Common Problems When Implementing Six Sigma

Methodology for Organization A

Discusa About The Common Problems When Implementing Six Sigma.

Projects, especially complex ones, require project management approaches to effectively and efficiently manage the constraints of time, cost, scope, and available human resources in order to achieve the project objectives. While using project management methodologies increase the chances for project success, this is just but the first step (Borysowich, 2010). It is equally important that the right project management methodology and approach is used to ensure the successful execution of a project. A project management methodology must fit the project type, project objectives, and the available project team, as well as the circumstances. In this paper, three organizations (A, B, and C) are evaluated in terms of their needs and the best project management methodology chosen, with justification, based on their unique challenges and objectives. The organizations are briefly introduced, before the most suitable project management method is discussed, and a conclusion drawn at the end

Based in USA, organization A is in technology services and manufactures high volume high tech memory chips and complies with the CMMM standard: it has 200 employees and is seeking to develop markets in North and South America, especially Brazil and needs to expand its manufacturing capacity. The expansion strategy is to set up sales and marketing division, then set up a low cost, high tech manufacturing plant. Speedy implementation is required with a local project team. The most suitable project management methodology for this organization is Agile: Agile is an adaptive method for managing projects that entails iterative and incremental development. Though initially developed for software development, it is highly adaptable and flexible for any sector.  In Agile, solutions and demands evolve through cross functional teams working collaboratively and is suitable for complex projects such as what Company A is looking to start; new plants in new regions and markets where teams will work in different regions and tasks. The projects are complex and will operate with cross functional teams; hence the suitability of the Agile method (Juricek, 2014).

The Agile framework is not exclusively a top management level activity; instead, it requires teams that are cross functional interacting over tools and processes.  The four values of Agile are;

• Interactions and individuals above tools and processes
• Working software (or outcomes) over comprehensive documentation
• Collaboration with customers over negotiations over contracts
• Responding to change above following a plan

The agile methodology is an interactive and highly flexible approach to managing projects and an iterative and building process. One characteristic of agile projects is a series of conceived, executed, and adapted plans as per the demands of the situation; this is used instead of a pre-planned processes and methodologies. In the case of organization A, the goal is to develop markets in North and South America with a need to expand manufacturing operations, especially in Brazil. Its goals are to first set up sales and marketing then low cost but high tech facilities for manufacturing. Because it is headquartered in the US and will need to expand into Canada, parts of US, and South America, what is needed are self-managing and cross functional teams that respond to situations as they come and seek out the best solution. In this situation, the involvement of management will be approvals and support for the project; beyond that, project teams located in each desired area will work with a project manager (Juricek, 2014).  The project will have teams from the company, and experts in specific fields from the countries where the company is going to expand into, with a project manager that reports to the organizations’ management. As such, the organization can set up a project board to offer advice and have an executive and business sponsor to give support to the projects (Collyer, S., & Warren, 2009).  The project managers will be responsible for achieving the set objectives within the triple constraints of scope, time, and budget. However, because the organization is venturing into new territory, the project can be affected by several changes, hence the need to have an agile approach that responds to issues and circumstances, and gets approvals for changes such as scope and budget changes from the executive sponsors, on the advice of the project board. The project teams working in different locations will have sub teams involved in risk management, documentation, and performing various tasks to get the projects up and running as fast as possible.  Hence, the agile methodology is best suited for organization A and the project does not require, and should not involve the management in its execution (Conforto & Amaral, 2010)

Methodology for Organization B

The agile methodology should be adopted and implemented in its entirety; this is because Agile is not strictly a methodology, but a framework with various principles to guide the execution of the project, with the ultimate goal being whatever works.  This means planning, execution, and evaluation is done continuously as the project proceeds; so that evaluations are made after every milestone is reached and lessons learned incorporated in the next phase of the project.  The method should be used in Toto because the expansion project does not have issues that can be easily predicted. However, through effective communication and collaboration, issues can be solved as they come (Fernandez, 2008).

While it is highly flexible and adaptive, agile does not solve all problems, and will face various issues and challenges. The most important issues are categorized broadly as communication, management of day to day problems related to operations, gaining buy in from customers, management, and project team members, changing mindset and culture, and gaining from experience and ensuring it works (Miller, 2013).

Issue	Solution(s)
Communication	Develop an effective communication plan detailing what to communicate, to who, how, and through what method, as well as the responsible person
Day to day operational problems	Use a method such as SCRUM where daily meetings are held, achievements discussed, and problems and challenges discussed; a scrum master will be there to ensure all obstacles are removed and there is harmony (Miller, 2013).
Buy in from customers, management, and team members	Effective project planning Effective stakeholder management (Miller, 2013).
Changing mindset and culture	Make initial plans and get an agile coach to familiarize team members with the method Use effective change management processes Select team members with skills and experience in Agile methods (Miller, 2013).
Gaining from experience and making it work	Use a methodology that enables regular reviews of progress, failures, and determines ways to improve; this will enable learning from mistakes made (Miller, 2013).

Benefits include flexibility, autonomous and cross functional teams; it enables visibility for project details, high quality products, greater customer satisfaction, reduced risks, better returns on investment, and greater control over projects (Highsmith, 2010).

Based in Paris, France, organization B is in construction sector and handles government infrastructure projects in Europe; it has 300 employees and is seeking to increase the number of projects it undertakes and meets construction sector industry standards. However, its director is concerned that increased projects will increase financial risks and wants a project methodology suitable for staged risk assessment that allows the organization to evaluate each project’s viability at given stages before proceeding to the next stage. The most suitable project management methodology for this organization is PRINCE 2: PRINCE 2 refers to a full stack project management methodology that mimics the traditional (water fall model). It means Projects IN Controlled Environments and is a highly process oriented project methodology in which projects are divided into multiple stages. Each project stage has its own processes and plans to follow with inputs and outputs for each stage being defined with nothing left to chance. PRINCE 2 requires that all courses that an organization takes with respect to project management is justified where a clear need for a project to be undertaken is first identified. The project is owned by a project board that is responsible for the success of the project.  This would suit company B because of the risks involved and the need to review the projects’ viability at any given stage before proceeding to the next step (Lianying, Jing & Xinxing, 2012).

Common problems in Six Sigma implementation

This methodology will require some level of management involvement, albeit minimal involvement; the method requires a project board and executive and business sponsors, that can be the senior management. These appoint the project manager(s) and are responsible for giving the project support. However, they are not involved in the details of the project; this is left to the project manager and their project teams. The project manager, however, must report and communicate regularly with the project board. The management of the projects will be delegated to the project manager; which implies that the project board still holds the trump card when PRINCE 2 is being used (Bentley, 2017). This involvement by management is necessary because of its concerns as described, including the high risks involved and the need to execute projects in stages and review before going into the next stage.  The project manager will work with project teams with specific tasks and roles.

The PRINCE 2 methodology is characterized by high levels of control and so must be implemented fully; this is because the management of organization B feel that the new project has high financial risks and there is need to evaluate progress at each stage before moving on to the next stage.  The project plan starts with setting objectives which is then broken down into smaller objectives to cover the things that need to be done for its achievement. The plan then evolves to planning backwards from the desired end product (objective) to ensure the timings are gotten right (Wells, 2012). The timings and milestones are then reviewed to ensure the tasks are correctly ordered based on dependencies.  After this, a budget is developed using accurate costing methods; this stage marks a milestone in that a high level plan has been developed.  A decision is then made on what should be done in the first period (say two months) and this forms the first stage. Subsequent stages are then determined to develop an implementation plan that follows the set stages.  Roles are then allocated and this methodology requires continuous planning at every stage, as changes may be made based on experience and input from the management, especially with regard to cost and scope (Lianying, Jing & Xinxing, 2012).  

The method has its roots in the UK public sector, including on the people that constitute the project board.  Project managers play more of a reporting role with their duties being delegated by the project board, yet projects need strong leadership to be successful (where leadership focuses on the project manager). It lacks inbuilt guidelines of budgeting and management of costs.  It is heavy in the business case and justification and not on strategy for delivery.  Works on an assumption that once initiated, the project will proceed ‘according to plan’. It requires management by exception meaning project managers are made to believe success is not their responsibility.  It is suitable for project initiation and not delivery (Litten, 2017)

Inadequate leadership and commitment

The main issue with PRINCE 2 for such a project are the inhernet deficiencies in the methd itself; for instance management by exception, delegated authority to the project manager, and lack of a cost management and budgeting method, as well as being based on the UK public service. These issues can be solved by using a hybrid approach to the project, such as combining PRINCE 2 with an Agile methodology. This is because PRINCE 2 is suitable as a framework for initiating projects and ensuring tight control; but because of the reality or projects, such as that projects hardly ever proceed according to plan, Agile methods will enable the project manager to respond best to situations and budgeting and cost management will be more effective (Litten, 2017).

The benefits of PRINCE 2 include being flexible enough to be used for any project in any industry: it’s flexible in that it is not proprietary and is based on best practices rather than rigid processes.  It is a widely recognized methodology with common vocabulary.  It is designed for uncertainty such as problems in organizations or external factors such as recessions (Bentley, 2017)

This is an established financial services company with 11 years’ experience with 800 employees based in Australia: its business model is successful and complies with the Australian Prudential Regulation Authority, but looking to make improvements. Its senior management team, created through internal promotion and professional development is highly motivated and enthusiastic and always seeking new ideas to challenge the organizations’ status quo.  They operate with a mindset of continuous improvement and support any initiatives that can result in holistic improvements and are seeking a suitable methodology to meet this objective. The most suitable project management methodology for this organization is the DMAIC method of project management. DMAIC forms part of Six Sigma, although it is used as a standalone project management methodology. This is a data driven methodology with improvement cycles used for improving, optimizing, and stabilization of business designs and processes.  In define; the customers are clearly defined as well as their needs, with the scope and purpose of the project also defined, as well as current processes and what customers need from them. In measure; the performance of the current process is measured with data collected in how current processes meet customer needs. In analyze; the most significant problem causes are identified, with a focus on the root causes. In improve; the focus is on removing problem causes and it requires solutions to be planned, tested, and implemented. In control; focus is on how improvements can be made and gains made are maintained through standardization of processes and methods (de Mast and Lokkerbol, 2012). This suits organization C because already, they have working processes and solutions, but have highly motivated management that is enthusiastic and always looking for opportunities for making improvements.  This approach enables evaluation of existing processes and methods Vis a Vis customer needs and enables new ideas to be developed, tested, and implemented (Berardinelli, 2012)

Lack of training and knowledge

The DMAIC is a management level activity; the management of organization C can initiate the plan and use it to enable members of the organization contributes ideas that are then tested and implemented. While the management should be involved, the other members of the organization should also be more involved, such that the management becomes the initiators and supporters to the project using DMAIC (de Mast and Lokkerbol, 2012).

For the Organization C case where existing processes and methods are already working, DMAIC should be implemented in its entirety because it is basically a framework for making improvements and seeking better ways and ideas to meet customer needs as well as organizational goals. The method, as its name suggests, should be implemented fully, where the management can appoint project managers from within the organization to be responsible for improvements, or initiate the improvements through their leadership and forming teams for execution.  The processes to follow include defining what needs to be done, such as improving efficiency and client returns, measuring the present situation, for instance, what has been the average return on investments?  Then analyzing the situation and making improvements; successful improvements are then maintained and controlled. The steps in the DMAIC model will also form the project plan for organization C. It is a method that does not require a formal approach, but a disciplined method will ensure success of the project (Kumar and Sharma, 2012).  

Some of the issues expected when using DMAIC include lack of commitment by the top management; in the organization C case, the top managers have attained their positions through training and promotions and so are less likely to believe others, especially those at lower levels appointed to manage the project will be effective (Raosekar & Pohekar, 2014). Incomplete understanding of the DMAIC methodology and its principles can hinder the successful execution of the project, especially when there is a rush to benefit from its principles before fully understanding what it entails first.  A poor execution of DMAIC is a recurrent risk, especially given the nature of the organization and the fact that its processes and approaches are working already (Munk, 2013).

The problems and issues identified above can be resolved by using DMAIC with another more familiar methodology, such as using Kanban in a hybrid fashion with DMAIC.  Further, the management can adopt and implement effective change management strategies to ensue buy –in for the method. Training the organization members on the method, even with a mock project executed using DMAIC will enhance its internalization and effective use.  Using it in one project and learning before implementing it across the organization will enhance its internalization and ensure success (Raosekar & Pohekar, 2014).

Resistance to change

It is very suitable for process improvement within organizations involving all organization members because it does not require a formal structure to be effectively used. DMAIC has a clear and well defined structure that is easy to use and follow, and is easy to repeat all over again to ensure continuous improvement to systems and processes. Because of the well structure approach, it ensures a process is carefully analyzed before making any improvements or attempting to make improvements. Some processes can be so good that there is no need to improve them in the first place (Breyfogle, 2008). Further, because it is a structured approach, it provides businesses with a clear roadmap for developing solutions. This enables businesses like Organization C to solve problems form their start to finish while leading to bottom-line results. DMAIC also supports an approach that is analytic, enabling collected data to be used for decision making and developing solutions; further, accurate baselines are assured because of the use of data. Improvements can also be quantified when the DMAIC methodology is used and solutions to complex problems identified (Bass, 2017).

Conclusion

Organization A is in technology services and manufactures high volume high tech memory chips and complies with the CMMM standard: it has 200 employees and is seeking to develop markets in North and South America, especially Brazil and needs to expand its manufacturing capacity with speedy implementation is required with a local project team and the most suitable project management methodology is Agile. Organization B is in construction sector and handles government infrastructure projects in Europe; it has 300 employees and is seeking to increase the number of projects it undertakes. However, its director is concerned that increased projects will increase financial risks and wants a project methodology suitable for staged risk assessment that allows the organization to evaluate each project’s viability at given stages before proceeding to the next stage and the most suitable methodology is PRINCE 2. Organization C, being an established financial services company with 11 years’ experience with 800 employees based in Australia has successful business model, but looking to make improvements. Its senior management team operates with a mindset of continuous improvement and supports any initiatives that can result in holistic improvements and are seeking a suitable methodology to meet this objective; the most suitable methodology is DMAIC

References

Bass, B. (2017). What Are the Benefits of DMAIC?. [online] Bizfluent.com. Available at: https://bizfluent.com/info-8648734-benefits-dmaic.html [Accessed 18 May 2018].

Bentley, C. (2017). PRINCE2: a practical handbook. [S.l.], Routledge. Bottom of Form

Berardinelli, C., F. (2012). Back to Basics: to DMAIC or not to DMAIC? [online] ASQ.org. Available at: https://asq.org/quality-progress/2012/11/back-to-basics/to-dmaic-or-not-to-dmaic.html. [Accessed 18 May 2018].

Breyfogle, F. (2008). The integrated enterprise excellence system. Austin, TX: Bridgeway Books in cooperation with Citrus Pub.

Borysowich, C. (2010). Why Project Management Methodologies are Important. [online] IT Toolbox. Available at: https://it.toolbox.com/blogs/craigborysowich/why-project-management-methodologies-are-important-100510 [Accessed 18 May 2018].

Collyer, S., & Warren, C. M. (2009). Project management approaches for dynamic environments. International Journal of Project Management. 27, 355-364.

Conforto, E. C., & Amaral, D. C. (2010). Evaluating an agile method for planning and controlling innovative projects. Project Management Journal. 41, 73-80.

de Mast, J. and Lokkerbol, J. (2012). An analysis of the Six Sigma DMAIC method from the perspective of problem solving. International Journal of Production Economics, 139(2), pp.604-614.

nandez, D.J. (2008). Agile project management – Agilism versus traditional approaches. Journal of Computer Information Systems. 49, 10-17.

Top of Form

Highsmith, J. A. (2010). Agile project management: creating innovative products. Upper Saddle River, NJ, Addison-Wesley.

Jicek, J. (2014). Agile Project Management Principles. Lecture Notes on Software Engineering, 4, pp.172-175.

Kumar, A. and Sharma, N. (2012). Six Sigma DMAIC Methodology: A Powerful Tool for Improving Business Operations. Advanced Materials Research, 488-489, pp.1147-1150.

Lianying, Z., Jing, H., & Xinxing, Z. (2012). The Project Management Maturity Model and Application Based on PRINCE2. Procedia Engineering. 29, 3691-3697.

Miller, G. (2013). Agile problems, challenges, & failures. [online] Pmi.org. Available at: https://www.pmi.org/learning/library/agile-problems-challenges-failures-5869 [Accessed 18 May 2018].

Litten, D. (2017). PRINCE2 2017 Issue and Risks– how to capture and examine PRINCE2 issue and risks [online]. PRINCE 2 Primer. Available at: https://www.prince2primer.com/prince2-2017-issues-and-risks/ [Accessed 18 May 2018].

Munk, J. (2013). Common Problems when Implementing Six Sigma. [online] Sixsigmadaily.com. Available at: https://www.sixsigmadaily.com/what-are-common-challenges-when-implementing-six-sigma-in-organizations/ [Accessed 18 May 2018].

Reosekar, R. and D. Pohekar, S. (2014). Six Sigma methodology: a structured review. International Journal of Lean Six Sigma, 5(4), pp.392-422.

Well, H. (2012). How effective are project management methodologies?: an explorative evaluation of their benefits in practice. Project Management Journal. 43.

Bottom of For