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LSS – From Ideas to Execution

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

         Anand Subramaniam
“The human mind treats a new idea the
  same way the body treats a strange
         protein; it rejects it.”

                             - P. B. Medawar




                                           2
Overview
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
Initiatives Identified - Plan & Execute

                            Project Hopper
                                                   Plan &     Project
Capture          Screen     Prioritise   Select
                                                  Execute     Review




          Lean            Six Sigma       CAPEX        Department



                          Prioritised Ideas
                                                                        5
Integrate – LSS & Project Management
              Project Boundary

                   Plan
                   Measure



                 Monitor &
   Initiate       Control         Closure
                    Improve &
 Define              Control     Sustain

                    Analyse

                   Execute
 Start                                     End


                                                 6
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
Detailed
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
Idea Capture

 Consolidate like ideas

 Check if new ideas are duplicating existing
  or previous projects elsewhere in the
  organisation




                                            10
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
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
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
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
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
Project Selection

 Select projects based on overall ratings

   Business Benefit / Implementation Ease

   Constraints (Internal / External)
     • Cost : Time : Resourcing : Stakeholders


   Alignment (Risks / Opportunities)

                                                 16
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
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
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
Benefit Tracking




                   20
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
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
LSS – Project Execution
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
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
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
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
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
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
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
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
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
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
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
LSS – Quality Assurance
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
Stage / Tollgate Reviews



Tollgate
Review

           Tollgate
           Review

                      Tollgate
                      Review

                                 Tollgate   Tollgate
                                 Review     Review

                                                       37
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 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
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
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
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
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
Team Celebration

 Significant milestones successfully met
  and celebrated

 All planned celebration consistent with
  acceptable professional and ethical
  standards



                                            44
“Good ideas are not adopted automatically.
   They must be driven into practice with
          courageous patience.”


                              - Hyman Rickover


                                            45
Good Luck
http://www.linkedin.com/in/anandsubramaniam




                                              46

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LSS Idea Generation to Project Execution

  • 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. “The human mind treats a new idea the same way the body treats a strange protein; it rejects it.” - P. B. Medawar 2
  • 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. Initiatives Identified - Plan & Execute Project Hopper Plan & Project Capture Screen Prioritise Select Execute Review Lean Six Sigma CAPEX Department Prioritised Ideas 5
  • 6. Integrate – LSS & Project Management Project Boundary Plan Measure Monitor & Initiate Control Closure Improve & Define Control Sustain Analyse Execute Start End 6
  • 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
  • 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. Idea Capture  Consolidate like ideas  Check if new ideas are duplicating existing or previous projects elsewhere in the organisation 10
  • 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. 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. 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. 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. 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. Project Selection  Select projects based on overall ratings  Business Benefit / Implementation Ease  Constraints (Internal / External) • Cost : Time : Resourcing : Stakeholders  Alignment (Risks / Opportunities) 16
  • 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. 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. 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
  • 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. 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. LSS – Project Execution
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. LSS – Quality Assurance
  • 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. Stage / Tollgate Reviews Tollgate Review Tollgate Review Tollgate Review Tollgate Tollgate Review Review 37
  • 38. Quality Assurance Review Schedule Variance Scope 38
  • 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. 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. 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. 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. 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. Team Celebration  Significant milestones successfully met and celebrated  All planned celebration consistent with acceptable professional and ethical standards 44
  • 45. “Good ideas are not adopted automatically. They must be driven into practice with courageous patience.” - Hyman Rickover 45