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Standing Up a CPI Practice Area with Lean Six Sigma TOC: Lessons Learned by Steve Hawald, CISC, L6S

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CPI - TOC CCPM Power Ball Effect. TOC Manufacturer Case Study: ... by 89% - giving the program a 'powerball' effect of 100% to contribution to savings realized! ... – PowerPoint PPT presentation

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Title: Standing Up a CPI Practice Area with Lean Six Sigma TOC: Lessons Learned by Steve Hawald, CISC, L6S


1
Standing Up a CPI Practice Area with Lean / Six
Sigma / TOC Lessons LearnedbySteve Hawald,
CISC, L6S Black Belt, PMP
2D Marine Aircraft Wing AIRSpeed Conference
2
Agenda
  • 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!

3
Hawalds 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.

4
What 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.

5
Symptoms 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

6
The 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.

7
2003 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!

8
First 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.

9
What 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

10
New CPI Training Program
11
2004- 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.

12
RG 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

13
Our 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!

14
It 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.

15
Defined 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

16
What 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!

17
Leans 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!

18
More 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!

19
PRO Moves to Thought Leadership Division
20
2006 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

21
2006 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

22
PRO Certification Levels
23
PRO 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
24
PRO 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
25
Transitioned 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

26
Todays PRO CPI Solution Training Program
27
Firing 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

28
PRO 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

29
Selected 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

30
Limited 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

31
CPI - 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

32
Selected 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

33
Answers 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



35
Questions 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
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