Aligning Six Sigma Projects with Program Goals


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  • Aligning Six Sigma Projects with Program Goals

    1. 1. Aligning Six Sigma Projects with Program Goals October 15, 2008 Global Lean, Six Sigma, and Business Improvement Summit Orlando, Florida Mr. Donald Corpron Lean Six Sigma Master Black Belt ISRSD-2008-0067
    2. 2. Introduction
    3. 3. Preview <ul><li>We’ll cover these topics… </li></ul><ul><li>Decomposing high-level goals to specific project objectives </li></ul><ul><li>Balancing Customers’ goals with organization’s goals using Quality Function Deployment </li></ul><ul><li>Integrating Lean Six Sigma tools and CMMI ® Levels 4 & 5 maturity </li></ul><ul><li>Using Lean Six Sigma to monitor and sustain superior program performance </li></ul>
    4. 4. About Northrop Grumman – The Vision <ul><li>Be the most trusted provider of systems and technologies that ensure the security of our nation and its allies </li></ul><ul><li>Customers’ provider of choice </li></ul><ul><li>Industry’s employer of choice </li></ul><ul><li>Shareholders’ investment of choice </li></ul>Creating Value Through People and Technology
    5. 5. About Northrop Grumman <ul><li>$32 billion sales in 2007 </li></ul><ul><ul><li>International sales approx. 5% of total </li></ul></ul><ul><li>120,000 people, 50 states, 29 countries </li></ul><ul><li>Leading capabilities in: </li></ul><ul><ul><li>Systems integration </li></ul></ul><ul><ul><li>C 4 ISR and battle management </li></ul></ul><ul><ul><li>Information technology and networks </li></ul></ul><ul><ul><li>Defense electronics </li></ul></ul><ul><ul><li>Naval shipbuilding </li></ul></ul><ul><ul><li>Space and missile defense </li></ul></ul>Focus on Performance
    6. 6. About Northrop Grumman - The Business Areas Command, Control & Communications Intelligence, Surveillance & Reconnaissance Missile Systems Enterprise Systems and Security IT/Network Outsourcing Defense & Intelligence Federal, State/Local & Commercial ISR, Homeland Security & Health Systems Support Base and Infrastructure Support Range Operations Training and Simulations Technical and Operational Support Live, Virtual and Constructive Domains Life Cycle Optimization Performance Based Logistics Lead Support Integrator (LSI) Radar Systems C 4 ISR Electronic Warfare Naval & Marine Systems Navigation & Guidance Military Space Government Systems Large Scale Systems Integration C 4 ISR Unmanned Systems Airborne Ground Surveillance / C2 Naval BMC2 Global / Theater Strike Systems Electronic Combat Operations ISR Satellite Systems Missile Defense Satellite Systems MILSATCOM Systems Environmental & Space Science Satellite Systems Software Defined Radios Directed Energy Systems Strategic Space Systems INFORMATION & SERVICES ELECTRONICS AEROSPACE SHIPBUILDING Mission Systems Information Technology Technical Services Electronic Systems Integrated Systems Space Technology Shipbuilding Naval Systems Integrator Surface Combatants Expeditionary Warfare Ships Auxiliary Ships Marine Composite Technology Coast Guard Cutters Commercial Ships Nuclear Aircraft Carriers Nuclear Submarines Fleet Maintenance Aircraft Carrier Overhaul & Refueling A Portfolio Positioned for the Future
    7. 7. Our environment… Program A Program B Program B <ul><li> 170 active projects </li></ul><ul><li>Contracts with numerous government Customers </li></ul><ul><li>Range from $K to $M annual sales </li></ul><ul><li>Products of “one,” more like building bridges than widgets </li></ul><ul><li>“ On-time” is the Critical-to-Quality attribute </li></ul><ul><li>Many individual instances of “standard” processes </li></ul><ul><li>Program Managers are mini CEO’s </li></ul>
    8. 8. Northrop Grumman has an infrastructure to improve the way it does business Competitive Excellence Organization Sector Six Sigma Program Office Divisional Six Sigma Office <ul><li>Six Sigma Champion </li></ul><ul><li>Master Black Belt </li></ul>Site Champions Six Sigma Team Six Sigma Team Six Sigma Team Corporate Sector Division Operation
    9. 9. The opportunity <ul><li>How to get everyone in the company to pull in the same direction, towards clearly defined and delegated goals to move the performance meter? </li></ul><ul><li>How to align the multiple tiers of goals in the enterprise? </li></ul><ul><li>How to focus on improving the vital few things that are essential to goal achievement? </li></ul>
    10. 10. We use the strategic alignment cycle Capture/ Integrate “Voice of CEO” Map Future Reality Assess Process Maturity Assess Results Charter Six Sigma Projects Measure Robustness Identify Vital Few Processes
    11. 11. About “Voice of Customer (CEO)” analysis <ul><li>Similar to “Voice of Customer” analysis </li></ul><ul><li>Portrays the CEO as the “Customer” who has needs to satisfy </li></ul><ul><li>Captures the strategic intent (goals) of the business </li></ul><ul><li>Weighs the goals </li></ul><ul><li>Progressively translates the goals of the business down to and in the language of the people that must make things happen </li></ul>
    12. 12. The importance of Goals and Strategic Intent <ul><li>&quot;Knowing where you want to go; knowing where you are now; knowing how you get to where you want to go and then doing it are the keys to success in the 21st Century “ - David Taylor (author The Naked Leader) </li></ul><ul><li>Express the strategic intent to help individuals and organizations share the common intention to survive and continue or extend themselves through time and space </li></ul>
    13. 13. “ Voice of CEO” captures needs from several sources <ul><li>Flowed Down Operational Goals </li></ul><ul><li>Long Range Strategic Plan </li></ul><ul><li>Annual Operating Plan </li></ul><ul><li>“ Leadership 2.0” Vision </li></ul><ul><li>Interviews </li></ul><ul><li>Leadership Advisory Board </li></ul><ul><li>SWOT sessions </li></ul>Need Need
    14. 14. Several “tools” are used to align goals (learned in Lean Six Sigma Training) <ul><li>Capture goals and strategic intent with “Voice of Customer” Analysis </li></ul><ul><li>Identify the system’s core drivers with Reality Tree </li></ul><ul><li>Weight goals with Paired Comparison Analysis </li></ul><ul><li>Identify relations with House of Quality </li></ul><ul><li>Measure processes’ robustness with control charts and capability charts </li></ul><ul><li>Assess process maturity using the CMMI  and BD-CMM  models </li></ul>
    15. 15. Future reality trees use seven entity classes to uncover core drivers <ul><li>The Reality Tree is a tool to discover the system’s core drivers </li></ul><ul><li>Based on the Theory of Constraints that all systems have physical, market, policy, or a combination of factors that govern the system’s performance </li></ul><ul><li>The graphic approach facilitates the elicitation of factors from “Customers” </li></ul>
    16. 16. Decompose high level goals to actions Overarching Goal of Sales growth and Return on Sales Goals Cross Project Actions Desirable Effects Intermediate Effects *Produced with Flying Logic®
    17. 17. Target to improve the two meta-processes that produce the value PM&C BAP PRP Key PM&C  Project Management & Control BAP  Business Acquisition Process PRP  Product Realization Process Info Info I I Info Info Customer Customer Assess using BD-CMM ™ Assess using CMMI ®
    18. 18. About the BD-CMM  <ul><li>Stewarded by the Business Development Institute </li></ul><ul><li>Focused on Business Acquisition processes </li></ul><ul><li>Based on a compilation of best practices to secure new business </li></ul><ul><li>Used to assess the “maturity” of business acquisition processes </li></ul>Process Maturity 
    19. 19. About the CMMI ® <ul><li>Stewarded by the Software Engineering Institute </li></ul><ul><li>Focused on Engineering processes </li></ul><ul><li>Based on a compilation of best practices </li></ul><ul><li>Used to gauge the “maturity” of engineering processes </li></ul>Process Maturity 
    20. 20. CMMI specifically refers to goal flow down <ul><li>Level 4 Specific Practice 1.1 (Establish the Project’s Objectives) states, “Establish traceability to the project’s quality and process performance objectives from their sources.” </li></ul>® Capability Maturity Model and CMMI are registered in the U.S. Patent and Trademark Office by Carnegie Mellon University.
    21. 21. The relationship of CMMI to Six Sigma Initial Managed Defined Quantitatively Managed Optimizing <ul><li>Six Sigma and CMMI are symbiotic </li></ul><ul><li>Six Sigma is the improvement methodology </li></ul><ul><li>CMMI is the gauge of maturity </li></ul><ul><li>The engines of continuous improvement </li></ul>Six Sigma is a catalyst for high maturity
    22. 22. About the House of Quality <ul><li>Yoji Akao developed the House of Quality </li></ul><ul><li>First implemented at the Mitsubishi Heavy Industries’ Kobe Shipyard in 1972 </li></ul><ul><li>John Hauser and Don Clausing popularized House of Quality in 1988 with an article in Harvard Business Review entitled, “The House of Quality” </li></ul><ul><li>Helps deal with the “many to many” relationships problem </li></ul>
    23. 23. At least three houses usually needed to link goals and actions 1 st House 2 nd House “ Voice of CEO” Vital Few Processes 3 rd House Measures Kaizens, Projects, Actions, etc. Vital Few Processes Measures
    24. 24. Mesh Sector and Divisional goals using a House of Quality “ Voice of General Manager” “ Voice of Sector President” *Produced with QFD/Capture
    25. 25. And they input to Project’s specific goal formation <ul><li>Meet commitments </li></ul><ul><li>Estimate software development accurately </li></ul><ul><li>Maintain good rapport with Customer </li></ul><ul><li>Deliver “It” right and on-time </li></ul><ul><li>Catch defects early </li></ul><ul><li>Modularize test suites </li></ul><ul><li>Engage Customer in requirements earlier </li></ul><ul><li>Expand Customer base </li></ul><ul><li>Proactively refresh technology </li></ul><ul><li>Protect/grow funding </li></ul><ul><li>Protect core staff </li></ul>
    26. 26. Use Paired Comparison Analysis to weigh the specific goals <ul><li>Compares each goal to every other goal </li></ul><ul><li>Requires a consensus on which one is more important </li></ul><ul><li>Forces crisp debate about relative importance </li></ul>
    27. 27. In turn, link goals to relevant processes with a House of Quality <ul><li>Match Program Goals to the corresponding processes whose outputs affect achievement of goals </li></ul><ul><li>Encode the degree of “force” with a “full moon”, “half moon”, or “new moon” to represent a force multiplier of 9, 3, or 1 </li></ul><ul><li>Identifies the “vital few” processes </li></ul>
    28. 28. Desired end state is a set of “robust” processes <ul><li>Robust processes are both stable and capable </li></ul>Chaotic On the brink Robust Stability Capability Ready Where we would like to be Where we often start
    29. 29. Evaluate robustness with Control Charts and Capability Charts *Produced with Minitab® Data are from Sector Programs: Measure: Cycle Time Performance specifications come from the Mission Systems’ 2008 Operational Goals Specification Limit Value: 2 Weeks (10 working days) Cycle time measures the time from start to completion of a Build Process Name: Code/Build Corrective Actions: Six Sigma project originated to address cycle time capability Impact of current performance: Current process misses target half the time. Capability: Process is capable of performing at the goal 50% of the time. Process Sigma  1.50  0.00  1.50(should be around 3) Stability: Process has a out-of-control point in Build 13 due to a Priority 1 DR
    30. 30. Summary <ul><li>The application of various Six Sigma tools together with CMMI help to integrate goals among organizational tiers Sector, Division, and Project </li></ul><ul><li>Alignment focuses energy to exceed goals </li></ul>The End