1. Process Improvement: Which Methodology is Best for Your Project?
PMI Skyline Luncheon
Sharon Valencia, PMP

2. Agenda Definitions Business Improvement Methodologies
Methodology Comparison
Process Management
Process Mapping
Enabling Project Success

3. Process Input Suppliers Customer Output SIPOC What is a Process?
Any set of activities that when taken together, transform a series of inputs into an output, producing a result of value to a customer
Input
Suppliers
Customer
Output
Process
SIPOC

4. What is a Business Improvement Methodology?
A documented set of procedures, guidelines, and tools intended to develop better processes
Business improvement methodologies covered in this presentation:
Kaizen
Lean
Six Sigma
Lean Six Sigma
Design for Six Sigma (DFSS)

5. Kaizen
Defined: Philosophy of gradual, incremental, and orderly continuous improvement, creating more value and less waste; emphasis on process improvement and process control; Japanese word meaning “ongoing improvement”
Objective: Small improvements by optimizing existing systems
Requires:
Taking action on obvious problems and deviations to maintain process control
Establishing control through Standard Operating Procedures (SOPs)
1-10 days

6. Kaizen’s Deming/ Shewhart PDCA Cycle
Plan Do
Check
Act
Start with an idea for doing the job better; study the current situation; identify the problem and formulate a plan
Conduct experiments to investigate the idea; implement the plan on a small scale
Observe and evaluate results to determine if the idea produced the desired results
If desired results were achieved, implement the change into the SOP
* It is also acceptable to use the DMAIC framework for Kaizen events

7. Lean Defined: Focus on speed, efficiency, and elimination of waste
Objective: Maximizing process speed (cycle time) by reducing waste
Requires:
Elimination of waste (muda): Defects, overproduction, inventories, unnecessary processing, unnecessary movement of people, unnecessary transport of goods, waiting, designing goods and services that don’t meet customers’ needs
Value stream mapping: Map process and focus on elimination of non-value add activities
Ask what activities the customer is willing to pay for
Focus on process standardization

8. Lean’s 5s Approach Sort Sustain Straighten Scrub Systematize
Determine what is necessary to perform the job; Eliminate unnecessary items from the workplace
Arrange all essential items so that they are clearly marked and easily retrieved
Keep clutter out of the workplace; Scrub all machines and the work environment to maintain cleanliness
Make cleaning and organizing routine; promote an orderly work environment; perform work the same way every time (standardize)
Sustain the other steps and continually improve the process

9. Six Sigma
Defined: Data-driven methodology focusing on reducing defects and variability
6 σ = 3.4 defects per million (Motorola Shift)
σ = Sigma = Standard deviation
Objective: Reduce variability through continuous process improvement
Requires:
Processes must be in place
The processes must be predictable (in statistical control with normal distribution)
The processes must be improved by reducing variation (continuous improvement)
Data availability
Focus on understanding customer requirements

10. Six Sigma Distribution
Lower Control Limit/
Specification
Upper Control Limit/
Specification
Normal, Bell-Shaped Curve/
Distribution of Values
Defects
Defects

11. The Importance of Six Sigma
Traditional Quality (3 σ: 66,807 DPMO)
54,000 incorrect drug prescriptions per year
40,500 newborn babies dropped each year
Unsafe drinking water two hours each month
6 σ Quality (No Motorola Shift)
One incorrect drug prescription every 25 years
3 newborn babies dropped each century
Unsafe drinking water one second every 16 years
Source: Institute of Industrial Engineers

12. DMAIC Framework for Six Sigma
Define
Measure
Analyze
Improve
Control
Define the goals of the improvement activity; determine project’s business case; identify customer; map current & future state processes; determine scope
Measure the existing system or process; determine metrics; define project success factors
Analyze the system to eliminate gap between current system or process and the desired goal; determine and reduce obstacles to achievement
Improve and implement the system or process; determine necessary activities to achieve goals
Control the system or process, including risk, quality, cost, scope, change management; determine reporting needs

13. Lean Six Sigma Defined: Approach to eliminating waste and variation
Objective: Increase quality and reduce defects/variation while increasing process speed and efficiency
Requires: The combination of both Lean and Six Sigma methods and tools

14. DMAIC for Lean Six Sigma
Define
Measure
Analyze
Improve
Control
Integrate the methodologies and tools of both Lean and Six Sigma at each phase

15. Design For Six Sigma (DFSS)
Defined: DFSS uses tools, training, and measurements to enable the design and development of products, services, and processes that meet customer expectations at Six Sigma quality levels
Objective: Optimize the design and development processes to achieve Six Sigma quality levels from the beginning
Requires: A new product, service, or process to design and develop

16. DMADV Framework for DFSS
Define
Measure
Analyze
Design
Verify
Define the goals of the design act; determine critical to quality (CTQ) characteristics and their relative importance
Identify CTQs to be addressed; establish metrics for CTQs; determine how customer satisfaction will be measured
Link CTQs to features & determine importance; perform process benchmarking; develop, evaluate, and select designs
Detain selected design; simulate process; ensure design meets CTQs; develop implementation plan
Standardize; establish control metrics; develop transition plan

17. Methodology Analogy Lean Six Sigma Six Sigma Lean Design For Six Sigma
Kaizen

18. Methodology Comparison

19. Lean and Six Sigma
Lean cannot bring a process under statistical control
Six Sigma does not dramatically improve process speed or reduce invested resources
Combining Lean and Six Sigma maximizes advantages and reduces the disadvantages of each individual approach

20. Which Methodology is Best?
“Best” is depends by the needs and current state of your organization
“Best” may be a combination of methodologies
An organization ready for Six Sigma is also ready for Lean or other methodologies
The name of methodology used doesn’t matter; what matters is leadership, commitment, vision, strategy, and follow-through from supplier to customer

21. Business Process Management
The future of business processes lies not in one methodology, but in the integration of technologies and methodologies in order to facilitate execution of the process
Customers are demanding customizations and total solutions
Innovative business processes can lead to competitive advantage
Business processes will drive IT

22. Changing Competitive Environment
The only thing certain in business is change
Industry boundaries are evaporating
The entire value chain is involved in providing total solutions to customers:
Competition
Collaboration
Partners may also be competitors

23. Process Mapping
Regardless of the methodology, start with mapping the current processes
Identifies current state, opportunities for improvement, process time
Allows identification of all process steps in order to determine which steps are value added or bottlenecks
Knowing current state will assist in identifying improvement opportunities
As-is vs. future process time, number of steps, handoffs, etc.
Determine steps which add value

24. Benefits of Process Mapping
Gain understanding of the process and process objectives
Answers who (including suppliers and customers), what, when, where, how, and duration
Identifies the information or data used in the process, decisions, bottlenecks
Identify sources of waste
Improve supplier and customer relations
Provides a common language for talking about the process

25. Sample Process Map

26. Indications of Process Improvement Opportunities
Internal
Non-compliance to Industry Standards
Scrap
Rework
Short Cuts to Beat the System
Excess Inventory
Capacity Constraints
Low Efficiency/ Productivity/Yields
Employee Symptoms
Shared Responsibility
External
Benchmarking
Company vs. World Class Performers
Market Share Drop
Negative Publicity
Pricing Inflexibility
Warranty Costs

27. Enabling Project Success
Management buy in is required from the start
Align goals with the strategic direction of the organization
Combine project ownership and accountability
Manage change – do it early, do it often
Allocate appropriate staff and time
Train staff in applicable techniques
Eliminate process variation

28. Computer Sciences Corporation
Experience. Results.
Sharon Valencia, PMP
Principal
Computer Sciences Corporation