Lean Six Sigma and Project Management triangles and (virtuous) circles

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1 Lean Six Sigma and Project Management triangles and (virtuous) circles APM, Holiday Inn Stevenage, 9 th May 2011 Elisabeth Goodman and John Riddell hnp:// +44 (0)

2 Purpose: Introduc.on Broad Agenda and Approach To understand and s.mulate interest in how LSS and Project Management can make each other more effec.ve Agenda: What do you know already? (Introduc.on & interac.on) An overview of Lean Six Sigma and the triangle (Presenta.on) Lean Six Sigma as part of Project Management (Interac.on) Opportuni.es for Lean Six Sigma and Project Management the virtuous circle (Presenta.on and conclusions) 2

3 Ex Pharmaceu5cal: R&D (Elisabeth) Manufacturing (John) Consultants, trainers, facilitators Prac55oners of: Process Improvement: Lean Six Sigma (Green Belts) Knowledge management Change management Project management Introduc.on Who we are 3

4 Where are you on your con.nuous improvement journey? 1. Place dots on the brown paper chart to indicate your organisa.ons current understanding / experience of LSS Don t know much about it Something I / we have ac.vely explored One or two days instruc.on or experience It s part of how I / we work Name: Company: 2. Place post it notes with name & company to show your individual understanding / experience 4

5 Your knowledge and experience of In your tables: Lean Six Sigma tools? 1. Discuss and capture on post it notes the main tools encountered (1 3 only per person) for effec.ve implementa.on of either PM or LSS iden.fying whether in PM or LSS 2. Capture at a very high level a) What has been par.cularly useful & why/ how b) Any issues encountered in their use Worked well / how (tools) Tool: PM / LSS? Issue / why (tools) Be prepared to feedback on any common themes, good examples and key issues Facilitators will cluster what has been useful and issues as a record from the mee.ng 5

6 An introduc.on to Lean and Six Sigma 2 topics: 1. How LSS relates to the PM triangle Lean (Time / Cost) and Six Sigma (Quality) 2. DMAIC: the structured approach to LSS With examples of one or two tools per step 6

7 1. The triangle Quality Lean op5mises processes by elimina5ng wasted 5me and money Time Six Sigma op5mises quality of what is delivered to customers by reducing varia5on Cost LSS Principles: Customers define the quality of products & services Quality & speed of work are op.mised Flow & speed are determined by customer pull Those doing the work have the best knowledge to improve the way they do it Opera.onal Excellence is a con.nuous journey 7

8 2. DMAIC Define Defini.on of goals and approach to achieve them Measure Informa.on on current state (also helps to inform goals) Analyse Analysis of issues and their root causes Improve Control Iden.fica.on and evalua.on of solu.ons, recommenda.ons for review with management, change management plans Visual measures to ensure that an.cipated benefits (goals) are being realised; iden.fica.on of new goals RiverRhee Consul.ng

9 DMAIC a structured approach to process improvement projects Define SIPOC (and IPO) Knowledge Based Management and Show me the data PF/CE/CNX/SOP Improve Visual management 5S Workplace Organisa.on Work Cell Design / Standard Work Measure Physical Process Map Process Flow Chart / Process Observa.on / Gemba Time Value Map Waste Analysis Control Kanban SMED / Poke Yoke DoE Process Control Charts Run Charts (AAR) Cause and Effect Diagram 5 whys Analyse FMEA Pareto Chart Force Field Analysis 9

10 Defini.on of goals and how to achieve them VERY SATISFIED Define SIPOC (and IPO) Kano Knowledge Based Management and Show me the data CLIENT SATISFACTION NENTRAL DELIGHTERS PERFORMANCE BASIC NEEDS PF/CE/CNX/SOP DISSATISFIED ABSENT PRESENT PRESENCE Suppliers Inputs Process Outputs Customers Who are our suppliers? What do we need to carry out our process effectively and efficiently? What are the steps involved to produce what the customers want? What do our clients want in terms of products, services and quality? Who are are customers? 10

11 Informa.on on current state (also helps to inform goals) Measure Start Physical Process Map Process Flow Chart / Process Observa.on / Gemba Time Value Map Waste Analysis Added value activities Non-added value activities (and white space) Type of waste Defects Overproducti on Transport Waiting Inventory Motion Processing Creativity Potential Problem Quality that does not meet customer requirements Delivery is too fast or there is too much product / service for needs Unnecessary transport during production (go for cellular layout) Waiting between steps for things to happen (batching vs. 1-piece flow) Products or services (including work in process) piling up prior to use Unnecessary movement of individuals during production More work than is needed e.g. for review or to meet customer needs Staff creativity / potential not being used Jours ou End heures 11

12 Analysis of issues and their root causes Undesirable effect or issue Why? People Systems Materials Cause Cause Why? Undesirable effect Why? Cause Measures Methods Environment Why? Cause Why? PRIMARY CAUSE Analyse Cause and Effect Diagram 5 whys FMEA Pareto Chart Force Field Analysis Frequency 80% Individual issues 12 Cumula.ve frequency

13 Iden.fica.on and evalua.on of solu.ons, recommenda.ons, change management plans Improve Visual management 5S Workplace Organisa.on Work Cell Design / Standard Work Kanban SMED / Poke Yoke DoE S O R T S T O R E S H I N E & SAFETY S T A N D A R D I S E S U S T A I N Start Finish 13

14 Some examples of 5S in ac.on! BEFORE AFTER BEFORE AFTER BEFORE AFTER

15 More about Visual Management Informa.on Control Failsafe 15

16 Visual measures to ensure that an.cipated benefits are being realised Control Process Control Charts Run Charts (AAR) Hospital pa.ent temperature chart Sales per month Number of late trains per day Analy.cal test results by batch Number of people per APM Seminar QUALITY MEASURES Control limits established Control limits extended Special cause TIME Shiu New trend A"er Ac'on Review simple format Control region What were the original goals? What actually happened: What went well? What could have been improved (how)? What have we learnt? What can we share? With whom (and how)? 16

17 LSS as part of Project Management Work in tables. Explore one of two ques.ons: Q1. Can LSS enhance the delivery of projects and if so how? Q2. What is the role for project managers in introducing and embedding LSS tools Discuss for 15 minutes and be prepared to feedback Q1 or Q2 17

18 Virtuous Circles LSS PM 18

19 Our view of LSS / PM opportuni.es Define IPO to confirm objec.ves, star.ng point and approach Ensure sponsorship in place and stakeholders managed Concept Measure Analyse Data (process observa.on) and root cause analysis of current state clarifies and confirms issues and goals Determine business case, success criteria and benefits Defini.on Improve Poten.al solu.ons evaluated against root causes and goals Developing and tracking an implementa.on plan Project manager to lead and be accountable Implemen ta.on Control Visual management to monitor progress & Iden.fy opportuni.es for con.nuous improvement Handover, closeout and review to release resource and gain knowledge Handover and close out 19

20 Thank you for your par.cipa.on! Please leave us your details for slides & notes from today. Elisabeth Goodman, John Riddell hnp:// +44 (0)

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