PMBOK® Guide / PMI® / PMP® - 6σ PMBOK® Guide and Six Sigma – Basics 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? 2 PMBOK® Guide and Six Sigma – Basics What can we learn from Six Sigma? 3 PMBOK® Guide and Six Sigma – Basics Contents 1: What is Six Sigma? 2: What Six Sigma Does 4 1: What is Six Sigma? 1: What is Six Sigma? 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. 6 1: What is Six Sigma? 7 1: What is Six Sigma? Dr. Shewhart recommended to strive for 3σ quality. 8 1: What is Six Sigma? Gaussian standard curve 3σ 9 2σ 1σ μ 1σ 2σ 3σ 1: What is Six Sigma? 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. 10 1: What is Six Sigma? 11 1: What is Six Sigma? A special problem: Chip wavers had only 30% and less production yield. 12 © image: Steve Evans 1: What is Six Sigma? 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. 13 1: What is Six Sigma? A new quality goal was defined: Further reduce the error level by a factor of ~1/1,000, even including the process shift. 14 1: What is Six Sigma? ~3,000 DPMO 3σ 3σ 2σ 1σ 1σ ~3.4 DPMO 3σ Process shift 6σ 6σ 15 2σ 5σ 4σ 3σ 2σ 1σ 1σ 2σ 3σ 4σ 5σ 6σ DPMO: Defects per 1 million opportunities 1: What is Six Sigma? 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. 16 1: What is Six Sigma? 17 1: What is Six Sigma? 18 1: What is Six Sigma? As of 2006 Motorola reported over US $17 billion in savings from Six Sigma. 19 1: What is Six Sigma? Another application: Thousands of Dabawallas in India apply Six Sigma methods to deliver home-cooked food. 20 © image: Steve Evans 1: What is Six Sigma? Some examples for Six Sigma application in DACH: Engineering Finance and Insurance Distribution 21 Automotive Medical IT, Consulting Logistics Service Production ... 2: What Six Sigma Does 2: Methods of Six Sigma Six Sigma uses 2 phase models for improvements: • DMAIC • DMADV (= DfSS) 23 2: Methods of Six Sigma Six Sigma uses various techniques: 24 2: Methods of Six Sigma Six Sigma uses a special role model with popular certifications: Six Sigma Champions: Project sponsors and mentors Six Sigma Black Belts: Full-time project managers 25 Six Sigma Master Black Belts: Full-time program managers, PMO heads and educators Six Sigma Green Belts: Part time project coordinators and assistants 3: From Six Sigma to Lean Six Sigma 3: From Six Sigma to Lean Six Sigma History Total Quality Management Six Sigma (Motorola, GE) Striving for dramatic revolutions by means of projects. Focus on improving output precision. Goal: Reducing cost of bad quality. Lean Manufacturing / Management (Toyota) Striving for continuous improvement. Focus on reduction of product stocks and process waste. Goal: Short cycle times and just in time production and service. Lean Six Sigma 27 3: From Six Sigma to Lean Six Sigma Six Sigma is “TQM on steroids”. Lean applies a “pull” approach on production, i.e. it is driven from the output side, not input. 28 3: From Six Sigma to Lean Six Sigma Experts today try to combine the methods to get the best of both worlds. 29 4: What can we learn from (Lean) Six Sigma? 30 4: What can we learn from (Lean) Six Sigma? 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. 31 4: What can we learn from (Lean) Six Sigma? Common elements shared with the PMBOK Guide: • • • • 32 Based on the Shewhart/Deming cycle (P-D-C-A) Emphasis on customer satisfaction Appreciation of stakeholder orientation Team approach 4: What can we learn from (Lean) Six Sigma? 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. 33 4: What can we learn from (Lean) Six Sigma? The deeply hidden gem of Six Sigma: The Implicit Focus on Management Attention 34 4: What can we learn from (Lean) Six Sigma? The role of the (Lean) Six Sigma Project Champion: • • • 35 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. 4: What can we learn from (Lean) Six Sigma? The (Lean) Six Sigma Project Champion: • • • • 36 ...remove roadblocks. ...assign, define and align roles. ...develop the core structure of the Six Sigma team. ...own the process, guarantee implementation. Thank you