Lean Six Sigma project management aims to streamline projects with higher predictability and lower variations than traditional project management. It focuses on eliminating waste and non-value-added steps through a DMAIC process of defining opportunities, measuring key metrics, analyzing processes, improving processes by eliminating sources of variation, and controlling performance. Lean Six Sigma projects emphasize continuous improvement through small experiments, empowered cross-functional teams, and a pull-based approach driven by customer demand.

1. Lean and Six Sigma for Project
Management
Differences between traditional PM versus Lean PM
October 11th 2010
Arunima Soni Thakur
for
(C) Arunima Thakur

2. Lean is … Six Sigma is …
A Set of Tools: Lean is like a toolbox full
of tools and techniques. You select the A Philosophy focused on business
right technique or method to improve what process improvements to:
needs improving. Increase profitability and
competitiveness
Lean Enterprise Institute Increase Customer Satisfaction
A Philosophy: A philosophy of Reduce/Eliminate Defects
production that emphasizes the (rework and mistakes), Waste
minimization of the amount of all resources
used in the various activities of the
enterprise.
APICS
A System: Lean is A System where a
company can achieve reduced costs, couple
with continuous improvement and
customer satisfaction which used a
standardized 5-step approach.
(C) Arunima Thakur
Lean Thinking

3. Lean & Six Sigma: A powerful marriage
Speed + Precision + Accuracy
Waste Work σ Variation σ Statistical
Elimination Concentration reduction Process
Flow Pull σ Process Control
Bottleneck Continuous Control σ Design of
Removal Improvement σ Cause & Effect Experiments
Analysis
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4. Lean Six Sigma Project transactions
A suite of business solutions that have higher level of predictability; and
lowered waste; as the foundation of their project management methodology
It is a management system which:
– Pursues optimum streamlining
– Thoroughly eliminates waste
– Builds quality into the process; with lowered variation
– Recognizes the principle of cost reduction
– Embraces time-based and mass customization competition
…….throughout the entire project lifecycle.
Bottom line: Lean Six Sigma Projects are streamlined with higher predictability and lower variations
Bottom line: Lean Six Sigma Projects are streamlined with higher predictability and lower variations
(C) Arunima Thakur

5. What Lean Six sigma Projects are Not
Lean six sigma projects are not:
n A “bolt-on” technique…but more a way of life
n A cure all…but rather a better system
n A “Final Destination”…but more of a journey
n A new project management “software”/“program”…but a new way of thinking
n A new marketing concept…but rather the outcome of 50 years of effort by
several generations of practitioners
n A manufacturing only solution…but rather a total business solution
n Easy to implement…but requires hard work, creative thinking and persistence.,
Lean Six Sigma Project Management isisaaprocess of identifying what adds value to the project from
Lean Six Sigma Project Management process of identifying what adds value to the project from
end state perspective and then eliminating non-value-added steps, as well as variability.
end state perspective and then eliminating non-value-added steps, as well as variability.
(C) Arunima Thakur

6. Comparing & Contrasting Lean Six Sigma versus
Traditional Project Management Approaches
What’s Similar
What’s Similar What’s Different
What’s Different
n Rigor and Discipline n Centralized decision making using PMO-and
Office concept versus empowerment and in-
n Success depends on executive process project team controls
endorsement, and sponsors from
leadership n Rigidity versus Iteration based quality checks
n Follows timelines, and has set budget n Linear lifecycle requiring completion of
and resources previous stage – planning, analyzing, and
designing Versus data and feedback based
n common sense, communication and measured success at each step, that is very
work flow based iterative
n Planning, time-tabling, quantity and n Project approval for start only after a
price estimation, resource allocation preliminary lean six sigma measurement
and scheduling are very important analysis shows significant financial gains and
functions in both approaches “desired end state” cost benefits
n Focus on realizing benefits not going-live
n Pull rather than push approach
(C) Arunima Thakur

7. Process Map to Traditional Project
Management
Traditional Project Management
DEVELOPING
IDENTIFYING
QUANTIFYING
DETERMINING
•Developing - this means putting the plan together, knowing all the
details about what the project is and will be
•Identifying - this is where you identify the tasks and goals involved and
how they will be achieved
•Quantifying - learning how much of which resource will be needed
•Determining - this is when you figure out the budget for the project and
the timelines involved.
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8. Process Map to Lean-Six Sigma
Management
Define Measure Analyze Improve Control
Develop Potential
Identify Waste
Solutions
Establish Identify Key Input, Over Producing Develop SOP’s,
Develop Evaluation
Investigate, evaluate, and measure Competitive Goals Process and Inventory Training Plan &
Criteria & Select
nine key areas of manufacturing. Establish Steering Output Metrics Waiting Process Control
Best Solutions
Committee Develop Operational Motion System
Develop ‘To-Be’
• Inventory Form Core Definitions Transportation Implement Process
Process Map(s) and
• The Team Approach Implement Team Develop Data Rejects & Rework Changes and
High-Level
• Processes Complete Team Collection Plan Processing Controls
Implementation
• Maintenance Charter Data Collection of Response Time Monitor & Stabilize
Plan
• Layout & Material Handling Gather Voice of Current processes Build Strategy Process
Break Implement
• Suppliers the Customer & • Information Flow Build To Order Transition Project to
Into Steps
• Setup Voice of the • Material Flow Assemble To Order Process Owner
Divide Value
• Quality Business • Process Cycle Finish To Order Continuously
Stream Map in
• Production Control & Scheduling Time Engineer To Order Improve
to segments
• Setup time Identify Issues Manage Value
Identify Projects
• Uptime Quantify the Stream
Map Current State Assign project
• Batch Size Opportunity Become Lean
owner & team
• Customers Prioritize Root Organization
• Value Added 5S Implementation
• Demand Rate Causes
Time / Score
• Processes
• Operators Extended Value
• Suppliers
• Inventory/Buffer Stream Map
• Storage
Lean Assessment Locations
• Product Flow
• Information Flow
Value Stream Mapping
Customers
Demand Rate
Processes
Value Stream Engineering
Suppliers
Storage Locations
Product Flow
Information Flow
Organizational Change Management
(C) Arunima Thakur

9. Seven wastes in Traditional Project
Management
n Waiting: Waiting for decisions from clients, and Centralized decision
making using PMO-and Office concept
n Transportation: Hand offs, sign offs Rigidity
n Over Production: Extra Features, Scope expansion
n Excess Inventory: Requirements
n Over Processing: Extra Processing steps
n Defects: Bugs, Wrong steps not caught due to late testing phase
n Excess Motion: Looking for data
Bottom line: Lean Six Sigma Project Management aims at reducing the seven wastes, building data
Bottom line: Lean Six Sigma Project Management aims at reducing the seven wastes, building data
collection and analysis in project steps, empowering team- members to test iteratively and reduce
collection and analysis in project steps, empowering team- members to test iteratively and reduce
defects; and pull rather than push
defects; and pull rather than push
(C) Arunima Thakur

10. Lean Six Sigma Processes must have
Accountable Metrics and Measures
The Lean Six Sigma Scorecard drives visibility and project
performance by
– Establishing program and project accountability for metric
accuracy and benefits realization
– Mapping metrics to business processes, benefits, and total cost of
ownership that are associated with projects
– Measuring benefits through a disciplined, structured approach and
consistent measurement framework
– Providing a continuous feedback loop – with management taking
corrective action to address issues or concerns as well as leverage areas of
success
– Improving program and project performance tracking
(C) Arunima Thakur

11. Creating a culture of Continuous Improvement
using Kaizen in Project Management
n Empower those who add value: Stop and correct the misstep rather than wait for testing phase
and waste time at end-of-phase testing
n Simplicity and Value-Stream Mapping driven: Measured effectiveness/ or Qualified Value of
each work step
n If there is an Over run of resources, then root cause is analyzed; Run an experiment to
investigate the cause; Check the data to validate the cause; Refine and standardize
n Each work segment is represented as a “Kanban Card” and provides visual control; sense of
achievement, and clear communication to rest of team
n Tracking and Feedback is emphasized at each step (which creates culture of first-time-right);
and used for building process control
n 5S methods sort, standardize, stabilize and control project
n By maximizing flow of information into the project, and Pulling from demand; the Project
Manager optimizes inventory and controls overproduction
n Partners from client, end customer, industry share burden of continuous improvement, and
collaborate at each step versus end of phase sign off/ project Gate reviews
(C) Arunima Thakur

12. In summary
Lean Six Sigma Projects aim at providing highest value to the customer
Focus on iterative process of Plan-Do-Check at each step; versus linear
flow
Empower the team to create value at each step
Measure effectiveness, and Data driven
Thank you ! Arunima Thakur
athakur@innoengg.com
Phone 248 275 5786/
(C) Arunima Thakur 248 879 0977