Project Management and Process Improvement, Complementary Disciplines

Andy Willums2/10/2010

Overview Introduction to Andy

Compare and Contrast of Project Management and Process Improvement

Process Improvement Methodologies Process Improvement as a Planned

Effort Tips on Running an Initiative Benefits from Process Improvement Summary

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Introduction to Andy 17 years’ experience in project

management, process improvement, IT, operations, metrics, team-building, and training

Worked in Defense, consumer electronics, financial processing, and software industries

Implemented, assessed, and been assessed by SW CMM and CMMI

MS Computer & Information Science MA Management PMP and Six Sigma Black Belt

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Compare and Contrast of

Project Management and Process Improvement

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Definitions

Project“A temporary endeavor undertaken to

create a unique product or service.” [PMBOK]

Process“A set of interrelated actions and activities

performed to achieve a specified set of products, results, or services .” [PMBOK]

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Project Management Knowledge Areas

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CMMI View of Project Management

Level Focus Process Areas5 Optimizing Continuous Process

ImprovementOrganizational Innovation and DeploymentCausal Analysis and Resolution

4 QuantitativelyManaged

QuantitativeManagement

Organizational Process PerformanceQuantitative Project Management

3 Defined ProcessStandardization

Requirements DevelopmentTechnical SolutionProduction IntegrationVerificationValidationOrganizational Process FocusOrganizational Process DefinitionOrganizational TrainingIntegrated Project Management

Decision Analysis and ResolutionOrganizational Environment for Integration

2 Managed Basic ProjectManagement

Requirements ManagementProject PlanningProject Monitoring and ControlSupplier Agreement ManagementMeasurement and AnalysisProcess and Product Quality AssuranceConfiguration Management

1 Initial

Risk Rework

Quality Productivity

Risk ManagementIntegrated Teaming

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PM Processes

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Extended ETVX

E XT

V

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Entry Criteria

Tasks Validation Exit Criteria

Inputs Roles and Activities Procedures Instructional

Information Scenarios Tailoring

Measurement Outputs Reviews and Audits Training Tools and Templates

What Happens Without a Well-Defined Process?

Organization is highly reactionary

Everything is an immediate crisis

Projects exceed schedules & budgets

No objective basis for judging quality

Practices are improvised or learned

by “tribal legend”

Crisis management becomes the

cultural norm

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Lack of documented processes and procedures

Processes that have been defined aren’t followed, resulting in “shelfware”

Lack of confidence in completing successful projects on time and within budget

Loss of Customer confidence Heroes succeed, or success is on heroic

effort Reliance is on key employees

What Happens Without a Well-Defined Process? (cont)

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What Happens With A Well-Defined Process?

Higher quality products More predictable and timely

schedules Lower costs and greater efficiencies Better documentation and ease of

product maintenance Happier customers

StartStart WorkWork FinishFinish

Project ScheduleProject Schedule

ReqsReqs

CodingCoding

TestingTesting

ReleaseRelease

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Process Improvement Methodologies

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The Frameworks Quagmire

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Breadth of Quality and Improvement Methodologies

Total Quality Management (TQM)

Balanced Scorecard (BSC) Business Activity Monitoring

(BAM) Business Process Management

(BPM) Business Process Reengineering

(BPR) Statistical Process Control (SPC) Statistical Quality Control (SQC) Personal Software Process (PSP) Team Software Process (TSP) Total Quality Control (TQC) Theory of Constraints (TOC) Total Productive Maintenance

(TPM)

Plan, Do, Check, Act (PDCA) Kaizen Lean Six Sigma Design for Six Sigma (DFSS) Capability Maturity Model

(CMM), Integrated (CMMI) Continuous Quality

Improvement (CQI) Quality Function Deployment

(QFD) Business Process COBIT, ITIL, COSO, ISO …..

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IDEAL Wheel

1996, Bob McFeely, CMU/SEI-96-HB-001

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Six Sigma Process Roadmap

Analyze Analyze Improve

Improve Measure

Measure

• Process Maps (Hi & Low)

• Optional Maps and Diagrams

• Cause & Effects (C&E) Matrix

• Preliminary FMEA• Data Collection

(pareto, histogram)• Control Charts• Capability 6-pack• Measurement

System Analysis (MSA) -- (GR&R, Attribute Agreement, Audit)

• Draft Control Plan

Project Mgt, Data & Configuration Mgt, Project Tracking, Communication, Issues, Risks, RetrospectivesProject Mgt, Data & Configuration Mgt, Project Tracking, Communication, Issues, Risks, Retrospectives

• Initial FMEA• Data Analysis

(XBar-r, I-MR, multi-vari, capability)

• Ideas List• Revised Control

Plan

(M1)

Kick Off

(M2)

Process Capability Baseline

(M3)

Critical Inputs

(M4)

FMEA, Changed Process Items

Define Define

• Select right, prioritized project

• Project Charter

(M) = Milestone

ControlControl

(M5)

Project Close Out &

Sign Off

• Final FMEA• Pilot Study• Simulations• Design of

Experiments (DOE)

• Mistake Proof• Final Control

Plan

• Implement Control Plan

• Hand Off training• Final Project

Report (w/ Control Chart)

• Project Close Out and Sign Off

• Lessons Learned• Verify long-term

capability• Continuous

process improvement

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Methodology Analogy

DesignForSix Sigma

Lean

Six Sigma

Kaizen

Lean Six Sigma

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Process Improvement as a Planned Effort

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Plan the Initiative• Use "Brainstorming“ to analyze problem, determine feasible solutions,

and get consensus on the Initiative team• Deliverables from an initiative could include new or updated

processes, templates, work samples, training material, measurement, audit material, etc.

• Create a directory for your work products and deliverables• Initiatives are problems or improvement opportunities that affect the

department's process beyond a simple, known document change.• One approach - Initiatives are designed to run about 3 months with a

Leader and 3-5 members from different parts of the organization. This gives broad and diverse input and ownership within a limited timeframe.

• Work as a team – introduce all, all equals, leave egos & hidden agendas at door

• Work together to benefit organization through improved processes

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Brainstorming An Individual Initiative

What We Do Now What We Want to Get To (ideal or desired state)

What We Can Change Now (to come closer to meeting our goals)

What We Can’t Change Yet (even if it would bring us closer to the goals, let’s be practical and concentrate on what we can do now)

       

       

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DACI

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DACI (continued)

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Tips on Running an Initiative

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Areas of Application for Process Improvement Manufacturing

Mean Time Between Failure (MTBF) Mean Time To Repair (MTTR)

Hospitals Patient surveys Wait time Cost of dispensing medications

Software Development and Maintenance Defect reduction Productivity

Utilities Service level uptime

Home ???

$$ and Time

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Likes to figure out how a technology works and why.

Wants to be the first to adopt the new stuff.

Enjoys “the latest and greatest” --pushing the edge of the envelope.

Interested in learning and evaluating new things.Technology Enthusiasts:

HIGH-TECH MARKETING MODEL - PSYCHOGRAPHIC PROFILES - Where do you see yourself in the model?

- Where do you see other members of your team?- Where do you see our company’s markets? Your product’s markets?

Innovators Early Adopters Early Majority Late Majority Laggards

Highly motivated and driven by a “dream”.

Seeks quantum leap breakthroughs, not just improvement.

Willing to take risks to achieve goals --sees potential, but not always practical.

“Big Picture” view, matching emerging technology to a strategic opportunity or business need.Visionaries:

Does not want to be a pioneer - too much risk.

Seeks to gain a percentage improvement.

Values the opinions of and references from others like them.

Practical, prefers standards, loyal once won over.Pragmatists:

Believes more in tradition than in progress.

Not looking for improvement, but doesn’t want to be left behind to get stung.

Prefers “whole solutions” with every element thought through and packaged.

Buys when the price drops.Conservatives:

Adapted from Crossing the Chasm by Geoffrey A. Moore, HarperBusiness, 1991

Psychographic Profiles

Believes new technology doesn’t deliver on promises made.

Tends to see through the marketing hype and point out discrepancies.

Continually points out flaws and costs, and doesn’t see the benefits as justified.Skeptics:

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Pace of Change

Process improvement methdologies can have an intended pace of change that is …

Incremental, evolutionary, and continuous

OR

Radical and revolutionary

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Communication

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Successful Implementations

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Less Successful Implementations

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Tips• Measure before and after• Treat it like a project

• Scope, goal, selection, charter, plan, issues, implementation• Diverse representation• Input and review from those affected• Build in support for the process so it sticks

• Training, measurement that management will use and is useful to business function, tools, templates

• Business Champion/Sponsor• Senior Management selects priority and gets status reports• Cheerlead, advertise results, reward participants

• Celebrate your victories

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Benefits from Process Improvement

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33

Benefits of Process Improvement

Realize the same type of Return on Process Improvement Investment (of between 5 and 10 to 1) that other companies are seeing.

Maintain competitiveness Increased user and customer satisfaction Decreased time to market Improved employee morale Often overlooked benefits:

Lowered maintenance costs Reduced cost for replacing employees Increased business from higher quality and on time delivery More staff available to pursue new products Fewer abandoned projects

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#1 - Software Process Improvement Results

The Bottom Line :

• RS Champion satisfaction survey results are very good

• Last 12 months average 87.4%

• Conformance to our repeatable process is institutionalized

• New IRs are down 60.6% since 2001 while time spent on IRs decreased by 10.2% over the last 2 years

• Backlog of IRs decreased from an average of 250 in 2003 to less than 50 in 2006

• Same number of project implementations since 2001

• Projects twice as large in past 12 months as previous 12 months

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#1 - Software Process Improvement Results (Continued)

The Bottom Line :

• Number of CM implementations down 60% since 2003

• 13.7% increase in overall time spent on RSs

• = $1.1M annually in more productivity!

• Year to Date on-time delivery rate is 92.25% compared with 60% rate in 2001

• Year to Date estimation accuracy is 75.75% compared with 64% rate in 2001

Improvements made during a 51.5% growth in headcount

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#2 - Improvement Case Study

Starting situation Year End Processing of payroll data for customers is an intense and

important time of year Growth in this area caused concern for performance levels

What we did Formed one integrated project team from primary affected

stakeholders and identified sister departments and 3rd party vendors for input and review

Formalized project plan to ensure deliverables on track Published a set of policies, deadlines, training, and roles and

responsibilities to our customers to help with expectation setting Became more proactive much earlier in the process in cleaning data Established call campaigns based on data validations to help

customers avoid last minute problems Cross-trained associates from other areas to take calls Support held daily management meetings to review prior day’s

results

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#2 - Improvement Case Study (Results)

Between the 2006 and 2007 Year End Processing seasons More work

129% increase in number of clients 243% increase in number of forms processed 27% increase in number of calls

Same or less staff Available staff decreased by 1

Same or better performance 35% decrease in Abandon Rate 6.7% decrease in Service Level

Overall With 27% increase of calls, we decreased abandon calls

by 35% and only a 6.7% decrease in service level

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#3 - Case Study: Project Summary• Starting Goal: Need to complete carrier & customer implementations more

quickly with more visibility on status

• Improvements– Stabilized & centralized tracking data

• Subject to multiple reviews

– Presented visual aid to help set customer expectations• Being used as reference by various stakeholders

– Added vendor Engineering resources and oriented them to process

– Established joint meetings with vendor & established policy of implementing all carriers per customer in order to manage timing & priorities

• Benefits & Impact– Carrier implementations are now averaging 34 days instead of 95.4

– More consistent performance with faster cycle time benefits our customers & make our offering more appealing for prospective customers

– Weekly reports make status more visible to management & customers

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#3 - Case Study: Results

61554943373125191371

250

200

150

100

50

0

-50

Observation

Indiv

idual V

alu

e

_X=34

UCL=68.6

LCL=-0.6

I Chart of Duration (Days) by Group

Last carrier implementations since changes made are averaging 34 daysversus the 95.4 days before

Covers 4 months,

Aug - Nov

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Summary Introduction to Andy

Compare and Contrast of Project Management and Process Improvement

Process Improvement Methodologies Process Improvement as a Planned

Effort Tips on Running an Initiative Benefits from Process Improvement

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Resources and Next Steps Resources:

www.sei.cmu.edu CMMI model and variety of process-related technical reports

www.asq.com, www.sixsigma.us, www.isixsigma.com Lean and Six Sigma training and articles

http://leadership.dce.ufl.edu/Programs/ Training on Process Management

Next Steps: Select a process improvement method, be consistent in its

use, build a repository of templates, status, and results, show others, feed improvement information back into the process

Consider joining SEI or Tampa Bay SPIN Consider continued development via courses, books,

webinars, forums, etc.2/10/201041

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Questions and Answers

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Contact Information Andy Willums

Phone – (813) 679-5354 Email – awillums@yahoo.com www.linkedin.com/in/andywillums

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BACK UP SLIDES

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Quotes• "Never doubt that a small group of thoughtful citizens can change the

world. Indeed, it is the only thing that ever has.” -- Margaret Mead• "Do what you can, with what you have, where you are.” -- Theodore

Roosevelt• "The people who get on in this world are the people who get up and

look for the circumstances they want, and, if they can't find them, make them.” -- George Bernard Shaw

• "It seldom happens that a man changes his life through his habitual reasoning. No matter how fully he may sense the new plans and aims revealed to him by reason, he continues to plod along in old paths until his life becomes frustrating and unbearable - he finally makes the change only when his usual life can no longer be tolerated.” -- Tolstoy

• "Next week there can't be any crisis. My schedule is already full.” -- Henry Kissinger

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Start with a cage containing five apes. In the cage, hang a banana on a string and put stairs under it. Before long, an ape will go to the stairs and start to climb towards the banana. As soon as he touches the stairs, spray all of the apes with cold water.

After a while, another ape makes an attempt with the same result -all the apes are sprayed with cold water. Turn off the cold water.

If, later, another ape tries to climb the stairs, the other apes will try to prevent it even though no water sprays them.

Now, remove one ape from the cage and replace it with a new one. The new ape sees the banana and wants to climb the stairs. To his horror, all of the other apes attack him. After another attempt and attack, he knows that if he tries to climb the stairs, he will be assaulted.

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Next, remove another of the original five apes and replace it with a new one. The newcomer goes to the stairs and is attacked. The previous Newcomer takes part in the punishment with enthusiasm.

Again, replace a third original ape with a new one. The new one makes it to the stairs and is attacked as well.

Two of the four apes that beat him have no idea why they weren't permitted to climb the stairs, or why they are participating in the beating of the newest ape.

After replacing the fourth and fifth original apes, all the apes which have been sprayed with cold water have been replaced. Nevertheless, no ape ever again approaches the stairs.

Why not? "Because that's the way it's always been around here."

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