Six Sigma and PMBOK

From apppm
(Difference between revisions)
Jump to: navigation, search
Line 1: Line 1:
== Overview ==
+
= Overview =
  
[https://en.wikipedia.org/wiki/Six_Sigma '''Six Sigma'''] is a set of practices originally developed by [https://en.wikipedia.org/wiki/Motorola '''Motorola'''] to systematically improve processes by eliminating defects. A defect is defined as nonconformity of a product or service to your specifications. Six Sigma is also defined as a management strategy to promote change in organizations, making it reaches improvements in projects, processes, products and services for customer satisfaction. Unlike other forms of management of productive or administrative proceedings Six Sigma's priority is to obtain results in a planned and clear way seeking better quality and also financial gains.
+
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.  
  
The Project Management Body of Knowledge Guide [https://en.wikipedia.org/wiki/Project_Management_Body_of_Knowledge '''PMBOK'''] is a set of practices in project management organized by the [https://en.wikipedia.org/wiki/Project_Management_Institute '''PMI institute'''] and is considered the foundation of knowledge about project management.
+
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.
  
The PMBOK Guide is process-based, meaning it describes work as being accomplished by processes. Processes overlap and interact throughout a project or its various phases. Processes are described in terms of:
+
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.
  
*Inputs (documents, plans, designs, etc.)
+
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
*Tools and Techniques (mechanisms applied to inputs)
+
search for innovation among others.
*Outputs (documents, plans, designs, etc.)
+
  
 +
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?
  
The PMBOK guide, is its fifth edition, provides guidelines for managing individual projects and defines project management related concepts. It also describes the project management life cycle and its related processes, as well as the project life cycle.
+
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?
  
== Key Idea ==
 
  
Companies traditionally implement Six Sigma and other quality control tools to assist in new product development, to reduce the cost of development, improve manufacturing efficiency or to enter new markets. More recently, organizations are integrating the Six Sigma method to the PMBOK project management process to try to gain maximum advantage.
+
= Project =
  
PMBOK and Six Sigma have much in common. Both seek to establish a plan; identify and communicate with stakeholders; conduct regular reviews; and manage schedule, cost, and resources.
+
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.  
  
Six Sigma is a robust continuous improvement strategy and process that includes cultural and statistical methodologies and is complementary with existing project management programmes and standards but differs in significant ways. Both disciplines seek to reduce failures, prevent defects, control costs and schedules, and manage risk.  
+
Each project creates a product, service or result. Although elements repetitive may be present in some project deliverables, this repetition does not change
Usually project management attempts to achieve these goals by encouraging best practices on a project-by-project basis, often through the mechanism of a project office that promulgates policy, provides templates and advice, promotes appropriate use of tools such as critical path method, and perhaps performs periodic project reviews.
+
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.
  
Providing a structured data-driven methodology with tools and techniques, organizations can use it to measure their performance both before and after Six Sigma projects. Project Managers can measure the baseline performance of their processes and determine the root causes of variations so they can improve their processes to meet and exceed the desired performance levels. It allow managers to take their projects to great levels of discipline and commitment.
+
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.
  
Six Sigma can be a complementary management methodology that is integrated into and replaces the existing ways of determining, analysing, and resolving/avoiding problems, as well as achieving business and customer requirements objectively and methodically. Six Sigma can be applied to operational management issues, or it can directly support strategic management development and implementation. It is more oriented toward solutions of problems at their root cause and prevention of their recurrence rather than attempting to control potential causes of failure on a project-by-project basis.
 
  
  
== Motivation ==
 
  
The main reason for companies adopting the Six Sigma relates to the increase in profit margins. Part of that purpose is achieved by continuously reducing the variation in the processes by eliminating defects or flaws in products and services.
+
= Methods =
 +
==Project management==
  
Today, Six Sigma is seen as a focused management practice to improve the profitability of any company, regardless of its size. Six Sigma aims to increase market share, reduce costs and optimize the operations of the company that uses it.
 
  
In a broader sense, Six Sigma can be seen as the completion and closure of projects aimed at solving the most important problems of the organization in order to increase their wealth. This direction is achieved from an allocation of the most competent people, providing them with the requisite resources and support so that the work is performed without interruption.
 
  
  
  
== Considerations ==
+
= Considerations =
  
 
Integrating Six Sigma techniques with the project management methodologies is the way to go for companies focusing on continuous improvement.
 
Integrating Six Sigma techniques with the project management methodologies is the way to go for companies focusing on continuous improvement.
Line 55: Line 57:
  
  
== Conclusion ==
+
= 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.
 
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.
Line 61: Line 63:
  
  
== Sources ==
+
= Sources =
 
*[http://project-management.com/six-sigma-and-project-management/ Six Sigma and Project Management]
 
*[http://project-management.com/six-sigma-and-project-management/ Six Sigma and Project Management]
 
*[https://www.projectsmart.co.uk/project-management-six-sigma-project-management.php The difference between typical Project Management and Six Sigma Project Management]
 
*[https://www.projectsmart.co.uk/project-management-six-sigma-project-management.php The difference between typical Project Management and Six Sigma Project Management]
 
*[http://www.isixsigma.com/methodology/project-management/six-sigma-and-project-management-body-knowledge/ Six Sigma and the Project Management Body of Knowledge]
 
*[http://www.isixsigma.com/methodology/project-management/six-sigma-and-project-management-body-knowledge/ Six Sigma and the Project Management Body of Knowledge]
 
*[http://www.pmi.org/learning/six-sigma-method-applications-pm-8515 Six Sigma Method And Its Applications In Project Management]
 
*[http://www.pmi.org/learning/six-sigma-method-applications-pm-8515 Six Sigma Method And Its Applications In Project Management]

Revision as of 22:34, 28 September 2015

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.


Sources

Personal tools
Namespaces

Variants
Actions
Navigation
Toolbox