Improving Project Management Skills with Lean Six Sigma

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One of the most valued skill sets a project manager can develop is the ability to predict an outcome. Whether it is the outcome of a test, a process, a service, a product or all of the above – there are a few foundational concepts within Lean Six Sigma that will improve your ability to predict project outcomes.

This session will demonstrate how the concept of variation applies to problem solving, and why management by fact is not just a luxury – it's a necessity. It will also demonstrate that while it is good to expect workers to do things right the first time, it is smart to make it impossible for them to do things wrong the first time.

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  • Improving Project Management Skills with Lean Six Sigma

    1. 1. ©2010 International Institute for Learning, Inc., All rights reserved. 1Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. Thank you for joining us today. This webinar is brought to you by IIL a global leader in: Project, Program and Portfolio Management Microsoft® Project and Project Server Lean Six Sigma | Business Analysis PRINCE2® | ITIL® Improving Project Management Skills with Lean Six Sigma
    2. 2. ©2010 International Institute for Learning, Inc., All rights reserved. 2Intelligence, Integrity and Innovation Global IIL Companies IIL US IIL Asia (Singapore) IIL Australia IIL Brasil IIL Canada IIL China IIL Europe (United Kingdom) IIL Finland IIL France IIL Germany IIL Hong Kong IIL Hungary IIL India IIL Japan IIL Korea (Seoul) IIL México IIL Middle East (Dubai) IIL Spain
    3. 3. ©2010 International Institute for Learning, Inc., All rights reserved. 3Intelligence, Integrity and Innovation Welcome to IIL’s Virtual Classroom Click the Yes button to answer “Yes” Click the No button to answer “No” Click the Applaud button to indicate “applause” Click the Laugh button to indicate “laughter”
    4. 4. ©2010 International Institute for Learning, Inc., All rights reserved. 4Intelligence, Integrity and Innovation Too loud? Too soft? Use the slider to the right of the speaker to adjust the volume.
    5. 5. ©2010 International Institute for Learning, Inc., All rights reserved. 5Intelligence, Integrity and Innovation The goal of this webinar is to provide participants with three important concepts/techniques from Lean Six Sigma that every project manager should know and apply to improve project and product quality. Webinar Goal
    6. 6. ©2010 International Institute for Learning, Inc., All rights reserved. 6Intelligence, Integrity and Innovation At the end of this session, you should be able to: Define Lean Six Sigma from a high level. Identify vital inputs to improve outputs. Determine the difference between Common Cause and Special Cause Variation. Error proof project processes using Poka Yoke. Webinar Objectives
    7. 7. ©2010 International Institute for Learning, Inc., All rights reserved. 7Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. Lean Six Sigma Quality TopicTopic
    8. 8. ©2010 International Institute for Learning, Inc., All rights reserved. 8Intelligence, Integrity and Innovation Take a minute to think of a product or service that you have purchased and considered to be “high quality.” What are the attributes that led you to that conclusion? Please answer in Text Chat. What is Quality?
    9. 9. ©2010 International Institute for Learning, Inc., All rights reserved. 9Intelligence, Integrity and Innovation Improvement of Results starts with improvement of Quality. Dr. Deming was a quality and process improvement pioneer credited with helping the Japanese industry recover after World War II. 1. Lean Six Sigma is about improving results by improving the quality of products and services. 2. Improvement comes from managing the process, not the results. Deming’s Chain Reaction
    10. 10. ©2010 International Institute for Learning, Inc., All rights reserved. 10Intelligence, Integrity and Innovation Both methodologies are geared towards reducing costs. Lean Focus – Speed Cycle Time Reduction Cleanliness and Orderliness Elimination of Waste Rapid Project Execution Error Proofing Six Sigma Focus – Quality Customer-focused (customer pain) Financially-focused (financial Impact) Methodology (DMAIC) Support Infrastructure (Project Framework) Defect Reduction Data-based (management by fact) What is Lean Six Sigma? Six Sigma Lean
    11. 11. ©2010 International Institute for Learning, Inc., All rights reserved. 11Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. Improving Outcomes – Management by Fact TopicTopic
    12. 12. ©2010 International Institute for Learning, Inc., All rights reserved. 12Intelligence, Integrity and Innovation The Mathematical Model Defined processes enables you to control processes using the model. Input Variables (Xs) Outputs (Ys) Process Variables (Xs) Process )X,...,X,f(XY n21=
    13. 13. ©2010 International Institute for Learning, Inc., All rights reserved. 13Intelligence, Integrity and Innovation Output to ImproveOutput to Improve Input and Process Variables to Investigate (X’s)Input and Process Variables to Investigate (X’s) Profits Market price, costs, volume, etc. Costs Materials, labor, cycle-time, scrap, waste, rework, etc. Cycle Time Lead time, bottle necks, number of approvals needed, incentives paid to workers for production, etc. Business Examples for Y = f(X) In order to improve the Y’s, you must improve the key X’s.
    14. 14. ©2010 International Institute for Learning, Inc., All rights reserved. 14Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. The Concept of Variation TopicTopic
    15. 15. ©2010 International Institute for Learning, Inc., All rights reserved. 15Intelligence, Integrity and Innovation No two things are exactly alike. There is variation in every process or product. Even things that appear consistent or identical are not (e.g., steel plate). Variation is the enemy of Quality. Variation is Reality _ x Time LoanCT 654321 9 8 7 6 5 4 3
    16. 16. ©2010 International Institute for Learning, Inc., All rights reserved. 16Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. Special Cause and Common Cause Variation TopicTopic
    17. 17. ©2010 International Institute for Learning, Inc., All rights reserved. 17Intelligence, Integrity and Innovation Common Cause – events happen sometimes to everyone – part of the process (indicates process needs improvement) Special Cause – events only happen sometimes to some people/processes – out of the ordinary Two Causes of Variation This happens all the time This happens all the time Why does this only happen to me? Why does this only happen to me?
    18. 18. ©2010 International Institute for Learning, Inc., All rights reserved. 18Intelligence, Integrity and Innovation Common Cause Factors Special Cause Factors Example: Work Commute When you commute to work – the time it takes varies from day to day. Why?
    19. 19. ©2010 International Institute for Learning, Inc., All rights reserved. 19Intelligence, Integrity and Innovation Why it matters Variation exists in all processes. There are two fundamental causes of variation: Special Cause & Common Cause. Knowing the factors and the type of cause (Common versus Special) will determine the action you should take. Understanding Variation
    20. 20. ©2010 International Institute for Learning, Inc., All rights reserved. 20Intelligence, Integrity and Innovation Example: Responding to Variation SituationSituation All clerks make some mistakes from time to time Only one clerk is making mistakes Type of VariationType of Variation Common Cause Special Cause Appropriate ResponseAppropriate Response Look at all the data and find out why mistakes are being make (e.g. old clerks not trained on new system). Make fundamental process change (e.g., re- train old clerks on new system). Look at that one clerk and find out what is different (e.g., sticky key on keyboard). Address that specific instance (e.g., buy new keyboard for that clerk). InappropriateInappropriate ResponseResponse Investigate each occurrence of a mistake and try to change the process so it won’t happen again. Buy new keyboards for entire department. “Tampering” – treating Common Cause like Special Cause – increases process variation, wastes time trying to investigate and explain random events, and frustrates workers Treating Special Cause like Common – wastes resources and may frustrate workers
    21. 21. ©2010 International Institute for Learning, Inc., All rights reserved. 21Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. TopicTopic Introduction to Control Charts Distinguishing Common & Special Cause Variation Example of Standard Business Reporting
    22. 22. ©2010 International Institute for Learning, Inc., All rights reserved. 22Intelligence, Integrity and Innovation Business Performance Report: Sales Please assess our recent performance 1. Last month’s performance (108) is better than this month’s (101). 2. This month’s performance (101) isn’t even as good as YTD’s (102). 3. But this month’s performance (101) is better than the performance the same month last year (98). Let’s see if our interpretation changes when we plot our data over time, where variation can be seen and taken into account…
    23. 23. ©2010 International Institute for Learning, Inc., All rights reserved. 23Intelligence, Integrity and Innovation Mean CL: 30.48 -2.68 63.65 -7.21 2.79 12.79 22.79 32.79 42.79 52.79 62.79 72.79 82.79 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Individuals-InstallationTime Control Chart A picture of a process over time (e.g., Time Series Plot) With Control Limits that help distinguish between Special Cause variation (abnormal) and Common cause variation (normal or systemic) The control limits are based on the data, not customer or internal requirements Control Limits
    24. 24. ©2010 International Institute for Learning, Inc., All rights reserved. 24Intelligence, Integrity and Innovation A Control Chart helps distinguish between Common Cause & Special Cause Variation. It is like a “pipeline” representing typical, or Common Cause process variation. Points outside the “pipeline”, or control limits, represent Special Cause Variation. The Control Limits are calculated from the data. They do not come from the customer, or internal requirements. Control Charts: 50,000 Foot View Mont h IndividualValue FebDecOctAugJunAprFebDecOctAugJun 115 110 105 100 95 90 85 80 _ X=97.61 UCL=104.96 LCL=90.26 1 I Char t of Scenar io 1 Mont h IndividualValue FebDecOctAugJunAprFebDecOctAugJun 115 110 105 100 95 90 85 80 _ X=97.61 UCL=104.96 LCL=90.26 1 I Chart of Scenario 1 Common Cause Special Cause
    25. 25. ©2010 International Institute for Learning, Inc., All rights reserved. 25Intelligence, Integrity and Innovation Scenario 1 – Last Month Result Was Special Cause This chart supports an interpretation of a significant change last month – a special cause. Mont h Scenario1 FebDecOctAugJunAprFebDecOctAugJun 110 105 100 95 90 97.6197.61 Time Series Plot of Scenario 1 This Month Last Month Year- To- Date Same Month Last Year 101 108 102 98
    26. 26. ©2010 International Institute for Learning, Inc., All rights reserved. 26Intelligence, Integrity and Innovation Scenario 2 – Last Month Result Was Common Cause Last month’s result doesn’t appear unusual – just common cause variation. Mont h Scenario2 FebDecOctAugJunAprFebDecOctAugJun 110 105 100 95 90 97.6197.61 Time Series Plot of Scenario 2 This Month Last Month Year- To- Date Same Month Last Year 101 108 102 98
    27. 27. ©2010 International Institute for Learning, Inc., All rights reserved. 27Intelligence, Integrity and Innovation Two radically different processes, requiring different management approaches, both produce the same standard management report … this should concern you! Charting data over time gives context. Can see patterns and variation in the data Control Charts plot data over time and use Control Limits to detect Special Cause variation so appropriate action can be taken. Do managers and workers in your company understand the difference between common and special cause variation? If not, then tampering is occurring. Conclusions: Standard Business Reporting Mont h IndividualValue FebDecOctAugJunAprFebDecOctAugJun 115 110 105 100 95 90 85 80 _ X=97.61 UCL=114.49 LCL=80.73 I Chart of Scenar io 2 Mont h IndividualValue FebDecOctAugJunAprFebDecOctAugJun 115 110 105 100 95 90 85 80 _ X=97.61 UCL=104.96 LCL=90.26 1 I Chart of Scenario 1 This Month Last Month Year- To- Date Same Month Last Year 101 108 102 98
    28. 28. ©2010 International Institute for Learning, Inc., All rights reserved. 28Intelligence, Integrity and Innovation Management takes a big step forward when it stops asking workers to explain randomness. Something to Think About…
    29. 29. ©2010 International Institute for Learning, Inc., All rights reserved. 29Intelligence, Integrity and Innovation©2010 International Institute for Learning, Inc., All rights reserved. TopicTopic Poka Yoke (Error Proofing)
    30. 30. ©2010 International Institute for Learning, Inc., All rights reserved. 30Intelligence, Integrity and Innovation “It is good to do it right the first time. It is even better to make it impossible to do it wrong the first time.” Yokeru (to avoid) Poka (inadvertent errors) A technique for eliminating errors Three principles of Poka-Yoke: 1. Make wrong actions more difficult or impossible. 2. Make mistakes obvious to the person so that the mistake can be corrected. 3. Detect errors so that downstream consequences can be prevented by stopping the flow or other corrective action. What is Poka-Yoke?
    31. 31. ©2010 International Institute for Learning, Inc., All rights reserved. 31Intelligence, Integrity and Innovation Auto shutoff on electric coffee pots Child-proof caps on medications Ground fault circuit breakers Auto shutoff on the lawn mower Seat belts; air bags Child-proof door latches Car engine warning lights Spell check in software Auto-save documents Poka-Yoke in Everyday Examples
    32. 32. ©2010 International Institute for Learning, Inc., All rights reserved. 32Intelligence, Integrity and Innovation Use colors and color-coding Credit card receipts (the customer gets the yellow copy) Use shapes (symmetrical and asymmetrical) Store different types of parts in different shaped bins Notching a stack of forms Make it easy to do right Checklists and effective data collection formats Workflows with fewer hand-offs; SOP Control plans Other Methods Where can you error proof your processes?
    33. 33. ©2010 International Institute for Learning, Inc., All rights reserved. 33Intelligence, Integrity and Innovation Good management is about your ability to predict and improve outcomes. Predicting outcomes is very difficult without measurement – Y = f x Understanding the causes of variation will help you to make better decisions on what to improve. Quality comes from well defined, simple and standardized processes with low margins for error. In Summary
    34. 34. ©2010 International Institute for Learning, Inc., All rights reserved. 34Intelligence, Integrity and Innovation Questions? All: sends text message to everyone in class All Presenters: sends text message to each presenter Click drop down menu to select All or All Presenters.
    35. 35. ©2010 International Institute for Learning, Inc., All rights reserved. 35Intelligence, Integrity and Innovation We invite you to get a closer look at what IIL can do for you and your organization, including: Virtual Classes (Public or Onsite) Traditional Classes (Public or Onsite) Assessments, Course Design/Development, Coaching, Mentoring, and Consulting Contact Wendy.Shields@iil.com and let us know how we can meet your learning needs. At IIL, Our Greatest Accomplishments are Yours
    36. 36. ©2010 International Institute for Learning, Inc., All rights reserved. 36Intelligence, Integrity and Innovation Evaluations Thank you for joining us today. Please give us your feedback by completing our webinar evaluation now.

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