Lean Sigma Overview and its Significance to Project Management Harjit Singh, PMP

Agenda Introduction Tools Training and Certification Training Improvement Model Lean Sigma vs. PM Methodology Q&A 8/10/20152

Lean Six Sigma 8/10/20153 Six Sigma Business management strategy developed by Motorola in 1981 An approach to improve the process quality by identifying and removing the causes of defects and minimizing variation in the processes % defects free Bell shaped normal distribution (µ – LSL/USL = 6Ϭ) DMAIC/DMADV project methodologies based on PDSA or PDCA cycles Lean Eliminate waste

Lean Sigma Tools 8/10/ whys Process maps Cause & effect or fishbone or Ishikawa diagram Control charts Correlation Cost-benefits analysis Histograms Pareto charts Regression analysis Root cause analysis Run charts SIPOC chart

Certifications 8/10/20155 Green belt Black belt Yellow belt – (Both green belt and black belt certifications are offered by the Institute of Industrial Engineers ( and by the American Society for Quality ( ) ) – Green belt and black belt are most common certifications

Training 8/10/20156 How? Companies in-house training program Private providers IIE/ASQ Why? Team development and facilitation skills Running effective projects Utilizing PDSA structured improvement model Choosing appropriate quality tools Who? Individuals who manage teams or projects

Certification Process 8/10/ ails.aspx?grp=ICP ails.aspx?grp=ICP Individual company’s training department May require to complete an improvement project

Guidelines for a Successful Improvement Project 8/10/20158 Alignment with organization’s business plans or priorities Sponsorship Importance to organization’s leadership. For example: –Customers are experiencing problems with projects or services –There is a need to improve productivity or reduce costs while maintaining or improving quality –There is a need to increase sales by exceeding current customer expectations and capturing market share Unknown solution that requires learning and testing prior to implementation Feasibility of key measures of success Availability of baseline data Business impact (customer satisfaction, cost savings or revenue increases) Within scope

8/10/20159 The Model for Improvement Learning / Action Cycles DATA Hypothesis and ideas Small scale tests Wide-scale tests Implementation Improvement Supported by: Lean Sigma Methods and Tools

Three Fundamental Questions 8/10/ What are we trying to achieve? –Understand the problem. Know what you are trying to achieve. Have clear and desirable aims and objectives How will we know that a change is an improvement? –Measure processes and outcomes What changes can we make that will result in an improvement? –What challenges do we have? What can be learn as we go along and how?

PDSA 8/10/ ACT What changes are to be made Next cycles PLAN Objectives Questions/Predictions Plan to carry out the cycle (who, what, where, when?) Plan for data collection STUDY Complete the analysis of the data Compare data to predictions Summarize what was learned DO Carry out the plan Document problems and unexpected observations Begin analysis of the data

Lean Sigma with Project Mgmt 8/10/ Project Management deals with projects for which the solution is already known Green/black belt deals with projects for which solution is not known Powerful combination Lean PM

Technical Lean Sigma Tools and PM 8/10/ Initiate – Charter, 5 whys, cause & effect, pareto Plan – Value stream map, 5 whys, fishbone Execute – Workflow, control plans Manage & Control – Balance scorecard, control plans Close – Update strategy, prioritize next improvement plan

Social Lean Sigma Tools and PM 8/10/ Initiate – Brainstorming, cause & effect, case for change Plan – Brainstorming, interview/survey, team building Execute – Status meetings, organizational effects Manage & Control – Skip level meetings, balanced scorecard Close – Celebrate lessons learned, rewards/recognition

References 8/10/ HP Lean Sigma Quality Digest: Wikipedia:

Wrap Up 8/10/ Q & A