six sigma/pm integration - pmi - baltimore...

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

[email protected]

Phone: 770-315-0139 Dr. Trivedi and Associates

mailto:[email protected]

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

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

• 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

Dilbert on Project Management

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

Process Capability

USL LSL ± 6s USL

Process Capability

Process shift over time by 1.5 σ

3.4 ppm

LSL USL

4.5s

T

m

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

Cost of Quality (COQ)

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



•Deliverable Decomposition

•Risk Plan Development

•Resource Loading



•Resource Loading

•Participants & Roles

•Go/No Go Decisions



•Overall Change Control

- Cost Control

- Schedule Control


- Cost Control

- Schedule Control

•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





•Resource Loading




- Cost Control

- Schedule Control



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


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


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


Because Performance Matters

Some of our clients – Team Soaring Eagle

“We are delighted to be judged by the company we keep!”

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