Archive for the ‘Six Sigma Projects’ Category

Free Webinar – 11 Ways to Sink Your Six Sigma Project

Thursday, January 26th, 2012

Join us for a Free Webinar on February 1

Peter Bersbach

No matter what your knowledge of Lean Six Sigma, come join us in a one hour lively discussion on “11 ways to Sink Your Six Sigma Project.” Master Black Belt Peter Bersbach will give an overview of each way, then open the session to a discussion on how to avoid that particular failure mode. No ideas are wrong, but we will learn different approaches we might use to avoid each of the 11 ways and have a very successful project.

 


  1. Poor Project Selection
  2. Defining Defects
  3. Training Variation
  4. Statistical Training
  5. Shoddy Certifications
  6. High Attrition Rates
  7. Relying on GEMBA
  8. Tool Application
  9. Sustaining Results
  10. Estimating Benefits
  11. Six Sigma or Lean

Update 2/1/2012:
Click here to view the recording of the webinar 11 ways to sink your six sigma project. Length 44:17. This was a great webinar with a lot of input from the audience.

Update 2/8/2012:
Click here to view the recording of the webinar 11 ways to sink your six sigma project-the sequel. Length 221:48. Click here to see the chat log. This webinar covers points 8-11.

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Are Project Charters Important?

Thursday, June 30th, 2011

A student in my Lean Six Sigma Black Belt training course asked the following question:

Hi Tom,
In the lesson on “Choosing the Project – Carefully Assess Candidate Projects to Assure Succes”, slide # 21 – it states that the project charter has low relative important criteria, second to the last important criteria. Why is this so? This seems to contradict PMP’s recommendation that the project charter should be one of the most important items that must be completed before getting the project’s kick off. PMP suggests that each successful project needs a completed and signed off project charter. On this slide #21, are you saying that based on your experiences with the LSS organization, many of the LSS organizations put low priority on the project charter? Does this mean that many of the real life projects started without a completed and signed off project charter? If the answer to the above question is yes, please comment why.
Thanks, Mike

Here is my reply to Mike

These criteria were arrived at by me and some of my clients using a technique called AHP (which is covered in a later lesson.) We looked at a large number of actual projects, some which were successful and some which were not (a judgment made by me and Master Black Belts after consulting participants involved with the projects.) We brainstormed a list of criteria for success or failure, then performed pairwise comparisons and calculated the importance weights. It turned out that the quality of the project charter, while important, was less important to project success than the criteria above it. This might simply mean that the projects considered all had reasonably good charters so that this wasn’t a big factor in determining success. However, the fact that the project charter made the final list indicates that it’s a big deal. For different portfolios of projects it is likely that you would get different criteria and different weights. However, the criteria have been used by me and others to evaluate hundreds of projects in high-tech manufacturing, call centers, and aerospace. I think they’re pretty solid.
This does not contradict the PMP recommendation regarding process charters. Every item on the list is important and my clients (and The Pyzdek Insitute) require that all of the items must receive a non-zero score before any project is approved. Consider that there are literally hundreds of things that could be considered when evaluating a potential project; this set of 9 criteria is a very select group. The relative importance weights are used to score projects so you will have a rank-ordered list to help you choose which projects to pursue, as shown on slide 22 of the lesson. Note that I say “to help you choose.” In other words, the scores and rankings are just one input. Your judgment is also needed, and it may be that your leaders tell you to do a project despite its score.
Project scores
PS: Note that all of the projects on this list have a top score of 9 for their charters. As I recall, most of the projects we looked at when putting the criteria list together also had decent charters. This would account for the relatively low importance score for the project charter criterion. It’s not that it’s of low importance, it’s just that it’s not the best way of differentiating one project from another.
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Subjective Probability of Project Success

Thursday, February 10th, 2011

One of the early lessons in all of our courses asks students to enter a number for the “subjective probability of success” for the project. Several students enter a 1 in this worksheet cell. This indicates that they believe that the project is certain to succeed. In the real world, this is extremely unlikely. Considering all of the possible ways a project might fail, a number in the 90%+ range is so optimistic as to be wishful thinking. I’ve seen so many project fail due to reasons that might have been anticipated and acted on. Looking at a project through rose-colored glasses doesn’t do anyone any favors. The best time to take a cold, hard look at any project is before it has begun. Doing so will save innumerable headaches down the road.

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Six Sigma Project Presentations in a Nutshell

Saturday, August 14th, 2010

I’ve reviewed thousands of improvement projects. I’ve lost count of how many project presentations I’ve attended, either for certification purposes or for presentations to leaders. I’ve come to the conclusion that most Green Belts and Black Belts simultaneously present too much information, and not enough information. If I may speak to Green Belts and Black Belts on behalf of leaders and Master Black Belts everywhere, here’s what I’d like to say. What we’re asking is actually very simple, namely how did you apply the Six Sigma process to pursue a real opportunity? In other words, for your project just walk us through the L1 Six Sigma process shown in the figure, and do so in 45 minutes or less. I actually don’t even care if you use a PowerPoint template, or even if you have any slides whatever. I just want to hear a great Six Sigma success story.

Six Sigma L1 Map

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Lean Six Sigma Improvement and Work Design

Monday, June 14th, 2010

This article is an excerpt from a lesson in Pyzdek Institute Lean Six Sigma Black Belt training. Future posts will continue the topic.

In previous lessons you learned how to change a traditional batch-and-queue value stream into a lean value stream. Now we will discuss the design of the actual work that will take place within the processes of the value stream. By going a level deeper we will be able to improve the flow of work within the different processes in the value stream. Specifically, you will learn how to design continuous flow work cells. While the discussion here focuses mainly on manufacturing work cells, the lean principles described apply to any work, including that done in administrative, transaction, or services such as healthcare, retail, and so on.

Selecting Subprojects

The first step is to identify subprojects within the value stream. Subprojects, sometimes called project “loops,” are determined by looking at the future state value stream map and choosing groups of related processes in the value stream for improvement analysis. Each subproject will require a different team with its own set of knowledge, skills, and abilities. However, it is desirable to have at least one member of the Lean Six Sigma team who participates on all of the subproject teams. Figure 1 shows a future state value stream maps with subprojects identified.

Figure 1-Subproject “Loops”

Subproject Loops

Once subprojects are identified, the Lean Six Sigma team must decide which to pursue first, second, and so on. As a general rule it is a good idea to begin at the customer end of the value stream and work backwards. This provides the customer with improved service that they can see and feel quickly. Another criterion is that the pacemaker process should be improved early, since it sets the pace for the rest of the value stream. The “Inside-Out Rule” should be observed: get your own house in order before extending your improvement efforts to include the value streams of outside customers and suppliers. Of course, your decision regarding the starting point should also take into account the likelihood that the subproject will have a big impact on the business and its customers.

Don’t think of the future state value stream map as untouchable. If, as you go through the exercise of selecting and prioritizing subprojects, you see an obvious improvement that’s not on the map, revise the map. Remember, the goal is to improve as much and as quickly as possible.

Once the subprojects have been identified and prioritized, treat each of them as you would any project. You may want to review the modules covering project management in the Define phase at this time. For each project find a sponsor (the value stream owner is a good candidate,)  write a charter, select a team, develop a schedule, identify stakeholders, etc..  By now these things will be second nature to you.

Elements of Work

Figure 2 shows the relationship between value streams, processes, operations, workplaces and procedures in the creation of value. The relationship is hierarchical. To implement Lean all levels of the hierarchy are considered. In previous lessons we discussed ways to change value streams by replacing batch-and-queue push scheduling systems with lean value streams where work is scheduled to maximize flow. Several other lessons focus on ways to improve processes, the next level of the hierarchy. For example, by using process maps to see how work flows through processes or by identifying non-value-added work. In designing work cells we will go deeper than the process level and look at the design of operations, including the layout of workplaces and the standard procedures followed to perform the work in each operation. Such operations are known as standard operations, because the way work is performed follows strict standard procedures.

Figure 2-Value Creation  Hierarchy



Value Creation Hierarchy

Value Creation Hierarchy



Processes are distinct sets of operations nested within a value stream. Process improvement has been the topic of numerous lessons in this course and it requires knowledge of the root causes creating process problems. In the context of designing continuous flow work cells in Lean Six Sigma, we focus primarily on the things in a process that inhibit flow, such as

  • Non-value added process steps on the opportunity map
  • The distance people, materials, or WIP travel between process steps (from the spaghetti chart)
  • Changeover, setup and adjustment time (discussed below)
  • Identify the root causes that are creating quality issues that are responsible for scrap, rework, or problems downstream (discussed in later modules)

In Lean Six Sigma we design work cells that improve the process as well as the specific operations within a cell. We get into “nitty-gritty” details of the work itself, considering how materials are handled and moved, fixtures, workplace layout, movement of various workers, etc. The transfer of work elements  (small units of work) between workers is carefully considered. “Work” is the sum of all of the work elements required to create one complete unit through the entire value stream.

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The Roadmap to a Successful Six Sigma Project

Tuesday, October 27th, 2009

There are a lot of reasons that Six Sigma projects fail but they do not have to IF you can stick to the roadmap. I have done lots of projects most very successful but some have failed. In every case we stepped off of the tried and true path to success, the DMAIC roadmap. As simple and easy as these five steps seem to be, you will many times find them difficult to complete. But if that is happening, my advice to you is to “stay on the path”. Don’t skip a single step. If you stay on the path, you will find success.

DMAIC The five step process

So what are the five steps of this DMAIC roadmap? They are Define the issue, Measure the current state, Analyze and identify opportunities, Improve by implementing the best opportunities, and Control the new process to maintain the gains. You start every project at Define working your way through each step until you have put in place Controls to maintain your gains. What many of us do without thinking is we see a problem (Define)and go solve (improve) it. Most of the times you will find that within a year or maybe even a month or week the problem is back. What went wrong? We missed the other steps of the DMAIC roadmap. So let me spend some time talking about each step.

D – Define

The objective of Define is to define the issue (problem) and the real NEED to improve it. I call this need “the burning platform”. It can not be a nice thing to do, it has to be something that will have an impact on the bottom line of the company.

The second part of the define objective is to get alignment and commitment to solve this issue from the project sponsor and the project team. It also includes the team member’s supervision. We need them committed so they will not pull the team member for priorities lower than this project.

M – Measure

The objective of Measure is to go as a team, to where this process is physically and factually understand the existing process. This means collect facts and data not opinions. Everyone has an opinion but few have the facts to back up the opinion. I am not discounting opinions because most folks down in the trenches (and that is where you have to go) are the experts and have excellent idea of what is happening. The thing they lack is the data to prove it. So we listen to them carefully and then collect the data to prove what is happening. Note I said happening, that is not always what the expert says. But with the facts and data we can now go back to the expert and see if they now agree with what we found. Usually they do and are surprised by the findings.

The second part of the Measure objective is to then compile that data you have collected into a characterization of the current state of the process (the baseline for your project). This will show how bad things are or are not. Most of the time things will be worse than they first thought. In some cases, you may find that things are not bad at all. Then you need to explain your results to the sponsor and if the sponsor agrees close the project. You see sometimes even sponsors opinion of what is wrong is not backed by facts and data. So when you collect them it becomes obvious that this was not an issue.

A – Analyze

The objective of Analyze is to take the current state data and analyze it to determine the root causes of the issue. These root causes become opportunities to improve. Measure data shows you the “surface effects” or “pain” the company feels but not usually the deeper root of the issue. Because of that, you will usually find that you need to collect more data related to the measure data that validates the teams opinion of what is causing the current state issue to exist. So here in Analyze we have to take a “Deep Dive” into areas that measure pointed out as really needing improvement.

I – Improve

The objective of Improve is to develop and implement the best plan for improvement of the opportunities (root causes) identified in the Analyze step. There are two key phrases in this objective. “Develop the best plan” and “implement the best plan”. Develop takes some brainstorming and then some experimenting to validate that what you came up with would work. Second in develop is a plan. In the plan you will need several options so that when the time comes for getting an OK to implement it is not one or done (no action taken). Give the sponsor options to choose from but pick your best set and pitch it to them with a why it is best (remember facts and data).

The second key phrase is “implement the best plan. Whatever is picked, you need to create a detailed implementation plan. Create a time line and stick to it.

C – Control

Note: this is the most forgotten step. The objective of Control is to develop and implement the best controls to maintain the gains that the new process is producing. With anything new, things never work perfect. When things go wrong, as they will, you need a plan/ controls that will guide everyone as to what to do. If you do not do this when things go wrong, those involved will revert back to what they know and have done for years. A control plan can be as simple as a log of what happened, or as complex as a statistical control chart. What ever it is it needs to help the people working the new process continue to follow it.

There is a second part to control that has nothing to do with control but has everything to do with recognition. People on and off the team have worked very hard during the project to solve the issue and to keep things going while the team has worked to solve the issue. There needs to be a celebration and rewards for everyone involved to celebrate the success and their contribution to the solution. In today’s business world, we are faster to tell folks what is wrong than what is right so make sure you celebrate your success.

This is just a quick look at the DMAIC process and has not even address questions that should be answered in each step. My plan is to write five more articles each one addressing one of the steps in the DMAIC process in more detail. If you don’t see them at this blog, you will find them at the Six Sigma Knowledge Center.

Peter Bersbach
Six Sigma Master Black Belt
Bersbach Consulting LLC
(520) 829-0090

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Getting Your First Six Sigma Gig

Monday, September 21st, 2009

Since I started teaching students online a year ago I’ve encountered something new: students trying to get into Six Sigma for the first time. This obviously wasn’t a problem when I was training clients whose employers were getting them trained specifically to use the approach in their organizations. I write this for those of you who are trained in Lean Six Sigma and are in the situation that you are not working for an employer who gives you the chance to practice your newly acquired skills.

Newly trained Six Sigma Belts without experience face a situation similar to that of newly graduated college students. This site contains some great tips on writing a resume when you have no experience.

However, nearly all of you have a big advantage: you have a lot of job experience. And much of your experience is closely related to Six Sigma. Many of you have led project teams, quality improvement teams, or other work teams. This is, of course, a big part of Six Sigma work. Play it up in your resumes!

You can also try finding projects where you can enhance your resumes by actually applying what you’re learning in your training. I’ve done pro bono work for community hospitals and charities such as Goodwill and Red Cross. Some of my self-study students are working with their physicians offices to reduce errors and improve efficiency. Others are working with church groups to help improve attendance at churches or church events, lower costs, or improve the satisfaction of those who attend. My guess is that few churches wouldn’t be interested in Six Sigma projects to increase collections!

The most important thing to realize is that you have an extremely useful skill set. Be bold and confident when you approach your prospective “client” for a project. Six Sigma has been proclaimed by management guru Jack Welch as the most significant management innovation in the past quarter century. You’re learning about an approach that few know and nearly everyone can benefit from. You’ll be surprised at how much fun it can be, and how productive. Finally, this stuff really works! You’ll soon find that your skills are soon in more and more demand. After all, the supply of processes that need to be improved is infinite!

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Selecting Winning Projects

Wednesday, September 16th, 2009

Software helps select the best projects.

In a previous column I discussed how Six Sigma projects should be selected using the theory of constraints (TOC). After attempting to do so, most discover yet another constraint: money. In most organizations there are more opportunities for improvement than one can afford to pursue. If it isn’t money, some other resource will be in short supply, such as talent. And as if that weren’t bad enough, the task is further complicated by uncertainty of the payoff from the projects and their probability of success.

An exciting computer software product known as Crystal Ball Pro by Decisioneering makes it possible to select winning projects by factoring in all of the relevant factors. It does so by simulating various scenarios thousands of times, then choosing those that perform best.

For example, the research and development group of a major public utility has identified eight possible Six Sigma projects. A net present value analysis has computed:

  • The expected revenue for each project, if it’s successful
  • Its estimated probability of success
  • Its required initial investment

Using these figures, the finance manager has computed the expected return and the expected profit for each project. Unfortunately, the available budget is only $2 million, and selecting all projects would require a total initial investment of $2.8 million. Thus, the objective is to determine which projects will maximize the total expected profit while staying within the budget limitation. Complicating this decision is the fact that both the expected revenue and success rates are highly uncertain. Figure 1 shows a spreadsheet model for this problem.

Figure 1: Project Selection Spreadsheet

The decision variables in column H are binary; that is, they can only assume the values zero (do not fund the project) and one (fund the project.) The assumption variables are in the “Expected Revenue” and “Success Rate” columns. Crystal Ball Pro will use simulation to evaluate a range of values for these two columns. The total profit, shown in cell G19, is a forecast variable whose values depend on the assumption and decision variables. The idea is to find the combination of projects (determined by the decision variables) that maximize total profit, taking into account the variation in expected revenue and the probability of success.

The project selection spreadsheet isn’t quite good enough given that the number of possible sets of projects is too large to identify by trial-and-error. Crystal Ball Pro can help here too. It includes a
program, called OptQuest, which will perform a search to find the optimal package of projects (see Figure 2).

Figure 2: Progress Toward a Solution

The best solution OptQuest found (in a search that I limited to 10 minutes) is to fund all projects except 3 and 5 (see Figure 3). The expected net profit is $1.54 million. Note that the distribution of total profit includes a number of scenarios that would result in a net loss. This occurs because OptQuest was asked to find the solution that maximized expected (average) total profit, but it can limit searches to profitable software solutions too.

Figure 3: Results

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Project Selection – Getting a good one!

Thursday, September 3rd, 2009

Bersbach Consulting LLC provides Six Sigma training coaching and support across Arizona, including the Tucson, Phoenix, Scottsdale, and Glendale areas. At this time we would like to thank our friends and clients for their support. If you have landed here looking for our Six Sigma training, coaching or support services in Tucson, then please follow this Six Sigma Training link.


Project selection is critical to project success.  To insure you have the right project let me give you nine areas that you should think about and if any you do not have then I’d find another that has all nine as they ALL are important.

  1. Project Sponsorship – The project needs a High Level individual that is committed to seeing this project completed. Not just interested but a real need for him/her to see success.
  2. Benefits – You need to make sure you have well defined and measurable benefits agreed upon by you your team and your sponsor.
  3. Available Resources – You do not have a crystal ball so at this point you will not know all the resources that you will use but you do have an idea of some of the resource that it will take. Make sure that they will be available during the project when you need them.
  4. Scope in terms of your (the black belt) effort – Do you have the time to do the project and will it return a big enough benefit for your level of expertise.  This is really asking will it take to much of your time and you will need other Black Belt help or is it something that is a “go do project” that really does not need your Six Sigma Expertise to accomplish.
  5. Deliverables – Have the things that you need to accomplish well defined. This is not the benefits but the things you have to put in place to get the benefits. Think of this as the vision of the state you are trying to achieve.
  6. Time to Complete defined – Usually for a Black Belt project it should take more than 3 months but less than 12. Like some else said if the project is to big, break into pieces and make your first project one piece. BUT avoid making the problem a “Job”. You have to complete hand off and move on.
  7. Team – Do you have a true cross functional team? What I mean is do you have someone from every function that works the process you are trying to improve.
  8. Project Charter – This is where you have the project well defined. As mentioned by other if you do not have this you will not succeed.
  9. Approach Value – Like the Scope in terms of your effort ask yourself if this project really needs a Six Sigma approach to solve? Or can a group just go do it. Usually if the project has been suggested by someone who understands Six Sigma it will be and will need the DMAIC process to solve. But I have projects given to me to “Clean the lab”. In reality they just did not have time themselves to clean it. So hire someone to do that for less than you make and you use your talents on a project fitting them.

Well I hope that is help.

Good luck! Let me know if I can help any more.

Peter Bersbach

If your business is located anywhere in the World including the US, Tucson, Oro Valley , Oracle, Phoenix, Glendale, and Scottsdale, Marana, Green Valley Arizona or beyond and you would like to learn more about our Six Sigma training, coaching and support services please call  Bersbach Consulting LLC at 1-520-829-0090  Now!

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Selecting Six Sigma Projects

Thursday, August 6th, 2009

Sometimes just determining which projects to undertake isn’t enough.

Six Sigma is project-intensive. Large firms, such as General Electric, report completing as many as 7,000 Six Sigma projects in a single year. Even much smaller companies can complete several hundred projects per year. But this should come as no surprise, as projects are the means by which Six Sigma converts knowledge into bottom-line results.

However, not all Six Sigma projects produce bottom-line benefits; many produce only local improvements. In my June column I described how to use the theory of constraints (TOC) to decide where in the process to conduct Six Sigma projects. But we need to go even further. In addition to telling us where to conduct Six Sigma projects, knowing the process constraints also helps us determine what the focus of the project should be.

Six Sigma projects address three different areas of potential improvement: quality, cost and schedule. Critical characteristics in the product, process or service are identified using CTx notation: Critical-to-quality characteristics are designated CTQ; critical-to-cost, CTC; and critical-to-schedule, CTS. This classification scheme, combined with the TOC, can help focus Six Sigma projects by defining project deliverables in terms of their impact on one or more CTx characteristics.

Figure 1: A Simple Process with a Constraint

Consider the simple process in Figure 1. The process is producing a product for which there is a market demand of 20 units per week. However, the best this process can deliver is seven units per week because that’s the best step C can do.

Applying the TOC strategy described in another post, we know that Six Sigma projects that affect step C should be given priority, those affecting steps D and E second priority, and those affecting A and B third priority. This tells us where to focus our efforts. The CTx information can help us determine what to focus on.

Assume that you have three Six Sigma candidate projects all focusing on process step C, the constraint. The area addressed is correct, but which project should you pursue first? Assume that one project will improve quality, another cost, and another schedule. Does this new information help? Definitely! Table 1 shows how this information can be used.

Table 1: Throughput Priority of CTx Projects That Affect the Constraint

Projects in the same priority group are ranked according to their impact on throughput. The same thought process can be applied to process steps before and after the constraint. The results are shown in Table 2. (Note that Table 2 assumes that projects before the constraint don’t result in problems at the constraint.) Remember, impact should be measured in terms of throughput.

Knowing the project’s throughput priority will help you make better project selections among project candidates. Of course, the throughput priority is just one input into the project selection process; other factors–for example, integration with other projects, a regulatory requirement or a better payoff in the long-term–may lead to a different decision.

Table 2: Project Throughput Priority vs. Project Focus

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