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Combining Lean, Six Sigma & Agile
          Why, and How?




                                                            ...
About Me


 Arlen Bankston
  Director, Lean-Agile Consulting

  Six Sigma Master Black Belt


  Certified ScrumMaster Trai...
Agenda


I.   Introduction (What?)
II. The Case for Change (Why?)
III. Three Combined Approaches (How?)
IV. Discussion



...
I. Introduction (What?)




                                                      (c) 2001, C.C. Pace Systems
        www....
Introduction


Let’s take a few moments to set expectations:
 How many Agile practitioners?
 How many Lean Six Sigma, BPM ...
What are Lean Six Sigma and Agile?

                                                        Define
                       ...
Basic Concepts of Lean Six Sigma


A 5 step approach founded on asking the right questions:

   1. Define: What is importa...
Basic Concepts of Agile

Key Agile principles are:
Focus on customer value – Employ business-driven prioritization of feat...
Demonstrated Successes


Agile & Lean Six Sigma have both proven their mettle in
  the respective domains:


  Agile Proje...
II. The Case for Change (Why?)




                                                           (c) 2001, C.C. Pace Systems
...
Why Do We Do Projects?


Why do we do projects?
a)   Deliver to Initial Specifications
b)   Deliver on Time
c)   Deliver o...
What is “Value?”


Value is generated by addressing Customers’ most
  critical and pressing needs.

  Value, as defined by...
Value from Two Perspectives

How can we improve our capability to deliver Value through
projects?

  Project Execution Imp...
Repercussions of Independence


Some common issues include:
  At the portfolio level:
     Arbitrary and inconsistent proj...
The Big Picture


An explicit linkage
from Customer to
Process to Execution
is necessary to ensure
that the organization i...
Problem Definition vs. Solution Execution

Lean and Six Sigma, by defining the
problem, help to:
    Define and quantify V...
Agile’s Contributions


Agile execution of Lean Six Sigma process improvement
   recommendations can yield:
  Flexibility ...
Lean Six Sigma’s Contributions


Lean Six Sigma provides a number of complements to
  Agile project execution:
  Grounded ...
A Simple Connection


                   Lean Six Sigma Project                                                           ...
III. The Approach (How?)




                                                        (c) 2001, C.C. Pace Systems
         ...
Control Approach: Waterfall Six Sigma


Status Quo.
Six Sigma Deployment via Waterfall
    End Users




                 ...
Waterfall Approach Basics


The Waterfall Six Sigma Approach works like this:

  Lean Six Sigma projects determine which p...
Three Combined Approaches


We’re going to briefly examine three possible
 approaches for combining Lean Six Sigma and Agi...
Three Approaches, One Set of Goals


All approaches share these goals:
  Align project portfolios with true, grounded stra...
Process Management Maturity Curve
                                            Process
                                    ...
Process Management Maturity Curve
                                            Process
                                    ...
Approach 1: Initial Basics


The Initial Approach works like this:

  Lean Six Sigma analyst facilitates rapid process def...
Approach 1: Initial Details


Lean Six Sigma tools, Agile execution.
                                                     ...
Process Management Maturity Curve
                                                 Process
                               ...
Approach 2: Integrated Basics


The Integrated Approach works like this:

  Lean Six Sigma projects provide initial defini...
Approach 2: Integrated Details


A simple step forward.
   End Users
Customer
Business
Lean Six Sigma
   Analyst
   Agile ...
Process Management Maturity Curve
                                                 Process
                               ...
Approach 3: Whole of Life Basics


The Whole of Life Approach works like this:

  Platform-based teams execute top-priorit...
Approach 3: Whole of Life Details


Who needs projects anyway?
Lean Six Sigma & Agile: Operational (Whole of Life)
    End...
A Case Study


Let’s take a quick look at some of the specific tools and
  techniques that we might utilize in a combined
...
CASE
                                                                                                    CASE
            ...
CASE
                                                                                                                    C...
CASE
                                                                                                            CASE
   O...
CASE
                                                                                                                     ...
Cu
                                                                             st
                                       ...
CASE
                                                                                                                  CAS...
Other LSS & Agile Joint Activities

Backlog Prioritization (QFD)
   What Backlog items will contribute most to our
   defi...
Roles & Responsibilities

Product Owner    Accountable for success or failure of project
                 Prioritizes the ...
General Implementation Guidelines

Gaps                         Combined Lean Six Sigma & Agile Solutions
At the portfolio...
General Implementation Guidelines

Gaps                           Combined Lean Six Sigma & Agile Solutions
Within Agile p...
General Implementation Guidelines

Gaps                         Combined Lean Six Sigma & Agile Solutions
Within Lean Six ...
Getting Started


Some specific steps that you can try now are noted below.

  Business Context:
      Use high-level mapp...
IV. Discussion




                                                   (c) 2001, C.C. Pace Systems
    www.ccpace.com   Com...
Contact Information




Arlen Bankston                       PHONE: 703 / 631.6600
Director
Arlen.Bankston@ccpace.com     ...
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Transcript of "Combining Lean, Six Sigma "

  1. 1. Combining Lean, Six Sigma & Agile Why, and How? (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 1
  2. 2. About Me Arlen Bankston Director, Lean-Agile Consulting Six Sigma Master Black Belt Certified ScrumMaster Trainer and Agile Methodology Coach 30+ Lean Six Sigma and Agile projects implemented over past five years (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 2
  3. 3. Agenda I. Introduction (What?) II. The Case for Change (Why?) III. Three Combined Approaches (How?) IV. Discussion (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 3
  4. 4. I. Introduction (What?) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 4
  5. 5. Introduction Let’s take a few moments to set expectations: How many Agile practitioners? How many Lean Six Sigma, BPM or operations management practitioners? Has anyone previously combined Lean or Six Sigma process improvement techniques with Agile? Are there any particular problems which you hope will be addressed in this discussion? (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 5
  6. 6. What are Lean Six Sigma and Agile? Define Define Lean Six Sigma is one of a number of business process improvement Measure Measure methodologies, which shares roots Analyze Analyze with approaches such as BPM, TQM, SPC and others. Improve Improve (Process Focused) Control Control Agile is an iterative and incremental approach to project delivery, encompassing methodologies such as Scrum and eXtreme Programming (XP). (Project Focused) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 6
  7. 7. Basic Concepts of Lean Six Sigma A 5 step approach founded on asking the right questions: 1. Define: What is important to the customer? What is their target and acceptable limitations; anything else is considered “defective” 2. Measure: What is the frequency of “defects?” How many defects? Capability: How is the process performing for the customers? Entitlement: How good can the existing process be? Gage R&R: How good is the data? Is it reliable? 3. Analyze: Why, when and where do the defects occur? Data driven analysis to prove what the root causes are 4. Improve: How can we fix the process/critical defects? How can root causes can be addressed? 5. Control: How can we ensure the process remains fixed? Develop controls to ensure process improvement is sustained (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 7
  8. 8. Basic Concepts of Agile Key Agile principles are: Focus on customer value – Employ business-driven prioritization of features. Iterative & Incremental Delivery – Create a flow of value to customers by “chunking” feature delivery into small increments. Intense Collaboration – Face-to-face communication via collocation, etc; diversified roles on integrated teams. Self Organization – Team members self- organize to fulfill a shared project vision. Continuous Improvement – Teams reflect, learn and adapt to change; work informs the plan. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 8
  9. 9. Demonstrated Successes Agile & Lean Six Sigma have both proven their mettle in the respective domains: Agile Project Execution: Improved time-to-market, collaboration and customer satisfaction Lean Six Sigma Process Improvement: Better process controls, higher efficiency and effectiveness However, they still tend to operate independently. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 9
  10. 10. II. The Case for Change (Why?) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 10
  11. 11. Why Do We Do Projects? Why do we do projects? a) Deliver to Initial Specifications b) Deliver on Time c) Deliver on Budget (Trick Question) (Trick Question) d) Increase Revenue e) Avoid Costs f) Improve Service g) Everything but “a” To enhance businesses’ profitability by: Providing “Value” to external Customers (better service, more revenue generated), and Providing “Value” to internal Customers (better service, lower cost) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 11
  12. 12. What is “Value?” Value is generated by addressing Customers’ most critical and pressing needs. Value, as defined by the Business Customer (Agile) Customer requirements (PMI) Voice of the Customer/Business, Critical to Quality requirements (Six Sigma) Value, Right Product/Time/Price (Lean) Related, but subtly different perspectives. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 12
  13. 13. Value from Two Perspectives How can we improve our capability to deliver Value through projects? Project Execution Improvements: Delivery speed While these are While these are critically critically Code quality important… important… Business customer satisfaction Business-Focused Improvements: Impact on business process performance (cycle time, SLA fulfillment, audit These are more These are more compliance) often neglected... often neglected... And even more And even more Measurable contribution to strategic important. important. initiatives Incremental operational integration & deployment End user satisfaction (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 13
  14. 14. Repercussions of Independence Some common issues include: At the portfolio level: Arbitrary and inconsistent project selection criteria Poor alignment of projects across value streams Unfocused approach to risk management Within Agile projects: No quantification of project value Customer difficulty in providing “grounded” requirements Inconsistent alignment with highest-priority process needs Within Lean Six Sigma projects: No incremental delivery of business value Limited scope of analysis and opportunity for measurement Insufficient linkage to execution of improvement recommendations (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 14
  15. 15. The Big Picture An explicit linkage from Customer to Process to Execution is necessary to ensure that the organization is tightly aligned with the real, changing needs of its users. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 15
  16. 16. Problem Definition vs. Solution Execution Lean and Six Sigma, by defining the problem, help to: Define and quantify Value Identify root causes of business problems Avoid suboptimization by providing full business context Align business management with true customer needs Do the right projects. Agile, by crafting the solution, helps to: Deliver incremental Value Provide framework for ongoing measurement of results Ensure effective implementation of improvements Align business management with implementation teams Do the right projects right. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 16
  17. 17. Agile’s Contributions Agile execution of Lean Six Sigma process improvement recommendations can yield: Flexibility & Speed Direct, continuously updated linkage to true needs of business & customers Ability to handle change beyond initial process analyses Minimized Risk Iterative development Incremental delivery Better Solutions Focus and refinement of recommended improvements at the implementation level Ideal platform for innovation and new product introduction More Versatile Teams Support for whole-of-life product maintenance and continuing development Close coordination between Business and IT (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 17
  18. 18. Lean Six Sigma’s Contributions Lean Six Sigma provides a number of complements to Agile project execution: Grounded project vision and clear focus Product Backlog items with quantifiable Value Product Backlog prioritization criteria Stronger business cases Quantitative assessment of feature values Clear linkage of IT efforts to business benefits Means to measure success Key metrics identified for a particular process Measurement and control system in place Directed portfolio design Select projects by critical customer needs & process constraints Align projects within programs & across functional silos (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 18
  19. 19. A Simple Connection Lean Six Sigma Project Agile Project(s) What are the best ways to improve the customer acquisition process? Reduce time to complete online process by 50% Update Product Early Web Backlog notification content of required information Item 1 Time to Update complete UI Flow Customer online Fewer Item 2 Value process screens Integrate systems Item 3 … CTQ N yN … r4 xN … Item N rN Identify Value & Waste, Provide Recommendations Deliver Value Fast & Early (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 19
  20. 20. III. The Approach (How?) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 20
  21. 21. Control Approach: Waterfall Six Sigma Status Quo. Six Sigma Deployment via Waterfall End Users Provide needs Value received Customer Business Something is Value wrong! Help! received Sigma Analyst Lean Six Here are some Now let’s ensure Never fear, we Now, we will Next, let’s recommendations the process shall Define this Measure to find Analyze to find to Improve the remains under problem! out how bad it is! the root causes. situation. Control. IT Teams Solution Development: Waterfall SDLC, Design for Six Sigma (DFSS) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 21
  22. 22. Waterfall Approach Basics The Waterfall Six Sigma Approach works like this: Lean Six Sigma projects determine which problems projects should address, and their broad solutions. Waterfall projects are spawned in the “Improve” phase to tackle these problems, further define their solutions, and establish process control. This has worked for years in some companies… but companies… there is always room for improvement! (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 22
  23. 23. Three Combined Approaches We’re going to briefly examine three possible approaches for combining Lean Six Sigma and Agile: Low-Level Combination: Approach 1: Initial Approach Agile with basic LSS tools Focused Teams: Approach 2: Integrated Approach Lean Six Sigma & Agile Approach 3: Whole of Life Death of the Project: Platform-based operational approach (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 23
  24. 24. Three Approaches, One Set of Goals All approaches share these goals: Align project portfolios with true, grounded strategic value generation Accurately measure value generation and strongly link to strategic operations Improve execution speed of process improvement initiatives Tighten feedback loops in process management and improvement efforts Support incremental improvements with a process designed around iterative delivery (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 24
  25. 25. Process Management Maturity Curve Process Process Business Process Business Process Delivery Delivery Improvement Improvement Management Management Focused Focused Focused Focused Focused Focused 3. Whole of Life Approach 3. Whole of Life Approach Death of Projects Death of Projects 2. Integrated Approach 2. Integrated Approach Lean Six Sigma & Agile Lean Six Sigma & Agile 1. Initial Approach 1. Initial Approach Agile w/tools Agile w/tools Maturity Time (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 25
  26. 26. Process Management Maturity Curve Process Process Business Process Business Process Delivery Delivery Improvement Improvement Management Management Focused Focused Focused Focused Focused Focused 3. Whole of Life Approach 3. Whole of Life Approach Death of Projects Death of Projects 2. Integrated Approach 2. Integrated Approach Lean Six Sigma & Agile Lean Six Sigma & Agile 1. Initial Approach 1. Initial Approach Agile w/tools Agile w/tools A simple first step when: A simple first step when: Maturity Projects have already been selected and scoped Projects have already been selected and scoped Projects affect loosely defined business processes Projects affect loosely defined business processes Projects live within broader programs Projects live within broader programs Quantification of project value is desired Quantification of project value is desired Time (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 26
  27. 27. Approach 1: Initial Basics The Initial Approach works like this: Lean Six Sigma analyst facilitates rapid process definition and measurement exercises with Agile team, business customer, process performers and End Users (~1 week) During each Iteration, LSS Analyst: Analyzes current process performance Leads detailed process design work (workflow, business rules, etc.) Quantifies project value based on few key metrics Facilitates feedback from end users and related process owners Acts as customer proxy to team Provides “voice of the process” for Product Backlog prioritization Assists with operational integration of project improvements LSS Analyst generally works 1-2 iterations ahead of team, gradually ramps down involvement as backlog crystallizes (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 27
  28. 28. Approach 1: Initial Details Lean Six Sigma tools, Agile execution. User needs Allows for gradual Lean Six Sigma & Agile: Integrated (VOC) are not integration and static! detailed feedback Provide high- Provide user feedback: level needs Usability test results, surveys etc. Integrate output into operations … Value “Commander’s Intent” received Something is wrong! Help! Detailed input Fulfill Product Owner Role from user and process perspective Fulfill Customer Proxy Role High-level Measure & Analyze process performance Gather user feedback Help to prioritize Backlog Build Controls into process Report Value delivered … High-level data Define: Measure: CTQs Key metrics Value stream Data collection Critical plan constraints Iteration 0: Architecture Spike Iteration 1: Develop Measurement System … 1. Defines what value means Gives business for this project visibility into true 2. Places project in context project value to their with related business activities processes (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 28
  29. 29. Process Management Maturity Curve Process Process Business Process Business Process Delivery Delivery Improvement Improvement Management Management Focused Focused Focused Focused Focused Focused 3. Whole of Life Approach 3. Whole of Life Approach Death of Projects Death of Projects 2. Integrated Approach 2. Integrated Approach Lean Six Sigma & Agile Lean Six Sigma & Agile A good choice when: A good choice when: Significant change is needed to business processes Significant change is needed to business processes 1. Initial Approach A program (multiple projects) is to be launched A program (multiple projects) is to be launched 1. Initial Approach Agile w/tools Agile w/tools New processes need to be defined New processes need to be defined Complex problems preclude an obvious solution Complex problems preclude an obvious solution Maturity Time (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 29
  30. 30. Approach 2: Integrated Basics The Integrated Approach works like this: Lean Six Sigma projects provide initial definition and analysis of process areas Tackle large, complex process issues Provide grounded business cases and clear focus Provide metrics to define success Agile projects are spawned in the “Improve” phase Utilize output from LSS projects to form Product Backlog Members from LSS team are involved in execution Adjustments are made as necessary to initial LSS analyses based on exploratory and production data influx (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 30
  31. 31. Approach 2: Integrated Details A simple step forward. End Users Customer Business Lean Six Sigma Analyst Agile Team (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 31
  32. 32. Process Management Maturity Curve Process Process Business Process Business Process Delivery Delivery Improvement Improvement Management Management Focused Focused Focused Focused Focused Focused 3. Whole of Life Approach 3. Whole of Life Approach Death of Projects Death of Projects Good when: Good when: 2. Integrated Approach 2. Integrated Approach Mission-critical or long life Lean Six Sigma & Agile Mission-critical or long life Lean Six Sigma & Agile systems are involved systems are involved Multidisciplinary teams exist Multidisciplinary teams exist around core processes around core processes Customer needs evolve Customer needs evolve rapidly rapidly 1. Initial Approach 1. Initial Approach Competitive pressures are Competitive pressures are Agile w/tools Agile w/tools intense intense Maturity Time (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 32
  33. 33. Approach 3: Whole of Life Basics The Whole of Life Approach works like this: Platform-based teams execute top-priority tasks in regular cadence Fixed cost Deep business & technical domain understanding Ongoing measurement and analysis drives business LSS skill set is held by business management Extensive customer experience feedback mechanisms Balance between maintenance and new development Ideal for mission-critical applications or non-IT business management (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 33
  34. 34. Approach 3: Whole of Life Details Who needs projects anyway? Lean Six Sigma & Agile: Operational (Whole of Life) End Users Provide Use Product v3.0 Use Product v3.0 Use Product v3.1 Feedback Customer(s) Business Provide Provide Prioritized Feedback Business Needs Operations Manager Gather User Update Process LSS Analyze current performance Provide process recommendations Feedback: Updated VOC/ CTQs Measure Value delivered Control mechanisms … Based Agile Platform- … Team Iteration: Deploy Updated Enhancements Products/ Maintenance Services (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 34
  35. 35. A Case Study Let’s take a quick look at some of the specific tools and techniques that we might utilize in a combined approach… (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 35
  36. 36. CASE CASE Our Project Charter STUDY STUDY Improve the process for new customers to sign up for financial management services. OK, so what’s important? User needs (intuitive, quick, friendly, attractive) Business needs (data capture, user retention, up/cross-sell) Process needs (upstream/downstream workflow integration, data integration, business rule implementation) So, we need to: Document the existing new account setup processes and supporting systems. Identify and prioritize enhancements to the processes and underlying technical solution based on business and end user needs. Define and implement ongoing metrics that will tell us how the process is performing. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 36
  37. 37. CASE CASE Our Business Context STUDY STUDY Suppliers Inputs Process Outputs Customers S I P O C Enter via specific channel Prospect Funded Account Prospect Personal Mail Room Information Setup Fund Managers Enter personal info Confirmation Fraud Control Select funds Prospect Customer Service Information Fund Selection Enter financial info (Personal, Mail Room Information Financial, Fund, Preferences) Marketing Select preferences Account funding Client Interaction Preferences Money Detect fraud Mail account info Financial Marketing Information Channel Attribution (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 37
  38. 38. CASE CASE Our Critical Constraints & Obvious Opportunities STUDY STUDY This area contains the most This area presents an obvious customer interaction, and huge opportunity for improving both variation. Also, benchmarks internal efficiency and show that it dramatically lags customer satisfaction. competitive standards. (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 38
  39. 39. CASE CASE Our Critical Measures STUDY STUDY These are some metrics that we could use to gauge how well we’re Time to respond to request for help doing. Which ones tell Time to complete online process Time to complete entire process Current survey data tells the story best? us that these are the Customer satisfaction rating # of funding interventions most important quality # of control interventions Metric Correlation # of legal interventions Req. Type: factors to our Internal & # of service callbacks Time to fund account (Strong - 9 # of online dropouts (Expected External Customers. Medium - 3 # of online errors Exciting) Weak - 1) # calls for help External (Customer) Quality Expected Web site is easy to use 9 3 9 1 3 3 9 9 9 3 1 9 Expected Customer representative is readily available via phone 1 1 1 1 1 1 1 1 3 1 3 9 Exciting Customer representative is readily available via chat 1 1 1 1 1 1 1 1 3 1 3 3 Expected Representatives treat me well 1 1 1 1 1 1 1 1 1 1 1 9 Expected Account options are easy to understand 9 9 1 3 9 9 9 9 3 3 1 9 Expected Investment options are easy to understand 9 9 1 3 9 9 9 9 3 3 1 9 Expected Extended information is easy to find 9 9 1 3 9 9 9 9 3 3 1 9 Expected The process is fast and efficient 9 1 3 1 1 1 3 9 9 9 1 9 Exciting I know up front what information is required 9 9 3 3 9 9 9 9 3 3 1 3 Exciting I know up front how much time it should take 9 9 1 3 9 9 9 9 3 3 1 3 Expected Page response time is good 3 1 3 1 1 1 3 3 3 1 1 3 Exciting The process is built around my personal goals 3 3 3 1 1 1 3 3 3 3 1 9 Expected Site is accessible to disabled users 3 1 3 1 1 1 1 1 1 1 1 3 Expected My data is secure 3 1 1 3 1 1 1 1 1 1 1 9 Exciting The Web site is visually appealing 1 1 1 1 1 1 1 3 1 1 1 3 Internal Quality Expected Regulatory requirements are met 1 1 1 9 9 9 3 1 1 3 1 1 Expected Fraudulent accounts are controlled 1 3 1 3 9 3 1 1 1 9 1 1 Exciting The system is easy to modify and expand 1 1 1 1 1 1 1 1 1 1 1 1 Expected System is reliably available 3 1 1 1 1 1 1 9 9 9 1 3 Metric Importance 85 65 37 41 77 71 75 89 61 59 23 105 (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 39
  40. 40. Cu st om er Ti m s at e is to fa co ct 0 20 40 60 80 100 120 m io n pl et ra e t in on g li n e pr # oc of es o nl s in # e most telling. of dr c on op ou tro ts We could choose to l in te measure many things, but these few are the # rv of en se t io rv ns ice # ca of fu l lb nd ac in ks g in te rv en Ti t io m # e of ns to on www.ccpace.com co li n m e pl er et ro e rs en tir e Ti pr m oc e es to s fu nd # ac of co le un ga t l in te Our Critical Measures (Cont.) rv Ti en m tio e ns to # re ca sp lls on fo d rh to el re p qu es tf or he lp (c) 2001, C.C. Pace Systems CASE CASE STUDY STUDY Combining Lean, Six Sigma and Agile: Why, and How? Page 40
  41. 41. CASE CASE Our Critical Measures (Cont.) STUDY STUDY Project Y Operational Definition Performance Target Tolerance Metric/Measure Limits Time to complete Elapsed Time from Login Landing to 10 minutes < 20 minutes online process Receipt of Final Confirmation “Elapsed Time” = Absolute difference between Login Landing & Receipt of Final Confirmation times (Minutes:Seconds) “Login Landing” = Point in time when prospect reaches login.jsp page (Minutes:Seconds) “Receipt of Final Confirmation” = Point in time when confirmation.jsp page is fully loaded (Minutes:Seconds) (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 41
  42. 42. Other LSS & Agile Joint Activities Backlog Prioritization (QFD) What Backlog items will contribute most to our defined Value (priorities)? Value Measurement (Process Capability, Analysis) How are we doing against our goals so far? What are the key factors that are contributing to our success/failure? Control Strategy (FMEA, Control Plans) What are some of the major risks in our project’s host processes that we should consider? What is the relative priority of these risks? Scenario Planning (QFD, Simulation, Prototyping) Current Process Process Process Scenario 1 Scenario 2 When we have multiple ways to address a problem, which is best? 1.0 1.3 1.5 (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 42
  43. 43. Roles & Responsibilities Product Owner Accountable for success or failure of project Prioritizes the Product Backlog Empowered to make decisions for all customers and users Presents and explains Product Backlog to team LSS Analyst Quantifies project value based on few key metrics Provides “voice of the process” for Product Backlog prioritization Facilitates feedback from end users and related process owners Acts as customer proxy to team Assists with operational integration of project improvements Scrum Team Estimates work level of effort Executes top-priority items on Product Backlog Accountable for meeting sprint/iteration commitments ScrumMaster Responsible for the process Responsible for maximizing team productivity Sets up and conducts meetings Representative to management and team (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 43
  44. 44. General Implementation Guidelines Gaps Combined Lean Six Sigma & Agile Solutions At the portfolio level: Arbitrary and inconsistent Map core processes touched by existing and project selection criteria upcoming projects Select new projects based on critical process constraints Poor coordination between LSS Black Belts coordinate process interactions related projects across projects, especially in different departments within the same value stream Unfocused approach to risk Build risk mitigation factors directly into management project portfolio selection criteria Use Lean Six Sigma tools to discover and control root causes within Agile projects (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 44
  45. 45. General Implementation Guidelines Gaps Combined Lean Six Sigma & Agile Solutions Within Agile projects: No quantification of project Base project value on extrapolation of key value process metrics LSS Black Belt tracks project value generation Customer difficulty in LSS Black Belt acts as customer proxy, assists providing clear with translating high-level goals to effective requirements user stories Inconsistent alignment with LSS aligns actions with top-priority customer highest-priority process (hence process) needs needs Agile supports test-and-learn approach through early operational exposure (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 45
  46. 46. General Implementation Guidelines Gaps Combined Lean Six Sigma & Agile Solutions Within Lean Six Sigma projects: No incremental delivery of Use iterative delivery to quickly address “low business value hanging fruit,” quantify value with LSS Limited scope of analysis Do coarse definition, measurement & analysis and opportunity for to get top priorities up front, then more measurement granular and focused analysis during each iteration Analysis takes place in parallel to delivery (LSS Black Belt is looking 1-2 iterations ahead of delivery team) Insufficient linkage to LSS Black Belt ensures that high-level process execution of improvement recommendations are translated into effective recommendations implementations Improvement effectiveness is tested both before (prototyping, spikes) and after (usability testing, process analysis) implementation (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 46
  47. 47. Getting Started Some specific steps that you can try now are noted below. Business Context: Use high-level mapping tools (SIPOC, Value Stream Map) to “see the whole picture” Use lower-level maps as appropriate to illustrate system interactions with business processes Quantified Value: Integrate high-level Define and Measure techniques into up-front Agile Discovery Session (~1 week) Determine key process metrics, where they don’t exist, then drill down to aligned project metrics Build measurement systems at start of project, refine over time Process & Customer Perspective: Team with existing process experts to supply Process Coaches to Agile projects Use Process Coaches as customer proxies, and to facilitate end user feedback (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 47
  48. 48. IV. Discussion (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 48
  49. 49. Contact Information Arlen Bankston PHONE: 703 / 631.6600 Director Arlen.Bankston@ccpace.com WEB: http://www.ccpace.com MAIL: 4100 Monument Corner Dr., Suite 400 Fairfax, VA 22030 (c) 2001, C.C. Pace Systems www.ccpace.com Combining Lean, Six Sigma and Agile: Why, and How? Page 49
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