Title: Standing Up a CPI Practice Area with Lean Six Sigma TOC: Lessons Learned by Steve Hawald, CISC, L6S
1Standing Up a CPI Practice Area with Lean / Six
Sigma / TOC Lessons LearnedbySteve Hawald,
CISC, L6S Black Belt, PMP
2D Marine Aircraft Wing AIRSpeed Conference
2Agenda
- Hawalds Principle
- What is RobbinsGioia?
- The PIQA Solution Factor Circa 2003
- First Project Management Office (PMO) Solution
Test Drive - Circa 2004 - Our 2004 Goals and Objectives
- What Really Happened _at_ PRO
- Our Goals and Objectives with Lessons Learned
from 2004 - It Really Gets Better over Time
- Our Goals and Objectives with Lessons Learned
from 2005 - More from the School of Hard Knocks
- Firing on All Cylinders in 2006
- Lean Six Sigma Tools Picked up on the Journey
- Questions and Answers from the Field!
3Hawalds Principle on the CPI Journey
- Process Performance and Management AKA CPI Truth
- You can take great people, put them into a bad
process, and the process will win every time! - Use of process improvement with lean six sigma
and Theory of Constraints (TOC) dramatically
improves the success of your projects and
programs every time if it is done right with CPI. - CPI with Lean Six Sigma and TOC with Critical
Chain (CC) techniques and Methodology create the
perfect industry best practices convergence in
both manufacturing and non manufacturing as well
as IT projects.
4What is RobbinsGioia?
- A Boutique International Consulting Firm
- Based in DC Metro Area
- Office around US, Canada and Europe
- Primary Line of Business Program Management /
PMOs / PEOs - 750 Employees
- Created by a General Robbins and Gioia in 1980
- Supports Government Oversight on large complex
projects - We make our customers successful_at_
- 48 Civilian Agencies (Including DHS)
- 47 Department of Defense
- Air Force
- Army
- Defense Agencies
- Marine Corp HQ
- 5 Commercial
- Bank of America, General Motors, Verizon etc.
5Symptoms of Process Failure
- Commitments consistently missed
- Late delivery
- Last-minute crunches
- Spiraling costs
- No management visibility
- Youre always being surprised
- Quality problems
- Too much rework
- Functions do not work correctly
- Customer dissatisfaction post-
- delivery continuing high costs
- Poor morale
- Frustration
- Is anyone in charge?
- Petrobras oil platform (March 2001)
- Significant construction cost savings from
bypassing rigid engineering processes - Sank before commissioning
6The PICA Solution Factor
- Recruited to turn around a red project at US
Department of Homeland Security _at_ Customs
Modernization Effort - April 7, 2003 First day of shock and horror on
the Enterprise PMO QM Team - Fifth manager up at bat in two years!
- When is doubt Reorganize Talent!
- Created the Process Improvement and Quality
Assurance (PIQA) Team - Blended new senior talent on QA, Training, and
Acquisition CMM fronts to shore up and recover.
72003 Results
- Prepared a CPI baseline and successfully passed a
SEI SA CMM rated assessment in record time for
Civil Agencies! - Re-baselined to position e-PMO to Maturity Level
3 - Re-engineered the risk management process and
tools for an enterprise solution - Surprised that SEI IDEAL process methodology
really worked out on an acquisition program
office - Found very few team goviees understood
acquisitions - Launched a heavy training program for
institutionalization of process assets and
acquisition life cycle and WBS - Got customer buy-in to experiment with lean and
six sigma with PICA and RG Corporate to support a
CPI Solution- it was like re-inventing
electricity for this effort!
8First Project Management Office (PMO) PICA
Solution Test Drive - Circa 2004
- Process Improvement Quality Assurance (PIQA)
- The Test Drive
- Created a CPI team with a repeatable solution for
current and future enterprise PMOs efforts at RG - PICA Objectives
- primary benefits that PICA CPI provides
- 1. Increase process improvement success rate (to
the triple-constraint of scope, budget, schedule)
up to 100. - 2. Reduce project duration by one half or more
(with consequent positive financial cost
avoidance consequences.) - 3. Reduce stress on all team resources for
processes. - In addition, many users report reduced work
moving from bureaucratic / non-value added to
more leaned out work process.
9What happened in 2004
- Hired our first Master Black Belt to jump start
the CPI Solution - Heavy background in major projects training on
lean and six sigma large defense contractor firms - Discovered the MBB was very weak in Lean and TOC
- Developed first set of green and black belt
courses - 12 months. - Graduated first three waves of Green and Black
Belts- Yeah! - Just hire a MBB right? Wrong!
- MBB was academic-based / not practitioner-based
- Green Belts did not do a belt project
clueless in the field! - Black Belt test was academic DMAIC 101
- Classes were read the slides with me- very
typical in the industry! - Green Belt Class was 1 week with Instructor
- Black Belt Class was 2 weeks with Instructor
- No real exercises or strong COTS tools were used,
Student S/W Freebies! - Rework on Belt skills with an intense refresh
course
10New CPI Training Program
112004- Lessons Learned
- What was done wrong?
- You get what you pay for - 100K Salary is too
cheap! - Practitioners were our focus, not classroom
theory! - Class lacked foundational courses before GB and
BB. - CPI governance structure was very slow starting
up. - L6S focus was on class courses for volume.
- Lack strong background in CPI COTS tools for
efficiency. - Classes were ALL instructor lead. Not blended
- What were the hard choices?
- Counseling out the nice academic MBB to another
firm. - Blowing up the new GB and BB course materials.
- Setting up a new CPI program within one year.
- Special refresher classes for folks who thought
they were BBs.
12RG Bank Rolls the Thought Leadership Magnificent
Seven Solutions for PMO- late 2004!
- Process refinement and Optimization (PRO today
discussion) - Enterprise PMO
- Portfolio Management
- Enterprise Architecture
- Acquisition Strategy and Management
- EVM and Performance Management
- Human Capital Management
-
13Our Goals and Objectives with Lessons Learned
from 2005
- Hired first Master Black Belt to jump start the
PRO Solution - Heavy background in major projects training on
lean and six sigma large firms - Developed first set of green and black belt
courses. - Graduated first three waves of Green and Black
belts- Yeah! - Align organizational and customer needs and
skills with PRO and EPMO Solutions - Deploy Lean thinking to reduce waste at our
customer site - Value Stream Mapping (VSM)
- Project Pull
- Project Flow
- Rapid Improvement Events (REIs)
- Efficiencies
- Just Add CPI Lean GB, BB Training to PRO? Wrong!
- CPI is a new tipping point for effective
process management. - CPI synthesizes traditional PI Lean, Six Sigma,
TOCs Critical Chain as well as SCOR- Supply
Chain Oriented Reference SCOR model dashboards
for a convergence model of doing CPI today!
14It Really Gets Better Over Time
- Its Hammer Time Time to do a CPI House Tear
Down! - Replace the academic MBB with a heavy senior lean
six sigma CPI / QM Master Black Belt. - Inject mainstream CPI COTS tools into the CPI
courses. - Re write the CPI- GB and BB courses using a
foundation of - Introduction to CPI and QM Overview Class
- Lean Pizza Simulation Workshop
- Lean Thinking
- L6S Champion Class
- L6S Yellow Belt
- CPI Measurements and e-Dashboard Class
- Lean Practitioner Course
- Craft a certification test for Lean and Six
Sigma. - Create strategic Partners to help jump start the
new model.
15Defined our CPI Guiding Principles?
- RG selected the following GPs and Tools
- SEI IDEAL Process Methodology
- SEI CMMI PI Model
- Lean Thinking
- Practical Software Measurements Methodology.
- CPI Electronic Dashboards
- Six Sigma DMAIC Methodology
- PMI Book of Knowledge for QM
- Transactional and Manufacturing Lean RIE
- Lean Value Stream Mapping (VSM) Techniques
- Theory of Constraints- Lean and Critical Chain
for PM
16What about the Goal It was added too!
- What is the goal that everyone talks about with
TOC? - Dr. Eliyahu Goldratt defined the Goal for a
profit-making company as, to make money now and
in the future. Goldratt, Eliyahu M. (1984). The
Goal. Great Barrington, MA The North River
PressElsewhere, Goldratt has added 'Necessary
Conditions (NC) 1 and 2', which are - 1. To satisfy customers now and in the future.
- 2. To satisfy and motivate employees now and in
the future. He suggests the Goal and NC 1 2 are
interchangeable. - For government, the goal may be in units other
than money usually more services, reduced budgets
dollars and re-allocation of resources! - Another Key CPI Gold Standard!
17Leans Goal Theory of Constraints (TOC) Basic
Message To Remember
- The basic approach of TOC is to figure out how to
maximize the organization goal (find the
operational constraint or bottleneck and remove
it), usually served by increasing throughput, by
deciding - What to change?
- What to change to?
- How to cause the change?
- Dr. Eliyahu Goldratt proposed five focusing steps
as the most basic implementation of TOC - Identify the constraint.
- Exploit the constraint.
- Subordinate to the constraint.
- Elevate the constraint, and
- Do not let INERTIA prevent you from doing it
again. REPEAT! - Therefore- TOC provides a strategy for ongoing
improvement-CPI Journey in Life!
18More from the School of Hard Knocks
- What else did I learn in 2005
- Pure Instructor Lead Classes are mostly not
necessary and are too expensive. - Pure Web-based classed do not build strong
practitioners - Wed-based courseware works best with introduction
and straight forward materials. - Blended approach works best for strong CPI
practitioners Web-based material 7x24 access with
key instructor lead areas a for exercises, data
analysis, tool applications and exam prep - Proper Belt and Lean Projects are key for
learning!
19PRO Moves to Thought Leadership Division
202006 PRO CPI Training Program
- Level 1 SME
- Introduction to CPI and QM 1 Hr. Web-based
- Introduction to Lean 2 Hrs Web- based
- Lean Simulation Workshop 5 Hrs. Instructor Team
- Introduction to Theory of Constraints Critical
Chain for PM 4 Hrs Wed-based - Practical Software Systems Measurements 8
Hrs. One Instructor - Lean 6S Champion Course 8 Hrs. Web-based
- Yellow Belt with Lean Simulation Blended 3 days
- Green Belt with Project and Exam Blended 2
weeks
212006 PRO CPI Training Program
- Level 2 SME
- Lean Practitioner Blended 1 Week
- Black Belt with Project and Exam 2 Weeks
(1yr) - Master Lean Practitioner Trainer 4 Weeks
(1Yr) Instructor Only - Level 3 SME
- Master Lean Black Belt 4 Years of Coaching
Teaching
22PRO Certification Levels
23PRO Certification Levels
Pizza Simulation (6hrs)
Awareness
Overview
Level 1- Champion Course/Executive Overview (1d)
Intro
Champion
Champion
Level 1- Site Analyst Course (2d)
Yellow Belt
Intermediate
Level 2- SME (10 days total)
Lean B
6? B
Black Belt
Advanced Lead
Level 3- Advanced SME (80 hrs)
Lean 6? C
Master Black Belt
24PRO Certification Levels
PRO CPI Tracks
Lean
6?
Pizza Simulation (6hrs)
Awareness
Level 1- Champion/Executive Course (1d)
Champion
Level 2- Site Analyst Course (3d)
Yellow Belt
Level 3- Site Manager/Analyst (4d each)
Lean A
6? A
Lean Practitioner
Green Belt
Level 4- SME (10 days total)
Lean B
6? B
Black Belt
Advanced Lead
Level 5- Advanced SME (80hrs)
Lean 6? C
Master Black Belt
25Transitioned for Training to CPI Solution Focused
Practice
- CPI Training is still a major key foundation.
- Developed Key Strategic Solutions for Customers
- CPI Assessment
- CPI Strategic Alignment with Project Portfolio
- CPI Customer Internal Training with Execution
- DoD CPI Compliance Reviews and Roadmaps
- Air Force Smart Ops 21 CPI Enterprise Reviews and
CPI Dashboards for Executives - TOC Applications for Depots, Bases and PMOs
- Senior Master Lean and 6S MBB Augmentation
26Todays PRO CPI Solution Training Program
27Firing on All Cylinders in 2006
- RG Today
- Four Senior Master Lean Black Belts in residence
- Three Lean Master Black Belt in Training
- 25 Black Belts from organic growth
- 4 Senior Master Lean Trainers and Coaches
- 10 Black Belt in Training form organic growth
- 75 Green Belts form both organic and new hires
- 60 Yellow Belts at our key Depots
- 40 Lean Champions
- 500 Lean Practitioners in the field
28PRO 2006 TOC CCPM Training Series
- PRO TOC CCPM Training Program
- Two TOC CCPM Series in 2006 2007 now being
planned - Multiple RG locations / Defense Depot Sites
- One-day TOC CCPM Web-based Overview
- Four Day TOC CCPM Blended Workshop
- Web-based materials by PRO and Dr. Leach
- Master Instructor Dr. Leach
- 2007 Goal - PRO and Defense Practitioner SMEs
29Selected Tools for CPI
- Six Sigma
- Minitab Industry standard and leader from the
90s - Power Steering Enterprise scale COTS
- SigmaFLOW Integrated COT Suite with Coach,
Insight and Workbench COTS - Lean
- iGrafx VMS, Swim Lanes, and Mapping
- Microsofts New Visio Office Suite
- SigmaFLOW - VSM Add-On Suite
- CMMI
- SEI Shareware Appraisal Application
- Australias Shareware McGriffin University CMMI
Appraisal Application
30Limited Tools for TOC CCPM
- CCPM COTS Plug-in Application by
Advanced-Project, Inc. - CCPM. Critical Chain Project Management. (CCPM)
plans and enables tracking progress the way you
need to implement CCPM. - CCPM Plug-In to Microsoft Project to
- Improve work quality by enabling resources to
focus on one task at a time, - Identify the real critical chain to focus on,
- Effortlessly insert properly sized feeding and
project buffers, - Simplify project status reporting with automatic
generation of buffer reports, - Enable relay-racer performance on your project
tasks with prioritized task lists for your
project resources, and - Know precisely when to plan and execute buffer
recovery action on your projects - Very inexpensive
- Downside- limited to one project efforts at this
time and EVM. - Concerto by Realization
- Enterprise Solution, Industry leader, 170
customers, nice product - Downside- Very expensive solution to implement,
lacks EVM and projects costs detail/budgets - Microsoft Project Server
- MS Project manually tailored for Critical Chain
and buffers as well as reporting - Handles multiple projects
- Has scalability for complex projects
- Inexpensive
31CPI - TOC CCPM Power Ball Effect
- TOC Manufacturer Case Study
- Six Sigma plants yield 7 return
- Lean plants will yield another 4 return
- Using Theory of Constraints CCPM jumps the return
yield by 89 - giving the program a powerball
effect of 100 to contribution to savings
realized! - Case Studied Global Electronic Manufacturer- 21
plants, 45,000 employees. The plants that used
all three including TOC yielded 89 saving
contribution!!!! - Source APICS Magazine May 2006
32Selected CPI Lean TOC Successes
- TOC Success Cases
- US Marine Corp Logistic Base, Barlow, CA Air
Craft RO 2003 - 2004 - Warner Robbins ALC, GA (C5s and C130s) -
Currently with Concerto COTS - US Marine Corp Maintenance Ctr, Albany, GA - 2005
(see video on web site) - Air force Systems Testing Center- Warfighter
Systems Testing - 2004 - Edwards Air Force Test Center, Edwards, CA PMO
Directorate - Currently with Concerto COTS - Results
- Reduced cycle time
- Early project completions and cost savings
- Increased work with same resources or less
- Better work flow
33Answers from the Field
- Question and Answer Session
- Follow Up CPI Training Questions
- PROs CPI Practice Solution
- Parking Lot Questions
- Presentation will be on the web _at_
- www.pmboulevard.com
34 PM Boulevard
http//www.pmboulevard.com
Knowledge PM Boulevard is home to the most
robust knowledge library for PM professionals.
Capabilities PM Boulevard delivers useful
tools and capabilities to help PM professionals
succeed.
Community Rich community functionality allows
members to stay informed and to collaborate.
40
35Questions can be referred to Paul E. Warth VP,
Navy/USMC Programs 703.706.4002
(Main) 703.395.1918 (Mobile) paul.warth_at_robbinsgio
ia.com Stephen C. Hawald PRO Strategic Practice
Director Robbins Gioia , LLC (703)
739-5640 stephen.hawald_at_robbinsgioia.com Presentat
ion Location http//www.pmboulevard.com