bases to become great LSS practitioners and could learn the technical skills.

Next presentations will discuss:

• In which way lean six sigma projects go deeper than other efforts.

• The structure of Lean and Six Sigma projects for exploration.

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