Process Improvement: Moving Forward with CMMI and Lean Six Sigma

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Process Improvement Moving Forward with CMMI
and Lean Six Sigma

• Bob Moore
• LIONSHARE/EVENTSHARE
• Business Transformation Institute, Inc.

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What is Six Sigma?

• In the words of noted Six Sigma expert R. Snee,
  Six Sigma is
• A business improvement approach that seeks to
  find and eliminate causes of mistakes or defects
  in business processes by focusing on outputs that
  are of critical importance to customer.
• Six Sigma tools and techniques aim at reducing
  and controlling variability in how an
  organization creates and delivers products and
  services.
• Six sigma 6s itself is a statistics term that
  refers to a product or service that experiences
  only 3.4 defects in 1,000,000 delivered product
  or service opportunities.

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What is Lean?

• Lean is about delivering value to the customer.
• Value is anything for which a customer is willing
  to pay.
• Anything that produces a product or service that
  a customer is not willing to pay for must be
  eliminated from the organizations practices.
• Exceptions are made for activities that improve
  safety and security in an organization, although
  these activities may not be value-added.
• Lean tools and techniques
• Identify activities that are non-value-added for
  elimination.
• Make value-added activities more efficient and
  productive.
• Lean emphasizes increasing the value that a
  customer receives from a product or service while
  eliminating waste.

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What is Lean Six Sigma?

• Lean Six Sigma is the combination of Six Sigma
  technique and Lean thinking to
• Help an organization perform in a consistent,
  predictable manner and
• Deliver near perfect products and services that a
  customer is wiling to pay for.
• Note the American Society of Quality defines
  Lean as part of the Six Sigma Body of
  Knowledge. The term Six Sigma as used
  typically includes Lean.

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Key Aspects of Lean Six Sigma

• Lean Six Sigma is about bottom line results,
  with a focus on customers!
• Six Sigma results are measurable in terms of
  direct improvement in the mission or business.
• Improvements must add value from the customers
  perspective.
• Lean Six Sigma requires senior management
  involvement.
• If management is aligned with producing value for
  the customer, then improvement becomes a
  priority.
• Lean Six Sigma projects must produce a return on
  investment in a short time, typically 3-6 months.
• Lean Six Sigma relies on a statistically valid
  approach.

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Features Not Found in Lean Six Sigma

• Lean Six Sigma is not specific to a knowledge
  domain.
• There is no guidance on best practices in any
  field, including systems and software
  engineering.
• Lean Six Sigma does not provide benchmarks.
• Lean Six Sigma results are not comparable between
  organizations.
• Lean Six Sigma improvement measures are expressed
  as improvement to the bottom line (mission or
  business)they are often expressed in terms of
  money (e.g., reduced costs, increased sales).
• Lean Six Sigma is not regulated by any authority,
  although the American Society of Quality provides
  the leading venue for certification of personnel.

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Typical Lean Six Sigma Roles

• Executive Sponsor provides the
  organization-level drive for improvement.
• Sponsor or Champion owns the process being
  improved and provides support for improving it.
• Black Belt an experienced expert in Lean Six
  Sigma tools who leads improvement projects.
• Green Belt a member of the improvement team who
  has been trained in Lean Six Sigma techniques
  often someone who is part of the process being
  improved.

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Lean Six Sigmas Process Improvement
Life Cycle

• Define Determine which system is to be
  improveddevelop a measurable goal
  for the improvement.
• Measure Measure the system.
• Analyze Identify the root causes of defects,
  defectives, improvement opportunities, waste
  activities, or significant measurement
  deviations.
• Improve Reduce variability or eliminate the
  root cause eliminate waste.
• Control Once the desired improvements are in
  place, monitor the process to sustain the
  improvements.

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Key Lean Six Sigma Techniques

• Lean Six Sigma encompasses many toolstoo many to
  talk about here!
• ASQs Black Belt training to understand and begin
  using the tools is 4 weeks.
• A great reference for the tools is the Certified
  Six Sigma Black Belt Primer, published by the
  Quality Council of Indianawww.qualitycouncil.com.
  
• Following are some key Lean Six Sigma ideas.

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Guiding Lean Principles

• Specify value by product or service.
• Identify the value stream for each product or
  service (value chain).
• Make value flow.
• Let the customer pull value for the producer.
• Pursue perfection!

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Typical Lean Tools

• Visual Factory
• 5S (sort, straighten, scrub, systematize,
  standardize)
• Muda (the seven wastes)
• Kanban (pull systems)
• Poka-Yoke (mistake proofing)
• Standard work
• Single Minute Exchange of Die (SMED)

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Example Lean Tool Non-Value-Added Activities

• Theses are widely identified Non-Value-Added
  Muda Waste activities
• Overproduction
• Inventory
• Repair/Rejects
• Motion
• Processing
• Waiting
• Transport

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Example Lean Tool The Kaizen Event

• Kaizen Japanese concept of continuous
  improvement.
• Most Kaizen activities occur over the long term
  and involve many people.
• The Kaizen Event (or blitz) uses a
  cross-functional team to implement change in 3 to
  5 days.
• Kaizen Events have the following basic format
• Train the team in lean thinking techniques (2
  days)
• Collect data and make changes (2.5 days)
• Present the results to the workforce (0.5 days)

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Typical Six Sigma Tools
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Typical Six Sigma Tools (continued)
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CMMI and Lean Six Sigma Are Complementary

• CMMI provides a list of best practices for
  systems and software engineering, acquisition,
  and integrated product and process development.
• CMMI provides a measurement scale to benchmark
  organizations against each other.
• CMMI defines the requirements of measurement and
  statistical process control Lean Six Sigma
  provides the tools to implement them.
• Lean Six Sigma provides a set of tools applicable
  to performing each process improvement activity.
• Lean Six Sigma provides a strong mission/business
  orientation to process improvement.

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Feature-by-Feature Comparison
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Feature-by-Feature Comparison (continued)
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How To Use CMMI and Lean Six Sigma Together

• Lean Six Sigma identify your organizations
  mission goals.
• Lean Six Sigma develop measures that are
  leading indicators of the mission goals.
• Lean Six Sigma and CMMI trace the leading
  indicator measures down to specific process gaps
  and, if possible, measurable process attributes.
• CMMI for the process gaps related to systems
  and software engineering, acquisition, and
  integrated product and process development,
  identify the absent best practices.
• For gaps not related to the CMMI disciplines,
  choose other standards to identify best
  practices.
• CMMI or Lean Six Sigma use either CMMI or Lean
  Six Sigma to guide the development of improved
  processes.
• Use Six Sigma tools if process improvement
  measurement data is readily available otherwise,
  use CMMI.
• Lean Six Sigma or CMMI use either CMMI or Six
  Sigma to institutionalize the process
  improvements.
• Use Six Sigma tools if the improved process
  produces measurement data otherwise, use CMMI.