six sigma project v9

Audit Project

Six Sigma

DMADV Storyboard

Boise Potato Firm

ITIL Implementation Action Plan

(Hypothetical Project)

Created by Yuko Soma

Audit Project

Objectives: In Jan 2010, Start to develop and implement ITIL framework to reduce e.g. average Incidents backlog to Sigma Level 6 after ITIL implementation Go-Live (Aug. 2010) within 2 months (by Oct. 2010) to help sales to meet their KPI in Dec. 2010

Impacts:

Assumptions:

1) Reducing average Incident backlogs/month will improve business process efficiency across all BUs

2) Will increase sales opportunity and sales3) Improve company brand image by disclosing ITIL implementation

to media for commercial purpose

The Quality of business processes across all business units supported by IT services is a critical component of Sales increase.

Other Documents:

(Project Charter, Gantt chart)

Background

Audit ProjectCommunication Plan

Stakeholder Status(See Key)

What to Communicate

Frequency of Contact Method Responsible

Person

CIO I Staring Committee Bi-Weekly WebEx James King

IT Director AAlignment meeting and Staring Committee

Weekly WebEx Jim White

IT Service Management manager R Alignment meeting, CAB meeting Weekly Face to face Yuko Soma

All Business Units Representative S Alignment meeting and Staring

Committee Monthly Face to face D. Dummy

(R) = Owns process/project (A) = Who (R) reports to; approves work(S) = Supportive; resource

Key:Directions:1.Identify Stakeholders & Status2.Analyze person against criteria3.Develop strategies to maintain support; mitigate

resistance4.Establish priorities

(C) = To be consulted(I) = Keep informed; not consulted

Audit ProjectSIPOC Worksheet

Process Name: ITIL ImplementationProcess Owner: Yuko Soma

Date: Jan. 5, 2010

Prepared By: Yuko Soma

ProcessSuppliers

ProcessInputs

PROCESS

Process Outputs Process Customers

Finance Team- Financial Month end data transfer

to the Oracle EBS system- Budget Input to BI tool

- Correct/On Time data transfer to the Oracle EBS system- Correct/On--Time data analysis reports by BI tool

CFO

Sales Team Daily Sales Opportunity data to Sales force system

- Correct/On-Time data transfer to Sales force system COO

Sales Oepration TeamCustomer data update and register on Sales force system - Correct/On Time data update on

Sales force system COO

HR Team Send Newhire/Leaver data to ITSM Tool

- Correct/On Time data update on ITSM tool on time HR Director

ITIL ProcessAll Business Process Activities Backlog ReduceServicesServices

Inputs Outputs Outputs

ServicesSales Increase

Audit Project

Brake down “Planning” part of the whole business processes for BU

Core Business

DevelopPlans

Level 1

Communicate Business Plans

Execute Plans

Evaluate IT Services Performance

Level 2

Report ITIL Performance

SecureITIL Resources

Determine ITIL Needs

Execute ITIL Action Plan

Marketing LogisticsProductionNew Product Introduction

CustomerServicePlanning Sales

Business Environmental Data

D M A D VProject Flow - 1

Audit Project

Project Scope Project Scope

Define IT Director

Collect information and protocols

Issue ITSM Reports to IT and Business Units

Develop and submit CAP

Review CAP Execute CAP

Identify the current number of backlog

Conduct: Confirming the status of the corrective actions taken against the findings of previous incident backlog analysis.

Sche

dul

e

IT Service Manager Project Member

Schedule ITIL Design

Prep

are

Complete ITIL design plan

Con

duct Conduct ITIL

implementation evaluation

Confirm findings

Rep

ort

Issue ITIL and ITSM tool Summaries

CA

PD M A D V

Level 2 Process: Project Scope

Audit Project

1. For our team to get a common understanding, please tell us how you interpret the term “ITIL framework”?

2. What do you see as the attributes of a successful ITIL implementation ?

3. What are the top 3 attributes in order of importance? 4. How would you measure whether a ITIL meets your expectations

on these top 3 attributes?

Identified needs arising from current

challenges

5. What are your top 3 issues related to IT services quality in your organization today?

6. Do you see ITIL is helping to resolve these issues? 7. If so, how do you see a ITIL helping to resolve these issues?

8. What information should ITIL generates for your organization? 9. How will this information be used within your organization?

Identified informational needs

and attributes

10. Is there anything else you would like to share with us? “Catch all”

Identified key attributes of the program

D M A D V

Project Interview Questions

Audit Project

・　 In-depth standardized IT audit modular protocols for systems and compliance・　 Determine audit schedule, type, content and team appropriate for the IT auditee in collaboration with local BU/Division

Clearly identify where the current and potential risks and problems

・ ITIL reporting roll-up processComplete Communication

・ ISO20000 and ISO27001 certified by recognized 3 rd party - Mechanism for benchmarking against other companies to establish competitive advantage

Externally accepted ITIL frameworks

・　 Decision criteria and process for consistent ratings of individual findings and overall business process performance by using IT

Consistent Improvement of ITSM lifecycle

・　 System for reporting status of findings and corrective actions・　 Corrective action escalation procedure

Verification of completeness of Corrective Action

・　 ITIL Expert certification (or ITIL Master) and Six Sigma Black beltFair ITIL & Six Sigma

・　 Incorporation of Division Quality representative in IT audit team・　 ITSM expertise at BU level to implement and adopt locally・　 IT budget is owned at BU level to enable local initiative and adoption・　 Linked to ITIL Expert certification where appropriate

Locally Relevant

・　 Internal validation process・　 Use external IT auditors only・　 Interdivisional IT audit teams

Independent IT Audits

Design IdeasDesign IdeasCTQCTQ

D M A D V

Project Design Ideas

Audit Project

Potential synergies and conflicts between design

ideas identified

“Inclusion of Division IT in ITIL action team” and “Convertible Rating System” conflict with

other design elements

Top 6 design elements have no conflicts and

are synergistic

D M A D V

Project Trade-offs (Sample from textbook)

Audit Project

All Business Units needs and priorities were similar

・　 Extracted solutions, issues and needs from interviews

・　 253 need statements transcribed to Post-it notes

・　 Post-it notes color coded by Business Units segment

・　 Top needs from each Business Units highlighted

・　 Needs affinitized and sorted using tree diagrams

Project VOC Analysis

D M A D V

Audit Project

• Identify number of ITIL process was used

•Establish maturity of facility and rank operations based on potential risk. (Based on Division assessment against established criteria)

•Determine ITIL type required based on IT Service maturity

•Determine additional IT auditing needs (obtained by use of the collaborative routine established in the GAP)

•Determine the preferred ITIL Measurement timing from the Divisions

Select the ITIL Action team based on:• Qualification• Right process knowledge• Language ability• Availability

Develop ITIL schedule: Firm scheduling of compliance IT audits (prioritized based on risk profile)

Draft Schedule indicates: Availability of ITIL ExpertConfirmation of scheduleCommunication of final schedule

How Much:100% match of ITIL action team on process knowledge; In 2010 at least 50% of ITSM conducted with fully certified ITIL Expert; 2011 onwards 100% of ITSM conducted with fully certified ITL Expert.

Firm scheduling routines to have the right team at the right location conducting the right IT audit


Level 2 Report ITIL Performance

SecureResources



Level 3 Schedule ITIL Design

Identify ITIL Type

Establish Current Status

Identify ITIL Action Team Required

Audit Project

Secure ITResources

ITIL Expert Certification Program - Internal and external ITSM staffs have the right skills and competences

Selection

Periodic re-training and evaluation

Select using criteria for:• Personal Atributes• Education• Related experience

How much:10 % of internal ITSM staffs

are recruited/transitioned.

How much:100% match of ITIL action

team on ITIL process knowledge

How muchIn 2010 at least 50% of

ITSM conducted with 3 certified ITIL Expert, 5 ITIL Practitioner and 25 ITIL Foundation 2011

How much:Maintain steady state of 100% of ITSM staffs

Train ITIL Expert in:• ITIL principles • ITIL execution• Business Processes• ISMS• Laws and regulations• Six Sigma Black belt,

Green belt

・　 Certify ITIL Expert, Practitioner and ITIL foundation 2011


Level 3 CertificationMaintenance

TrainingSelection Certification


SecureResources



Audit Project

Standardized ITIL protocol module for planning, execution and reporting of individual outcomes

Standardized modules to evaluate compliance of processes and systems during individual ITIL based tasks

In-depth protocols and decision criteria deliver consistent and fair IT audits

How Much:• 50% of ITSM tool modules completed by June. 2010• 100% of ITIL design modules completed by Aug. 2010


Level 3Perform ITIL

Plan ITIL Design


SecureResources



Audit Project

• Incorporate reporting of ITIL information into established management routines for Quality performance at the BU level. Information can be used to drive resource allocation at the BU and Division level.

• ITIL summary provided to BOD. Information will be used as input to resource allocation, and greater understanding of the risks in the organization.

• Detailed ITIL report issued to IT Auditee that identifies critical and systemic risks

• IT Service manager uses report information to drive program improvement

• Formalized communication of high risk findings to appropriate management levels.

• Gather, analyze and trend data to create a summary report that includes identification of high risk issues, status of corrective action, successful practices and learnings.

• ITIL summary to provide comparative data of Division / BU performance against our performance.

Actionable audit information available – IT Auditee to BOD

How Much:Provide bi-monthly reports for BOD meetings; provide monthly reports to Steering Committee, Quality Division and BU/Vision heads by Aug. 2010



SecureITIL Resources



Summarize ITIL DataCommunicate Detailed ITIL Findings

Level 3 Communicate Summarized Info

Audit Project D M A D V

1. Average delay awaiting closing the backlog incident tickets

2. Maximum delay awaiting closing the backlog Incident tickets

3. Average the number of Incident backlog tickets

4. Maximum backlog Incident tickets

Questions:

・　 Is the backlog a chance event required a permanent change of process ?

・　Which type of job skills are required?

･ Will additional semi-automated process required to reduce backlog Incident thickets?

･ Will ITIL solve this problem?

The Simulation

Audit Project

Hows (Design Requirements)

Needs (Whats) Ratin

g

TCC

C C

ertif

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audi

tors

In-d

epth

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BU

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Dec

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and

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findi

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and

over

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perfo

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Glo

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prog

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repo

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g ro

ll-up

pr

oces

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D &

Exe

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.

Clearly Identifying current and potential risk and problems 48 9 9 9 9 9Independent Audits 39 1 9The Global Program is locally relevant 36 3 9Fair Audits 30 9 1 3 9 9Consistent Audits 24 9 9 3 9 9Verification of completeness of corrective action 21 9 9 1 9Externally accepted audits 21 3 1 3Complete communication 16 9 9 3 3 9Importance 1422 1071 987 966 900 765

Options

Needs (Whats) Wei

ght

Det

erm

ined

usi

ng

TCC

QS M

atur

ity

cont

iniu

um o

nly

Det

erm

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by

Qua

lity

Indi

cato

r onl

y

Det

erm

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by

Pre

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s Aud

it re

sult

Det

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ined

by

Aud

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anag

er

Det

erm

ined

by

Aud

itee

Det

erm

ined

by

Div

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n Q

A M

anag

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Hub

Aud

it M

anag

er

Sel

ect T

eam

Lead

Aud

itor S

elec

ts

Team

Div

QA M

gr S

elec

ts

Team

Dec

entra

lised

Sch

edul

ing

Cen

tralis

ed

Sch

eudl

ing

Pro

cess

TCCC Certified auditors 1422In-depth standardised audit modular protocols for systems & compliance

1071

Determine audit & audit team appropriate for the auditee in collaboration with local SBU/division

987 3 1 3 1 3 3 9 3 1 9 1

Decision criteria and process for consistent ratings of individual findings and overall facility performance

966

Global audit program certified by recognized 3rd party to ISO 19011

900 9 9 1 3 3

Global audit reporting roll-up process for BOD & Executive Committee

765

Importance 2961 987 2961 987 2961 2961 16983 11061 1887 11583 3687

TEAM SELECTION SCHEDULINGAUDIT TYPE

P R I M E D O T S Actions1 Update of EMS with new plant information X Quarterly review and update plant information on EMS2 Determine number of plants to be audited (EMS)3 Request information on plant maturity, risk and audit timing4 Evaluate every plant against agreed criteria (DIVISION)5 Prioritize based on risk and audit timing (DIVISION)6 Comunicate prioritized plant list to audit group (DIVISION) X Ask for required information in advance and frequent fol low up. 7 Collect prioritized list from divisions8 Any new process identi fied in the prioritized list?9 Request information regarding new process10 Provide information regarding new process11 Development and inclusion of the new module X Quarterly survey with Division to identify new processes.12 Update prioritized list13 Compare mandays required with mandays available14 Are sufficient auditors available within SBU? X X Identify and prepare an external pool of auditors15 Are there auditors available in other SBU´that can be used? X Get access to information on auditors in other SBU´s16 Re-evaluate pr ioritized list to focus on risk priority X Ensure there are sufficient trained auditors available with the required skil ls17 Do auditors have required process knowledge? X Ensure there are sufficient trained auditors available with the required skil ls18 Do auditors have required language skill? X Ensure there are sufficient trained auditors available with the required skil ls19 Is location of auditors suitable for conducting audits? X Ensure there are sufficient trained auditors available with the required skills in yours

SBU20 Can audit be re-scheduled?21 Is there a lead auditor available? X Ensure there are sufficient trained auditors available with the required skills in yours

SBU22 Allocate resources to the prioritized list23 Prepare/Review Draft Schedule X Note: Minimize this loop with more active involvement with the Divisons in the early

stage of the scheduling process.24 Communicate Draft Schedule to Divisions25 Agree with draft schedule? (DIVISION)26 Communicate proposed changes (DIVISION) X Note: Minimize this loop with more active involvement with the Divisons in the early

stage of the scheduling process. Alternately commit the Division to respond withinan agreed timeframe or the schedule would be accepted as it is.

27 Are changes feasible?28 Communicate to Divison that changes are not possible29 Prepare final schedule30 Communicate final schedule

PRODUCTIVITY ANALYSISSTEP

Detailed design options selected, flowcharted and measures identified

CTQs

High Level Design

Elements

QFD #1

High Level Design

Elements

Detailed Design OptionsQFD #2

Value-Added AnalysisVA BVA NVA

1 Update of EMS with new plant information X2 Determine number of plants to be audited (EMS) X3 Request information on plant maturity, risk and audit timing X4 Evaluate every plant against agreed criteria (DIVISION) X5 Prioritize based on risk and audit timing (DIVISION) X6 Comunicate prioritized plant list to audit group (DIVISION) X7 Collect prioritized list from divisions X8 Any new process identified in the prioritized list? X

YES (10), NO(12)9 Request information regarding new process X10 Provide information regarding new process X11 Development and inclusion of the new module X12 Update prioritized list X Perform updating of EMS each quarter and detec new processes13 Compare mandays required with mandays available X14 Are sufficient auditors available within SBU? X15 Are there auditors available in other SBU´that can be used? X16 Re-evaluate prioritized list to focus on risk priority X Define sufficient number of auditors, based on process knowledge, language skill,

location, leading. Reduce number of audits based on risk evaluation 17 Do auditors have required process knowledge? X18 Do auditors have required language skill? X19 Is location of auditors suitable for conducting audits? X20 Can audit be re-scheduled? X21 Is there a lead auditor available? X22 Allocate resources to the prioritized list X23 Prepare/Review Draft Schedule X Note: Minimize this loop with more active involvement with the Divisons in the early

stage of the scheduling process.24 Communicate Draft Schedule to Divisions X25 Agree with draft schedule? (DIVISION) X Note: Minimize this loop with more active involvement with the Divisons in the early

stage of the scheduling process.26 Communicate proposed changes (DIVISION) X Note: Minimize this loop with more active involvement with the Divisons in the early

stage of the scheduling process.27 Are changes feasible? X28 Communicate to Divison that changes are not possible X Note: Minimize this loop with more active involvement with the Divisons in the early

stage of the scheduling process.29 Prepare final schedule X30 Communicate final schedule X

VALUE CATEGORYACTIONSTEP

Preliminary Flowchart

Productivity AnalysisError ProofingFinal Flowchart

Potential Causes Current Controls Actions Recommended Resp. Actions Taken

What causes the Key Input to go

wrong?

What are the existing controls and

procedures (inspection and test) that prevent either the cause or the

Failure Mode?

What are the actions for reducing the occurrence of the cause, or improving

detection?

What are the completed

actions taken with the

recalculated RPN?

10Did not provide the

information or update the EMS

4 no current controls 10 400 Establish routines to quarterly for divisions to review current status against current EMS content

GAP Mngr

10 2 5

9Planning of resources

ineffective 4 no current controls 10 360

Define a procedure for rigorous planning. Use auditor pool across SBU's while building SBU capability. Identify multiple external certification bodies in design phase.

GAP Mngr 9 2 4

8 Process for updating is not followed 4 no current controls 10 320 Audit the updating process at a local level

GAP Mngr

8 2 4

SEVERITY

OCCURRENCE

DETECTI

ON

SEVERITY

OCCURRENCE

DETECTION

RPN

Critical Risk Flow Process

AuditeeHub Q.A. Audit Group Lead Auditor DivisionPVP

ID of cr itical/highrisk (1)

Communicatefinding to audit ee

(2)

Discussion andcon firmation of

evid ence (3)

Confirmation offind ing (4)

Confirm withaudit manager

(5)

Contin ue audit(6)

Telephonicdiscussionwith audit or

(7)

Agree(8)

No

Yes

No

Conf irm withHub Q.A. (9)

Yes

Telepho nicdiscussionwith a udit

manag er (10)

Agree(11)

No

Yes

Inform auditor(12 )

Co ntinue a udit based onaudit mana ger comment

(13)

Confirma tionwith a udit

man age r (14)

Telephonicdiscussion withdivisio n to get aplan for action

(15)

Discussion withbottler &

preparation o fCAP (16)

Forward plan byemail to auditman ager (17)

Agree withcontent of CAP

(18 )

Inform HubQ.A. and cop y

divisiontechn ica l

director (19 )

Yes

No

Voice mail to SBUPres. Co py PVP, Div.Pres, SBU QA, SBU

Te ch, Div Techdetailing crit ica l sta tu s

(20)

D M A D V

Determine ITIL Needs (Sample from text )

Audit Project

Document ManagementDocument ManagementITIL implementation and its control of procedures, incorporating:

• Document creation• Document review• Document distribution• Document archiving

(Above done with electronic workflow)

RecordkeepingRecordkeepingITSM maturity and operational dataAudit reports

• Field for high risk, corrective action status and successful practices

• Status of corrective action receipt• Audit schedule status• Search of reports by:

• Risk• BU• Division

ITSM Staffs CapabilityITSM Staffs Capability• Personnel information:

• Education• Work Experience• ITSM tool training• EXIN ITIL foundation Certification to all

Technical Staffs• Languages, nationality, location

• Course and skill profiles• Filter/search capability

This functionality is available with current solutions and/or off-the-shelf software

• Document revision• Document approval• Document control

D M A D V

Features of ITIL framework

Audit Project

・　 New Standard

Install ISO20000 and ISO27001

・　 Modify quality appraisal and IT audit criteria

・　 Update prices of product to increase sales

Implementation of ITIL makes price increase of company products possible

・　 Revise IT budgets

・　 Revise manpower forecasts

Not meant labor cost saving. Reallocate IT technical staffs to right positions.

D M A D V

Hard-Won Gains

Audit Project

• The ITIL Design was completed on schedule and full scale implementation began Jan. 2010

• Preliminary results indicate all CTQs will be met

• An estimated backlog/month reducing to Sigma Level 6.0 by ITIL in Oct. 2010

• After full ITIL implementation, the sales resulted at least 1,000,000 increase in Oct. 2010 – Dec. 2010 (FY2010 Q4)

Summary

Audit Project

References

Thomas Pyzdek, and Paul Leller (2014). “The Six Sigma Handbook, Fourth Edition”, USA: McGraw-Hill Education. SIX SIGMA ONLINE templates, Aveta Business Institute.

six sigma project v9

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