dallas, texas overview of project management & lean six sigma qpi steering committee meeting...
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Dallas, Texas
Overview of Project Management & Lean Six Sigma
QPI Steering Committee Meeting
December 17, 2015
David Olszewski, DM
Sr. Director of Industrial Engineering – Children’s Health
Adjunct Faculty, Industrial Engineering – UT Arlington
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Project Management Defined
• A project is a temporary endeavor undertaken to deliver a unique product, service or result.
• Management is an administrative discipline designed to plan, execute and control targeted outcomes for an organization.
• Thus, Project Management is the application of best known administrative practices that result in the fulfillment of scope, schedule and budget with regard to a temporary endeavor.
• Project managers use many tools like: project charters, business requirement documents, change requests, project schedules, RACIs, communication plans, logs for issues, risks and decisions, etc.
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Initiation
Planning
Execution
Closing
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Initiation Phase
• Create Project Summary with Sponsor Why: Project goals and business drivers What: Scope and objectives, known deliverables, desired end date Who: Project participants, roles and responsibilities Verify sponsor’s role and escalation path
• Define Project Scope with Stakeholders System impacts Boundaries, constraints/dependencies, assumption and items out of scope Risks and mitigation plans Milestones and Accomplishments
• Templates Initiation phase checklist/ FAQs Project charter: Word/Excel using SMART goals
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Planning Phase
• Create Project Plan and Secure Team Commitment Engage team members
Conduct kick-off meeting
Verify communication methods
Plan tasks and due date
Assign tasks and secure commitments
Create budget estimates
Update charter, obtain sponsor approval on
charter and project plan
• Templates Planning phase checklist
Kick-off meeting agenda
Project plan: Word/Excel
Project plan – Advanced version with Gantt chart
Planning phase FAQs
who
what
where
when
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Execution Phase
• Reconfirm Plan and Collect Information Reconfirm the plan at predefined
milestones Collect information regularly
– Standard updates– Project variance
• Take Corrective Action Immediately Manage risks and issues Manage cost, schedule, and resource
variances Control change and scope creep Manage team dynamics
It keeps growing and it never ends
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Execution Phase cont.
• Keep People Informed Written reports Formal leadership update meetings Regular team meetings Obtain sponsor sign-off at the
completion of each milestone
• Templates Executive phase checklist Team meeting agenda Executive summary report Leadership meeting prep guide Project decision log Change request template
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Closing Phase
• Close the Project Obtain sponsor’s final approval Capture lessons learned Distribute lessons learned Celebrate project completion Communicate project success
• Templates Closing phase checklist Lessons learned log: Word/Excel Lessons learned survey Customer acceptance form
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What is Lean?
• “Lean” is the set of management practices based on the Toyota Production System (TPS) developed in the 1940s.
• The goals of Lean are pretty consistent across industries — to simultaneously improve: Safety, Quality, Delivery, Cost and Morale. Eliminate waste and non-value-added activity (NVA) through continuous
improvement
• The opposite of waste is value-added (VA) activities that the customer is willing to pay for, think of “value” in a patient care process to involve: Comforting the patient Examining them Diagnosing them Treating them Educating them Preventing future illness
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The 8 Types of Waste: DOWNTIME
• Waste (Muda): Activities that use resources, but add no value to the finished product or service
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Lean Tools
• There are a number of tools within the Lean toolkit you can use to help eliminate waste: Visual Controls Kaizen Events Daily Accountability Waste Walks (Gemba) 6S Cellular Flow Total Productive Maintenance
Leader Standard Work Value Stream Mapping FMEA Poke Yoke Kanban One-Piece Flow Production Heijunka/ Workload Leveling
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The term “Six Sigma” is based on a statistical concept: Defects can be minimized by maintaining 6 standard deviations between the process mean and its upper & lower specification limits.
What is Six Sigma?
Sigma Level DPMO % Conformance % Failure
2 308,357 69% 31%
3 66,807 93% 7%
4 6,210 99% 1%
5 233 99.98% 0.02%
6 3.4 99.9996% 0.0004%
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1986: Developed at Motorola by Bill Smith & Bob Galvin
1995: Jack Welch made it central to his business strategy at General Electric
Where did LEAN & Six Sigma Come From?
Developed in the 1940s at Toyota
Toyota Production System (TPS)
TPS known as Lean in the USA
2002: “Lean Six Sigma: Combining Six Sigma with Lean Speed” book written by Michael George
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What is Lean Six Sigma? (LSS)
Streamlining processes by eliminating waste
- Customer driven
- Process-centric
- Error/mistake-proofing
- Continuous monitoring & improvement in ALL areas!
Improving quality by minimizing variations and defects/errors
- Measuring defects per million opportunities (DPMO)
- Customer driven
- Process-centric
- Continuous monitoring & improvement in ALL areas!
Highly effective way to
improve processes!
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Why Do Healthcare Organizations Use LSS?
• Avoid unnecessary expenses
• Reduce overtime
• Achieve cost savings
• Shorten wait times
• Speed up patient care
• Improve accuracy
• See patients more quickly
• Reduce surgical patient wait time
• Lower appointment cancellations/no-shows
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The LSS Roles & Responsibilities
Role Responsibilities
Champion • Ensures project resources needed are available• Runs interference when the team encounters barriers, roadblocks• Facilitates collaboration across the organization
Sponsor • Supports the project’s day-to-day activities/responsibilities• Works closely with the BB &/or GB
Yellow Belt (YB) • DMAIC project core team member• May be responsible for running smaller projects
Green Belt (GB) • Leads or initiates DMAIC projects, or assists a BB or in a BB project• DMAIC resource for her/his organization
Black Belt (BB) • Leads Six Sigma projects (beyond DMAIC) / Leverages GBs & YBs• Facilitates understanding/application of tools, techniques, strategies
Master Black Belt (MBB)
• Leads strategic initiatives that increase quality maturity• Leads &/or supports highly-complex process improvement projects• Primarily coaches BBs / renowned for their situational handling & leadership
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Purpose Key Questions
The DMAIC Roadmap
Define the problem(aka Develop the project charter)
Baseline the current process performance
Identify the root causes to be addressed
Validate solutions to improve process performance
Implement controls to maintain the gains
C
on
tro
l
Imp
rov
e
An
aly
ze
Me
as
ure
De
fin
e
- Who is our customer?
- What are we trying to improve and by how much?
- What is the scope of the project?
- What is the current cost of not meeting performance targets?
- What is the estimated financial impact after solution implementation?
- What is the data collection plan?- Is our measurement system adequate (Can we trust the data?)- What is the current process flow and performance?- When does the problem occur?- Where does the problem occur?- Which roles are involved when the problem occurs?
- How many cause categories contribute towards the identified effect?- How do the causes affect process output? What’s the extent of their reach or influence?- Which root causes will we address? In which order?
- What are the expected value-adds & benefits?- What actions are in place to mitigate identified risks?- Were the implemented solutions successful in addressing the root causes?- What is the new process performance?
- Did we accomplish our goal(s)?- What were the final results? Where did our results meet, exceed or fall short?- Are Control Plans in place to assure the improved process is sustainable? Who is responsible?- Where else can the learning from this DMAIC project be applied?
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Key Tools Deliverables
Project CharterSIPOCStakeholder MatrixRASCI / Project PlanCommunication Plan
Project Charter ~~~~~~~~~~~~~~~~
~~~~~~~~~
Fishbone Diagram (5-Whys)Affinity Diagram Cause & Effect MatrixHypothesis Development & TestProcess / Graphical AnalysisFuture Reality Process MapRASCI / Project Plan
Benefit & Effort MatrixWeighted Criteria MatrixImprovement / Action Plan(s)Risk Assessment (FMEA)Pilot PlanFuture Reality Process MapProcess / Graphical AnalysisRASCI / Project Plan
Process / Graphical AnalysisMetrics Dashboard IntegrationControl PlansRASCI / Transition PlanFinal Project Documentation
• Approved Project Charter
• High Level Process Map
• Stakeholder Analysis
• Storyboard
• Data Collection Plan
• Detailed Process Map
• Measurement Systems Analysis
• Current Process Performance
Analysis
• Revised Storyboard
• Cause & Effect Analysis
• Validated, Selected & Prioritized Root
Causes
• Proposed Action / Improvement Plan
• Revised Storyboard
• Decision-Making Process Results
• Pilot Results vs. Complete Roll-Out
• New-Reality Process Map (‘To Be’)
• Risk Assessment Results on
Improved Process
• Proposed Control Plan
• Revised Storyboard
• Improved Process Performance
Analysis Results
• Metrics Integration Results
• Implementation Results
• Control Plans
• ID Next Improvement Opportunity
FMEA~~~~~
Variation in Distance
Operator
Pull back
Pin setting
rubberband elasticit
ball material
Release Technique
Tape
Vision
Draf ts
Men
Machines
Materials
Methods
Measurements
Environment
Cause-and-Effect Diagram
Data Collection PlanMeasurement System Analysis (Gage R&R)Detailed Process Map / Value Stream MapGraphical Analysis (Pareto)RASCI / Project Plan
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DMAIC Roadmap: Define Phase
Purpose Key Questions Key Tools Deliverables
Define the problem(aka Develop the project charter)
- Who is our customer?
- What are we trying to improve and by how much?
- What is the scope of the project?
- What is the current cost of not meeting performance targets?
- What is the estimated financial impact after solution implementation?
• Approved Project
Charter
• High Level
Process Map
(SIPOC)
• VOC Feedback
- Project Charter- SIPOC- VOC
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DMAIC Phase
Planned Tollgate Dates
Actual Tollgate Dates
Status
Define In Progress
Measure Planned
Analyze Planned
Improve Planned
Control Planned
Strategic Initiative (should tie to dept./area goal)
Benefit Type(Reduce cycle time, reduce costs, increase capacity or productivity, risk mitigation, etc.)
Problem Statement:The problem statement is a clear and concise statement that describes the symptoms of the problem to be addressed. It does not suggest solutions. The problem statement should include: •WHAT is wrong (e.g., solution doesn’t meet customer needs; defects reported)?•HOW do you know it’s a problem (e.g., SLAs/specs confirm non-compliance)?•DURATION: for how long has it been a problem?•WHY it is a problem (e.g., release [code] can’t be deployed as scheduled)?
Business Case:What are the compelling business reasons for embarking on this project or work effort? How does it link to key business/organizational goals and objectives? What will be the benefits to the business/organization in resolving this problem? What will be the negative impacts of not resolving the problem? (If financial positive &/or negative impacts are known – past &/or projected, please include here.)
Scope:In-scope and out-of-scope items must be stated concisely and explicitly (e.g., what is in & out of scope? Or if process-centric, where does the process start and end? Focus should be on what is needed to reach a solution to the problem.
Risks, Constraints, Assumptions: Risks: An evaluation of the risk(s) and its associated impact(s).Constraints: A limitation, either internal or external to the project/work effort, that will affect the performance of the project or work effort.Assumptions: Factors that, for planning purposes, are considered to be true, real, or certain without proof or demonstration (e.g., you will be fully supported by your Champion and Sponsor on this project/work effort until you reach your goal).
Goal Statement:What is the goal when the problem is resolved? Think of how will the project/work effort key stakeholders and impacted organizations will measure success for this project or work effort.
Name Role
X Champion
X Sponsor
X Yellow Belt (YB)
X Green Belt (GB)
X Black Belt (BB)
X SMEs – other roles (add as needed)
DMAIC Roadmap: Define Phase Project Charter
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Resources Required by the Process
SIPOCSuppliers Inputs Process Output Customers
Top Level Description of Activities Deliverables from the Process
Anyone who Receives a Deliverable from the Process
Foster Care Assessment Center
- Health passport- Public health records- Assessment requirements- Engagement values/ expectations- Bio-family information- Legal documentation- Relevant case history
- Determine past history- Identify current health status- Determine immediate/ long-term needs (child, caregiver, bio-parents)- Provide emotional support- Develop recovery plan
- Caregiver training- Comprehensive assessment- Recommended placement- Housing services- Medical intervention/ referrals
- Physicians- Kids/ Families- Caregivers- Case Workers- Kinship- Staff Agencies- Attorneys- Courts/ Judges- Schools
- CPS- Kids/ Families- CASA- CPA- Schools- Law Enforcement
Providers of the Required Resources
DMAIC Roadmap: Define Phase SIPOC Diagram
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DMAIC Phase BA: Mark
Rad
ermach
er
SA: Mary
Bet
h W
agner
Dev: Eug
ene
Walt
er
QA: Jea
n Ker
ssen
Proce
ss O
wner:
Lou
Citare
lla (S
SS)
SSS: Pra
shant
Sinha
App O
wner: B
ruce
Tep
fer
Spons
or: T
racy
Lew
chuk
PI: Rob
ert Sm
ith (B
B) & V
ivian
Lee
(MBB)
Next Steps / Notes
Target Dateor
CompleteDate Status
Define PhaseID IT release defects (warranty/post-warranty/quality breaks) R A Tickets triggered through warranty period 4/19/12 CompleteSegmentation of defects with same/similar defects/issues R A S 5 Dev tickets / 2 SSS tickets (1 SSS = major impact) 4/23/12 CompleteFinalize defect list / secure needed sign-offs R A S 5/1/12 CompleteComplete Project Charter R A A A 5/5/12 CompleteComplete SIPOC R A A A 5/5/12 CompleteComplete RASCI-High level project plan R A A A 5/8/12 Complete
Measure PhaseComplete Data Collection Plan / Gage Reproducibility & Repeatability S R All sources of truth were validated as credible. Data inputers: >95% accurate 5/12/12 CompleteComplete current process map(s) for processes affected by defects/issues S RAssign each defect to the appropriate RCA Researcher/Author (as needed) R R R R S/C S/C S/C A S ID & assign those needed to complete all facts per ticket &/or validate HPSM inputs (after the fact) 5/13/12 CompleteSecure research findings from each RCA Author (per due date) R A S Set-up needed interviews/meetings to complete write-ups to facilitate completion by Mon., 5/14 5/14/12 CompleteCompile research findings for each defect (per due date) R A S Send final RCA Results (Excel) template to CI's BB 5/15/12 CompleteRequest data/info to estimate cost per defect average (E.g., PV, HPSM) S S R R BB & Tracy to plan approach to quantification 6/8/12 CompleteEstablish date/time for RCA Prep session(s) S S R 5/9: Lou provided BB with trainees list; 3 session options to trainees. 5/10/12 CompleteHold RCA Prep session(s) to engage SMEs S S S R Session invites sent 5/10 5/16/12 CompleteSchedule RCA Workout session(s) with SMEs/Key Stakeholders S S S R Dates re-announced to 5/31 & 6/7/12 5/15/12 Complete
Analyze PhaseCapture/validate RC per defect via Fisbone/RCA/5-Whys C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 1st Session: 5/31/12 / 2nd Session: 6/11/12 6/11/12 CompleteCapture impacts to/from people, processes & technology C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/11/12 CompleteCapture RCA participants feedback on RCA C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/11/12 CompletePrioritize RCs via Cause & Effect Matrix C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/11/12 CompleteSummarize RCA Results, including Improvement Plan/QIP proposal C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/20/12 Complete
Improve PhaseCapture improvements/solutions to each RC C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/23/12 CompleteCapture metrics/control plans needed to track each RC C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/24/12 CompleteComplete FMEA on high-risk implementations C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A C/S/A R 6/25/12 CompletePresent RCA Summary (including 30-60-90+ Day Improvement Plan) A A A A R 6/26/12 CompleteSecure sign-off on approved improvements for implementation S S R R C/S 6/27/12 CompleteConfirm all Owners have started the implementation of their Improvement Plan items (all plans have been finalized with target dates)
R R R R R R R R C/S7/2/12 Complete
Control PhaseComplete Control Plan C/S C/S C/S C/S A A A A R This is the 6th component of the RCA Summary deck to leaders (out of 7 components/sections) 7/10/12 CompleteConfirm metrics & control plans implementation R R R R R R R R C/S 7/30/12 CompleteFinal review of all project results (including lessons learned) S S S S A A A A R 8/15/12 CompleteImplement changes needed to improve future RCA exercises S S S S R S/A S/A S/A C/S 8/30/12 Complete
DMAIC Roadmap: Define Phase RASCI Matrix
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DMAIC Roadmap: Measure Phase
Purpose Key Questions Key Tools Deliverables
Baseline current process performance
- What is the data collection plan?- Is our measurement system adequate (Can we trust the data?)- What is the current process flow and performance?- When does the problem occur?- Where does the problem occur?- Which roles are involved when the problem occurs?
• Data Collection Plan
• Process Map
• Spaghetti Diagram
• Current Process
Performance Analysis
- Data Collection Plan
- Process Map
- Spaghetti Diagram
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Wrong Supplier
Excess Count Too Few Count
Wrong Size Wrong Sterile Instrument
Set
Missing Item Damaged Item
Other0
10
20
30
40
50
60
70
80
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
37%
62%
81%86%
91%96%
99% 100%
DMAIC Roadmap: Measure Phase Pareto Analysis
Surgical Setup Errors by Type
80/20 rule: 80% of problems are caused by 20% of causes
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DMAIC Roadmap: Analyze Phase
Purpose Key Questions Key Tools Deliverables
Identify the root causes to be addressed
- How many cause categories contribute towards the identified effect?- How do the causes affect process output? What’s the extent of their reach or influence?- Which root causes will we address? In which order?
• Cause & Effect Analysis
• Validated, Selected &
Prioritized Root Causes
• Proposed Action /
Improvement Plan
- Fishbone Diagram (5-
Whys)
- Cause & Effect Matrix
- Pareto Chart
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Root Cause Analysis for Sample ProblemRevised: <date> Team: <name> Document Author: <name>
Why are sales low?
Objectives1. Increase sales2. Reduce the time it takes to make a sale3. Be "easier to do business with"
Web site is outdated
No one in-house knows how to edit
web pages
Our webmaster is now part-time
consultant
Our phone system is difficult for
customers to use
Voice explanations are too long
Too many menu options
People are not empowered to do
what customer needs
Sales training recently cut
Competitors are cutting their costs
Competitors are implementing Lean
teachings
Sales people aren't motivated
Commissions recently cut
Competitors recently cut their
prices
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Cause
Our org structure is too fractured
CommentsComments can be printed or internal - by simply re-setting the Print Area.Or add another Comments textbox, and have both printed and internal comments!
Man Machine
Materials Methods
The Fishbone (aka Ishikawa Diagram)
DMAIC Roadmap: Analyze Phase Fishbone Diagram
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• The 5-Why analysis method is used to move past symptoms and understand the root cause.
• It is said that only by asking "Why?" five times, successively, can you delve into a problem deeply enough to understand the ultimate root cause.
• This methodology can be used to complement the analysis necessary to complete a fishbone diagram.
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DMAIC Roadmap: Analyze Phase 5 Why Technique
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• The Affinity Diagram tool is used to consolidate a large amount of information into groupings or clusters of ideas that have a natural 'affinity', i.e., that have a common thread running through them.
• The affinitizing process is best performed by bringing all the team members or stakeholders involved into a room and allowing them to post sticky notes with single ideas on a board or flipchart.
• Next, everyone gets together and silently move the notes around into related groups. Not being allowed to talk discourages arguments and justifications.
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DMAIC Roadmap: Analyze Phase Affinity Diagram
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DMAIC Roadmap: Improve Phase
Purpose Key Questions Key Tools Deliverables
Validate solutions to improve process performance
- What are the expected value-adds & benefits?- What actions are in place to mitigate identified risks?- Were the implemented solutions successful in addressing the root causes?- What is the new process performance?
• Pilot Results vs.
Complete Roll-Out
(part of your
Improvement-Action
Plan)
• Risk Assessment
Results on Improved
Process (FMEA)
• Proposed Control Plan
- Improvement / Action Plan
- Failure Mode & Effect
Analysis (FMEA)
- 6S
- Run Chart
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Owner(s)/Assigned to:
Actionable Improvements/Solutions
Descriptions
Risk Analysis Priority # (per
FMEA)
What do we measure to track progress/status on
the improvement &/or solution? 30-Day High-Level Plan 60-Day High-Level Plan
90-Day High-Level Plan 120+Day High-Level Plan Comments
Actual Start Date: Solution Implementation
Actual End Date: Solution Implementation
Next Team Status Review
Date:
Allows your team to capture the planned Actions & Improvements in the short and long-term
DMAIC Roadmap: Improve Phase Improvement/ Action Plan
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DMAIC Roadmap: Control Phase
Purpose Key Questions Key Tools Deliverables
Implement controls to maintain the gains
- Did we accomplish our goal(s)?- What were the final results? Where did our results meet, exceed or fall short?- Are Control Plans in place to assure the improved process is sustainable? Who is responsible?- Where else can the learning from this DMAIC project be applied?
• Improved Process
Performance Analysis
Results
• Metrics Integration
Results
• Implementation
Results
• Control Plan
• ID Next Improvement
Opportunity
- Control Plan- Run Chart
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Prepared by: Page: of
Approved by: Document No:
Approved by: Revision Date:
Approved by: Supercedes:
Before After
COMMENTS:
Planned / Proposed Future Process Adjustments
Process Control PlanProcess Name:
Project Name:
Dept./Division Impacted:
Documents Referenced:
Person(s) Responsible for Executing Action
Plan
Metric(s) Monitoring Frequency
Person(s) Authorized to Change
Control Plan
(TBD - CH Case)
Improved Process Step(s) Sub Process Step(s)Process Performance Person Responsible for
Monitoring Metric(s)Process Results
Recipient(s)Corrective Action for Metric Not
Meeting Target
DMAIC Roadmap: Control Phase Process Control Plan
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Key Takeaways/ Questions?
• Project Management is the application of best known administrative practices that result in the fulfillment of scope, schedule and budget with regard to a temporary endeavor.
• Lean Six Sigma (LSS) methodology combines the Lean philosophy & Six Sigma method/ tools to reduce waste and process variation.
• Define, Measure, Analyze, Design and Verify (DMADV) can be used in place of DMAIC when creating new process/ workflow.
• Any Questions?