Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Chapter 8

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Proposals –A project proposal should contain the scope, objectives desired results of the project.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Proposals –A project proposal creates a general understanding of what is needed.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Proposals –Outcomes of a Project Proposal Technical objectives established Basic areas of performance responsibility are assigned and accepted Tentative schedules and budgets are established Essential required tasks outlined Project manager selected

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Proposals –Be sure to involve the right people in the creation of a project proposal. –Project proposals go through many iterations.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Proposals –If accepted, the project proposal becomes the framework or outline of the eventual project plan.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans –The purpose of a good project plan is to facilitate later accomplishment! Having what you need when you need it. –Planning is tortuous, iterative and needed.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans –Projects have three interrelated objectives meet budget finish on schedule meet the specifications that satisfy the client –Only with a project plan can you hope to accomplish all three –with a minimum amount of hassle

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: -mission and the deliverables -scope and objectives -what will the final outcome be? -WHAT ARE THE DESIRED RESULTS ASSOCISTED WITH THE PROJECT?

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: -Goals and Objectives -What are the specific goals and objectives supporting mission? -It is crucial to tie any project’s objectives to the overall mission of the firm!

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: -General Information -who -what -where -when -why -how

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Specifics of who is required to do what -reporting requirements -customer-supplied resources -cancellation procedures -agreements -specifications -project review -delivery schedules

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: -Evaluation Measures -performance, effectiveness, cost -how will you keep the project on track? -Measures of Performance -Track these

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Resources -What is needed to support each aspect of the plan? –Budget »capital »expense –Cost monitoring and Cost control –Any special resources

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Personnel -Who is needed to support each aspect of the plan? -Special Skills? -Types of Training? -Legal Aspects? -Security Clearances? -Any other special people?

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Contingency plans for potential problems -What could go wrong? -How will you deal with it?

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Schedules -What time is needed to support each aspect of the plan? Projects need more care in scheduling because they are outside of the day-to-day operations. Projects are often more complex than daily activities.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Scheduling requirements: Formalizing the activities and events relationships Portraying the sequential relationship between tasks in a project –Clearly identify tasks that must precede or follow other tasks »Timing »Function

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Schedules provide: An illustration of the INTERDEPENDENCE of all Tasks The time when specific individuals and resources must be available for work on a given task.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Schedules provide: A vehicle for proper communication An expected completion date Information about critical activities that might affect project completion Information about activities that can be adjusted as time and budget needs arise Information on start dates for activities

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Plans include: –Schedules provide: Information about tasks that must be coordinated Information about tasks that can be done simultaneously Information about task dependencies Information about possible project completion dates.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling techniques for creating a timetable: –Gantt Chart –PERT Chart (Program Evaluation and Review Technique) Shows time and probabilities –CPM (Critical Path Method) Shows costs, time, probabilities

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling –Gantt Chart A record of the events and the progress that has taken place. What work has been done? Gantt chart forces a person to have a plan and to keep track of happenings Promotes the identification and assignment of clear-cut tasks Gantt chart enables users to visualize the passing of time, easy to read

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling –Gantt Charts continued. Must know: –When –Rate of accomplishment –Checks on progress A division of space represents both an amount of time and an amount of work to be done in that time Lines drawn horizontally through that space show the relation of the amount of work actually done in that time to the amount of work scheduled to be done.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling –PERT Improves on the Gantt chart by showing the relationships between tasks –project is viewed as an integrated whole –time value for each activity is known –perfect for complex projects PERT coordinates and synchronizes various parts of the overall job.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling: –CPM Builds on PERT Adds the concept of cost per unit time that a project runs allows for the determination of the longest series of inter-related events that must be completed in the project: the critical path The times associated with the activities must be well estimated and costs calculated. P

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling: –PERT and CPM Terminology Activity: Tasks required by the project which need resources and take time to complete Event: Completing an Activity Network: Combination of all Activities Predecessor: Activities which must be completed before another activity can begin Path: A series of connected Activities Critical: Activities, events or paths which, if delayed, will delay the project.

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Scheduling –To create a PERT or CPM network: Compile a list of activities Determine the relationships between the activities (predecessors, successors) Begin at the beginning

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Why can a project plan fail? –Not recognizing it is a project –No or limited project management skills –No clear specifications and targets –Lack of project team building and training –No full-time project manager of the appropriate status –No formal acceptance/approval procedure

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Why can a project plan fail? –No visible, regular mechanisms to measure and review the project –No regular monitoring of budgets, resource utilization versus plan –No budget agreed on with the project manager –No formally allocated, representative and full-time project team

Lean Six Sigma: Process Improvement Tools and Techniques Donna C. Summers © 2011 Pearson Higher Education, Upper Saddle River, NJ All Rights Reserved. Project Management Why can a project plan fail? –Poor coordination between supporting functions –Inter-function politics –Key shared resources –Failure to integrate subcontractors