PMI-MN Breakfast Meeting Tuesday, March 14 th , 2006

© 2005 trissential. All Rights Reserved.1

PMI-MN Breakfast MeetingTuesday, March 14th, 2006

Show Me The Business Value Discover Lean Six Sigma “Best Bets” for Tangible Improvements Part 2

Presented by: Michelle Goodman

[email protected]


• Lean Six Sigma and the Big Picture - Part 1– What Exactly is Lean Six Sigma?– Corporate Deployments– Big is Not Always Better

• Individual Execution – Part 2– Project or Activity Selection and Scoping– Resource Utilization– Metrics & Results– Personal Corporate Citizenship

• Beyond the office area – Part 3– Best Bets in non-traditional business environments– Working with vendors and business partners– What to do with the uninitiated?– How can my community work benefit?

3 Part Series Agenda


Lean Six Sigma Is the Integration of Two Powerful Business Improvement Approaches...

• Goal – Reduce waste and increase process speed

• Focus – Bias for action/ Implementing known solutions

• Method – Kaizen events

• Goal – Improve performance on Customer CTQs

• Focus – Root Cause Analysis/ Developing Solutions

• Method – Black Belts dedicated to projects

Six SigmaCulture+Quality

LeanSpeed+Low Cost

Six Sigma Quality Enables Six Sigma Quality Enables Lean SpeedLean Speed

(Fewer Defects Means(Fewer Defects Means Less Time Spent on Rework)Less Time Spent on Rework)

Lean Speed Enables Lean Speed Enables Six Sigma Quality Six Sigma Quality

(Faster Cycles of (Faster Cycles of Experimentation/learning)Experimentation/learning)


Michelle’s definition of a “Best Bet”

Does not require a LSS program

Does not require LSS certification

Applicable in various business environments

Has merit on individual basis


Project or Activity Project or Activity Selection and ScopingSelection and Scoping

Individual Execution


Know the Heartbeat

• Plan and execute in 90 day cycles

• Be aware of prevalent political agendas

• Tap into someone’s passion – sponsorship

• First choose the visible – the rest will follow

• WIIFM – What’s In It For Me?


Project Selection and Scoping

• Have a Written Plan– Timelines & Deliverables– Shows commitment and dedication– Tangible plan for leaders to track and share– Easy to incorporate into divisional and individual

objectives and reviews– Drives sense of urgency– Represents your ability to contribute value

through project management skills


Resource UtilizationResource Utilization



AnalyzeAnalyze ControlControlImproveImproveMeasureMeasureDefineDefine

• Project ID Tools• Project Definition Form• Value of Cycle Time• Net Present Value

Analysis • Internal Rate of Return

Analysis • Discounted Cash Flow

Analysis • PIP Management

Process• RACI• Quad Charts

• Process Mapping• Value Stream Mapping• Process Cycle Efficiency• Lean Six Sigma Metrics• Process Sizing• Kaizen Events• Multi-Voting Techniques• Pareto Charts• C&E/Fishbone Diagrams• FMEA• Check Sheets• Run Charts• Control Charts• Gage R&R• Subjective

Measurement Systems

• Cp & Cpk

• SupplyChainAcceleratorSM Time Trap Analysis

• Analytical Batch Sizing• Multi-Vari• Box Plots• Interaction Plots• Regression• ANOVA• C&E Matrices• FMEA

• Brainstorming, Affinity• Benchmarking• Kaizen Events• Pull Systems

• Generic• Replenishment

• Part Stratification• Setup Reduction• TPM, 5S• Process Flow• Line Balancing• DOE • Hypothesis Testing• Force Field• Tree Diagrams• Gantt Charts

• Check Sheets• Run Charts• Histograms• Scatter Diagrams• Control Charts• Visual Control Tools• Poka-Yoke• Pareto Charts• Interactive Reviews

Lean & Six Sigma Tools


Desirable Characteristics…….Desirable Characteristics…….Not just for Black Belts

• Team Facilitation – Strong ability to lead effective teams• Problem Solving – Proven orientation to be a problem solver• Process Orientation – Demonstrated ability to understand and

identify process vs. functions• Change Facilitation – Demonstrated ability to drive change across

functional boundaries• Communication Skills – Ability to engage a wider audience

through a variety of media, but including presentation• Computer Knowledge – Ability to effectively utilize technology,

including Microsoft Office applications, or applicable, and the web• Financial Skills – Ability to understand basic financial documents

(I.e Income statement and balance sheet) and develop project based cost/benefit analysis

• Program and Project Management – Ability to develop a workplan and actively lead a team through it’s completion


Know the Heartbeat

• Fewer people – better engagement• WIIFM Factor – who has the most to gain?• SMEs – best utilized in small doses • Focused work on fewer subjects (Little’s Law)• It’s not always about capital spending• Give a solid cost/benefit case – funding will

follow


Comprehensive Communication

• Be your own PR whiz, because it is about buzz, motivation, and excitement

• If they don’t know, they can’t support you• Stakeholder communication – your strongest

(but most underutilized) asset• A written plan speaks the loudest


Metrics & Results:Metrics & Results:Think Data and ProcessThink Data and Process



What if I’m not a Finance Specialist?

• Introduce proposed costs/benefits• Remember the 90 day rule!• Detail the measurement approach• Make it concise and user friendly• Establish baseline• Follow through on status reports


Types of Benefit Measures

Process Requirements Measures • Quality• Speed or Cycle Time• Cost or Efficiency• Safety• Regulatory Compliance

Financial Measures (measured in dollars)• Revenue Improvement• Cost Reduction• Asset Reduction


Types of Financial Benefits• Revenue Growth

– Volume increases – Price increases

• Cost Reductions– Purchased items and services– Waste elimination– Make vs. Buy– Labor reduction– Productivity improvements– Scrap/Rework reductions

• Working Capital Reduction– Inventory– Receivables– Fixed asset reduction


• Report on Key Performance Indicators (KPIs) – formal or informal*

• $$ Savings• Revenue Increase• Customer satisfaction / loyalty

(internal or external)• Risk Management Success• Project duration reduction• ROI• Break-Even Point• IRR• Resource Utilization Levels

• Give your boss or sponsor something good to talk about

Keep the information flowing


Personal Corporate Personal Corporate CitizenshipCitizenship



Celebrate Success

• Give Recognition and Acknowledgement

– Key Milestones and accomplishments that are truly deserving

– Highlight benefits and value to organization– Be generous in sharing acknowledgments– Inclusive rather than exclusive– Make sure to reach beyond the

“car-ride employees”: (sales, decentralized locations, customers, suppliers, overseas, etc.)


Individual Contributions

• Research and Introduce Best Practices

– Keep up with industry news and research

– Utilize PMI’s and other professional associations’ resources fully

– Represent your company at events, summits, conferences

– Introduce new practices as appropriate through various company communication channels



• Internal Collaboration

• Embrace and be knowledgeable about a variety of methodologies

• Help stakeholders understand how various project tools, reporting requirements, teams, and methods can work together and enhance results

• Work with leaders to identify possible discrepancies or redundancies and propose solutions for bridging these differences



• External Collaboration

– Create a “Pull environment” where customers, suppliers, and vendors are requesting to work with a professional with your skill sets

– Be active in professional associations for your networking and skills enhancement

– Volunteer your skills in your community– Participate on Company outreach teams

and boards


• Lean Six Sigma and the Big Picture - Part 1– What Exactly is Lean Six Sigma?– Corporate Deployments– Big is Not Always Better

• Individual Execution – Part 2– Project or Activity Selection and Scoping– Resource Utilization– Comprehensive Communication– Metrics & Results– Personal Corporate Citizenship

• Beyond the office area – Part 3– Best Bets in non-traditional business environments– Working with vendors and business partners– What to do with the uninitiated?– How can my community work benefit?

Sneak Peek


Michelle Goodman, MBA, PMPMichelle Goodman, MBA, PMP

Senior Process ConsultantSenior Process Consultant

O 952-595-7970 O 952-595-7970 C 651-261-9422C 651-261-9422

[email protected] [email protected]

www.trissential.comwww.trissential.com

Conclusion

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PMI-MN Breakfast Meeting Tuesday, March 14 th , 2006

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