Speaker Bio – Mike Darrish

• Certified Lean Six Sigma Black Belt since March 2008

• Specialty – CPI in large service organizations

• Prior IT career – tech, sales (soft skills)

• Value Proposition– induce people to change without formal authority

1

Non-Partisan Process Improvement

ABSTRACT

• Process improvement professionals and teams typically gravitate to the improvement methodology in which they were trained and have experience.

• However, no one approach is optimal for all problems.

• The presentation summarizes the various methodologies, the modern ones’ strengths and weaknesses, a few brief examples/cases studies, and a decision making process for choosing which to use in any project.

3

What is CPI?

• SEI’s niche: The SEI researches, develops, and transitions integrated measurement and process-based methods to improve the development, acquisition, sustainment, and quality of software in software-reliant systems.

• Business Context– Business activities - many processes, created consciously or not

– Process: Inputs -> transformations -> output

– Output meets requirements (quality) or doesn’t (defective)

– Process has value-added and non-value added (waste) activities

– Goal - produce quality outputs minimizing non-value added activities

– Continuous – multiple projects over years, so long as economical

4

Why do Continuous Process Improvement?

• Increase customer satisfaction– Reliability

– Availability

– Serviceability

• Compete more effectively– Reduce lead time

– Differentiate offerings

– Reduce cost and/or price

• Result – business grows

• Needs strategic focus– Don’t be the low cost buggy whip producer

5

Process Improvement Select Major Milestones

6

1300s Craft Guildspride in work

1800s Industrial Revolution interchangeable parts

1920s SPC/TQM/PDCAmathematical, expand past factory

1900s Scientific Managementstudy, plan, apportion work

1910s Production FlowFord moving assembly line

1950s TPS: mass production reactionidentify, reduce wastes

1940s-50’s Japanese quality surgeDeming, Juran teach Japanese quality

1970s Quality Is Freecustomers demand high quality

1960s Quality Circlesworker/engineer/manager teams

1980s 6variation, defect reduction focus

1980s Leanwaste reduction focus

2000s LSSintegrate Lean and 6

1980s The Goal/TOCsole way to speed up process

1930s TRIZInvention driven improvement

Current process improvement methodologies

• 7 Basic Quality Tools

• TRIZ

• Theory of Constraints (TOC)

• Lean

• Six Sigma (6)

• Lean Six Sigma (LSS)

• Many other tools, methods, frameworks exist – beyond scope– Hoshin Kanri, ITIL, PRINCE2, COBIT, Agile development/project mgt, etc.

Main Presentation

Focus

7

Basic Quality Tools – Chart Data, See Solutions

• Ishikawa diagram – categorizes problems, possible causes of symptoms and sort ideas into useful categories

• Check sheet – structured form showing where problems occur

• Histogram - shows frequency distributions - how often each different value in a set of data occurs.

• Pareto diagram - bar graph, separates critical few vs useful many

• Scatter chart – X/Y graph – possible relationships

• Stratification – group data – find patterns, reduce complexity

• Control Charts - Process behavior over time – common vs special cause variation

8

теория решения изобретательских задач• Theory of Inventive Problem Solving – especially useful in DFSS

• 1946 - 1985 Genrich Altshuler and colleagues (when not in gulag)

– Studied patent libraries, inventions - how to overcome contradictions

• 39 x 39 Attribute Contradictions Matrix - improving one worsens other(s) – Software should be full featured (complex), but should be easy to use and be reliable (simple) to satisfy largest number of users

• 40 Inventive Principles create new processes, solve problems– Object libraries allow developers to add features without writing large amounts of source code

9

Interactive Contradiction Matrix

10

Try it at:http://www.triz40.com/TRIZ_GB.php

TRIZ Example Project

• City needs better public transit

• Light rail not feasible

• Must increase bus passenger volume (feature to improve)

• More buses = more drivers, ongoing expense, not feasible

• Bus can navigate city streets (feature to preserve)– Making current bus longer bus not workable

– Wider bus not workable

• Innovate – Build bus with accordion center

11

Theory of Constraints (TOC)

• Speed up any process via relatively simple method, often short projects – 1+ weeks

• 1984, Eliyahu Goldratt, business novel The Goal

• Address constraint (bottleneck) only way to speed up process – Elsewhere: work piles up at constraint or starves downstream workstations

– One or two constraints in any process

– Five focusing steps to address constraint (next slide)

– Cyclical: new constraint appears when previous one addressed

• Drum - buffer - rope model (similar to Lean flow)

• Many additional contributions to solve business problems.

12

Theory of Constraints (TOC)

1Identify

Constraint

2Exploit

Constraint

3 Subordinate Everything

Else

4Elevate

Constraint

5 Repeat, Avoid

Inertia

Five focusing steps

• Identify constraint: slowest process step

• Exploit Constraint: squeeze most out of it as it is (running 100% of time?)

• Subordinate Everything Else: else accumulate useless WIP (inventory)

• Elevate Constraint: Add capacity at that station – buy another machine, run in parallel, hire more workers

• Repeat: New bottleneck will appear, speed it up, don’t stop until reach goal

13

Six Sigma (DMAIC)

• Motorola 1986 Bill Smith, Mikel Harry, Bob Galvin, Richard Schroeder

• Breakthrough results, 4 – 6 month initial wave training with projects, then projects up to 6 months

• Reduce variation, center process output within spec limits, statistically focused, rigorous

• Strengths – Useful for difficult business process problems, mathematically sound if done right, proven in largest organizations

• Weaknesses – human infrastructure - belts/champions, long start up, long term commitment, long projects, difficult to deploy properly, executives have little patience, many failed initiatives

14

Project Charter

Problem Statement:

Business Case:

Goal:

Scope:

Cost/Benefit Estimate:

Milestones:

Measure

Includes project description,

baseline measures, business

results, team members,

schedule.

VOC Key Issue CTQDelighters

More Is Better

Must Be

Gather / display

data verifying

customer needs,

requirements

VOC

OutputsProcess

SIPOC

S

U

P

P

L

I

E

R

S

C

U

S

T

O

M

E

R

S

Inputs

Complete high-level “as is”

process map, analyze yield

to find step with highest

impact

DefineBusiness

Case

Document

project’s value

I P O

Input Measures

Process Measures

Output Measures

Measures

Develop

measures

based on

CTQ’s and

SIPOC map

Funnel

Determine critical

few measures

Gage R&R

Validate

measurement system

Col# 1 2 3 4 5 6

Inspector A B

Sample #1st Trial 2nd Trial Diff 1st Trial 2nd Trial Diff

1 2.0 1.0 1.0 1.5 1.5 0.0

2 2.0 3.0 1.0 2.5 2.5 0.0

3 1.5 1.0 0.5 2.0 1.5 0.5

4 3.0 3.0 0.0 2.0 2.5 0.5

5 2.0 1.5 0.5 1.5 0.5 1.0

Totals 10.5 9.5 3.0 9.5 8.5 2.0

Averages 2.1 1.9 0.6 1.9 1.7 0.4

Sum 4.0 Sum 3.6

XA 2.0 XB 1.8RA

RB

Graph data to show

variation, other patterns

Process

Capability

Calculate current process

capability, sigma

Data Display

0

1000

-1000

10 20 30

UCL

X

LCL

D B F A C E Other

Yield: 60%

Yield: 90%

Yield: 45%

Yield: 98%

Define

Measure

Analyze

Improve

Control

Data Collection Plan

Operational Definition and Procedures

Data Collection PlanWhat questions do you want to answer?

Data

What Measure type/

Data type

How

measured

Related

conditions

Sampling

notes

How/

where

How will you ensure

consistency and stability?

What is your plan for

starting data collection?

How will the data be displayed?

Develop data

collection plan

LSL USL

Cp =0.4

= 2.7

6 Methodology

(DMAIC)

From an original diagram by

I1

I2

I3

I4

O1 O2 O3 O4

FMEA

15

ControlAnalyze

Improve

VA NVA

Process View

identify problems

with detailed process

analysis

Cause & Effect

Display theories

about root causes

via Ishakawa

Regression Analysis

Verify Root causes via

statistical tools

Chi-Square

²

Regression

t-test

ANOVA

X1

Y

Hypothesis-Testing

Use hypothesis

testing to identify

differences

Cost-Benefit Analysis

Perform cost-benefit

analysis for preferred

solution

Generate Solutions

Generate solutions; Including

Benchmarks, select best

approach based on screening

criteria

Design of Experiments

Quantify relationships with DOE,

response surface optimization

Assess Risks

Identify solution

risks via FMEA,

take preventive

actionsPilot Solution

Pilot small scale solution,

evaluate results

Plan Implementation

Develop plan to implement, manage change

=

3.7

Cp =

1.4

Evaluate Results

LSL USL

= 2.7

Cp =

0.4Recalculate process capability,

process sigma, financial results

UCL

LCL

Monitor

Monitor process

with control charts

Develop, deploy a process

change response plan

Work

Instructions

Control/Check Points Response to Abnormality

NotesCode #Charac-

teristics

Control

Limits MethodWhoImmediate

Fix

Permanent

FixWho

Flowchart

2

12

Product Name

Process Name

Process Code #

Date of Issue: Issued by: Approved by:

Revision Date Reason Signature

1

QC Process Chart

Before After

Step 4 changes

implemented

} Improvement

Target

} Remaining Gap

Good

} Improvement

Before After

A1 A2 A3 A4 A2 A1 A3 A4

Process Change

Management

Qualify, validate and

revalidate change

Learnings

Recommendations

Results

•••

next

Document Key Lessons

Document results, summarize key

lessons, identify future projects

Documentation &

Standardization

Document new process to ensure

standardization; test; certify

TrainingCurriculum

Training

Manual

Fill to here

Hand off improved process to owner for

on-going management; recognize

improvement team.

Close / Recognize

Data View

Identify potential

causes via multi-variate

analysis, stratification,

etc

22

21

20

19

18

17

16

15

14

13

12

1 2 3 4 5 6 7 8 9 10

X

O

n

X

O

n

X

O

n

X

O

n

X

O

n

X

O

n

X

O

n

X

O

n

O

n

X

O

n

Select the Solution

Recommend a

solution involving key

stakeholders

Test Original

A

B

C

D

4

1

3

2

2 4 86 10

G

1 3 5 7 9

A

B

CD

FE

JIH

G

16

https://www.youtube.com/watch?v=H4vZN-cMJyY

Six Sigma Career Day

17

Case Study - Six Sigma for Internet Application Development*

• Systemcorp – began as a medical device manufacturer

• Wanted to compete in their segment using the Internet– Application development slow, buggy

– Mapped DMAIC to s/w development model – dev involved from Define phase

• Project Benefits for CTQ KPIs– Reliability 88% Customer complaints 75%

– Cycle time 28% Rework in the virtual environment 82%

• Transformed into project management software company– IBM purchased Systemcorp in 2004

– Intent to integrate capabilities into IBM Rational software unit

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* http://asq.org/pub/sqp/past/vol4_issue1/sqpv4i1harrington.html - published 2001

6 - Design for Six Sigma (DFSS/DMADV)

• Multiple methodologies – CDOV, IDOV, DDICA, DMEDI, DCCDI

• Create new process, or redesign an existing process, oriented to big breakthrough results, 6+ month projects after 6 training

• Uses different steps than DMAIC, new tools

• Use if existing process cannot be improved enough to meet business goals

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DFSS versus traditional design - IT• Characteristics

– More up-front work in DFSS

– More time in planning stage

– Project finishes sooner

– Overall, requires less work

– Less rework, dot releases, QA

– Happier, more loyal customers

– Leapfrogs competitors

20

Traditional Design

DFSS Design

LEGEND

Resourc

es R

equired

Time to market

Release Date Release Date

Design Activities Fixes, Redesign Activities

Lean/Lean Thinking

• Oriented to incremental repetitive improvements, 1 – 2 week projects (Kaizen), including training

• MIT worldwide automobile manufacturing study, The Machine That Changed The World, 1990, Womack, Jones, Roos

• Evolved from TPS – Increase value, identify/reduce wastes– Value Added Activity: Customer would pay, moves to end state, right 1st time

• Strengths – Deploys quickly, easier to execute than 6, solves many small problems – benefits begin quickly, add up over time

• Weaknesses – Not as rigorous as 6 - lack of control charts, less effective on more complex process problems,

21

Value, Wastes, Lean Principles*

Mura (Unevenness)

Muri (Overloading)

Muda (Uselessness)

Transportation Waiting

Overproduction Defects

Inventory Motion

Extra Processing (Wasted Talent)

* Lean Enterprise Institute, Taiichi Ohno’s original wastes found in mass production

1Identify Value

2Map Value Stream

3 Create Flow

4Establish

Pull

5 Seek

Perfection

Value Added Activity: Customer would pay, moves toward end state, done right 1st time

Necessary versus Unnecessary Waste

22

Lean Concepts, Tools – manufacturing, (IT)• Standardize Work: one best way

• Takt (T/D) : avg prod time to meet demand (sys response time)

• Single Piece Flow: reduce waiting (near real time vs batch process)

• Pull, Kanban signaling: reduce inventory (optimize sys resources)

• Five Why's: find, fix root cause (solve problem, don’t fix symptoms)

• SMED: Just in time, smaller batches, (VMs – reduce h/w costs, system maint)

• Heijunka/Lvl Workload: reduces all waste forms in spite of mixed demand

• TPM: Optimize overall effectiveness (O/S vs app based memory mgt)

• PDCA: iterative improvement via scientific method (system tuning)

• Gemba: go to the real work place (can’t fix all IT operations from desk in HQ)

• Just In Time: deliver supplies only as needed (allocate h/w only as needed)

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Lean Concepts, Tools – manufacturing, (IT)• Value Stream, Mapping: eliminate wastes (screens show only info of interest)

• Cellular Workflow : co-locate work (surface level integration)

• Five S: organize facility, workstation (surface level integration)

• Poka Yoke: prevent operator error (only allow valid data entry, step user thru)

• Spaghetti Diagram: identify motion in a diagram (show control, data flow)

• Andon: Visual factory status (visual network, system status)

• Bottleneck Analysis : see TOC

• Hoshin Kanri : Top down goal setting, tasking (separate O/S from apps)

• Jidoka: partial automation, stop on error (more AI over time)

• Kaizen: improvement projects (patches/releases/new systems)

24

Lean Project Example

• Vehicle auction – photo booth process – thousands/week

• Drivers walked to parked cars, drove them to photo booth

• Photographers took photos

• Drivers parked cars wherever they chose – usually minimized walk

• Cars scattered on enormous lot (think regional mall size)

• Can’t find cars to move to next process step – many wastes

• Added Kanban with cones - move cones as lanes empty, fill

• Drive cars from emptying lane, drive cars to adjacent filling lanes

• Reduced labor costs, space, emergency searches25

Lean 6 (LSS) - DMAIC projects + Lean Tools

• Book– Lean Six Sigma: Combining Six Sigma Quality with Lean Production Speed 2002, Michael George, Robert Lawrence, Jr.

• DMAIC project phases, belt roles

• Lean tools to address waste reduction – if in project charter

• Incremental repetitive progress within DMAIC phases– Kaizen events to obtain early wins, buy-in

• Strengths – Combine best of both worlds, more tools, faster than pure DMAIC

• Weaknesses – Still need human infrastructure

26

A Process Improvement Methodology Choice

27

Any business problem

Basic Quality Tools

Process Speed*

Lean

Fast Enough

DMAIC TOCDefectsTeam Knows

Capable

TRIZ

VAConstraint

DMAIC help

DFSS (w, w/o TRIZ)

Marketingprob?

Kano Modeling

Lean ProcSpd

VACon

Proc Spd

* Or general waste reduction; also do Lean when no specific problem exists

Start LeanVA Con

Start

Y

Y

YY

Y

Start

Y

YProblemDefinition

Start

Y

N

N

NN

N

N

N

Capable

Start

Y

N

Questions