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LSS – From Ideas to Execution

    Sustain outcomes by balancing the
     objectives of the present with the
   needs and ...
“The human mind treats a new idea the
  same way the body treats a strange
         protein; it rejects it.”

            ...
Overview
Idea Hopper
  Strategise         Capture             Screen             Prioritise              Select              Execut...
Initiatives Identified - Plan & Execute

                            Project Hopper
                                      ...
Integrate – LSS & Project Management
              Project Boundary

                   Plan
                   Measure


...
Critical Success Factors
                                                                              Leadership, Commitm...
Detailed
Idea Generation
 Sources of Ideas:
   Ideas generation sessions with cross functional teams

   Brainstorming

   Annu...
Idea Capture

 Consolidate like ideas

 Check if new ideas are duplicating existing
  or previous projects elsewhere in ...
Idea Screening
   Define the intent and a high level scope (“SMART”) of the idea

   Estimate the cost vs. benefit (as a...
Idea Prioritisation
 Prioritise Ideas using a Prioritisation Tool
  (including the rating scales for each criteria)

   ...
Project Selection Criteria

   Financial                           Non –
                                      Financial
 ...
Prioritisation Tool
 Determine weighting criteria that could be customised to meet your
  specific needs

 Define rating...
Prioritisation Tool - Criteria
                              Human and Physical                 “Just do it”
Project’s “St...
Project Selection

 Select projects based on overall ratings

   Business Benefit / Implementation Ease

   Constraints...
Prioritised & Selected Projects
 Projects Selected (Lean, Six Sigma, CAPEX, “Just do
  it”, Mandated, Departmental)

 “J...
Alignment on Selected Projects
                                                                   Alignment
    •   Determ...
Project Implementation
 Appropriate implementation methodology (DMAIC, DFSS, CAPEX)

    resources availability

    cu...
Benefit Tracking




                   20
Lesson Learned
 Systems and processes to record lessons learned

    Collaborate on improvement outcomes

    Capture a...
RASCI


                          Generate




                                                        Prioritise
        ...
LSS – Project Execution
Using DMAIC Framework
   Value                Understand Demand                   Flow      Level           Perfection
   ...
Define Opportunities
                        Stage                      Stage                 Stage                    Sta...
Define Phase (Activities & Tools)
           Activities               Tools / Techniques
•   Problem Definition         • ...
Measure Performance
                    Stage                       Stage               Stage                    Stage
   ...
Measure Phase (Activities & Tools)
        Activities                   Tools / Techniques
• Identify Key Input, Process  ...
Analyse Opportunity
                      Stage                         Stage                             Stage           ...
Analysis Phase (Activities & Tools)
           Activities                   Tools / Techniques
•   Prioritise Critical X‟s...
Improve Performance
                     Stage                      Stage                          Stage                  ...
Improve Phase (Activities & Tools)
         Activities                Tools / Techniques
• Develop Potential Solutions    ...
Control Performance
                       Stage                      Stage               Stage                    Stage
 ...
Control Phase (Activities & Tools)
         Activities                Tools / Techniques
• Develop SOP‟s, Training Plan   ...
LSS – Quality Assurance
Monitor & Control
   Benefits
  Identified
                                                              Project
         ...
Stage / Tollgate Reviews



Tollgate
Review

           Tollgate
           Review

                      Tollgate
       ...
Quality Assurance Review

          Schedule
          Variance




         Scope




                           38
Project Tracking and Reporting
 A system (manual or automated) in place to track
  improvements, feed back, record value ...
Project Post Implementation Review
 Positive and negative lessons learned captured & shared

 Feedback solicited from a ...
Project Staffing Transfer / Release
 Transfer plan and the approach approved
  by human resources

 All project staff re...
Project Financial Closure
 Key stakeholders notified of financial closure / date

 Acceptance criteria met prior to fina...
Project Archive
 All hard copy and artefacts stored or archived according
  to the organisation record management standar...
Team Celebration

 Significant milestones successfully met
  and celebrated

 All planned celebration consistent with
  ...
“Good ideas are not adopted automatically.
   They must be driven into practice with
          courageous patience.”


   ...
Good Luck
http://www.linkedin.com/in/anandsubramaniam




                                              46
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LSS Idea Generation to Project Execution

Sustain outcomes by balancing the objectives of the present with the needs and expectations of the future

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LSS Idea Generation to Project Execution

  1. 1. LSS – From Ideas to Execution Sustain outcomes by balancing the objectives of the present with the needs and expectations of the future Anand Subramaniam
  2. 2. “The human mind treats a new idea the same way the body treats a strange protein; it rejects it.” - P. B. Medawar 2
  3. 3. Overview
  4. 4. Idea Hopper Strategise Capture Screen Prioritise Select Execute Review Stage Stage Stage Stage Stage Stage Gate Gate Gate Gate Gate Gate $ % ∑ Analyse the Brainstorm & Business case Score ideas Build project & Review projects Project Closure business capture ideas rationale/ Benefit vs. risk assign team Assign budget & Lessons Set business into hopper justification to implement Select project(s) time horizon Learned drivers Research & Cost benefit Stakeholder Approve & Lean 6 Sigma, Status Update Establish idea / initial proof of assessment feedback promote CAPEX, Just Verify Benefits / opportunity concept Reviews and Team & Project do it, savings strategy Publish & share screen for Charters Departmental duplications Change & Program Management 4
  5. 5. Initiatives Identified - Plan & Execute Project Hopper Plan & Project Capture Screen Prioritise Select Execute Review Lean Six Sigma CAPEX Department Prioritised Ideas 5
  6. 6. Integrate – LSS & Project Management Project Boundary Plan Measure Monitor & Initiate Control Closure Improve & Define Control Sustain Analyse Execute Start End 6
  7. 7. Critical Success Factors Leadership, Commitment Sponsorship Organisation Benefit Alignment Assurance Continuously Capture Improve PIR, Lesson Learnt Project Select. Prioritise Critical Capability Measurement Success Development Factors Risk, Defects, ROI, QA Coach / Mentor , Train Collaborate Communicate Project Stakeholder Management Management Standards Tools, Checklist Project Plan Management Communication, Integration Risk, Quality, Com, Cost, Time 7
  8. 8. Detailed
  9. 9. Idea Generation  Sources of Ideas:  Ideas generation sessions with cross functional teams  Brainstorming  Annual Planning Process / Operational Plans  Departmental initiatives / CCC Strips  Information Boards / Visual Management 9
  10. 10. Idea Capture  Consolidate like ideas  Check if new ideas are duplicating existing or previous projects elsewhere in the organisation 10
  11. 11. Idea Screening  Define the intent and a high level scope (“SMART”) of the idea  Estimate the cost vs. benefit (as a rule of thumb, accuracy + or – 30%)  Structured communication plan to address outcomes  Remove ideas that are not aligned with organisation‟s business strategy, or would be sub-optimal to introduce  Combine / delete ideas to eliminate redundancies  Outcome - rationalised list of ideas to be considered for further assessment and continuously improve the estimating process or selection criteria ratings 11
  12. 12. Idea Prioritisation  Prioritise Ideas using a Prioritisation Tool (including the rating scales for each criteria)  Business Benefit Criteria (Financial & Non Financial)  Implementation Criteria (resources, risk, time)  Overall rating and weighted score for final project selection / decision making 12
  13. 13. Project Selection Criteria Financial Non – Financial Payback Net Present Value Projects of Strategic (NPV) importance to the firm Internal Rate of Return (IRR) Several weighted selection criteria could be used to evaluate project proposals 13
  14. 14. Prioritisation Tool  Determine weighting criteria that could be customised to meet your specific needs  Define rating scales for each criteria and assist users of the tools to assign the ratings  Identify “just do it” / “mandated” projects which are automatically assigned a high score to ensure priority is give to these projects  Make a high level estimate of the ratings for each criteria and complete the assessment matrix  Overall rating calculated and a ranked list of ideas produced 14
  15. 15. Prioritisation Tool - Criteria Human and Physical “Just do it” Project’s “Strategic Fit” Resource Requirements Impact on Employees and Environmental Impact their Performance Estimated Cost and Time Size and Composition of Ethical Considerations Existing Program & Project Complexity and Risk Portfolio Impact on NPM’s Image Experience With Similar Projects Competencies Strategic Partnership Expected Benefits Temporal Distribution of Building (Quantitative & Qualitative) Quantitative Returns 15
  16. 16. Project Selection  Select projects based on overall ratings  Business Benefit / Implementation Ease  Constraints (Internal / External) • Cost : Time : Resourcing : Stakeholders  Alignment (Risks / Opportunities) 16
  17. 17. Prioritised & Selected Projects  Projects Selected (Lean, Six Sigma, CAPEX, “Just do it”, Mandated, Departmental)  “Just Do Its” / Mandated Projects (HSE) do not need to be evaluated in the prioritisation process but they should still be tracked for resourcing, cost, benefits, risk etc  If required reassess criteria weightings and rating scales  Allocate resources, define roles & responsibilities, scope, project charter and approve projects for implementation 17
  18. 18. Alignment on Selected Projects Alignment • Determine & align with Org‟s strategy • Decide on evaluation criteria • Select prioritised projects Executive • Allocate funds Management • Check resource needs • Re-scope • Cull projects not aligned • Re-classify • Define monitoring process • Re-assign resources • Re-design (merge) • Impact on existing projects Functional Management • Remove / kill project • Re-evaluate new projects & • Re-schedule (delay, move to pipeline) cross project dependencies • Project execution • Performance reporting • Project information archived & used to CAPEX, Lean Six Sigma, improve the process Departmental, Just do it Innovation Fit 18
  19. 19. Project Implementation  Appropriate implementation methodology (DMAIC, DFSS, CAPEX)  resources availability  current business focus and / or change in Organisation's strategy  appropriate sequencing and dependences of projects  project sequencing (parallel / serial)  projects that are not being progressed and their assessments should be captured for potential later use 19
  20. 20. Benefit Tracking 20
  21. 21. Lesson Learned  Systems and processes to record lessons learned  Collaborate on improvement outcomes  Capture and share knowledge from projects implemented  Use prior learning to start new initiatives  Replicate  Continuously improve processes, templates and checklists 21
  22. 22. RASCI Generate Prioritise Capture Execute Track & Sustain Report Screen Plan & Select PIR Senior Management I I I IC IC I I I I Project Champion / A A R R A Sponsor P&L / Project Manager A A A A R R A A A Process Teams / Experts R CI CI CI CI CI CI CI R LSS Teams CS R R R CS CS CS CS C Secretary S S S S S S S S S BA / Finance I I C C C C I I I 22
  23. 23. LSS – Project Execution
  24. 24. Using DMAIC Framework Value Understand Demand Flow Level Perfection Define Measure Analyse Improve Control Define Measure Analyse Improve Control Stage Stage Stage Stage Stage Gate Gate Gate Gate Gate 24
  25. 25. Define Opportunities Stage Stage Stage Stage Gate Gate Gate Gate Define Measure Analyse Improve Control Objective Main Activities Potential Tools and Techniques Output • To identify and/ or • Validate/Identify validate the Business improvement Opportunity • Project Charter opportunity, • Develop Project • Process Map • To develop the Charter business processes • Identify and Map • Gate Review • To define critical Processes customer requirements • Identify Quick Wins and Refine Process • To be an effective project team. • Translate VOC into CTx • Develop Team Guidelines & Ground Rules 25
  26. 26. Define Phase (Activities & Tools) Activities Tools / Techniques • Problem Definition • Project Management Process • Project Charter • Value Stream Map • SIPOC • Financial Analysis • Activity (Process )Maps • Project Charter • Value Stream • Stakeholder Analysis • VOC, VOB, VOP, VOE • Communication Plan • Project Scope • SIPOC Map • Roles & Responsibilities • High-Level Process Map • Project Schedule • Non-Value Added Analysis • Critical Success Factors • VOC and Kano Analysis • Stage Gate • Multi-generation Plans
  27. 27. Measure Performance Stage Stage Stage Stage Gate Gate Gate Gate Define Measure Analyse Improve Control Objective Main Activities Potential Tools and Techniques Output • Identify Input, • Measurement • To identify critical Plan measures / success Process, and Output Indicators factors critical to meet customer • Gather Data requirements • Develop Operational Definition & • Baseline • Develop a Measurement Plan methodology to effectively collect • Analyse Data •DEFINE • Gate Review data to measure process • Determine if Special performance Cause Exists • To understand the • Determine Sigma elements of the 6 Performance Sigma calculation and establish • Collect Other baseline processes Baseline Performance for analysis by the Data team 27
  28. 28. Measure Phase (Activities & Tools) Activities Tools / Techniques • Identify Key Input, Process • Operational Definitions Output Metrics • Data Collection Plans • Develop Operational • Histograms / Pareto chart Definitions • Statistical Sampling • Develop Data Collection Plan • Measurement System Analysis • Validate Measurement System • Gage R&R • Collect Baseline Data • Constraint Identification • Determine Process / • Control Charts Performance/Capability • Process Capability, Cp & Cpk • Validate Opportunity • Measurement Capability • Stage Gate 28
  29. 29. Analyse Opportunity Stage Stage Stage Stage Gate Gate Gate Gate Define Measure Analyse Improve Control Objective Main Activities Potential Tools and Techniques Output • To stratify and • Stratify Process, analyse the data & Identify • Identify Root Cause opportunity Specific Problem & not symptoms • To identify a specific • Develop Problem • Voice of Customer problem and define Statement Vs. Voice of an easily understood Business problem statement. • Identify Root Causes • To identify and • Design Root Cause • Gate Review validate the root Verification Analysis causes • Validate Root • To ensure the Causes Hypothesis Regression elimination of “real” ANOVA root causes and thus • Enhance Team Testing Modelling the problem the Creativity & Prevent team is focused on. Group-Think 29
  30. 30. Analysis Phase (Activities & Tools) Activities Tools / Techniques • Prioritise Critical X‟s • Pareto Charts • Conduct Root Cause Y=f(X) • C&E Matrix • Analysis on Critical X‟s • Brainstorming • Validate Critical X‟s • Detailed „As-Is‟ Process Maps • Estimate the Impact of each X • Data Analysis (Statistics) on Y • Non Value-Added Analysis • Quantify the Opportunity • Hypothesis Testing • Prioritise Root Causes • FMEA • FMEA • Box /Interaction Plots • DOE (Design Of Experiment) • Simple & Multiple Regression • Stage Gate • ANOVA 30
  31. 31. Improve Performance Stage Stage Stage Stage Gate Gate Gate Gate Define Measure Analyse Improve Control Objective Main Activities Potential Tools and Techniques Output • To identify, • Generate Solution evaluate, and Ideas • Develop Solution select the right improvement • Determine Solution • Pilot Phase Impacts: Benefits solutions. • Evaluate and Select • Gate Review • To develop a Solutions change management approach to assist • Develop Process Maps & High Level Response Surface the organisation in Analysis / Screening Plan adapting to the changes introduced through solution • Communicate Solutions to all implementation. Design of Stakeholders Experiment 31
  32. 32. Improve Phase (Activities & Tools) Activities Tools / Techniques • Develop Potential Solutions • Brainstorming • Develop Evaluation Criteria & • Benchmarking Select Best Solutions • Process Improvement • Evaluate Solution for Risk Techniques (8W,5S) • Evaluate solution with • FMEA Stakeholders • Solution Selection Matrix • Optimise Solution • „To-Be‟ Process Maps • „To-Be‟ Process Map(s) • Piloting and Simulation • High-Level Implementation • Visual controls Plan • Develop Pilot Plan / Results • Stage Gate 32
  33. 33. Control Performance Stage Stage Stage Stage Gate Gate Gate Gate Define Measure Analyse Improve Control Objective Main Activities Potential Tools and Techniques Output • Develop Pilot Plan & • To understand the Pilot Solution importance of • Process Owner planning and • Verify Reduction in takes executing against Root Cause Sigma responsibility the plan and Improvement determine the approach to be Resulted from Solution • Everyone wants taken to assure to move on achievement of the • Develop Replication targeted results. & Standardisation • Most challenging phase • To understand how • Integrate and to disseminate Manage Solutions in • Gate Review lessons learned, Daily Work identify replication Processes and standardisation opportunities/ • Integrate Lessons processes, and Learned & identify develop related new opportunities plans. 33
  34. 34. Control Phase (Activities & Tools) Activities Tools / Techniques • Develop SOP‟s, Training Plan • Control Charts & Process Control System • Standard Operating • Monitor & Stabilise Process Procedures (SOP‟s) • Transition Project to Process • Training & Transition Plan Owner / Operation • Communication Plan • Identify Project Replication • Visual Process Control Opportunities • Process Control Plans • Calculate Financial Benefit • Project Commissioning • Lessons Learned • Project Replication • Celebrate • Project Dashboards • Stage Gate • Project Artifacts 34
  35. 35. LSS – Quality Assurance
  36. 36. Monitor & Control Benefits Identified Project Management Office Responsibility Matrix Key Benefit Key Measurement Success Criteria Criteria Business Benefit Benefits Case Monitor Delivery Delivered Execution Benefit Progress Ownership Monitoring Risk Management Communication Plan 36
  37. 37. Stage / Tollgate Reviews Tollgate Review Tollgate Review Tollgate Review Tollgate Tollgate Review Review 37
  38. 38. Quality Assurance Review Schedule Variance Scope 38
  39. 39. Project Tracking and Reporting  A system (manual or automated) in place to track improvements, feed back, record value delivered and storing project documentation / artefacts  Key project stakeholder have access to this system which provides project status information (dash board) and metrics around scope, time, cost, resources, risks, milestones, deliverables, stage gates etc  System used to manage the effectiveness and sustainability of the improved processes 39
  40. 40. Project Post Implementation Review  Positive and negative lessons learned captured & shared  Feedback solicited from a diverse audience  Original requirements reviewed to check for adherence  PIR (post implementation review) readily available for review  Archive (viz lessons learned database or library) managed  Use PIR to sustain, replicate and to realise the benefits. 40
  41. 41. Project Staffing Transfer / Release  Transfer plan and the approach approved by human resources  All project staff released or re-allocated  Staff employment files updated 41
  42. 42. Project Financial Closure  Key stakeholders notified of financial closure / date  Acceptance criteria met prior to final payments release  Assets transferred or disposed off  Contracts office notified  Procedures in place for retaining financial records and artefacts 42
  43. 43. Project Archive  All hard copy and artefacts stored or archived according to the organisation record management standards  The project library folder structure used to store electronic artefacts and available for future projects  Operations / maintenance team have access to all the artefacts in order to maintain the project's deliverables  All the "Lessons Learned" documents stored in the lessons learned electronic library 43
  44. 44. Team Celebration  Significant milestones successfully met and celebrated  All planned celebration consistent with acceptable professional and ethical standards 44
  45. 45. “Good ideas are not adopted automatically. They must be driven into practice with courageous patience.” - Hyman Rickover 45
  46. 46. Good Luck http://www.linkedin.com/in/anandsubramaniam 46
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Sustain outcomes by balancing the objectives of the present with the needs and expectations of the future

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