PMBOK® Guide / PMI® / PMP® - 6σ. 2 Six Sigma (or more recent: Lean Six Sigma) uses projects to...

PMBOK® Guide / PMI® / PMP®-

6σ

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Six Sigma (or more recent: Lean Six Sigma) uses projects to attain dramatic improvements in production and services.

What are the commonalities and differences with PMI®‘s methods?

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PMBOK® Guide and Six Sigma – Basics

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What can we learn from Six Sigma?

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PMBOK® Guide and Six Sigma – Basics

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Contents

1: What is Six Sigma?2: What Six Sigma Does

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PMBOK® Guide/PMP®

PMBOK® Guide and Six Sigma – Basics

1: What is Six Sigma?

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Six Sigma was based on groundbreaking work of Dr. Walter Shewhart, between the two world wars at Hawthorne, Il, USA.

Dr. Shewhart was the inventor of modern quality control based on statistics.

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1: What is Six Sigma?

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1: What is Six Sigma?

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Dr. Shewhart recommended to strive for 3σ quality.

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1: What is Six Sigma?

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3σ 2σ 1σ 1σ 2σ 3σμ

1: What is Six Sigma?

Gaussian standard curve

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Motorola (1986, Bill Smith), GE and other companies found 3σ insufficient for modern, complex products:

With growing numbers of items, production yields go down to fast.

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1: What is Six Sigma?

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1: What is Six Sigma?

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1: What is Six Sigma?

A special problem: Chip wavers had only 30% and less production yield. © image: Steve Evans

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Over time, processes get worse, e.g. by wear and tear of tools between to replacement cycles.

This is sometimes described by allowing a 1.5σ process shift.

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1: What is Six Sigma?

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A new quality goal was defined:

Further reduce the error level by a factor of ~1/1,000, even including the process shift.

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1: What is Six Sigma?

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1: What is Six Sigma?

3σ 2σ 1σ 1σ 2σ 3σ

~3,000 DPMO

3σ

DPMO: Defects per 1 million opportunities

6σ 4σ 2σ 2σ 4σ 6σ5σ 3σ 1σ 1σ 3σ 5σ

~3.4 DPMO

6σ Process

shift

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Once the 6σ quality goal of 3.4 DPMO has been achieved, even complex systems will attain a high yield.

Losses from low system quality (“cost of poor quality”, COPQ) will go down.

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1: What is Six Sigma?

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1: What is Six Sigma?

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1: What is Six Sigma?

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As of 2006 Motorola reported over US $17 billion in savings from Six Sigma.

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1: What is Six Sigma?

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1: What is Six Sigma?

Another application: Thousands of Dabawallas in India apply Six Sigma methods to deliver home-cooked food. © image: Steve Evans

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1: What is Six Sigma?

Some examples for Six Sigma application in DACH:

Engineering Automotive Logistics

Finance and Insurance

Medical Service

...

IT, ConsultingDistribution Production

2: What Six Sigma Does

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Six Sigma uses 2 phase modelsfor improvements:• DMAIC• DMADV (= DfSS)

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2: Methods of Six Sigma

Improving existing

products and services

Developing new

products and services

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Six Sigma uses various techniques:

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Pareto analysis

SIPOC analysis

2: Methods of Six Sigma

Business Process

MappingPick chart

Scatter diagram

CTQ tree

Check sheet

Control chart

General linear model

TRIZTaguchi

methods Cost-benefit analysis

Run charts

Stratification

ANalysis Of VAriance

Pareto chart Ishikawa (fishbone,

cause & effects) diagram

Chi-squared test Enterprise Feedback

Management (EFM) systemRoot

cause analysis

Process capabilityAxiomatic

designDesign of

experimentsRegression analysis

CorrelationHistogramsFailure mode

and effects analysis (FMEA)Kano

ModellingQuality Function

Deployment (QFD)5 Whys

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Six Sigma uses a special role model with popular certifications:

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2: Methods of Six Sigma

Six Sigma Champions:Project sponsorsand mentors

Six Sigma Master Black Belts:Full-time program managers, PMO heads and educators

Six Sigma Black Belts:Full-time projectmanagers

Six Sigma Green Belts:Part time projectcoordinators andassistants

3: From Six Sigma to Lean Six Sigma

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3: From Six Sigma to Lean Six Sigma

Six Sigma (Motorola, GE) Lean Manufacturing / Management (Toyota)

Striving for dramatic revolutions by means of projects.

Striving for continuous improvement.

Focus on improving output precision.

Focus on reduction of product stocks and process waste.

Goal: Reducing cost of bad quality. Goal: Short cycle times and just in time production and service.

Total Quality Management

History

Lean Six Sigma

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Six Sigma is “TQM on steroids”.

Lean applies a “pull” approach on production, i.e. it is driven from the output side, not input.

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3: From Six Sigma to Lean Six Sigma

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Experts today try to combine the methods to get the best of both worlds.

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3: From Six Sigma to Lean Six Sigma

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4: What can we learn from (Lean) Six Sigma?

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The project management approach of Six Sigma is rather simple:• 2 alternative phase models• No complex life-cycle descriptions• No process orientation for project management.

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4: What can we learn from (Lean) Six Sigma?

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Common elements shared with the PMBOK Guide:• Based on the Shewhart/Deming cycle (P-D-C-A)• Emphasis on customer satisfaction• Appreciation of stakeholder orientation• Team approach

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4: What can we learn from (Lean) Six Sigma?

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Common caveats shared with the PMBOK Guide:• Some companies have achieved quick wins

through implementations. • One should not expect repetiton in the own

organization. Benefits are rather long-term.

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4: What can we learn from (Lean) Six Sigma?

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The deeply hidden gem of Six Sigma:

The Implicit Focus onManagement Attention

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4: What can we learn from (Lean) Six Sigma?

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The role of the (Lean) Six Sigma Project Champion:• More than an Initiator – a true project sponsor• Deeply linked with the project, involved in it.• Takes an active role in critical processess like

change request management.

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4: What can we learn from (Lean) Six Sigma?

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The (Lean) Six Sigma Project Champion:• ...remove roadblocks.• ...assign, define and align roles.• ...develop the core structure of the Six Sigma

team.• ...own the process, guarantee implementation.

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4: What can we learn from (Lean) Six Sigma?

Thank you