Six Sigma DMAIC Improvement Story Green Belt Project Objective: Reduce Construction Project Variances 2 Team: John Frank (Co-Team Ldr) Allison Macdonald (Co-Team Ldr) Matt Hammond Matt Beard Kenney Cooper (Polk County) Howard Tipton (Sponsor) CPS

Team used the 5-Step DMAIC problem solving process Lean Six Sigma Problem Solving Process 2 Define Select Problem Identify Project Charter Develop Project Timeline Establish Method to Monitor Team Progress Construct Process Flow Chart Develop Data Collection Plan Display Indicator Performance “Gap” Measure Stratify Problem (i.e. “Gap”) Identify Problem Statement Analyze Identify Potential Root Causes(s) Verify Root Cause(s) Improve Identify and Select Improvement(s) Identify Barriers and Aids Develop and Implement Improvement Plan Confirm Improvement Results Control Standardize Improvements within Operations Implement Process Control System (PCS) Document Lessons Learned Identify Future Plans Team used the 5-Step DMAIC problem solving process The team utilized the 5-Step DMAIC problem solving process.

Select Problem 3 The Green Belt Class brainstormed many possible projects and multi-voted them down to nine (9) for evaluation. The above project was selected with the initial emphasis on “Reducing Construction Project Variances”. Define Measure Analyze Improve Control

Project Alignment to Strategy 4 Define Measure Analyze Improve Control

Develop Project Charter 5 The team developed a team Project Charter Define Measure Analyze Improve Control

Develop Project Timeline 6 The team developed a timeline plan to complete the Project Define Measure Analyze Improve Control

Monitor Team Progress 7 Team identified an indicator; Flowchart, Spreadsheet; SIPOC, Cust Requirements matrix Paretos, Histograms Single Case Bore; Fishbone ; RC Verification Matrix Countermeasures Matrix; Barriers and Aids; Action Plan The Team and Management used a Checklist to monitor team progress. Line Graph Process Flowchart; Process Control Chart Lessons Learned Define Measure Analyze Improve Control

Review Process Flow Chart 8 The team constructed a Process flow chart describing the Process. The team next looked closer how to capture indicator data. Double-Click on MS Visio Object to develop process map Define Measure Analyze Improve Control

Cost of Poor Quality of Unwanted Project Variances 9 1. Direct Costs a. Actual Dollars above Planned Project Costs for 2012-2015 Projects that were over ………………………………………………………………. $1.8 M Note: This does not include all indirect additional costs of re-works (i.e., labor, equipment and materials added when the project work activity does not meet specifications causing re-inspections) 2. Management and Staff Costs a. Cost of project delays: consultant costs, project manager time, purchasing department time, department manager time, etc. (30 days late x $3,000/day x 14 Projects w/ Overruns)………………………….. $1.26 M The team identified costs related to Unwanted Project Variances. Total Hidden Costs were estimated between $1.8M and $3.06M over the 4-year period analyzed. Define Measure Analyze Improve Control

The team developed a spreadsheet to analyze the construction projects. Identify Data Collection Needs 10 The team developed a spreadsheet to analyze the construction projects. Construction Project Status Summary Define Measure Analyze Improve Control

Review Selected Indicator 11 GOOD Average = 7% The team collected Q1 indicator data and reviewed performance trends: The team next looked closer at the Gap. GAP Target = 0% Define Measure Analyze Improve Control

11 (42%) projects had variances of 5% or more Stratify the Problem 12 The team stratified the 26 projects many ways and found… 11 (42%) projects had variances of 5% or more The team looked closer at these 11 projects. Define Measure Analyze Improve Control

6 Projects Exceeded $30k variance totaling $1.7 million in overruns. Stratify the Problem 13 The team stratified the 11 projects > 5% variance many ways and found… 6 Projects Exceeded $30k variance totaling $1.7 million in overruns. Problem Statement: “6 Projects completed during FY 2012 to December 2015 had a Project Award variance over 5% and total Variance Dollars over $30,000.” Define Measure Analyze Improve Control

Identify Potential Root Causes 14 The team reviewed the 6 projects before conducting Single Case Bore Analysis. Single Case Bore Analysis A The team next looked closer at these 3 factors. C B Define Measure Analyze Improve Control

Identify Potential Root Causes 15 The team completed Cause and Effect Analysis and found… The team next looked to verify these 4 Potential Root Causes Define Measure Analyze Improve Control

Verify Root Causes 16 The team collected data to verify the root causes and found…. Root Cause Verification Matrix …all potential root causes were validated. Define Measure Analyze Improve Control

Identify and Select Countermeasures 17 The team brainstormed many countermeasures and narrowed them down to these for evaluation: Countermeasures Matrix Problem Statement Verified Root Causes Countermeasures Legend: 3=Moderately 5=Extremely 2=Somewhat 4=Very 1=Little or None Ratings Effectiveness Feasibility Overall Take Action? Yes/No “6 Projects completed during FY 2012 to December 2015 had a Project Award variance over 5% and total Variance dollars over $30,000.” A- Policy for vetting and approving optional /added project value improvements is inconsistently applied among depts A1/D1- Create Standard Process for "Vetting" proposed field changes during construction 4 16 Y B- Current field data acquisition procedures are not adequately designed to identify most all conditions B1- Establish "Best Practice" field data acquisition procedures and decision support tools C- Poor standards to identify & involve all appropriate stakeholders C1- 3D Construction Plan Version for better understanding to residents and stakeholders 3 2 6 N C2- Create Online Plans of project and make available to residents for comments 12 C3- Develop Procedure and Decision Support tool(s) to Identify and then follow-up with project affected stakeholders D- No consistent policy for allowing changes after design review finalized See above A1 Score 3 countermeasures were identified for implementation. Define Measure Analyze Improve Control

Identify Barriers and Aids 18 The team performed Barriers and Aids analysis on the selected Countermeasures. The team next incorporated this analysis into the team’s Action Plan. Define Measure Analyze Improve Control

Develop and Implement Action Plan 19 The team implemented an Action Plan for the team’s Countermeasures. Define Measure Analyze Improve Control

Countermeasure A1/D1- Create Process for ‘Vetting’ Project Changes 20 The team created a Project Variance Review and Approval Form. Define Measure Analyze Improve Control

Countermeasure B1-C3 Identify Data Acquisition/ Stakeholders 21 The team developed a Pre-Design Worksheet intended to assist staff to identify all potential stakeholders and factors that may affect the project design and construction. Define Measure Analyze Improve Control

Review Results 22 The team collected indicator data and reviewed results of it’s countermeasures GOOD Counter measures to be implemented Spring 2016 Next chapter in the story Define Measure Analyze Improve Control

Standardize Countermeasures 23 The team: Revised indicators and incorporated the improvements into the Process flowchart. Looked to standardize the Indicator monitoring Define Measure Analyze Improve Control

Standardize Countermeasures 24 The team Developed a Process Control System (PCS) to monitor the process on-going. Define Measure Analyze Improve Control

Lessons Learned 25 Project performance data at SLC is inconsistent and scattered. Project management procedures are inconsistent across departments. Paretos and Histograms were effective tools to stratify the project information and lead the team to the project variance root causes. Project data needed to be reviewed to ensure accuracy of the information before analysis. Root causes of all problems are either “Current standards that failed” or “People failed the current standards”. Define Measure Analyze Improve Control

Thank You! Next Steps Implement countermeasures 26 Implement countermeasures Monitor the performance results. Thank You! Define Measure Analyze Improve Control