Lean 6 Sigma in project management
ABSTRACT
A rigorous management control of portfolios aim to control the risk and focus in investing in the most important projects in accordance with the overall strategy of the organization.
On the other hand, 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 the cost. This combined methodology helps to gain in knowledge in how business processes are developed.
The Lean Six Sigma in portfolio management may help to conduct business processes into more efficient and effective ways. In this article it will be described how the waste reduction and high quality control can be implemented in each business operation of the entire portfolio project in order to maximize the profit.
BACKGROUND
In today's world, companies strategies are commonly seeking competitive advantages while gaining in profitability and quality. Miscalculation in delivery times or budgets can affect this competitiveness and cause sever risk for the ROI of a firm. The main advantage doing a correct portfolio management is to optimize the overall program/project evaluating individual projects. In traditional portfolio management the progress of each project is tracked against tasks and not value created. This may lead to ineffectiveness that Lean Six Sigma may help to avoid.
INTRODUCTION
Lean Six Sigma in project portfolio management is a methodology that combines the philosophy and tools from Lean project management and Six Sigma management. In lean portfolio management the main objective is to minimize costs and maximizing the use of the resource available. An entire project/program is decomposed in small projects and resources are distributed through an analysis of priority. Small projects enhance the flexibility of the people who are working in those projects. The prioritization is done after an approach to stakeholders and clients to identify features that can increase the ROI of an organization.
