Presented to: By: Date: Federal Aviation Administration Lean Six Sigma in Federal Government LSS Success – Right Projects + Right People Managing Both FEB Symposium Jack Schrock, Lean/Six Sigma Program Manager FAA Logistics Center, MMAC April 7, 2009

Lean Six Sigma in Federal Government 2 Federal Aviation Administration April 7, 2009 Caution: Entering the World of Lean/Six Sigma Motorola Analog Cell Phones “Perfection” versus Market LSS cannot save a flawed strategy (StarTAC, 1996) Lean/Six Sigma is more than just DMAIC Continuous Improvement systems need to be integrated into the fabric of everyday business

Lean Six Sigma in Federal Government 3 Federal Aviation Administration April 7, 2009 What is Lean/Six Sigma - “Elevator Speech” World-class Business And Customer-driven Change Strategy Common Vision And Language Shared By All A Powerful Data-driven, Knowledge-based Methodology Empowering Teams Best Problem-solving Tools Utilizing And Developing The Best Talent Achieving Targeted Business Results

Lean Six Sigma in Federal Government 4 Federal Aviation Administration April 7, 2009 Five Pillars of Organizational Excellence Pillar I – Process management Pillar II – Project management Pillar III – Change management Pillar IV – Knowledge management Pillar V – Resource management “All five must be managed simultaneously. Top management’s job is to keep all of them moving ahead at the same time. To concentrate on one or two of them and let the others slide, is a surefire formula for failure.” * Introduction to the Five Pillars of Organizational Excellence, H. James Harrington

Lean Six Sigma in Federal Government 5 Federal Aviation Administration April 7, 2009 The Focus on Projects “… projects are the means by which Six Sigma converts knowledge into bottom-line results.” - Thomas Pyzdek, Quality Digest, Sept “ The business perspective is that a Six Sigma project is the agent of action that executes the business strategy and returns the results.” - Gygi, DeCarlo, Williams, “Six Sigma for Dummies”, pg. 288

Lean Six Sigma in Federal Government 6 Federal Aviation Administration April 7, 2009 Premise: Effective support of Lean/Six Sigma project activities and resources will Projects Governance Resources Methodology result in a successful Lean/Six Sigma program.

Lean Six Sigma in Federal Government 7 Federal Aviation Administration April 7, 2009 LSS Critical Elements (MMAC Perspective) #Section Critical LSS Program Elements Category Roles & Responsibilities People Human Capital Infrastructure People Selection Training Governance Process Project Selection Project Management Project Tracking Project Tollgates Project Reviews (With Management) Financial Accountability, Validation & Roll-Up LSS Program: Performance Measurement Rewards & Incentives Policy Career / Program Rotation Communications

Lean Six Sigma in Federal Government 8 Federal Aviation Administration April 7, 2009 LSS Managing Projects and People

Lean Six Sigma in Federal Government 9 Federal Aviation Administration April 7, 2009 Elements of Governance Governance Accountability Participation Predictability Transparency

Lean Six Sigma in Federal Government 10 Federal Aviation Administration April 7, 2009 Accountability Sponsor –Provides the "Burning Platform" and Vision "Champion" and Management Responsibilities –“ACTIVE” Involvement – Project Ownership –Guidance –Remove Roadblocks Empowerment of Champions / Teams –Trust –Encouragement –Allow to Fail without Repercussions Performance Measures –Team Guidance and Focus –Alignment to Business Plan –Focused on Results

Lean Six Sigma in Federal Government 11 Federal Aviation Administration April 7, 2009 Participation Steering Committee Meetings –Manage the System Project Teams –Skills Development –Expansion to Workforce Project Reviews –Project Progress –Solicit Guidance –Demonstrate Accountability

Lean Six Sigma in Federal Government 12 Federal Aviation Administration April 7, 2009 Predictability Policies –DMAIC / LEAN Data / Knowledge Based Problem Solving –Usage of Project Charter Scope Agreement Between Management and Employee Rewards System –Encourage Participation of Current and Potential Procedures –Toll Gate Reviews –Project Mining and Selection –Assignment of Personnel

Lean Six Sigma in Federal Government 13 Federal Aviation Administration April 7, 2009 Transparency Constant Communications –Communicate Expected Behavior Up / Down Across –Policies / Procedures Knowledge Sharing –Advertise Success –Shared Learnings –Leverage Ideas / Solutions Examples in Training

Lean Six Sigma in Federal Government 14 Federal Aviation Administration April 7, 2009 Summary: Projects and People - Managing Both Begin with the end in mind > Successful Projects Provide the resources commensurate with your size organization MANAGEMENT DRIVEN

Lean Six Sigma in Federal Government 15 Federal Aviation Administration April 7, 2009 LSS Critical Elements #Section Critical LSS Program Elements Category Roles & Responsibilities People Human Capital Infrastructure People Selection Training Governance Process Project Selection Project Management Project Tracking Project Tollgates Project Reviews (With Management) Financial Accountability, Validation & Roll-Up LSS Program: Performance Measurement Rewards & Incentives Policy Career / Program Rotation Communications Workshop Greg Logan - FAA - Workshop Mark Wagner - USPS -

Lean Six Sigma in Federal Government 16 Federal Aviation Administration April 7, 2009 Let’s Talk