Lean 6 Sigma in project management - Revision history

Tkokotas at 15:21, 18 December 2018

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			''Developed by Gustavo Adolfo Ruiz Muñoz''


	The Lean Six Sigma is a methodology that combines the lean philosophy and the Six Sigma methodology in order to increase the value of resulting products at a lower cost. This combined methodology helps to gain knowledge in how business processes are developed. In project management, this philosophy may help to conduct business processes into more efficient and effective ways. It comprehends all parts of the organization: the overall Portfolio management point of view, the programs developed into a company and finally, the individual projects inside the organization.		The Lean Six Sigma is a methodology that combines the lean philosophy and the Six Sigma methodology in order to increase the value of resulting products at a lower cost. This combined methodology helps to gain knowledge in how business processes are developed. In project management, this philosophy may help to conduct business processes into more efficient and effective ways. It comprehends all parts of the organization: the overall Portfolio management point of view, the programs developed into a company and finally, the individual projects inside the organization.

Gusru at 17:28, 28 September 2015

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	*Work load balancing: It aims to reduce non-value added activities in a project. Load charts are in literature where timing in different types of operation is controlled. <ref name="LSS7 "> Quality America Inc. ''Level Load Balancing ''. '''Description''': Quality America Inc is a company related to training and certification in Lean Six Sigma </ref> This tool may have deep impact under a program strategy alignment in a business case, since it is able to coordinate times to adjust better to the delivery time. Note that the delivery time and the time to market expected from a product shall be aligned as much as possible in a lean methodology.		*Work load balancing: It aims to reduce non-value added activities in a project. Load charts are in literature where timing in different types of operation is controlled. <ref name="LSS7 "> Quality America Inc. ''Level Load Balancing ''. '''Description''': Quality America Inc is a company related to training and certification in Lean Six Sigma </ref> This tool may have deep impact under a program strategy alignment in a business case, since it is able to coordinate times to adjust better to the delivery time. Note that the delivery time and the time to market expected from a product shall be aligned as much as possible in a lean methodology.

	*7 wastes: It is another Lean tool originally used for the manufacturing industry that can be implemented in business growth evaluation. It includes evaluation of putting too much work in progress originating bottle necks. It also analyse delays and extra-capabilities of the organization that were hidden until then. <ref name="LSS8 "> Terry, J. ~~''7 Wates That Impact Business Growth. ''~~ http://leankit.com/blog/2015/08/7-wastes-that-impact-business-growth/ '''Description''': Blog from Leankit, a company dedicated to visual management and forecasting software designed to optimize the effectiveness of workers </ref>. The 7 wastes can treat as residuals those activities in project management which are considered not to give extra value to the product or seriously deteriorate other important activities. Residuals are erased or reoriented.		*7 wastes: It is another Lean tool originally used for the manufacturing industry that can be implemented in business growth evaluation. It includes evaluation of putting too much work in progress originating bottle necks. It also analyse delays and extra-capabilities of the organization that were hidden until then. <ref name="LSS8 "> Terry, J. http://leankit.com/blog/2015/08/7-wastes-that-impact-business-growth/ ''7 Wates That Impact Business Growth. '' '''Description''': Blog from Leankit, a company dedicated to visual management and forecasting software designed to optimize the effectiveness of workers </ref>. The 7 wastes can treat as residuals those activities in project management which are considered not to give extra value to the product or seriously deteriorate other important activities. Residuals are erased or reoriented.

	===Six Sigma Tools===		===Six Sigma Tools===

	*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consists of a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., ~~'' Pareto Analysis Step by Step''~~ http://www.projectsmart.co.uk '''Description''': ProjectSmart.co.uk is a website which aims to ease the access to project management information. </ref>It can be used for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.		*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consists of a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., http://www.projectsmart.co.uk'' Pareto Analysis Step by Step'' '''Description''': ProjectSmart.co.uk is a website which aims to ease the access to project management information. </ref>It can be used for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.

	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' ~~http://www.isixsigma.com~~ '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , http://www.isixsigma.com'' A Guide To Control Charts'' '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.
	[[File: controlchart.jpg ‎\|500px\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> ~~''Production, Quality & Manufacturing''~~ http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]		[[File: controlchart.jpg ‎\|500px\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> http://acqnotes.com/acqnote/careerfields/control-chart ''Production, Quality & Manufacturing'' '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]
	*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.		*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.

Gusru at 17:16, 28 September 2015

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	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.
	[[File: controlchart.jpg ‎\|~~400px~~\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]		[[File: controlchart.jpg ‎\|500px\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]
	*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.		*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.

Gusru at 17:15, 28 September 2015

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	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.
	[[File: controlchart.jpg ‎\|~~300px~~\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]		[[File: controlchart.jpg ‎\|400px\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]
	*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.		*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.

Gusru at 17:15, 28 September 2015

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	*Kaizen Events: This tool is based in the rapid improvement of business processes. It was firstly implemented by Toyota in the manufacturing industry. Nowadays companies use it in portfolio management as well to determine why a project has its certain costs or why a determine number of resource are used in it. These questions may lead to new ones that in the end will help to identify all kind of waste of resources a company may have. <ref name="LSS5 "> United States Environmental Protection Agency. '' Lean Thinking and Methods: Kaizen ''. '''Description''': Environmental Protection Agency is a government agency that aims to protect human health and the environment. </ref>		*Kaizen Events: This tool is based in the rapid improvement of business processes. It was firstly implemented by Toyota in the manufacturing industry. Nowadays companies use it in portfolio management as well to determine why a project has its certain costs or why a determine number of resource are used in it. These questions may lead to new ones that in the end will help to identify all kind of waste of resources a company may have. <ref name="LSS5 "> United States Environmental Protection Agency. '' Lean Thinking and Methods: Kaizen ''. '''Description''': Environmental Protection Agency is a government agency that aims to protect human health and the environment. </ref>
	[[File: Kayzen.jpg ‎\|400px\|thumb\|center\|'''Figure 3:'''Benefits from Kayzen events. <ref name="LSS223 "> http://www.velaction.com/products-services/lean-consulting/kaizen-event-support/ ''Kayzen event support'' '''Description''': Velaction.com is a website for improving the performance of companies and skills of people. </ref>]]		[[File: Kayzen.jpg ‎\|400px\|thumb\|center\|'''Figure 3:'''Benefits from Kayzen events. <ref name="LSS223 "> http://www.velaction.com/products-services/lean-consulting/kaizen-event-support/ ''Kayzen event support'' '''Description''': Velaction.com is a website for improving the performance of companies and skills of people. </ref>]]
	The Kayzen tool help to develop all areas shown in Figure 3. The main objective is to build up a lean culture that would have a direct impact on the business results.		The Kayzen tool help to develop all areas shown in Figure 3. The main objective is to build up a lean culture that would have a direct impact on the business results.
	*Value stream mapping: The value stream mapping is a tool to understand every value proposition in a company. It identifies the positive and negative aspects of value proposition. E.g.: the network between stakeholders involved in creation and delivery of new products. It also identifies conflicting values and it identifies opportunities to reoriented projects or entire portfolios to more profitable business processes. <ref name="LSS6 "> Bocken, N.M.P., Short, S., Rana, P., Evans, S., Coporate Governance, Vol. 13 Iss: 5 , pp. 482 – 497 '' A Value Mapping Tool For Sustainable Business Modelling ''. '''Description''': This article comes from the University of Cambridge. </ref>		*Value stream mapping: The value stream mapping is a tool to understand every value proposition in a company. It identifies the positive and negative aspects of value proposition. E.g.: the network between stakeholders involved in creation and delivery of new products. It also identifies conflicting values and it identifies opportunities to reoriented projects or entire portfolios to more profitable business processes. <ref name="LSS6 "> Bocken, N.M.P., Short, S., Rana, P., Evans, S., Coporate Governance, Vol. 13 Iss: 5 , pp. 482 – 497 '' A Value Mapping Tool For Sustainable Business Modelling ''. '''Description''': This article comes from the University of Cambridge. </ref>
	[[File: SimplifiedToolMapping2.jpg ‎\|700px\|thumb\|center\|'''Figure 4:'''Simplified Value Mapping Tool. <ref name="LSS6 "> </ref>]]		[[File: SimplifiedToolMapping2.jpg ‎\|700px\|thumb\|center\|'''Figure 4:'''Simplified Value Mapping Tool. <ref name="LSS6 "> </ref>]]

Gusru at 17:14, 28 September 2015

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	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.
	[[File: controlchart.jpg ‎\|300px\|thumb\|center\|'''Figure 1:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]		[[File: controlchart.jpg ‎\|300px\|thumb\|center\|'''Figure 5:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of a department of defence to the aeronautic community. </ref>]]
	*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.		*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.

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	ends showing the following analysis:		ends showing the following analysis:
	[[File: Pareto Graph2.jpg ‎\|600px\|thumb\|center\|'''Figure 1:''' Pareto boundaries. <ref name="LSS12 "> Hu, G. , Wang, L. , Fetch, S. , Bidanda, B. (2008) International Journal Of Production Research'' A Multi-Objective Model For Portfolio Selection To Implement Lean And Six Sigma Concepts '' '''Description''': The Internation Journal Of Production Research is a journal member of the International Foundation For Production Research, a group related to production systems and processes.</ref>]]		[[File: Pareto Graph2.jpg ‎\|600px\|thumb\|center\|'''Figure 6:''' Pareto boundaries. <ref name="LSS12 "> Hu, G. , Wang, L. , Fetch, S. , Bidanda, B. (2008) International Journal Of Production Research'' A Multi-Objective Model For Portfolio Selection To Implement Lean And Six Sigma Concepts '' '''Description''': The Internation Journal Of Production Research is a journal member of the International Foundation For Production Research, a group related to production systems and processes.</ref>]]
	Each of the points of ~~the figure~~ shows different optimal for project portfolio. The correct choose of the order in which projects are selected and execute depends on the necessities of a company. In this example, the Pareto frontier tells that for a total selection of projects with a portfolio cost e.g 1 million $ the portfolio benefit index should never be higher than around -470(the lower the better) in order to correctly implement Lean Six Sigma.		Each of the points of Figure 6. shows different optimal for project portfolio. The correct choose of the order in which projects are selected and execute depends on the necessities of a company. In this example, the Pareto frontier tells that for a total selection of projects with a portfolio cost e.g 1 million $ the portfolio benefit index should never be higher than around -470(the lower the better) in order to correctly implement Lean Six Sigma.

	The example described shows a direct application of some tools explained in the “Tools” section. A deeper explanations of this case can be found in the literature. <ref name="LSS12 "> </ref>		The example described shows a direct application of some tools explained in the “Tools” section. A deeper explanations of this case can be found in the literature. <ref name="LSS12 "> </ref>

Gusru at 17:13, 28 September 2015

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Gusru at 17:09, 28 September 2015

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Gusru at 15:08, 28 September 2015

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	*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consist on a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., '' Pareto Analysis Step by Step'' http://www.projectsmart.co.uk '''Description''': Project Smart is website which aims to ease the access to project management information. </ref>It can participate for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.		*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consist on a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., '' Pareto Analysis Step by Step'' http://www.projectsmart.co.uk '''Description''': Project Smart is website which aims to ease the access to project management information. </ref>It can participate for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.

	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance, where periodic reviews of the progress of a program is done in order to determine whether benefits coming from a project are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance, where periodic reviews of the progress of a program is done in order to determine whether benefits coming from a project are within the boundaries.
	[[File: controlchart.jpg ‎\|300px\|thumb\|center\|'''Figure 1:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart </ref>]]		[[File: controlchart.jpg ‎\|300px\|thumb\|center\|'''Figure 1:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart '''Description''': Acqnotes.com is a website that provides sources of the a department of defence to the aeronautic community. </ref>]]
	*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.		*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.

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	ends showing the following analysis:		ends showing the following analysis:
	[[File: Pareto Graph2.jpg ‎\|600px\|thumb\|center\|'''Figure 1:''' Pareto boundaries. <ref name="LSS12 "> Hu, G. , Wang, L. , Fetch, S. , Bidanda, B. (2008) International Journal Of Production Research'' A Multi-Objective Model For Portfolio Selection To Implement Lean And Six Sigma Concepts '' </ref>]]		[[File: Pareto Graph2.jpg ‎\|600px\|thumb\|center\|'''Figure 1:''' Pareto boundaries. <ref name="LSS12 "> Hu, G. , Wang, L. , Fetch, S. , Bidanda, B. (2008) International Journal Of Production Research'' A Multi-Objective Model For Portfolio Selection To Implement Lean And Six Sigma Concepts '' '''Description''': The Internation Journal Of Production Research is a journal member of the International Foundation For Production Research, A group related to production systems and processes.</ref>]]
	Each of the point of the figure shows different optimal for project portfolio. The correct choose of the order in which projects are selected and execute depends on the necessities of a company. In this example, the Pareto frontier tells that for a total selection of projects with a portfolio cost e.g 1 million $ the portfolio benefit index should never be higher than around -470(the lower the better) in order to correctly implement Lean Six Sigma.		Each of the point of the figure shows different optimal for project portfolio. The correct choose of the order in which projects are selected and execute depends on the necessities of a company. In this example, the Pareto frontier tells that for a total selection of projects with a portfolio cost e.g 1 million $ the portfolio benefit index should never be higher than around -470(the lower the better) in order to correctly implement Lean Six Sigma.

Gusru at 14:46, 28 September 2015

2015-09-28T14:46:47Z

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	===Lean Tools===		===Lean Tools===

	*Kaizen Events: This tool is based in the rapid improvement of business processes. It was firstly implemented by Toyota in the manufacturing industry. Nowadays companies use it in portfolio management as well to determine why a project has its certain costs or why a determine number of resource are used in it. These questions may lead to new ones that in the end will help to identify all kind of waste of resources a company may have. <ref name="LSS5 "> United States Environmental Protection Agency. '' Lean Thinking and Methods: Kaizen ''. '''Description''': Environmental Protection Agency ~~is a government agency~~ is a government agency that aims to protect human health and the environment. </ref>		*Kaizen Events: This tool is based in the rapid improvement of business processes. It was firstly implemented by Toyota in the manufacturing industry. Nowadays companies use it in portfolio management as well to determine why a project has its certain costs or why a determine number of resource are used in it. These questions may lead to new ones that in the end will help to identify all kind of waste of resources a company may have. <ref name="LSS5 "> United States Environmental Protection Agency. '' Lean Thinking and Methods: Kaizen ''. '''Description''': Environmental Protection Agency is a government agency that aims to protect human health and the environment. </ref>
	[[File: Kayzen.jpg ‎\|400px\|thumb\|center\|'''Figure 3:'''Benefits from Kayzen events. <ref name="LSS223 "> http://www.velaction.com/products-services/lean-consulting/kaizen-event-support/ Kayzen event support'' '''Description''': Velaction.com is a website for improving the performance of companies and skills of people. </ref>]]		[[File: Kayzen.jpg ‎\|400px\|thumb\|center\|'''Figure 3:'''Benefits from Kayzen events. <ref name="LSS223 "> http://www.velaction.com/products-services/lean-consulting/kaizen-event-support/ ''Kayzen event support'' '''Description''': Velaction.com is a website for improving the performance of companies and skills of people. </ref>]]
	The Kayzen tool help to develop all areas shown in Figure 3. The main objective is to build up a lean culture that would have a direct impact on the business results.		The Kayzen tool help to develop all areas shown in Figure 3. The main objective is to build up a lean culture that would have a direct impact on the business results.
	*Value stream mapping: The value stream mapping is a tool to understand every value proposition in a company. It identifies the positive and negative aspects of value proposition. E.g.: the network between stakeholders involved in creation and delivery of new products. It also identifies conflicting values and it identifies opportunities to reoriented projects or entire portfolios to more profitable business processes. <ref name="LSS6 "> Bocken, N.M.P., Short, S., Rana, P., Evans, S., Coporate Governance, Vol. 13 Iss: 5 , pp. 482 – 497 '' A Value Mapping Tool For Sustainable Business Modelling ''. '''Description''': This article comes from the University of Cambridge. </ref>		*Value stream mapping: The value stream mapping is a tool to understand every value proposition in a company. It identifies the positive and negative aspects of value proposition. E.g.: the network between stakeholders involved in creation and delivery of new products. It also identifies conflicting values and it identifies opportunities to reoriented projects or entire portfolios to more profitable business processes. <ref name="LSS6 "> Bocken, N.M.P., Short, S., Rana, P., Evans, S., Coporate Governance, Vol. 13 Iss: 5 , pp. 482 – 497 '' A Value Mapping Tool For Sustainable Business Modelling ''. '''Description''': This article comes from the University of Cambridge. </ref>
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	===Six Sigma Tools===		===Six Sigma Tools===

	*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consists of a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., '' Pareto Analysis Step by Step'' http://www.projectsmart.co.uk '''Description''': ~~Project Smart~~ is website which aims to ease the access to project management information. </ref>It can be used for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.		*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consists of a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., '' Pareto Analysis Step by Step'' http://www.projectsmart.co.uk '''Description''': ProjectSmart.co.uk is a website which aims to ease the access to project management information. </ref>It can be used for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.

	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series, where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com '''Description''': iSixSigma is a high-tech B2B dedicated to help busisness and organizations. </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance. Periodic reviews of a program are done in order to determine whether benefits coming from projects are within the boundaries.
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	ends showing the following analysis:		ends showing the following analysis:
	[[File: Pareto Graph2.jpg ‎\|600px\|thumb\|center\|'''Figure 1:''' Pareto boundaries. <ref name="LSS12 "> Hu, G. , Wang, L. , Fetch, S. , Bidanda, B. (2008) International Journal Of Production Research'' A Multi-Objective Model For Portfolio Selection To Implement Lean And Six Sigma Concepts '' '''Description''': The Internation Journal Of Production Research is a journal member of the International Foundation For Production Research, A group related to production systems and processes.</ref>]]		[[File: Pareto Graph2.jpg ‎\|600px\|thumb\|center\|'''Figure 1:''' Pareto boundaries. <ref name="LSS12 "> Hu, G. , Wang, L. , Fetch, S. , Bidanda, B. (2008) International Journal Of Production Research'' A Multi-Objective Model For Portfolio Selection To Implement Lean And Six Sigma Concepts '' '''Description''': The Internation Journal Of Production Research is a journal member of the International Foundation For Production Research, a group related to production systems and processes.</ref>]]
	Each of the points of the figure shows different optimal for project portfolio. The correct choose of the order in which projects are selected and execute depends on the necessities of a company. In this example, the Pareto frontier tells that for a total selection of projects with a portfolio cost e.g 1 million $ the portfolio benefit index should never be higher than around -470(the lower the better) in order to correctly implement Lean Six Sigma.		Each of the points of the figure shows different optimal for project portfolio. The correct choose of the order in which projects are selected and execute depends on the necessities of a company. In this example, the Pareto frontier tells that for a total selection of projects with a portfolio cost e.g 1 million $ the portfolio benefit index should never be higher than around -470(the lower the better) in order to correctly implement Lean Six Sigma.

← Older revision		Revision as of 14:46, 28 September 2015
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	As a complement to the lean philosophy, Six Sigma offers the possibility to improve the quality of processes and products. As a part of the supporting activities of the program management, quality is an important concept in portfolio management. It is a deliverable feature from benefits and it is a requirement for the Program Governance and Risk Management. Apart from the planning point of view, the Quality management plays actually an important role for goals and planning in projects.		As a complement to the lean philosophy, Six Sigma offers the possibility to improve the quality of processes and products. As a part of the supporting activities of the program management, quality is an important concept in portfolio management. It is a deliverable feature from benefits and it is a requirement for the Program Governance and Risk Management. Apart from the planning point of view, the Quality management plays actually an important role for goals and planning in projects.
	In Six Sigma portfolio management, procedures are standardized at the operational level of a company and there is a focus in delimited goals in order to reach the highest ROI. It is a methodology that has to be implemented in the entire organization, from the strategic level to the operational level. A strong point that Six Sigma can offers is its capability to align the projects with the strategies followed by the companies. Another interesting feature is that Six Sigma project are commonly for the short term. <ref name="LSS3 "> M. D., Marly, University Of São Paulo, (2013)'' Six Sigma Projects: The portfolio Management Perspective'' Description: Article from the university of São Paulo</ref>		In Six Sigma portfolio management, procedures are standardized at the operational level of a company and there is a focus in delimited goals in order to reach the highest ROI. It is a methodology that has to be implemented in the entire organization, from the strategic level to the operational level. A strong point that Six Sigma can offers is its capability to align the projects with the strategies followed by the companies. Another interesting feature is that Six Sigma project are commonly for the short term. <ref name="LSS3 "> M. D., Marly, University Of São Paulo, (2013)'' Six Sigma Projects: The portfolio Management Perspective'' '''Description''': Article from the university of São Paulo</ref>

	Applying both concepts together, lean six sigma is able to: <ref name="LSS1 "> Labarre, C. ,OTC Conseil Americas '' Can Lean Six Sigma Streamline Your Project Portfolio?'' Description: Conseil Americas is an organization focused in risk management and optimization. </ref>.		Applying both concepts together, lean six sigma is able to: <ref name="LSS1 "> Labarre, C. ,OTC Conseil Americas '' Can Lean Six Sigma Streamline Your Project Portfolio?'' '''Description''': Conseil Americas is an organization focused in risk management and optimization. </ref>.

	* Reduce the complexity of business processes: The simplification and standardization may help to improve efficiency and activities inside the organization, e.g. standard analysis in the Center Of Excellence functions.		* Reduce the complexity of business processes: The simplification and standardization may help to improve efficiency and activities inside the organization, e.g. standard analysis in the Center Of Excellence functions.
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	Another concept applied from Six Sigma is the DMAIC framework:		Another concept applied from Six Sigma is the DMAIC framework:
	===DMAIC===		===DMAIC===
	*Define: In this first step, it is defined the opportunities the company have for different projects. It is the most important phase since it targets the limited sources of a company. [[File:DMAIC.jpg ‎\|140px\|thumb\|right\|'''Figure 1:''' DMAIC. <ref name="LSS22 "> http://qmssblog.blogspot.dk/2015/03/combining-dmaic-and-lean-events-to.html ''Combining DMAIC and lean events to maximize process improvements'' Blog that addresses for the business performance improvement</ref>]]		*Define: In this first step, it is defined the opportunities the company have for different projects. It is the most important phase since it targets the limited sources of a company. [[File:DMAIC.jpg ‎\|140px\|thumb\|right\|'''Figure 1:''' DMAIC. <ref name="LSS22 "> http://qmssblog.blogspot.dk/2015/03/combining-dmaic-and-lean-events-to.html ''Combining DMAIC and lean events to maximize process improvements'' '''Description''': Blog that addresses for the business performance improvement</ref>]]


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	<ref name="LSS4 "> Lilly,M. DeCoste,D. (2012). '' Demystifying Lean Six Sigma ''. Article written in the company website PMtimes, a company related to project management. </ref>		<ref name="LSS4 "> Lilly,M. DeCoste,D. (2012). '' Demystifying Lean Six Sigma ''. '''Description''': Article written in the company website PMtimes, a company related to project management. </ref>

	In portfolio management, DMAIC methodology can be used in many parts of the program management. It can be used in decision-making phase of portfolio management at the strategic level to improve the assessment of the orientation of a company.		In portfolio management, DMAIC methodology can be used in many parts of the program management. It can be used in decision-making phase of portfolio management at the strategic level to improve the assessment of the orientation of a company.
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	===Lean===		===Lean===

	*Kaizen Events: This tool is based in the rapid improvement of business processes. It was firstly implemented by Toyota in the manufacturing industry. Nowadays companies use then in portfolio management as well to determine why for example a project has its certain costs or why a determine number of resource are used in it. These questions may lead to new ones that in the end will help to identify all kind of waste of resources a company may have. <ref name="LSS5 "> United States Environmental Protection Agency. '' Lean Thinking and Methods: Kaizen ''. </ref>		*Kaizen Events: This tool is based in the rapid improvement of business processes. It was firstly implemented by Toyota in the manufacturing industry. Nowadays companies use then in portfolio management as well to determine why for example a project has its certain costs or why a determine number of resource are used in it. These questions may lead to new ones that in the end will help to identify all kind of waste of resources a company may have. <ref name="LSS5 "> United States Environmental Protection Agency. '' Lean Thinking and Methods: Kaizen ''. '''Description''': Environmental Protection Agency is a government agency is a government agency that aims to protect human health and the environment. </ref>
	[[File: Kayzen.jpg ‎\|400px\|thumb\|center\|'''Figure 3:'''Benefits from Kayzen events. <ref name="LSS223 "> http://www.velaction.com/products-services/lean-consulting/kaizen-event-support/ Kayzen event support'' Velaction.com is a website for improving the performance of companies and skills of people. </ref>]]		[[File: Kayzen.jpg ‎\|400px\|thumb\|center\|'''Figure 3:'''Benefits from Kayzen events. <ref name="LSS223 "> http://www.velaction.com/products-services/lean-consulting/kaizen-event-support/ Kayzen event support'' '''Description''': Velaction.com is a website for improving the performance of companies and skills of people. </ref>]]
	The Kayzen tool help to develop all areas shown in Figure 3. The main objective is to build up a lean culture that would be have a direct impact on the business results.		The Kayzen tool help to develop all areas shown in Figure 3. The main objective is to build up a lean culture that would be have a direct impact on the business results.
	*Value stream mapping: The value stream mapping is a tool to help the understanding of every value proposition in a company. It identifies the positive and negative of value proposition, for example the network between stakeholders involved in creation and delivery of new products. It also identifies conflicting values and it identifies opportunities to reoriented projects or entire portfolios to more profitable business processes. <ref name="LSS6 "> Bocken, N.M.P., Short, S., Rana, P., Evans, S., Coporate ~~Goverance~~, Vol. 13 Iss: 5 , pp. 482 – 497 '' A Value Mapping Tool For Sustainable Business Modelling ''. </ref>		*Value stream mapping: The value stream mapping is a tool to help the understanding of every value proposition in a company. It identifies the positive and negative of value proposition, for example the network between stakeholders involved in creation and delivery of new products. It also identifies conflicting values and it identifies opportunities to reoriented projects or entire portfolios to more profitable business processes. <ref name="LSS6 "> Bocken, N.M.P., Short, S., Rana, P., Evans, S., Coporate Governance, Vol. 13 Iss: 5 , pp. 482 – 497 '' A Value Mapping Tool For Sustainable Business Modelling ''. '''Description''': This article comes from the University of Cambridge. </ref>
	[[File: SimplifiedToolMapping2.jpg ‎\|700px\|thumb\|center\|'''Figure 4:'''Simplified Value Mapping Tool. <ref name="LSS6 "> </ref>]]		[[File: SimplifiedToolMapping2.jpg ‎\|700px\|thumb\|center\|'''Figure 4:'''Simplified Value Mapping Tool. <ref name="LSS6 "> </ref>]]
	In Figure 4 it can be seen that the purpose of each business task is influenced by multiple factors. The value captured as well as errors and opportunities shall be take into account. External factors: Environment, Customers, Society and Networks have a relevant impact on the value captured and as result, reorient the business decisions.		In Figure 4 it can be seen that the purpose of each business task is influenced by multiple factors. The value captured as well as errors and opportunities shall be take into account. External factors: Environment, Customers, Society and Networks have a relevant impact on the value captured and as result, reorient the business decisions.
	*Work load balancing: It aims to reduce non-value added activities in a project. Load charts are in literature were timing in different types of operation is controlled. <ref name="LSS7 "> Quality America Inc. ''Level Load Balancing ''. </ref> This tool may have deep impact under a program strategy alignment in a business case, since it is able to coordinate times to adjust better to the time to market a products need to be delivered.		*Work load balancing: It aims to reduce non-value added activities in a project. Load charts are in literature were timing in different types of operation is controlled. <ref name="LSS7 "> Quality America Inc. ''Level Load Balancing ''. '''Description''': Quality America Inc is a company related to training and certification in Lean Six Sigma </ref> This tool may have deep impact under a program strategy alignment in a business case, since it is able to coordinate times to adjust better to the time to market a products need to be delivered.

	*7 wastes: It is another Lean tool originally used for the manufacturing industry that can be implemented in business growth evaluation. It includes evaluation of putting too much work in progress originating bottle necks. It also analyse delays and extra-capabilities of the organization that were hidden until then. <ref name="LSS8 "> Terry, J. ''7 Wates That Impact Business Growth. '' </ref>. The 7 wastes can treat as residuals those activities in project management which are considered not to give extra value to the product or seriously deteriorate other important activities and erase or reorient them.		*7 wastes: It is another Lean tool originally used for the manufacturing industry that can be implemented in business growth evaluation. It includes evaluation of putting too much work in progress originating bottle necks. It also analyse delays and extra-capabilities of the organization that were hidden until then. <ref name="LSS8 "> Terry, J. ''7 Wates That Impact Business Growth. '' http://leankit.com/blog/2015/08/7-wastes-that-impact-business-growth/ '''Description''': Blog from Leankit, a company dedicated to visual management and forecasting software designed to optimize the effectiveness of workers </ref>. The 7 wastes can treat as residuals those activities in project management which are considered not to give extra value to the product or seriously deteriorate other important activities and erase or reorient them.

	===Six Sigma===		===Six Sigma===

	*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consist on a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., http://www.projectsmart.co.uk '' ~~Pareto Analysis Step by Step~~'' </ref>It can participate for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.		*Pareto analysis: It is a statistical tool for decision-making on the activities who has the bigger effects on a project. It is a key tool in Six Sigma and it consist on a bar chart of activities ordered by their importance. <ref name="LSS9 ">Haughey, D., '' Pareto Analysis Step by Step'' http://www.projectsmart.co.uk '''Description''': Project Smart is website which aims to ease the access to project management information. </ref>It can participate for example in the Measure step of the DMIAC methodology. It has broad applications as it will be shown in the next section.

	*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , http://www.isixsigma.com ~~'' A Guide To Control Charts''~~ </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance, where periodic reviews of the progress of a program is done in order to determine whether benefits coming from a project are within the boundaries.		*Control charts: It is a tool to monitor process, stability and control in projects. A control chart follows a time series where there is a central line of how processes are supposed to be done and deviation of this processes are limited by upper and lower boundaries. <ref name="LSS10 "> Berardinelli ,C. , '' A Guide To Control Charts'' http://www.isixsigma.com </ref>. Under a program management point of view, it can be used in a control stage of the Program Governance, where periodic reviews of the progress of a program is done in order to determine whether benefits coming from a project are within the boundaries.
	[[File: controlchart.jpg ‎\|300px\|thumb\|center\|'''Figure 1:''' Control chart. <ref name="LSS222 "> http://acqnotes.com/acqnote/careerfields/control-chart ~~''Production, Quality & Manufacturing''~~ </ref>]]		[[File: controlchart.jpg ‎\|300px\|thumb\|center\|'''Figure 1:''' Control chart. <ref name="LSS222 "> ''Production, Quality & Manufacturing'' http://acqnotes.com/acqnote/careerfields/control-chart </ref>]]
	*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.		*Statistical analysis: The statistical analysis evaluates data gathered in the DMAIC process using statistical tools, from calculating variances to distribution of the data in order to execute some short of control in projects. It help the improve phase of the DMIAC, where several inputs of the model may be changed and new result can show improvements or not. Statistical analysis is a broad topic that can be used every time the DMAIC has measured data. It can be used to assess quality controls in Program Quality Management or to have a deeper understanding in Control Charts.