152 5 Lean Six Sigma and project management go together

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  • 1. Lean Six Sigma and Project Management go together Written by Francisco Pulgar-Vidal, fkiQuality fpulgarvidal@fkiquality.com 10/28/2013 152-5 Copyright fkiQualityLLC 2012 1
  • 2. Continuing the Executive Education Series Why Lean Six Sigma is better than ‘just doing projects.’ 10/28/2013 152-5 Copyright fkiQualityLLC 2012 2
  • 3. Goal of this presentation: Encourage Lean Six Sigma practitioners and project managers to learn from one another.
  • 4. I aim to achieve this by presenting two similarities and two differences between both methods.
  • 5. FIRST SIMILARITY: Lean Six Sigma and Project Management are complementary methods of improvement.
  • 6. The methods of Lean Six Sigma (LSS) and project management (PM) support one another.
  • 7. In fact, some of the best LSS practitioners happen to be skilled project managers.
  • 8. They are practitioners who have blended skills of problem solving and project management.
  • 9. In terms of sequence and timing, LSS and PM are complementary.
  • 10. Operational Problem Designed solution Implemented solution Lean, Six Sigma methods Project management
  • 11. Even more, Lean Six Sigma borrows much from the discipline of project management.
  • 12. SECOND SIMILARITY: Lean Six Sigma applies many project management concepts to be more effective.
  • 13. LSS projects are structured in stages, with gates.
  • 14. Lean’s A3 consists of these steps Background Current conditions Goal Analysis Recommended countermeasures How to implement How to sustain
  • 15. Six Sigma stages give DMAIC its name, and include Define Measure Analyze Improve Control
  • 16. In both cases, to move from one stage to the next, teams must advance their learning,
  • 17. complete specific deliverables,
  • 18. and achieve defined outcomes.
  • 19. At each stage gate meeting, called a ‘tollgate,’ the project directing team decides what happens next.
  • 20. Like in any well-run program, LSS projects are launched by sponsors and champions.
  • 21. Project sponsors and champions are responsible for identifying meaningful projects.
  • 22. What does it take to launch projects that mean something?
  • 23. Meaningful projects support a strategy, answer customer needs and improve core processes. Strategy Customer needs Core processes
  • 24. The intersections below are promising targets for How do we improvement. fulfill our vision? What do customers want us to do better? Which processes need fixing?
  • 25. From these target areas, project sponsors and champions identify, select and prioritize LSS projects.
  • 26. This creates a program plan made of a phased sequence of projects.
  • 27. Balance strategy, customer needs, core processes Define target areas of improvement Sequence projects of improvement Why to change? What to change? How to change?
  • 28. Then each project is chartered and launched.
  • 29. This sequence is called hoshin kanri or strategic planning.
  • 30. LSS projects are led by a project manager.
  • 31. Simpler LSS projects are led by a lean practitioner or green belt.
  • 32. The lean practitioner or green belt applies an intermediate level of LSS and project management skills.
  • 33. More complex LSS projects are led by a lean master or black belt.
  • 34. The lean master or black belt applies a deep level of LSS and project management skills.
  • 35. Regardless of skill level, the project lead is not alone and must be supported by the organization.
  • 36. Sponsors and champions, an experienced LSS Coach coach and a program office are needed for success. LSS Champion A successful LSS program PMO Project Managers
  • 37. FIRST DIFFERENCE: Lean Six Sigma projects start with problems, not solutions.
  • 38. Crucially, while most projects focus on how to implement a solution,
  • 39. … Lean Six Sigma projects focus on how to find the solution to be implemented.
  • 40. Lean Six Sigma has three major components,
  • 41. Projectbased Projectbased A continuous function
  • 42. Our focus today Projectbased
  • 43. So, Lean and Six Sigma projects are efforts to improve existing processes, products, services.
  • 44. Clearly, improvements are necessary because there are problems with the current state of things.
  • 45. In particular, Lean Six Sigma projects start with problems that you don’t know how to solve.
  • 46. This is so true, that if you know the solution, then you don’t need Lean Six Sigma.
  • 47. But if you must solve a hard problem, then a Lean Six Sigma project is likely your best choice.
  • 48. Lean follows a method for improving what already exists, called A3.
  • 49. A3 is based on the continuous improvement method of testing a solution through trials.
  • 50. Six Sigma follows a method for improving what already exists, called DMAIC.
  • 51. DMAIC is based on the scientific method of testing a hypothesis through experimentation.
  • 52. While most other projects focus on delivering a solution,
  • 53. … such as: relocate the trading office, develop new technology, enter a new market, prepare for a trade fair, restructure an organization, …
  • 54. … recall that LSS is best for finding and designing a solution.
  • 55. SECOND DIFFERENCE: Lean Six Sigma projects emphasize finding the solution more than schedule, budget, scope or risk.
  • 56. For instance, a LSS project may have many natural outcomes.
  • 57. Which depend on the project’s path of discovery.
  • 58. So what happens after each tollgate meeting is not predetermined.
  • 59. Several outcomes are possible along the lifecycle of a Six Sigma project. For instance, after the Define or Measure stages …
  • 60. after a tollgate meeting, when the initial problem turns out to be something else.
  • 61. without becoming a failure, when the supposed problem isn’t borne by facts.
  • 62. when the initial scope proves too extensive.
  • 63. when the team has a short time to deliver results.
  • 64. Unlike most projects, all these outcomes are fine, when they result from what the team has learned about the problem.
  • 65. Most often,
  • 66. Because a LSS project does not have a known solution, it is critical that the team find the right problem and the right solution.
  • 67. For this reason, LSS projects emphasize designing a solution while de-emphasize meeting schedule, budget, scope or risk requirements.
  • 68. In summary, Lean Six Sigma and Project Management complement each other strengths.
  • 69. Specifically, LSS projects begin with problems and emphasize finding the right solution,
  • 70. … while PM brings structure and discipline to problem solving efforts.
  • 71. In terms of skill sets and learning, LSS project leads, sponsors and champions must learn project management skills to be more successful.
  • 72. Conversely, project managers have the bases to become great LSS practitioners and could learn the technical skills.
  • 73. Next presentations will discuss: • In which way lean six sigma projects go deeper than other efforts. • The structure of Lean and Six Sigma projects for exploration. 10/28/2013 152-5 Copyright fkiQualityLLC 2012 73