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

2. Lean is …
Six Sigma is …
A Set of Tools: Lean is like a toolbox full of tools and techniques. You select the right technique or method to improve what needs improving.
Lean Enterprise Institute
A Philosophy: A philosophy of production that emphasizes the 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.
Lean Thinking
A Philosophy focused on business process improvements to:
Increase profitability and competitiveness
Increase Customer Satisfaction
Reduce/Eliminate Defects (rework and mistakes), Waste

3. Lean & Six Sigma: A powerful marriage
Speed +
Precision + Accuracy
Waste Elimination
Flow
Bottleneck Removal
Work Concentration
Pull
Continuous Improvement
Variation reduction
Process Control
Cause & Effect Analysis
Statistical Process Control
Design of Experiments

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

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

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

7. Process Map to Traditional Project Management
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.
DEVELOPING
IDENTIFYING
QUANTIFYING
DETERMINING

8. Value Stream Engineering Organizational Change Management
Process Map to Lean-Six Sigma Management
Define
Measure
Improve
Control
Analyze
Investigate, evaluate, and measure
nine key areas of manufacturing.
Inventory
The Team Approach
Processes
Maintenance
Layout & Material Handling
Suppliers
Setup
Quality
Production Control & Scheduling
Establish
Competitive Goals
Establish Steering
Committee
Form Core
Implement Team
Complete Team
Charter
Gather Voice of
the Customer &
Voice of the
Business
Map Current State
Customers
Demand Rate
Processes
Suppliers
Storage
Locations
Product Flow
Information Flow
Storage Locations
Identify Key Input,
Process and
Output Metrics
Develop Operational
Definitions
Develop Data
Collection Plan
Data Collection of
Current processes
Information Flow
Material Flow
Process Cycle
Time
Setup time
Uptime
Batch Size
Value Added
Operators
Inventory/Buffer
Identify Waste
Over Producing
Inventory
Waiting
Motion
Transportation
Rejects & Rework
Processing
Response Time
Build Strategy
Build To Order
Assemble To Order
Finish To Order
Engineer To Order
Identify Issues
Quantify the
Opportunity
Prioritize Root
Causes
Develop Potential
Solutions
Develop Evaluation
Criteria & Select
Best Solutions
Develop ‘To-Be’
Process Map(s) and
High-Level
Implementation
Plan
Break Implement
Into Steps
Divide Value
Stream Map in
to segments
Identify Projects
Assign project
owner & team
5S Implementation
/ Score
Extended Value
Stream Map
Develop SOP’s,
Training Plan &
Process Control
System
Implement Process Changes and
Controls
Monitor & Stabilize
Process
Transition Project to
Process Owner
Continuously
Improve
Manage Value
Stream
Become Lean
Organization
Lean Assessment
Value Stream Mapping
Value Stream Engineering
Organizational Change Management

9. Seven wastes in Traditional Project Management
Waiting: Waiting for decisions from clients, and Centralized decision making using PMO-and Office concept
Transportation: Hand offs, sign offs Rigidity
Over Production: Extra Features, Scope expansion
Excess Inventory: Requirements
Over Processing: Extra Processing steps
Defects: Bugs, Wrong steps not caught due to late testing phase
Excess Motion: Looking for 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 defects; and pull rather than push

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

11. Creating a culture of Continuous Improvement using Kaizen in Project Management
Empower those who add value: Stop and correct the misstep rather than wait for testing phase and waste time at end-of-phase testing
Simplicity and Value-Stream Mapping driven: Measured effectiveness/ or Qualified Value of each work step
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
Each work segment is represented as a “Kanban Card” and provides visual control; sense of achievement, and clear communication to rest of team
Tracking and Feedback is emphasized at each step (which creates culture of first-time-right); and used for building process control
5S methods sort, standardize, stabilize and control project
By maximizing flow of information into the project, and Pulling from demand; the Project Manager optimizes inventory and controls overproduction
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

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 !