best practices: how six sigma complements itilv3 linh c. ho
TRANSCRIPT
Best Practices:
How Six Sigma
Complements ITILv3
Linh C. Ho
itSMF Portugal 2008
Current State
• The business is IT, IT is
the business
• Proving the business value
of IT
• Better integration with the
business
ITIL version 3
ITIL v3
Overview
ITIL v3
Service Management Lifecycle
ITIL v3
Highlights• ITSM life-cycle approach
• Integration vs. alignment
• Service portfolio
• Supplier management/ITO
• Industry Practices – e.g.,
Six Sigma, CoBIT, ISO
• Knowledge management
• Event management
• Business Service
Management…
Knowledge Management
• ITIL key objectives
• Improve quality of
management decision.
• Deliver the right
information to the
right people or place at the
right time.
Agenda
ITIL v3 Overview
Six Sigma and ITIL
Bank success story
Summary
CSI: Continual Service Improvement
Goal• Continually improve service quality while minimizing costs
Highlights• Quality management methods
• Six Sigma
• Technologies for measurement and reporting
• Turn raw data into meaningful corrective actions
CSI: The 7-Step Improvement process
Agenda
ITIL v3 Overview
ITIL v3 Continual Service
Improvement
Bank success story
Summary
What is Six Sigma?
Business-driven continual process improvement model
“Critical to Quality” (CTQ)
– What is important to the customer?
Identify and eliminate critical defects
– Defects that impact customers
– Defects that cost money
DMAIC Model
– Define, Measure, Analyze, Improve, Control
History and Background
Motorola in the 1980‟s as a method to improve process quality
– The Six Sigma techniques are not new, just their application
First manufacturing processes
– Now any business processes
Six Sigma Companies
– Motorola, GE, Sony, Bank of America, IBM, Sun Microsystems, Getronics,
American Express…
“The most important initiative GE has ever undertaken”
Jack Welch, Former CEO General Electric
Cost of Poor Quality
By Quality America Inc.
Pareto Chart
Highlight the most frequent
problems in the process
Focus on the most
significant
Highest cost of poor
quality
Identify candidates for
quality improvement
Control Chart
Detect Variance in a
process
Centre line (average)
Upper and Lower Control
Limits (e.g. 3 sigma)
Analyse patterns of
process variation
Cost of Poor Quality (COPQ)
CSI: 7 step improvement •ITIL v3 Highlights:
•Service measure/report
•Data into information
•Use of methods/tools
Complementary approaches
Industry analysts: Six Sigma in IT
“Through 2010; Six Sigma will become the leading quality
improvement framework for IT operational groups.”[1]
Ed Holub, Industry Analyst, Gartner
[1] “Leveraging ITIL, and Other Process/Quality/Governance for IT Operational
Success.”, Gartner, Ed Holub, Gartner Data Center Conference, December 2005.
Six Sigma and ITIL summary
ITIL tells you „what‟ and Six Sigma tells you „how‟
Six Sigma brings additional benefits to ITIL
– Baseline service quality
– Prioritize and focus on CTQ
– Quantify improvement for ROI
– Sustain improvement
Six Sigma is now the industry accepted quality practice for ITIL
– Analysts, Global/Fortune companies, Vendors…
Agenda
ITIL v3 Overview
ITIL v3 Continual Service
Improvement
Six Sigma and ITIL
Summary
Bank success story
Service Strategy
– IT services company (ITO) worked closely with a bank to understand their business
goals– Business executives, IT executives, business users…
Service Design
– ITO designed business services to meet the needs of the bank.– Check processing, business key performance indicators, SLAs, ITO as supplier …
Service Transition
– Tested, implemented services defined and in production in 6 months.
Service Operation– ITO maintains and supports the new implemented solution
– 350 business indicators, 2,200 services measured/reported on Vantage
– 7 layers of staff inc. business/IT execs, business users, administrators, developers..
– 30 FTEs saved = reorganized to other areas for improvement
– 50 % saving in time
Continual Service Improvement
– ITO continues to look for ways to improve services– ITO is looking at Six Sigma from Vantage
Bank success story
ITIL v3: Four Ps Better integration with the
business!
Summary
Continual service quality improvement Establish consistent processes (ITIL)
Improve service quality (Six Sigma)
Increase IT maturity
Focus: Critical to Quality
Customers
If you remember nothing else…
The business is IT, and IT is the business
If you improve IT, you improve the business
Additional resources 15% off on NEW itSMF Global
Best Practice book
Questions for the audience
How many here use ITIL?
How many here use Six Sigma?
How many use both?
Where did you start? ROI?
