Integrating Project Management into a Six Sigma System

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Integrating Project Management into a Six Sigma
System
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Manufacturers and transactional firms share a
drive to lower costs, reduce cycle time and offer
a diverse product mix as they pursue higher
profits and an increased market share in a
growing global environment. Consumers (those
paying for the end product) want products or
services that are cheaper, readily available and
of a quality that meets their expectations. A
variety of systems such as Total Quality
Management, Total Quality Control and Six Sigma
have been implemented by organizations to help
guide the efforts of creating new products,
reducing product costs, improving manufacturing
or organizational capabilities, realizing new
market share or entering new markets. These
systems rely on teams of people to identify the
voice of the customer (both internal and
external), taking into account the organization's
competencies. They also require an ongoing
portfolio of projects aimed at creating revenue
or reducing costs. While not all
organizations implement these systems or keep
them in their original form, many of the core
ideas are adopted. Some organizations have
integrated two or more systems. One melding of
systems that holds significant promise is the
integration of the Six Sigma methodology with the
tools and processes of project management.
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• The Six Sigma methodology DMAIC (Define, Measure,
  Analyze, Improve, Control) offers a structured
  and disciplined process for solving business
  problems. Six Sigma uses tools designed to
  identify root causes for the defects in processes
  that keep an organization from providing
  its customers with the consistent quality of
  products the customers require on time and at the
  most reasonable cost. The Six Sigma work is
  normally done through cross-function teams that
  manage the project. Yet the methodology does not
  address the management of the project itself.
• Project management's tools and techniques focus
  on attributes of a project such as development,
  execution, control and closing. There is an
  assortment of tools that are used throughout the
  project to manage the project to completion.

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• Six Sigma and Project Management
• With Six Sigma's DMAIC process, a problem is
  first defined and quantified then measurement
  data is collected to bound and clarify the
  problem analytical tools are deployed to trace
  the problem to the root cause a solution for the
  root cause is identified and implemented and
  finally, the improved operations are subjected to
  ongoing control to prevent recurrence. The Six
  Sigma toolkit includes a variety of techniques,
  primarily from statistical data analysis and
  quality improvement. Design of experiments (DOE),
  failure mode and effects analysis (FMEA),
  cause-and-effect diagram (aka fishbone diagram,
  Ishikawa diagram), process flow diagram and gage
  repeatability and reproducibility (RR) studies
  are among Six Sigma's many tools.
• While the methodology of Six Sigma has proven
  effective in troubleshooting or improving
  existing processes using the DMAIC approach,
  there are challenges to confront when using Six
  Sigma. A company that relies solely on Six Sigma
  to run its projects may experience issues with
  control of the project process. A Master Black
  Belt was interviewed from a firm that utilized a
  pure Six Sigma system for its projects. The firm
  found that the majority of its projects were not
  being completed as the Six Sigma system would
  suggest. A lack of management support,
  insufficient resources and failure to understand
  the voice of customer (VOC) were some of the
  reported problems.
• The DMAIC approach focuses on controls for the
  improvements to the process, not the control of
  the project management process.
• "Project management is the application of
  knowledge, skills, tools, and techniques to
  project activities to meet project requirements,"
  according to the Project Management Institute.
  Work breakdown analysis, schedule development,
  risk analysis, scope definition, status reporting
  and cost budgeting are common processes that
  project managers use to plan, execute, control
  and close projects. These processes and
  associated tools work for both transactional
  projects and manufacturing projects. The project
  management approach utilizes various tools and
  processes to complete a process improvement
  project.
• The processes identified above are far from an
  exhaustive list of the processes available in the
  project management arsenal, but represent those
  most useful to a process improvement project. The
  strengths of project management include formal
  control of change, scope, time and money. These
  controls are important to any firm trying to
  improve its bottom line via process improvements.

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• The Integration of the Two Approaches
• By taking the process control strength of project
  management and combining it with the
  troubleshooting strength of Six Sigma, an
  organization can create a consistent, controlled
  and predictable process troubleshooting system.
  The integration can begin with the development of
  a project life cycle. Implementing the Six Sigma
  methodology for defining the problem adds
  statistical knowledge of the problem, reducing
  the chance of an incorrect assessment of the
  issue as defined by the customer and scope
  documents. Using Six Sigma tools will reduce the
  bias that influences perceptions about a
  particular problem.
• Six Sigma tools used for measurement of the
  problem gage RR, FMEA and control plans can
  be useful within project management's validation
  phase of the life cycle. Adding budgeting,
  scheduling and resource management from project
  management throughout the life cycle, will
  allow management to make informed decisions to
  move from phase to phase. The tools of both
  project management and Six Sigma can be placed in
  this life cycle to plan, act, do and check for a
  process improvement project. An example of a
  project life cycle is shown in the table below.
  This life cycle shows DMAIC activities (in red)
  assigned to project management phases and
  controlled by decision points at the bottom of
  each column. Six Sigma Improve and Control steps
  are split between design/testing and
  implementation.

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• Using Six Sigma tools throughout the project life
  cycle adds a series of troubleshooting tools and
  methodology to the project management system.
  Project management contributes tools to monitor
  and track the progress of the project and also
  adds controls to the problem.
• Examples of problems that might benefit from this
  integrated approach include a low yield of a
  production line, a long time to market for a new
  mutual fund, or a high defect rate for a new
  software release.
• A tool integration problem serves to illustrate
  the integration of Six Sigma tools and project
  management. Assume a company operates a website
  that generates numerous user complaints about the
  ease of navigation. The consequence is that this
  site is underutilized. For this problem Six
  Sigma's Pareto analysis, fishbone diagrams and
  FMEA can be used to identify the root cause for
  the issue. Recommended solutions can be generated
  and the cost can be evaluated. A project
  management scope, charter and work breakdown
  structure can be developed and the project can be
  executed accordingly. Ultimately, this
  integration yields a robust troubleshooting
  methodology with project process management and
  control.
• Conclusion Refinement of Project Systems
• As organizations continue to look for ways to
  improve their systems, cut costs and develop new
  products for the benefit of profit, project
  systems will be continually refined. The
  integration of project management and Six Sigma
  is a natural fit. This integrated approach will
  better define ways to accomplish cost reduction,
  process enhancement, faster implementation and
  new product development. The integration of the
  Six Sigma methodology and project management
  yields an approach that can be used for both
  transactional and manufacturing organizations to
  better understand the problems and opportunities
  that lie ahead