1. 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

2. 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

3. 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

4. Enterprise Wide Lean Six Sigma Deployment

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. Support for
Program
Management

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. We Help You Avoid
The Common
Program Failure
Modes

20. 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
* congressional changes to procurement Requests is %
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

21. 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

22. 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)

23. Q F H
LM21 Op Excellence Leadership Training