Six Sigma and PMBOK

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Contents

Overview

One of the most challenging issues of today's business leaders is to not only know how to gain competitive advantage, but rather how to maintain it.

Today, in addition to the concern about profit margins, cost reduction and expenses, revenue growth, market penetration, productivity, customer satisfaction, employees and shareholders; preservation of the brand and quality assurance and leadership, yet you need to combine these variables with an attention to social responsibility, ethics and environmental preservation.

All this has led organizations to employ various types of methodologies that ensure agility in the implementation of its corporate strategy and its effective applicability.

Most of the time strategies have been implemented under pressure such as regulatory agencies, comply with national or international standards, establish the use of outsourced teams, respect the environment, better results, change in the market, changes in customer behavior, increased competitiveness and search for innovation among others.

What tools can allow organizations an assurance that the implementing a determined strategy would achieve the desired results within a established management pre-set cycle? How to ensure that the strategy to be adopted will reach and integrate the current organization's value chain?

Through this challenge, organizations find themselves searching for new methodologies for ensuring the implementation of their strategies either through Quality Programs, Management by Guidelines, Process Management, Balanced Score Card (methodology created by Norton and Kaplan that allows mapping of the strategic objectives), Integrated Management Systems, Project Management and Six Sigma among others.

Regardless of the decision taken, it will always depend on the implementation, coordination and acceptance by the leadership. Can Six Sigma Program and Project Management contribute effectively to ensure an efficient strategic? Can these two methodologies work together?


Project

A project is a temporary endeavor undertaken to create a product, service or result. Its temporary nature indicates a beginning and an end defined. The ending is achieved when the objectives have been achieved or when they conclude that these objectives will not or cannot be achieved and the project is terminated.

Each project creates a product, service or result. Although elements repetitive may be present in some project deliverables, this repetition does not change fundamental uniqueness of the project work. For example, office buildings are built with the same or similar materials or by the same team, but each is unique - with different designs, circumstances, suppliers, etc.

An ongoing work effort is generally a repetitive process because it follows the existing procedures of an organization. On the other hand, due to the unique nature of projects, there may be uncertainty how the products, services, or results created by project. The tasks may be new to the project team, which requires planning more dedicated than other routine work. In addition, projects are undertaken in all organizational levels. A project may involve a single person, a single or multiple organizational units.



Methods

Project management

Considerations

Integrating Six Sigma techniques with the project management methodologies is the way to go for companies focusing on continuous improvement.

The DMAIC methodology in Six Sigma (Define, Measure, Analyze, Improve, Control) provides a structured approach to solving business issues. The tools used in Six Sigma are meant to identify the root causes for process defects so that the company can provide to the customers consistent quality products on time and at low cost. The project management tools and techniques emphasis the project attributes such as development, control, completion etc.

Though the Six Sigma methodology is effective when it comes to troubleshooting or for improving the current processes in existence using the DMAIC method, there are some issues to be considered. If Six Sigma alone is used for project management then controlling the project processes can be difficult. This is because the DMAIC approach is for controlling process improvements and not for controlling the project management process.

Combing the process control facet of project management with the troubleshooting factor of Six Sigma would ensure that the organization can create a process troubleshooting system that is consistent, controlled and most importantly predictable. One can integrate these two very strong methods at the beginning of the project life cycle itself while planning. Utilizing the Six Sigma techniques for problem definition would reduce the chance for errors in assessment.

The Six Sigma tools for problem measurement can be utilized in the validation phase in the project management. Incorporating budgeting, scheduling and resource management into the life cycle will ensure that the management is in a better position to make informed decisions. Utilizing these Six Sigma tools throughout all the phases of the project would incorporate effective troubleshooting and efficient processes into the project management methodology. The project management in turn would help in monitoring and tracking the project progress, thus adding to the control element to the project.

Hence as companies are striving to improve their processes, while reducing costs and bringing to the market newer products which add to the profit, the integration of Six Sigma with project management is inevitable. This integration would help in cost reduction, enhancing process efficiency, rapid implementation and faster product development cycles


Conclusion

Six Sigma can complement and extends PMBOK Project Management Process, but does not replace it. Both disciplines help each other and make important contributions to successful business outcomes.


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