QFH Consulting, LLC Q F H Business Development & Capture Management Lean Six Sigma Program Deployment & Management IT Program Management & Program Performance Q F H Instructor Notes

What We Bring to Organization Leadership and Performance at a Senior Level Executive Levels of Business Development Program Management & Quality Assurance CEG - Capture Excellence Group OPG - Organizational Process Group Continuous Process Improvement Program Management Business Development Program Performance Management Compliance to KPIs Coordinate Program & performance Reviews “Yellow-Red” Recovery EVM Support Lean Six Sigma Program Certifications/Assessments/ Core Process Deployment Lean Six Sigma Training LSS for Leadership Green Belt and Black Belt Operational Excellence Group and IPTs Chair – OPG (CMMI, ITIL) Capture Management Training Capture Excellence Subcontractor Management Chair - CEG

We Offer Enterprise Training Lean Six Sigma (LSS) Lean Six Sigma (LSS) deployment Mission Success Vision Customer Relations and Intimacy Mid-Course Reviews Program Failure Modes TKOs for BD or PM LSS Training - LLT - GB - BB LSS Deployment LSS for Customers Workbench and Toolkit USS Nimitz / International Root Cause Analysis Business Development Capture Elements Capture Manager levels Capture Management BOK Core BD processes Competitive Intelligence Customer Value Proposition BD Training Lean Collaboration Environments Requirements Definition DFSS - QFD and TKO

Enterprise Wide Lean Six Sigma Deployment

Lean Six Sigma Accomplishments AWE - UK Ceramic Lab Labor & Materials processing $ 3.5M Reading Proposal for MOD $ 15M value NAVAIR AirSpeed USS Nimitz Onboard Kaizens Unknown   Oil Change Kaizen $ 18M/yr Oceana NAS Supply Chain Mgmt $ 0.8M/yr NSIPS, New Orleans S/W Refresh S/W Refresh process $ 11M / yr DHS, USCIS USCIS, I-94 VSM Baseline for metrics N/A I-94 QA Process 50% reduction in errors NASA ODIN LaRC Seat Mgmt/Refresh 80% reduction in turn-around 45% reduction in resolution time established 18 month "Pilot" cycle Huntsville 50% reduction in problem resolution 1st of rollout to 10 sites, similar results DTRA Service Desk Mgmt ITIL management VSM Established 200+ metric points ITSM Tier Kaizen 65% reduction in response time 55% reduction in resolution time LM IS&GS Prop Ops (POPS) Human Resource Utilization $ 3M / yr savings TKO in Reqs Analysis est. 30% win rate increase Energy - utilities REC, NOVA, SMEC Customer response time 65% increase in satisfaction PolyOne Industrial QA Kaizen - sampling 45% decrease in product returns

Highlights as a LSS Practitioner $20M savings for US Navy over 2 years w/ two SIAs NSIPS) Lean Six Sigma adopted by USAF – AFSO21 (Lead) $18M savings for a $7 fix – NAVAIR AIRSpeed Personally requested by international customers (AWE-UK) Lean Six Sigma Program manager – Operating Excellence

Continuous Process Improvement Life Cycle Core PM Processes Lean Six Sigma Program Policies CMMI Process Areas QMS Build Current State VSM (PAL media) PAL (Process Asset Library) ISO Clauses ITIL Best Practices Customer Needs Project Needs Improvement Events & Projects Gap Analysis Review (OPG, IPT, Stakeholder) Adjust Command Media and Training Deploy Update PEP Plan with Deployment Schedule OPG=Organizational Process Group CMMI=Capability Maturity Model – Integrated ITIL=Information Technology Infrastructure Library ISO=International Standards Organization VSM=Value Stream Mapping

We Will Help Increase Your ROI (Return on Investment) Execution Orders/ Pricing OPERATING EXCELLENCE %Complete Revenue Deliveries Milestones - = Income Services Savings Labor COGS Material Overhead ÷ = ROIC Efficiencies Receivables Payables/ Advances Working Capital Are there opportunities in your area to improve upon the elements of this value tree? So what are some examples of these significant savings and how do they impact the performance of the corporation? This chart show the decomposition of a key financial measure called Return on Invested Capital (ROIC). ROIC is a measure of how effectively a company uses the money (borrowed or owned) invested in its operations. Calculated by: net income after taxes / (total assets less excess cash minus non-interest-bearing liabilities). As you decompose ROIC down to lower levels, you begin to see measures that improvement projects can impact. Listed here are a couple of recent improvement projects that where highlighted in a 2006 presentation by Chris Kubasik and Mike Joyce. (SIA summaries for each of these follow on the next several slides, but are not in the student handouts due to some company sensitive information.) Inventory + Facilities Fixed Assets = Investment Equipment + Systems Goodwill The arrow indicates the direction that the particular dollars, percentages, or days need to move to increase ROIC. Acquisitions LM21 Operating Excellence ELDP Training

We Can Leverage LSS for CMMI, ISO, or ITIL Lean Six Sigma quantitative metrics support Level 4 and data-driven continual improvement is Level 5 Level 3 requires objective evidence against an “organization” (approximately 12 months worth) to demonstrate a defined managed process. An entire organization must rate at least Level 3, while individual processes may be awarded Level 4 or 5 maturity status

Lean Six Sigma Addresses Numerous CMMI Requirements Operational Excellence Input-Process-Output Process Flow Diagram Quality Function Deployment Define CTQ’s Cause & Effect FMEA MSA Variation Process Capability Sigma & DPMO Levels Standard Operating Procedures SPC Process Metrics Process Modification Brain Storming DOE Customer Focus - Data Driven - Reduce Variation - Results Oriented Six Sigma Principles Control Process and Sustain Performance Value Stream As-is Process Waste Identification Flow Diagrams Pull System Analysis To-be Process Value Stream Analysis Time Value Mapping Cycle Time & Efficiency Kaizen Lean Processes Brain Stroming 6s Applications Visual Controls Mistake Proofing Standard Work Improve & Innovate Process to Meet Customer Needs Common Approach Analyze Process for Improvement Areas Measure Capability to Meet Customer Needs Define Process & Customer Value Value - Value Stream - Flow - Pull - Perfection Lean Principles

Support for Program Management

Our Typical Program Support Process Improvement Capture management Program Performance Mid-Course Review Business Growth Customer Relationship Management Program Manger Business Mgt Operations Engineering Black Belt Program Executive Business Mgt Operations Engineering Lean Six Sigma Program Director Improvement Leadership Team Blackbelts Small/Mid-size Program We expect the Program Manager to bring ownership & leadership to the drive for program excellence. We also need to look to our trained Lean experts, our Blackbelts, to bring the skills and experience needed to put together an effective Excellence Plan. As with most facets of our business, clearly defined responsibility is needed to getting things done, and that approach is fundamental for building and executing a PEP’s . For small to mid-sized programs, the PM needs to identify a BB from the program who will be assigned the task of developing a PEP: doing a VSM of the process, coordinating support, documenting the agreed upon improvement actions. To the PM’s: Identify and empower one of your program BB’s to lead this effort for you. Treat them as a direct report for this task. Personally participate in the plan development, and get your staff to do the same. Look to the BB to play a key role in overseeing the execution of the plan as well. For the BB’s: You have been trained! We expect you to function as a “change agent” in your organization. Step to the plate! If you don’t see a clear plan for Excellence on your program, go to the PM and volunteer to pull it together! For major programs or PEP’s covering an entire business area, the span of the program will likely need more than a single person to lead the effort. Form a Leadership Improvement Team made up of key managers & IPT leads for the program. Get the leaders of your functional support organization to participate. Use this team to work out the details of the plan, and then to oversee it’s execution. Major Program or Business Area A tailored solution for your business needs! LM21 Operating Excellence ELDP Training

Support for Program Management Processes 8 Core Processes of Program Management (CMMI Compliant) Project Planning Road Map, Excellence Plan, PM Plan Monitor & Control MS & EV tracking, Customer Satisfaction Performance Meas. SLA and Operational Performance Risk Mgt. Risk/Opportunity Assessment, TKO Action Plans Program Excellence Plan Program Roadmap Year One Plan Training PAL: Self Paced Modules Lean Six Sigma Capture Management BD & Capture Management Processes Program Reviews Qtrly, Independant, Performance Reviews DFSS: Risk Mgmt. The Core Processes are shown in Orange. These are the CMMI level 2 maturity key process areas that are essential to the success of any program of any size. They are also the processes required in corporate policy addressing program performance mgt. Each process area is built on the IPAL framework illustrated in the center of the slide. That is, each process is supported by role definitions, procedures, guidelines, standards, templates, checklist, and training material. As shown in the green box to the left, to deploy these processes each program will need to develop specific Action Plans including: The Roadmap Year One Plan Program Excellence Plan. The management oversight reviews used to ensure continued success are also illustrated on the left side of the slide—more on these later. Training in these core processes is available form several sources. Specifically, each process in the IPAL is accompanied by a self-paced PowerPoint overview. This overview can be tailored by the program to meet their specific circumstances. Skill building training in the discipline of Project management is covered in the LM PM series. LMIT plans to offer several sessions of the PM 101 and 201 courses and one instance of the PM301 course. Requirements Mgt. Stakeholder Needs traced to deliverables Configuration Mgt. Governance, CCB, Accounting & Reporting Quality Assurance Customer and Company Standards Subcontract Mgt IPT Oriented Value Stream Focused Ensure Consistent Outstanding Performance LM21 Op Excellence Leadership Training

Reducing Program Risk Through TKO (Technical Kick Off) Support of Risk Management Reducing Program Risk Through TKO (Technical Kick Off) PFMEA Boundary Diagram Structured Process DFMEA Parameter Diagram QFD

Identify key actions to reduce program/subcontract risk TKO/PKO Overview The TKO process is an accelerated, structured process for identifying risk early in the program/subcontract lifecycle Using a structured process, proven tools, in collaborative environment, TKO provide the ability to: Pull technical risk further forward in the Design process Surface potential failure modes for critical technical parameters Capture a quantifiable technical risk baseline Feeds the program’s risk management process Reinforces multi-functional acknowledgement, concurrence and accountability of technical risk Further integrates the team (SMT or IPT) increased understanding of mutual objectives Identify key actions to reduce program/subcontract risk

Assess Business Current and Future Needs and TKO/PKO Capability TKO/PKO Strategic Deployment Model Obtain Higher Maturity Deployment Knowledge Development & Training Identifying Facilitator Candidates Acquiring Tools and Training Leadership Support & Pilot Deployment Establish Champions and Organizational Coordination Initial Briefings, Resource Authorization Leadership & Organizational Planning Initiation Establishing Goals and Planning Deployment Initiate Metrics Collection and Review Rhythms Growth & Feedback Deployment Review and Capture of Results, Expanding Across Organization Organizational Adoption through Process & Culture Integration into Business Processes and upfront Planning Dynamic Augmentation & Sustainment Pilot and Develop New Applications Assess Business Current and Future Needs and TKO/PKO Capability

Timing and Types of the TKO KPP= Key Performance Parameter KC= Key Criteria MOE= Measure of Effectiveness MOP= Measure of Performance TPM= Technical Performance Measure

TKO Program Assessment Process Steps Creates ranked priority list of TKO events required for a program Priority is reviewed and agreed upon by program leadership Planned events are then included on program’s Program Excellence Plan (PEP) & Integrated Master Schedule (IMS) to assure program level tracking and accountability Compile List of All Planned Program Subcontracts Conduct Program Level Risk Evaluation Meeting Review Risk Evaluation Results with Key Program Leadership Establish TKO Execution Plan and Embed in PEP & IMS Step 1 Including: Supplier Subcontract Description Responsible SPM Participants Included: SPM Key IPT Leads Other SME as req’d Outputs: Updated PEP Updated IMS Approved TKO Plan Step 2 Step 3 Step 4

We Help You Avoid The Common Program Failure Modes

GAO – Why programs Fail Requirements Instability Contractor (Influence) Contractor Performance (Control) Funding Instability (Influence) *Requirements, budget and Acquisition processes are not connected organizationally. *Tenure and experience lacking Red and yellow program tracking - Systems & software - SCM - Program Transition / Start up *1996 -2005 congressional changes to procurement Requests is 20 - 30 % Pain point – root cause and Countermeasure required Not optimal – continuous Improvement required Watch item – LSI, Keep Sold programs, fixed priced development * Defense Acquisition Performance Assessment Report – 2006

Common Program Failure Modes Four Program Failure Modes in the IT Federal Sector SW Engineering Requirements Customer Requirements Subcontract Management Start-up/Transition Leverage of Lean Six Sigma methodologies along with Best Practices can reduce or eliminate these failures

In Summary … We Bring … Executive level advisory and support role Accomplished Capture Management Enterprise level Lean Six Sigma Deployment and Practice Integration of LSS and Business Development Program Management – EVM Risk Management – Requirements Analysis International experience (LSS and BD) Integration of Lean Six Sigma with Business Development and Program Management leads to sustained performance and business growth. – “This is What I Do” (qfh)

Q F H LM21 Op Excellence Leadership Training