Six Sigma Project Types: Implications for Project Managers

Six Sigma Project Types: Implications for Project Managers


Richard E. Biehl, CSSBB, CSQE Data-Oriented Quality Solutions

Copyright © 2005, DataData-Oriented Quality Solutions.


Problem Domain:

Six Sigma & IT Integration Six Sigma puts controls in place to assure that implemented process components are successful.

Six Sigma Drives Lifecycle-based Project Success

Manage Improvement Project Define

Existing Business Processes & Services

Measure

Analyze

Improve

Control

Six Sigma looks at factbased alternatives analysis. Other projects are sub-projects to Six Sigma initiatives… They implement the components of proposed new business process maps using specialized/localized competencies inherent in the traditional information technology lifecycle.

Improved Business Processes & Services

Manage Implementation Project Initiation

Requirements for specialized process map components

Copyright © 2005, Data-Oriented Quality Solutions.

Analysis

Bid & Contract

Design & Build

Accept & Implement

Completed specialized process map components

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PMI PMBOK®

Subproject. A smaller portion of the overall project created when a project is subdivided into more manageable components or pieces. Subprojects are usually represented in the work breakdown structure. A subproject can be referred to as a project, managed as a project, and acquired from a seller. A Guide to the Project Management Body of Knowledge PMBOK®, Third Edition, GLOSSARY (p.377)


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PMI PMBOK®

1.6.3 Subprojects. … Subprojects are often contracted to an external enterprise or to another functional unit in the performing organization. Examples include hSubprojects based on the project process, such as a single phase in the project life cycle hSubprojects according to human resource skill requirements, such as plumbers or electricians needed on a construction project hSubprojects involving specialized technology, such as automated testing of computer programs on a software development project. A Guide to the Project Management Body of Knowledge PMBOK®, Third Edition, INTRODUCTION (p.17) Copyright © 2005, Data-Oriented Quality Solutions.

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PMI Areas of Interest

Project Management Institute

Organizational Project Management Maturity Model (OPM3™)

Portfolio Program Project Subproject Phase


Project Management Institute

Project Management Body of Knowledge (PMBOK®)

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PMI PMBOK®

5. Project Scope Management

5.1 Scope Planning 5.2 Scope Definition 5.3 Create WBS

PMI PMBOK Project Planning 6.1 Activity Definition

12/20/2004 - v34

6. Project Time Management

6.2 Activity Sequencing 6.3 Activity Resource Estimating 6.4 Activity Duration Estimating 6.5 Schedule Development


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3 Perspectives on IT Projects

Automation Business process is embedded in IT systems and functions. The process is automated by the system.

Processing

Augmentation Business process depends on using certain IT systems or functions. The process is augmented by the system.

Processing System

Enablement Business process includes making IT systems or functions available. The process enables the customers.


Processing Capability

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Automation vs. Augmentation Valid Orders Order Entry Dashboard Customer Service Scorecard

Valid Orders

Take Orders

Take Orders N N S S S

Customer Requests Product Inventory (Future) Customer Profiles Prices & Promotions Shipping Schedules

Automation

N N S S S S S

Customer Requests Product Inventory (Future) Customer Profiles Prices & Promotions Shipping Schedules Order Entry System Customer Service Representative S Customer Service Policies

Augmentation

Augmentation is more encompassing of a full DFSS design than simple automation.


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Augmentation Impact Valid Orders Order Entry Dashboard Customer Service Scorecard

Take Orders

Systems require users who operate under policies.

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N N S S S S S

Customer Requests Product Inventory (Future) Customer Profiles Prices & Promotions Shipping Schedules Order Entry System Customer Service Representative S Customer Service Policies

New outputs mean additional customer requirements, and possibly new customers.

4 Every system gets a dashboard, and every user gets a scorecard, to measure policy compliance.

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SIPOC

New inputs mean additional process requirements, and possibly new suppliers.

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Enablement



Enablement Focus Enablement processes aren’t about producing software systems or components.

Requirements Technology Infrastructure Configuration Support



Software systems are produced, installed, and operated from within the process to provide the processing capability. Decisions to buy, build, or adapt are visible only within the process.

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Relationships Among Project Types Automation

Augmentation Valid Orders

Take Orders

Valid Orders Order Entry Dashboard Customer Service Scorecard

Enter Orders

Customer Requests Product Inventory (Future) Customer Profiles Prices & Promotions Shipping Schedules

Enablement Order Entry System

Customer Requests Product Inventory (Future) Customer Profiles Prices & Promotions Shipping Schedules Order Entry System Customer Service Representative Customer Service Policies

Software Lifecycle System Requirements Standards & Technology Configuration & Support


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Automation Example Data Warehousing Process

Processing

Supplier Legacy Systems

Data to be transformed and loaded into the warehouse

Analysts

Regular and ad hoc analysis report and query specifications

System Administrator Customer Management


Input

User and group authorizations and profiles Output Analysis of the data stored in the warehouse 12


vs. Enablement Example

Requirements Technology Infrastructure

Data Warehousing System Process


Configuration Support

Customer Legacy Systems Analysts System Administrator Management


Output Capability to send required data to be transformed and loaded into the warehouse Capability to specify regular and ad hoc analysis reports and queries Capability to define and manage user and group authorizations and profiles Capability to request and receive analysis of the data stored in the warehouse 13


3 Perspectives on DFSS Scorecards

Automation

Processing

Business process is embedded in IT systems and functions. The process is automated by the system.

Augmentation Business process depends on using certain IT systems or functions. The process is augmented by the system.



Process Scorecard

Processing System

Organization Scorecard Processing Capability

Design Scorecard 14


6σ Controls Design target is worst case for 6σ

Backorders

Desired target level is LTB

(Percentage of Orders) Customer Defective Backorder rate > 12% Process Defect Backorder rate > 9% Improvement Zone 9% < Backorder rate > 12%

LSL 0%

LCL 3%

TGT 6% σ = 1%


UCL 9%

Current 24%

USL 12% Goal: Reduce by 50%

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Automation Controls

Process inputs

External control inputs

Process outputs

Triggers

General Process X

Scorecard


External control outputs

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Process Map w/ Control Layer

Ctl-X Process inputs

External control inputs

Process outputs

X

Triggers

Internal control inputs


Dashboard

Internal control outputs

Metrics

Scorecard

External control outputs

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PMAP w/ Control Step

X

Metrics

Metrics

Metrics

A

B

C

Dashboard

Dashboard

Dashboard

Dashboard

Ctl-X Metrics

Traditional PMAPs (that don’t differentiate the Process and Control Layers) often add a “control” step as a new (usually last) process step.


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Automation PMAP Example Document issuance metrics Tickets Boarding passes Seat assignments Gate assignments Checked bags Claim checks

Curbside arrival metrics Flight confirmation Staged baggage Skycap tip

Arrive Curbside Itinerary Baggage Curbside arrival dashboard

Issue Documents

Security clearance metrics Security clearance Cleared carry-on baggage

Clear Security

Reservation Boarding pass Payment Gov’t identification Staged baggage Carry-on baggage Frequent flyer number Security clearance dashboard Document issuance dashboard

Lounge visit metrics Itinerary changes Boarding passes Seat assignments Boarding announcements

Visit Lounge Membership Boarding passes Seat assignments Payment Lounge visit dashboard

Flight boarding metrics Boarded passenger Stowed baggage Pillow & blanket Beverage & snack Headset Reading materials

Board Flight Boarding pass Gov’t identification Carry-on baggage Flight boarding dashboard

Metrics are outputs to the control layer, and dashboards are inputs from the control layer.


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Augmentation PMAP Example

Curbside arrival scorecard Curbside arrival dashboard

Document issuance scorecard Document issuance dashboard

Control Curbside Arrival Curbside arrival metrics Curbside arrival triggers

Control Document Issuance Document issuance metrics Document issuance triggers

Security clearance scorecard Security clearance dashboard

Control Security Clearance Security clearance metrics Security clearance triggers

Flight boarding scorecard Flight boarding dashboard

Lounge visit scorecard Lounge visit dashboard

Control Flight Boarding

Control Lounge Visit Lounge visit metrics Lounge visit triggers

Flight boarding metrics Flight boarding triggers

Metrics are inputs from the process layer, and dashboards are outputs back to the process layer.


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Augmentation Integration Example Curbside arrival metrics Flight confirmation Staged baggage Skycap tip

Arrive Curbside Itinerary Baggage Curbside arrival dashboard

Process Layer

Curbside arrival scorecard Curbside arrival dashboard

Control Curbside Arrival Curbside arrival metrics Curbside arrival triggers

Control Layer

A feedback control cycle is formed between the process and control layers.


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Six Sigma IT Project Perspectives Design for Six Sigma (DFSS Lifecycle)

Six Sigma Improvement (DMAIC Lifecycle)

Augmentation Radical process or system redesign in conjunction with business changes. (Improve Cpk)

Automation Process or system implementation in conjunction with business process improvement. (Improve Cp)

IT Project (Traditional IT Lifecycle)

Project tailoring guidelines assist project managers in selecting and documenting their organizational standard process selection and project process definition choices and rationale.


Enablement Augment or automate portions of business process steps as an Improve phase activity within a business DMAIC initiative.

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Automation-Enablement Template Establish project Project Startup

Project Execution

Define business scope

Project Administration

Estimate unit quality levels

Project Shutdown

DEFINE

Define project approach Define Project Charter Create initial plan

INITIATION

Conduct phase QA assessment

ANALYSIS BID & CONTRACT

IT SUBPROJECT Define high-level process flows

DESIGN & BUILD

Synchronize business & process models

ACCEPT & IMPLEMENT

Map customer reqts to supplier inputs Validate requirements models Finalize process controls Implement process controls Conduct phase QA assessment

Automation - Enablement Hybrid

CONTROL

Project shutdown

MEASURE

Define measurement plan Collect initial process-quality data Collect voice-of-the-customer data Collect on-going data (continuing)

1/24/2005 - v17

Update project charter & plan Conduct phase QA assessment Define final workflows Develop procedures Develop process details

Provide cutover training

Develop functional models

Convert process controls & data Implement procedures Collect on-going data (continuing) Consolidate control requirements Update project charter & plan Conduct phase QA assessment

IMPROVE

Anlayze process failures

ANALYZE

Analyze functional failures Consolidate functional analysis Validate analysis results Update project charter & plan Conduct phase QA assessment


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Thank you!

| Richard E. Biehl, CSSBB, CSQE Quality Advisor

| Data-Oriented Quality Solutions 2105 Whitfield Lane Orlando, FL 32835-5940 USA

| 407.296.6900 | [email protected] | www.doqs.com

This presentation is available at WWW.DOQS.COM under Solutions!


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