Compressing the Critical Path with Lean Six Sigma

2011 PM Challenge

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INTRODUCTIONCompressing the Critical Path with Lean Six Sigma

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Presenters

Joe Wiley MSFOC Lead Facilitator Lean Six Sigma Black

Belt (DOD) Established Enterprise Air

Speed Program, Belle Chasse NAS

Master Instructor (USN) 20+ years instructional

experience

Ron Kiker MSFOC Lead Facilitator Lean Six Sigma Black

Belt (NASA) Lean Six Sigma Master

Certificate (Villanova) Applied Project

Management Master Certificate (Villanova)

Certified Professional in Learning and Performance (ASTD)

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Previous PM Challenge Lean Six Sigma topics

“Lean Six Sigma: What Every Program Manager Should Know” – 2010

“Lean+ Tying it All Together” – 2008 “Project Management – Putting Lean Into Action” – 2006 “Applying Lean Principles to the Risk management

Process” - 2006

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Question…

What is the normal process used when developing a project plan/WBS?– Use a previous project as a template and then modify for the

current project.– Brainstorm and include every activity imaginable so that you

don’t get caught with a short timeline/schedule.

The problem with these approaches is that they build waste into the project

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What are the typical ways of compressing the critical path?

Fast Tracking – performing activities in parallel

Crashing – adding resources

“Across the Board” Compression – compress everything

Scope

Schedule Cost

Quality

Why not remove the waste which reducesscope, cost and schedule?

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LEAN SIX SIGMA ORIGINS & FOCUS

Compressing the Critical Path with Lean Six Sigma

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Origins of Lean Six Sigma

–Lean

– Toyota Production System (‘50s)

– Just-In-Time Manufacturing

(‘70s)

– Lean Production (‘80s)

–Six Sigma– Variation Reduction

(1900s)

– Quality Improvement Tools

(‘30s and ’40s)

– Total Quality Management (‘50s)

– Six Sigma (mid-’80s)

–Lean Six Sigma (mid ’90s)

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Lean’s Focus

Identification of value-adding (VA) and non-value-adding (NVA) activities

Removal of NVA (waste) activities from the process Analyzing process flow and delays Maximizing process velocity Use of process analysis and idea creation tools Utilizes kaizen events (Rapid Improvement Events)

– Day 1

• Lean training• Begin mapping

current process• VA/NVA

analysis

– Day 2

• Measure and analyze current process

• Brainstorm new process

– Day 3

• Create and map new process

– Day 4

• Evaluate improvements

• “Test drive” new process

• Modify as needed

– Day 5

• Present results• Celebrate!!

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Six Sigma’s Focus

Elimination of defects as defined by the customer Reducing variation Use of data collection and analysis, cause analysis, and

basic quality tools Utilizes the DMAIC process

– Define– Measur

e– Analyze

– Implement

– Control

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SPECIFIC TOOLSCompressing the Critical Path with Lean Six Sigma

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LSS tools for compressing the critical path

Current State Process Mapping Value-Added Analysis Future State Process Mapping

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Current State Process Mapping

Assemble team & determine scope of mapping event– Ensure team has authority to make critical path decisions– Scope my include entire critical path or a portion of the

critical path– You could break the entire critical path up into logical

portions and conduct improvement event on each section

–A –D –E –F – I

–B –C

–G –H

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Create a Functional Process Map

Shows not only the linear sequence of activities, but also the responsible functions for each activity

–A –D –E –F – I

Dept D

Dept C

Dept B

Dept M

Dept S

TIME

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Value-Added Analysis

Non-Value-Added – activities that consume resources but creates no value in the eyes of the customer.

Non-Value-Added Required – activities that add no value but which cannot be eliminated due to regulations, customer requirement, current technology, etc.

Value-Added – activities which change the form, fit, function, or usability and which the customer is willing to pay for and which is done right the first time.

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The Forms of Waste

Waste – anything that adds cost or time without adding value.

1. Excessive Inventory

2. Excessive Transportation

3. Excessive Motion

4. Over-Processing

5. Over-Production

6. Waiting

7. Producing Defects

8. Injuries

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Excessive Inventory

Any unnecessary supplies or materials.

Excess supplies and materials

Backlogs of work Obsolete databases, files,

and folders

Files awaiting signatures or approvals

Files awaiting task completion

Obsolete office equipment

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Excessive Transportation

Any unnecessary movement of materials or information.

Delivering documents that are not required

Document storage Excessive filing

E-mailing documents that are not used

Routing for unnecessary approvals or processing

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Excessive Motion

Any movement of people that does not add value to the service.

Searching for computer files

Searching for work documents

Trips to printer or copier

Travel to unnecessary meetings

Hand-carrying paperwork Return trips back to the

office for supplies or materials

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Over-Processing

Putting more work or effort into the process than is required by the customer.

Duplicating reports or information

Duplicate data entry Unnecessary reviews or

approvals

Constantly revising documents

Reformatting Unnecessary process

steps

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Over-ProductionProducing work or providing a service prior to it being required or requested. Producing more than is needed.

Producing reports no one reads or needs

Making extra copies Excessive e-mails

Entering same information multiple times

Working ahead Producing at a faster

pace than needed

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Waiting

Idle time in the process in which no value is being added to the process. Both people and products/services can wait.

Waiting on approvals Waiting for information or

decisions Waiting for others to

complete tasks

Electronic queues Waiting in meeting Conflicting commitments Over-flowing in-boxes

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Producing Defects

All processing required to correct a defect.

Data entry errors Missing information Errors in documents Any type of rework

Forwarding partial documentation

Any work that does not meet customer requirements

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Injuries

Work-related personnel injuries.

Injured personnel Near misses Lost work days

Improper ergonomics Slips, trips, and falls Worker’s Comp claims

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Value-Added Analysis

Identify every activity on the current process map as either VA, NVA Required, or NVA

Dept D

Dept C

Dept B

Dept M

Dept S

TIME

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Future State Process Map

Remove the waste and the critical path is automatically compressed

Also a good time to consider what activities can be performed in parallel for fast tracking

Dept D

Dept C

Dept B

Dept M

Dept S

TIME

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SUMMARYCompressing the Critical Path with Lean Six Sigma