Integrating Six Sigma and PRINCE2™ 2009 Mike Ward, OutperfomDocument Transcript
For Portfolio, Programme, Project,
Risk and Service Management
Integrating Six Sigma and PRINCE2™ 2009
Mike Ward, Outperfom
2 Integrating Six Sigma and PRINCE2™ 2009
Abstract What this paper will show
This paper will explore some of the
What is PRINCE2™?
The 2009 version of PRINCE2™ states
A number of articles have been written history of the two methods, their “PRINCE2™ is a structured project
about integrating Project Management background and insights into the management method based on
methods, but why is it worth doing this? thinking behind them; it will then experience drawn from thousands of
Most methods provide a process, with compare the key principles of the projects – and from the contributions
some techniques, tools, and guidance methods to show where they best apply of countless project sponsors, Project
about organizational governance; in project management. The paper will Managers, project teams, academics,
PRINCE2™ and Six Sigma are no exception. also address the very important aspect of trainers and consultants.” PRINCE2™
This paper discusses the key aspects of the organization in which the methods describes what the organizations and
PRINCE2™ and Six Sigma, and shows are expected to operate effectively, people involved in a project should do.
how the methods can be integrated to because without this being addressed
provide a very rich framework which may appropriately, neither method will ever There are two volumes which make up
be applied to certain types of project, to be successfully adopted. PRINCE2™: Managing Successful Projects
great effect. with PRINCE2™ and Directing Successful
Projects with PRINCE2™.
Background: • Managing – this is aimed at the
Introduction project practitioner, primarily the
Why integrate project Culture/Insights/ Project Manager and it describes
the approaches one should take in
Integrating PRINCE2™ and Six Sigma
Usage order to execute a project, including
processes, techniques and guidance.
provides a way of harnessing the History of PRINCE2™ • Directing – this is aimed at the
best aspects of two world-renowned PRINCE2™ stands for PRojects IN senior manager responsible for a
project management methods. With Controlled Environments. The method project, specifically those managers
PRINCE2™ you get control, with strong was originally released as PROMPT in undertaking an executive role on a
attention to the quality aspects of project 1979 for the management of IT Projects project for the first time. It covers the
management, a unique insight into the and it was later updated to PRINCE®. duties and behaviours expected of
specification of products using Product PRINCE2™ was launched in 1996 to members of the Project Board and can
Descriptions and a clear specification cover all types of projects, not just those be used as a reference at any stage to
of project governance. Six Sigma brings that are IT projects and as part of a check what is required.
with it an analytical approach to project continual improvement process it was
management and a strong focus on data refreshed in 2009. History of Six Sigma
measures – this is especially useful when Six Sigma is a framework used for
considering the measures one needs to PRINCE2™ is a non-proprietary method process improvement. Its name is derived
apply in order to understand used extensively in more than 150 countries from statistical analysis; Six Sigma means
around the world, and its take-up grows 3.4 failures in 1 million given normal
• the rationale for embarking on a daily. It is widely considered as the distribution. Six Sigma has its roots in
project and leading method in project management, Statistical Process Control developed in
• the benefits that the project will bring with in excess of 20,000 organizations the 1920s. It was released by Motorola
to the organization. already benefiting from its pioneering in the 1980s and has been adopted by
and trusted approach. This is largely due other large organizations such as GE,
What has been to the fact that PRINCE2™ is truly Toyota and many others.
generic: it can be applied to any project
It is interesting to note that there have
regardless of project scale, type, What is Six Sigma?
organization, geography or culture. Six Sigma seeks to improve the quality of
been a number of published papers
integrating PRINCE2™ with other methods process outputs by identifying and
PRINCE2™ achieves this by isolating the
[7,8,9], or integrating Six Sigma with removing the causes of defects (errors)
management aspects of project work
other methods such as PMBOK , but and variation in manufacturing
from the specialist contributions such
to the author’s knowledge, no published and business processes. It uses a set of
as design or construction. The specialist
articles exist showing how PRINCE2™ quality management methods,
aspects of any type of project are easily
and Six Sigma could be integrated. including statistical methods, and
integrated with the PRINCE2™ method
creates a special infrastructure of
and when used alongside PRINCE2™
people within the organization (“Black
they provide a secure overall framework
Belts” etc.) who are experts in these
for the project work.
Integrating Six Sigma and PRINCE2™ 2009 3
methods. Each Six Sigma project carried (deliverables) to be produced (see that the project maintains its business
out within an organization follows a Appendix 1 and Appendix 2). The focus, that it has clear authority, and
defined sequence of steps and has contents of the Charter (Six Sigma) that the work, including risks, is
quantified financial targets (cost reduction and the Project Brief / Project Initiation actively managed.
or profit increase). Documentation / Business Case • Senior User – is accountable for
[http://en.wikipedia.org/wiki/Six_Sigma] (PRINCE2™) have much in common. ensuring that user needs are specified
3. Align the PRINCE2™ Stages with Six correctly and that the solution meets
Six Sigma has two main processes; DMAIC
Sigma Steps. those needs.
for process improvement and DMADV for
process design. a. PRINCE2™ uses the concept of a • Senior Supplier – represents the
Management Stage to provide an supplier interests within the project
Readers may also have heard of Lean appropriate level of detail to the and provides supplier resources.
(used to optimise processes, often in plans within the boundary of the • Assurance – The Project Board is
cross-functional business improvement) “planning horizon”. PRINCE2™ responsible, via its Project Assurance
and Kaizen (used for ongoing or also uses a concept of a Technical role, for monitoring all aspects of the
continuous improvement and very Stage to reflect the lifecycle of project’s performance and products
appropriate when trying to eliminate the products being produced (e.g. independently of the Project Manager.
waste); both these methods are Design, Build, Release).
discussed in Six Sigma forums and the b. Six Sigma is divided into 5 phases. Six Sigma: Coaching & Guiding
tools from these other methods can be There is no prescribed organizational
The project must decide whether
very useful in some Six Sigma projects. structure for a Six Sigma organization;
the phases in Six Sigma align to
Management or Technical Stages however there are clear roles allocated:
• DMAIC stands for Define, Measure,
Analyze, Improve, Control. This in PRINCE2™.
• Sponsors – members of the executive
process is used to analyze processes Each of these topics are described in team who direct the Champions on a
in order to identify the root causes of more detail below. day-to-day basis.
unacceptable variation and to develop
• Champions – senior managers who
solutions to reduce or remove errors. The Organization, Roles take responsibility for one or more Six
• DMADV stands for Define, Measure, and Responsibilities Sigma projects. Champions approve
Analyse, Design, Verify. This process is plans, authorise resources, and act as
to be used when developing a product PRINCE2™: Governance a conduit back to the Executive Team.
or process. Framework
• Process Owners – owners of the
One of the seven principles of PRINCE2™ process in their area. They could also
Considerations to apply is that a project has defined and be considered to be Business Change
when planning integration agreed roles and responsibilities, with Managers for their area.
There are three main areas to consider an organization structure that engages
• Green Belts – part-time Six Sigma
when integrating PRINCE2™ and Six the business, user and supplier
practitioners who may be the Project
Sigma. These areas are treated equally stakeholder interests.
well by both methods, but to do both
The Project Board represents the most • Black Belts – full-time Six Sigma
would be an unnecessary burden:
senior level of management within the practitioners who act as Project
1. The Organization: the roles & PRINCE2™ project management team. Managers for more complex projects
responsibilities of key people on the Project Board members are accountable and offer advice and guidance to
project need to be clarified and the for the work they direct, but the extent Green Belts.
terms need to be agreed. of their business responsibilities is usually • Master Black Belts – Technical Leaders
much wider than the project. They or “change advocates” who also train
a. PRINCE2™ Roles: Project Manager,
can rarely afford to get involved in the Black Belts and Green Belts in Six
Senior User, Senior Supplier,
detail of every project for which they Sigma techniques.
are responsible. This means that the
b. Six Sigma Roles: Sponsor, • Project Teams – workers who have
effectiveness with which project work
Champion, Process Owner, Green been allocated to the project by
can be delegated is crucial. The Project
Belt, Black Belt, Master Black Belt. the Champion.
2. Remove the overlap in some
Management Products. • Executive - has overall responsibility
for ensuring that a project meets its
Both PRINCE2™ and Six Sigma
objectives and delivers the projected
require many management products
benefits. This individual should ensure
4 Integrating Six Sigma and PRINCE2™ 2009
There are three organizational levels which can be described and applied as follows:
Level PRINCE2™ Six Sigma
Directing Corporate/Programme Management Sponsor
Managing Project Board including Project Executive, Champion/Master Black Belt
Senior Supplier and Senior User
Delivering Project Manager and Team Black Belt, Process Owner and Team
When integrating PRINCE2™ and Six collate Checkpoint Reports and use is required and what the management
Sigma, carefully consider roles and these as part of the progress product will look like.
responsibilities at each level. The roles assessment when reviewing stage
of Champion and Executive should be status. Alignment of Stages/
coalesced. The Sponsor role is likely to • Highlight Report: A regular report is Phases
be fulfilled by a corporate executive team sent by the Project Manager to the PRINCE2™ uses the notion of stages to
member, who may also sit on the Project Project Board during the stage to divide up the project into time-based
Board as a Senior User. show what progress is being made. (though not equal) chunks of time; there
The roles of Project Manager and Black • End Stage Report: This is produced are two types of stage, Management
Belt could be coalesced. The Black Belt by the Project Manager towards the Stages and Technical Stages.
may take on the role of the PRINCE2™ end of each management stage,
providing the Project Board with the • Management Stage: The section of
Project Manager, or the Project Manager
information on the progress to date, a project that the Project Manager
may be a Green Belt being supervised
the overall project situation and (in is managing on behalf of the Project
on the project by a more experienced
tandem with the next Stage Plan) Board at any one time; at the end of
sufficient information to ask for a which the Project Board will wish to
review progress to date, the state of
Management Review Project Board decision on what to do
the Project Plan, the Business Case
next with the project.
& Management Products and risks, and the next Stage Plan in
• End Project Report: This is produced
There are a number of formal order to decide whether to continue
by the Project Manager towards the
management products which need to with the project.
end of the project, during the Closing
be produced, e.g. PRINCE2™ has • Technical Stage: A method of
a Project process, and is used by the
Project Initiation Documentation and grouping work together by the set
Project Board to evaluate the project
Six Sigma has a Charter. A subset of the of techniques used, or the products
and authorize closure.
management products (in PRINCE2™) is created. This results in stages covering
used to report progress, but interestingly, elements such as design, build and
Six Sigma does not specifically ask for any Six Sigma implementation. Such stages are
form of progress report, rather, regular At the end of each phase, there is technical stages and are a separate
meetings to discuss progress are held a formal process where the Sponsor concept from management stages.
with the Champion. At the end of each and Champion can review progress
Six Sigma phase, a tollgate review takes and results, which is called the The processes of Six Sigma are divided
place; in PRINCE2™, the Project Board is Tollgate. The Tollgate process includes into five phases (DMAIC or DMADV),
asked to make a decision as to whether a series of questions to ask the which can either align one-to-one with
to approve the next stage – this does not team which differs depending on Management stages of PRINCE2™. or be
have to be a formal meeting. the phase being concluded. regarded as technical stages. Some
phases can be combined together into a
Regular reviews (possibly weekly) are Management Stage, or longer phases can
PRINCE2™ held with the Champion and the project be split into two Management Stages.
• Checkpoint Report: The Team team to review progress. For example, one of the six sigma phases
Manager will produce this to provide
may be split into two management stages
the Project Manager with details of
progress against the Work Package. Summary if there is significant work involved, e.g.
By creating a Product Description for pilot solution (taking say three months)
The Work Package will include the
the Management Products that will be then rollout solution (taking say six
frequency of Checkpoint Reports
produced by the integrated project, months); here the Project Board would
required. The Project Manager will
the team will understand exactly what want to formally review progress at the
Integrating Six Sigma and PRINCE2™ 2009 5
end of the Pilot Stage. more information on PRINCE2™ 2009 Themes
qualifications and publications visit
The names of the stages in PRINCE2™ There are seven themes – covering Business
are left to the Project Manager to define. Case, Organization, Quality, Plans, Risk,
Changes and Progress. Each theme gets
a thorough treatment in the guide .
Conclusion APPENDIX 1: The following list may act as a prompt to
understand each of the themes:
In summary, integration is especially Principles & • Business Case –
appropriate for Process Improvement
why are we doing this?
Projects, but should not be considered
• Organization – who is involved?
for the very simple DMAIC projects.
Consider integration for significant
process improvement or process design.
PRINCE2™ • Quality – what makes products fit
For example, if your organization is PRINCE2™ is made up of a number of • Plans – how will the project be
embarking on development of a standard key elements which are briefly delivered (and for how much,
for bid or project management, and described below. and when)?
if this spans multiple departments or • Risk – what if this happens?
countries, then this would fit well. Principles
• Changes – so what is the impact?
PRINCE2™ contains seven principles
Neither PRINCE2™ nor Six Sigma are which are explained below: • Progress – where are we?
just processes, and both require
considerable organizational change in • Continued business justification: Processes
order to operate successfully. Six Sigma throughout the life of the project, There are a number of processes for
forces justification of the project based there must be adequate justification directing, managing and delivering projects:
on customer focus and process data. to continue.
PRINCE2™ forces control on project • Starting Up a Project
• Learning from experience: lessons
execution e.g. risk, quality, whereas Six are sought, recorded and acted upon • Directing a Project
Sigma does not really provide this. throughout the life of the project. • Initiating a Project
Both methods have a range of techniques • Defined roles & responsibilities: • Controlling a Stage
to help: Six Sigma has techniques such as with an organization structure that • Managing Product Delivery
Voice-of-Customer (VOC), 5Ys (a method engages the business, user and
• Managing a Stage Boundary
for performing root-cause-analysis) and supplier stakeholder interests.
• Closing a Project.
Data Analysis whereas PRINCE2™ has a • Manage by stages: the project is
focus on Stakeholder Engagement, planned, monitored and controlled on
Quality Review and Product Based Planning. a stage-by-stage basis.
Both methods are orientated around the There are 26 management products;
• Manage by exception: the project
Business Case, and both require benefits there is guidance on their evolution
has defined tolerances for each
to be defined and measured. (when they are created and modified)
project objective to establish limits of
and which ones can be combined.
This paper has reviewed the key aspects
of PRINCE2™ and Six Sigma and showed • Focus on products: definition and Tailoring PRINCE2™
how both methods can be used together delivery of products, in particular their PRINCE2™ includes guidance on how it
on a single project. The new questions scope and quality requirements. can be adapted to suit a variety of
the author poses are: “How should • Tailor to suit the project organizations and project scales. It should
we adopt PRINCE2™ if we are already environment: taking into account be noted that there is nothing specific
aligned to Six Sigma?” or “Having size, complexity, importance, within the PRINCE2™ guides on how to
adopted PRINCE2™, what can we do to capability and risk. embed PRINCE2™ into an organization
improve our capability still further?” since the core guides describe how to
direct and manage projects. However,
Further information is available in the form
material is available on how to embed
of a Vodcast at the following web site
PRINCE2™ in an organization in the
book “Improving Project Performance
It is also worth noting that PRINCE2™
using the PRINCE2™ Maturity Model” .
2009 includes guidance on integrating
other frameworks into the method. For
6 Integrating Six Sigma and PRINCE2™ 2009
PRINCE2™ also includes two specialist • Defect: Failing to deliver what the • Measure
techniques which are discussed later. customer wants • Data to be collected: in order
• Process Capability: What your to understand the way in which
process can deliver the current process is operating a
APPENDIX 2: • Variation: What the customer sees
list of variables to be monitored
Principles & • Stable Operations: Ensuring
consistent, predictable processes
• Operational Definition: a precise
definition of each of the variables
Concepts of to improve what the customer sees
to be measured is produced
• Data Collection Plan: this defines
Six Sigma • Design for Six Sigma: Designing
to meet customer needs and
when the data will be collected, by
whom, over what period, etc.
Six Sigma can be considered to be a process capability. • Measurement System Analysis:
Management System, a Method and verify that the measurement system
a Metric (as described in the Six Sigma The Method will produce valid data
Black Belt Handbook ). The metric
By reviewing the deliverables required • Baselined Data: analyze the data to
is used to assess process performance
by one of primary methods in Six Sigma, produce a Sigma level, capability
and the results of improvement
DMAIC, the key points in the process index etc.
projects. The method applies a rigorous
can be highlighted. There are many • Analyze
process (DMAIC or DMADV) to analyse
similarities between DMAIC and DMADV,
processes, develop new processes and • Validated Root Causes: identify the
and the first three phases have the same
to control variation and is supported by root cause of the process variation
names; the deliverables however are
a number of process improvement tools. by analytical analysis, probing,
slightly different since different questions
The Management System is a practical experimentation and simulation
have to be answered.
approach to aid continuous business • Improve
improvement in an organization. Each of the five phases of the DMAIC • Proposed Solutions: a number of
approach require key deliverables to solutions are proposed and these are
The Management System be produced: assessed in order to rank and cost
The Management System focuses on the them
management team and the organization • Define
• Charter: this is used to gain a clear • Cost benefit analysis: update
in four key areas:
understanding of the project and the business case with more
• Understanding and managing contains the following: likely information
customer requirements by listening to • Pilot Plan: try out the solution and
• Business Case
the Voice of the Customer (VOC) see if it has the desired effect.
• Goal Statement
• Aligning the processes to achieve • Control
the requirements • Opportunity Statement
• Solution Implementation Plan:
• Using data to analyse processes in • Project Scope
using the results from the pilot,
order to minimise variation • Project Plan create the plan for rollout
• Driving sustainable improvement into • Team Selection • Successful Solution: execute the
the business processes. • Requirements: i.e. clear articulation implementation plan
of “customer” requirements • Process Control Plan: define
A number of large multinational
• Process Measures: the how the new process should
companies are using Six Sigma ( e.g. ITT
requirements are translated into be monitored.
and GE, Rathyon, and including the author’s
experiences at Sun Microsystems) to “critical to quality” and “critical to
embed the Six Sigma culture in the process” metrics The Metric
organization. For example, GE has • As-is Process Maps: a description of Sigma is a measure of process
created a list of concepts [http://www. the current process performance and uses the parameter
ge.com/en/company/companyinfo/ “Defects per million opportunities”
• Quick Wins: a list of obvious
quality/whatis.htm]: which is expressed as a deviation from
fixes which can be immediately
the statistical normal distribution. Six
• Critical to Quality: Attributes most sigma equates to 3.4 defects per
important to the customer million opportunities.
Integrating Six Sigma and PRINCE2™ 2009 7
Example: Airlines mishandle 42 million • The Quality Review technique is • Control/Verify: Control Charts, Out-
items of luggage per year [Telegraph on- a quality inspection technique of-control Action Plan, Capability
line: 30/6/09] from 2.75 billion passenger with defined roles and a specific Flow-up.
flights. A six sigma accuracy (99.9997%) structure. It is designed to assess
in baggage handling (assuming that whether a product that takes the Many of the techniques used on Six
there is 1 item of luggage for each form of a document (or similar, e.g. Sigma projects will be useful when
passenger flight) would mean that only a presentation) is complete, adheres conducting PRINCE2™ projects,
825,000 items of luggage would be to standards and meets the quality however, in the author’s opinion, most
mishandled rather than 42 million. criteria agreed for it in the relevant PRINCE2™ practitioners are quite naive
Product Description. The participants when it comes to selecting the most
are drawn from those with the appropriate tools and techniques.
APPENDIX 3: necessary competence to evaluate its
fitness for purpose. The objectives of References
Techniques this technique are:  Managing Successful Projects with
PRINCE2™: 2009 Edition
• To assess the conformity of a
There are two techniques specifically product which takes the form of
described and unique to PRINCE2™ a document (or similar item, e.g. a  Directing Successful Projects with
covering Product Based Planning and presentation or test results) against PRINCE2™: 2009 Edition
Quality Review Techniques. The rationale set criteria ISBN: 9780113310609
for including the Product Based Planning • To involve key interested parties in  Improving Project Performance using
technique is that it has a specific checking the product’s quality and the PRINCE2™ Maturity Model, Andy
PRINCE2™ approach and without it in promoting wider acceptance of Murray, Mike Ward
application of the method would be the product ISBN: 9780113310319
significantly weakened. The rationale for  Six Sigma and the Project
• To provide confirmation that
including the Quality Review Technique is Management Body of Knowledge;
the product is complete and ready
not so clear – it is kept from older Gary A Gack
versions of the method, and any robust
• To baseline the products for  The New Six Sigma; Matt Barney &
review technique would work. PRINCE2™
change control purposes. Tom McCarty; Motorola University
also references many techniques from
other sources. Six Sigma uses a very rich set of  The Six Sigma Black-Belt Handbook,
• The Product Based Planning technique techniques and tools, and there are Thomas McCarty, Lorraine Daniels,
leads to a comprehensive plan many texts available on each of these, Michael Bremer, Paveen Gupta;
based on the creation and delivery both in books and on-line. Some of Motorola University
of required outputs. The technique the techniques are listed below, along ISBN: 9780071443296
considers prerequisite products, with their primary use, and they are
 Integrating DSDM into an existing
quality requirements and the grouped specifically relating to the most
dependencies between products. appropriate process phase in which they
The technique contains the should be used:
 Agile project management: running
following steps: • Define: Pareto Chart, Kano Analysis, PRINCE2™ projects with DSDM Atern
• Write the Project Product SIPOC Process Map Functional ISBN: 9780113310586
Description: this defines the “final” Deployment Map  Managing portfolios of change with
output of the project • Measure Phase: Cause/Effect Diagram, MSP for programmes and PRINCE2™ for
• Create the Product Breakdown Quality Function Deployment projects: Integrating MSP and PRINCE2™
Structure: this produces a [specifically for DMADV] ISBN: 9780113310753
decomposition of the final output • Analyze: Root Cause Analysis, 5 Whys,  PRINCE and PMI: A Basic Guide,
as a set of products to be delivered Statistical Data Plots e.g. histograms, Gartner 2002.
by the project box-plots, etc, Hypothesis Testing,
• Write the Product Descriptions: CTQ Flow-down
this describes each product to be • Improve/Design: Six Thinking Hats
delivered Mind Map, Pairwise Ranking, Field-
• Create the Product Flow Diagram: force Analysis, Stakeholder Analysis,
this shows the order in which Field-force Analysis, Variance
products can be delivered. Allocation