Six Sigma/PM Integration “Rules of Engagement”
Because Performance Matters October 20, 2011
Prepared By:
Dr. Abhay V. Trivedi, Ph.D., PMP, CSSBB, PMI-RMP
Phone: 770-315-0139 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
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
• 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…
• 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… – 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…
• 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
Generic Product Development Process
Company/ Product Strategy
Voice of the
Marketplace
Innovation Engine
Voice of the
Customer
Voice of the
Supplier
Continuous Improvement
Concurrent Applications Development and
Engineering
Te
ch
no
log
y B
oo
ks
he
lf
Product Portfolio and Pipeline Management
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
Resources
(Who)
Tasks
(How)
Artifact
(What)
Stages/
Milestones
(When)
Deliv-
erables
Typical Business Metrics
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? • 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
Measure Analyze Improve Control Define
Lead
Problem Lead
Parameters
Lead
Issues
Lead
Processes
Lead
Problems
Customer Demands
Process Capability
Motivation
The DMAIC Six Sigma process breakdown
18
Role of PM in Six Sigma Implementation
Exceptional Quality
Exceeding Value
Market Based Cost
Project Scope
- Vision of Perfection
- Team Buy In
Review and Sign Off
- Conformance
- CQI Policy
Planning
- Voice of the Customer
- Goal centered objectives
Execution & Control
- Preventive Strategies
- Roles and Responsibilities
Quality Function Deployment (QFD) An Important tool to capture the stated and
unstated needs of the customer
Tip: A brainstorming technique
Can also be an important tool to
Generate ideas and come up with
Solutions as a team effort
The QFD Matrix Template
20
How many of you use this?
Product or Service Impacted Expected Project Savings
($)
Black Belt or Green Belt Business Unit
Champion Phone Number for Belt
Master Black Belt Email for Belt
Start Date Target Completion Date
Element Description Team Charter
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:
Project
Metrics
Baseline
GOAL
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?
Getting to the “To-Be” Process
Model As-Is
Process
Define Performance:
Goals and Actual
As-Is
Challenge
Define To-Be
Process
Plan and Do
Implementation
Map extended
environment and
select process
It’s Hard for an Insider to Challenge
the System
70% of the Work
The Easy Part
Understanding the Flow How Does It Work?
Product Development
Process
Project Management
Tools
Team Leadership
“Honor the process”
“Worship the schedule”
“The power of many as one”
• establishes
discipline
• uses best
practices
• leverages prior
experience
• promotes
corporate learning
• documents
lessons learned
• communicates to
all parties
Program Manager
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
Pareto Priority Index Example
Project Planning
Facilitating Processes
Quality
Planning
Communications
Planning
Organizational
Planning
Procurement
Planning
Core Processes
Deliverable Decomposition
Logic Network Definition
Resource Loading and Plan Tuning
0%
20%
40%
60%
80%
100%
120%
140%
Wee
k 1
Wee
k 2
Wee
k 3
Wee
k 4
Wee
k 5
Wee
k 6
Wee
k 7
Wee
k 8
Wee
k 9
Wee
k 10
Wee
k 11
Wee
k 12
Wee
k 13
Wee
k 14
Wee
k 15
Wee
k 16
Wee
k 17
Wee
k 18
Wee
k 19
Wee
k 20
Wee
k 21
Wee
k 22
Risk Plan
Development Project Definition
& Approach
Project Management “V” Model
Corporate
Knowledge
• Lessons Learned
• Product
Roadmaps
• Technology
Roadmaps
• Resource &
Facility Planning
• Product
Development
Process
• Generic Planning
Templates
Subsystem
Plan
Execution
System
Plan
Execution
Customer
Requirement
s
Customer Focused
Customer Experience & Feedback
Attribute Target Setting
and Timing Cascade
Feasibility
Feedback
Feasibility
Feedback
Integrate Milestones
& Status Reports
Integrate Milestones
& Status Reports
Project
Goals
Project
Goals
Attribute Target Setting
and Timing Cascade
Customer
Satisfaction
Project Assumptions
Definition / Translation
Note: Applies to Functional
and Modular Systems
Component
Project
Planning
Component
Plan Execution
System
Project
Planning
Subsystem
Project
Planning
•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
•Overall Change Control
- Cost Control
- Schedule Control
•Overall Change Control
- Cost Control
- Schedule Control
•Performance Evaluation
•Project Profitability
•Performance Evaluation
•Project Profitability
Critical PM
Activities
Gate 1 Gate 2
Idea
Generator
VOC
VOS
Program Planning
Review Decision on
Customer Readiness
Mapping of PM Phases to Concept Development Process
Gate 3
Decision on
Implementation Readiness
Technology
Assessment
Concept
Evaluation
Product
Implementation
•PM Team Set-Up
•Roles & Responsibilities
•Alternative Approaches
•Deliverable Decomposition
•Risk Plan Development
•Resource Loading
•Participants & Roles
•Go/No Go Decisions
•Overall Change Control
- Cost Control
- Schedule Control
•Performance Evaluation
•Project Profitability
Bookshelf
Project Sponsor
Initiate
Project
PMO
Create New
Project Plan from
Template
Plan_name.mpp
Assign Project
Manager
Project Manager
Create Initiation
WBS
Plan_name.mppInitiation
Tasks
Assign Initiation
Tasks
Resource
Assignments
Execute Initiation
Tasks
Resource/Task Assignment
PROJECT INITIATION
PHASE
Plan_name.mppPlan
Updates
PROJECT PLANNING
PHASE
Create Planning
WBS
Plan_name.mpp
Build Planning
Team
Generic Resource
Assignments
Planning Tasks
Assign Real
Resources
PMO or Resource
Managers
Plan_name.mppResource
Assignments
Project Manager
Execute Planning
Tasks
Plan Updates
Create Execution
WBS
Plan_name.mppExecution
Tasks
Build Execution
Team
Generic Resource
Assignments
PMO or
Resource Managers
Assign Real
Resources
Resource
Assignments
Execute
Project Manager
Phase
Transition
Plan
Updates
Next
Phase
Phase is Baselined
Phase Transition
RESOURCE ASSIGNMENT
WORKFLOW
Process - Project Planning Cycle Jack Star Project Manager
Dr. Trivedi - All Rights Reserved
Execution Optimization
Activity
PMO or Resource
Managers
Project Manager
Publish
Plan &
Assignments
PROJECT EXECUTION
PHASE
Plan_name.mpp
Team Members
Accept?
Update Tasks
Submit Time Sheet
Approve?
NO
YES
Project Manager
Approve?
NO
Update Tasks in
Project
Professional
YES
Execution
Optimization
Activity
Republish Plan
Project Manager
Plan_name.mpp
Track
Progress
Analyze
Schedule
Analyze
Resources
Schedule Variance
(KPI)
Budget Variance
(KPI)
Implement
Filters
Baseline
On Target? Overload?
Load Leveling
Success?
Re-
Scheduling
Critical
Tasks
Non-Critical
TasksTask Splits
Critical
Tasks
Resource
Substitution
External
Resources
NO YES
NO
NO
YES
PMO or Resource
Managers
Baseline
Revision?
Set Revised Baseline
Plan_name.mppRepublish Plan
YES
NO
Process - Project Execution Cycle Jack Star Project Manager
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NO
PMO or Resource
Managers
Project Manager
Publish
Plan &
Assignments
PROJECT EXECUTION
PHASE
Plan_name.mpp
Team Members
Accept?
Update Tasks
Submit Time Sheet
Approve?
YES
Project Manager
Approve?
NO
Update Tasks in
Project
Professional
YES
Execution
Optimization
Activity
DAY 1
Week 1
Monday
Week 2
Friday
Week 2
Wednesday
Week 2 Resource
Manager Meeting
Thursday
Week 2
Process - Project Update Cycle Jack Star Project Manager
Dr. Trivedi - All Rights Reserved