six sigma and pmp: how can they help you togethere?
Post on 17-Oct-2014
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This is idea of combining both Six Sigma and PMP came to me after working for nearly 5 years in Quality and Manufacturing functions of a balanced matrix organization(PMBOK). I always see Project Management not as something of future but present. So what is next, we have seen how Six Sigma brings a giant leap in quality but the problem with Six Sigma is that it is am operational tool for quality improvement. How to bring this provem concept into a project was a big challenge. We know project is a one time activity and so we can say for design of product (DFSS), I tried to relate DFSS (Design for six sigma) with a projectized approach. And this was what I was able make. Its like a fusion, I thought this will be intresting and hence thought of sharing this “Theory” with you.TRANSCRIPT
Six Sigma and PMP How can they he lp you togethere?
ASHISH JUDE MICHAEL, Executive MBA, Indian Institute Of Management, Shillong
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1. Introduction about Six Sigma
2. Introduction about PMP
3. Similarities and Differences between Six Sigma and PMP
4. How to use both of these to make most?
5. Conclusion
About Author
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Introduction about Six Sigma
We can define by DMAIC model which itself is an refined version of PDCA
(Plan-‐Do-‐Study-‐Act) . Six Sigma as we know controls Product Variation by
controling the process and its parameters. It aims to bring the defect rate below
3.4 DPMO (Defect per million Opportunities).
D Define the customer, Critical to Quality issues, business process.
M Measure the performance of business of the business process.
A Analyze to determine the root cause and opportunities for improvement.
I Improve the process, develop and deploy implementation plan.
C Control the improvement to keep on new course.
There is a concept known as DFSS (Design For Six Sigma). This methodology
brings six sigma at a much earlier phase of a product life cycle, the design phase.
By using DFSS we can design a product in such a way that it can be defined by
DMAIV instead of DMIAC of convectional Six Sigma aproach.
D Define the project goals and customer (internal and external) requirements.
M Measure and determine customer needs and specifications; benchmark
competitors and industry.
A Analyze the process options to meet the customer needs.
D Design (detailed) the process to meet the customer needs.
V Verify the design performance and ability to meet customer needs.
In todays world where we talk not about Mass Manufacturing but Mass
Customization this approach help us learn which parameter of the process is
controling which parameter of product and how altering that will bring change
in final product and that too at design phase. Thus DFSS can help us develop us
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products which can comply the requirements of mass customization for each
customer as per his/her requirements.
Let us understand , a customer dosen’t always knows what he/she needs their
explanation of a requirement of a particular requirement can be very vague.
Step 1: We should clarify and verify it from customers at various stages of
designing and prototyping itself.
Stap 2: Once customer is happy we should try to measure and bench mark the
specifications as per competatiors and industry.
Step 3: We should further analyze the process which will be most efficient and
effective to make the product. Also identify the stages where we can introduce
customization and when, how and how much change in the process parameter
will being which type of change in the final product.
Step 4: Finally freeze the design.
Step 5: Verify the design by using prototype or simulation or any other
Qualification method.
The figure below shows the steps of DFSS
* Courtsey: http://www.alefulcrum.com/methods/dfss/postage_stamp.html
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Introduction about PM (Project Management)
PMP (Project Management Professionals) who are well averse in Project
Management methodology.
Project can be defined as a one time activity which has defined scope, Quality of
result, time and resources required and Project Manager has to achieve result in
defined scope with required Quality within specified time and cost.
Project management has become one of the most preffered skills by employers.
One of the reasons PM (Project Management) is highly requirement in today’s
customer orinted world when technology is changing day by day at a rapid pace.
PM earlier was considered to be related to infrastructure or IT sectors but now
even it is requirement of Manufacturing organization.
The launch or upgradation of a product can itself be termed as a Project, and if
we are able implement Project Management concepts in proceding with these
activities we can be more efficient and effective.
For example if I am working on a greenfeild project for implementing , lets say,
AS9100 Rev C certification.We can define scope, time and resource on which it
will be dependent. Then we can constitute a team , make a project manager and
give further responsiblities will be taken by them.
I will not be describing PM in detail but still on a cursory note we can say that
A project is temporary in that it has a defined beginning and end in time, and
therefore defined scope and resources. And a project is unique in that it is not a
routine operation, but a specific set of operations designed to accomplish a
singular goal. So a project team often includes people who don’t usually work
together – sometimes from different organizations and across multiple
geographies.
Project management (PM), is the application of knowledge, skills and techniques
to execute projects effectively and efficiently. It’s a strategic competency for
organizations, enabling them to tie project results to business goals — and thus,
better compete in their markets. (As quoted from PMI)
The purpose document is to show how Six Sigma and PMP togethere
complement each other and can do wonders for organization.
The figure given below explains in brief the concept of Project Management.
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Similarities and Differences between Six Sigma and PMP
Differences
Six Sigma PMP Phases
Define Initiate
Measure Plan
Analyze Execute
Design/Improve Monitor & Control
Verify/Control Close
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We can also say that Six Sigma is mostly a process level approach making it a
operational level strategy tool and PMP is a project level approach making it a
Tactical level strategy tool. Also Six Sigma is more stastical based where else
PMP is more planning and execution. Six Sigma is more about effciency where
else PMP is more about effectiveness.
Similarities
When it come to similiraties we can say they seemed to have following
dsimilarities:
1. Both define the the problem as first step.
2. Both bring financial savings for organization.
3. Once they are completed both are closed and recorded so that it can be
used for future learning.
How to use both of these to make most ? The propose is to use both Six Sigma and PMP philosphy togethere amd utlize
them to achieve effectiveness and effciency for organization. But how to do so?
The era of Mass Maufacturing is gone, now is all about mass customization. Its
all about understanding the process , the process parameters and how those
parameters effect the product.
Consider the following stemps which can be included in a project. We can see
that we are giving special emphesis on planning. This is because the change done
in planning stage are more easier and economical than during later stage or
execution.
“Give me six hours to chop down a tree and I will spend the first four sharpening
the axe.” Abraham Lincoln.
If cutting the tree is can be consider a project then sharpening the axe is
planning and cutting the tree is execution, monitoring & control and closure.
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In this given table we can see the steps, which I suggest, can be taken during a
project. A brief description is stated for each step.
Six Sigma+Project
Management
Define/Initiate
Plan
Analyze-‐Plan
Improve-‐Plan
Validate-‐Plan
Execute-‐As planed
Monitor-‐ The Progress
(Measure)
Control-‐By Validation &
Improvisation (Analyze &
Improve )
Closure
Step 1: After selecting the project through feasiblity and cost benefit anslysis,
Define the scope of project and Initiate it. Then form a team, assig Project
Manager and then further formulate a project charter.
Step 2: Plan here we can use Project Priority Matrix (PPM) to define importance
of Performance, Time and Cost. Plan for three senarios such as Ideal, Most likely
and Worst. Use critical chain project method (CCPM). We are laying special
stress on planing as if planing is good execution will be smooth. Make the initial
plans.
Step 3: Analyze –Plan Analyze the plan with team, stakeholders and if required
a specialist or consultant. Its important we catch the loops and shortcommings of
a plan now rather than discovering them during execution phase.
Step 4: Improve-‐Plan take everyone’s feedback , make necessary changes the
final decision power to weather to accept the change in the plan rests on Project
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Manager. Change request can be raised by team members as per the feedback
but they need to be approved by Project Manager to make necessary changes.
Step 5: Validate-‐Plan Check if there is still any scope of improvement in project
plan? Ensure that the changes made will not be harming any other requirement
of project. Discuss with project team, consultant and stakeholders and if all
agree validate the plan and move to execution phase.
Step 6: Execute the final plan (Most Likely Senario) on the basis of
responsibility matrix, Gantt Chart and a detail project plan using any Project
Management Software such as MS Project etc. This phase will be the longest and
maximum resources are utlized during this phase.
Step 7: Monitor-‐The progress (Measure) this is done in terms of milestones
covered, resources (actual) vs progress wrt resources (planed). Tools such as S
curve , budget costing, Earned Value Milestone (EVM). To check if we are ahead
or behind schedule, if we are over or under budget or if we are meeting the scope
of project and its requirements.
Step 8: Control – by validation and improvisation its useless to just keep on
monitoring and not acting on the results.
Check the results we get from monitoring if they are doubtful re-‐confirm them
and analyze the root cause of the problem causing this and solve the problem.
Improvise the execution plan ( We have 3 senario’s Ideal, Most likely and Worst)
choose the related situation and work upon it to suit the requirement.
Step 9: Closure after the project is completed it should be closed as per contract.
If a final closure report has to be approved by customer than it has to be done.
But for internal purposes closure should be documented properly all the
problems faced, lessons learned improvisations done should be documented as
per Project Management procedures.
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Conclusion This is idea of combining both Six Sigma and PMP came to me after working for
nearly 5 years in Quality and Manufacturing functions of a balanced matrix
organization(PMBOK). I always see Project Management not as something of
future but present. So what is next, we have seen how Six Sigma brings a giant
leap in quality but the problem with Six Sigma is that it is am operational tool for
quality improvement. How to bring this provem concept into a project was a big
challenge.
We know project is a one time activity and so we can say for design of product
(DFSS), I tried to relate DFSS (Design for six sigma) with a projectized approach.
And this was what I was able make. Its like a fusion, I thought this will be
intresting and hence thought of sharing this “Theory” with you.
Thanks for taking your time out and reading through it. If you have any
suggestions or feedback feel free to send me.
About Author: