Using Models to Drive Process Improvement

1. Using Models to Drive Process Improvement Kurt D. Roudabush, PMP CMQ/OE, CQE, CQA, CSQE

2. Where are we going? • Why? • How? • Is there something better?

3. Where are we going? • Why? • How? • Is there something better?

4. Experience That Is Too Common • A 2-year process improvement effort is completed • Quickly or slowly, but steadily it begins to fade away • A year or so later there is little evidence anything was done!

5. Why Do Organizations Most Often Do Process Improvement? • Follow the leader - Everyone else is doing it • A champion - An executive heard about it or read about it somewhere • A prod - A customer demands it • A cause – If we don’t do something, we won’t survive

6. Why Should Organizations Do Process Improvement? • As a means to achieve organizational goals/objectives derived from strategic plans. • Always maintain the link to the goals/objectives and strategies • If you don’t, the process improvement effort will not survive an economic downturn or the loss of the key sponsor

7. Think “Programme Management” • My advice to organizations used to be to treat process improvement efforts as a project • This may not give enough emphasis to critical success factors • Programme management is about tying the improvement effort to the goals/objectives and ensuring that the process capabilities developed return measurable results. • For more info, google “OGC Managing Successful Programmes” Key # 1!

8. Where are we going? • Why? • How? • Is there something better?

9. Lots Of Ways To Do “It”? • SPC • TQM • ISO • 6 Sigma • CMMI/SPiCE • Lean • Lean/6 Sigma • Other

10. Presidential Citizen’s Medal - Awarded to U.S. citizens who have performed exemplary deeds or services for his or her country or fellow citizens Define “Models” • What do you think of when you hear the word “Model”?

11. Process Improvement Models • Definition - A model is a collection of process elements and practices that can be used as a pattern for process development and a criteria against which a process can be assessed objectively. • Some examples: • ISO 9001 • CMMI (Capability Maturity Model Integrated) • MBNQA (Baldrige Award) • ISO 15504 (SPiCE)

12. “Approaches”? • Definition - An approach is any methodology or system of tools that is been used to guide problem solving, management, etc. • Some examples: • TQM • 6-Sigma • Lean

13. Look at Models/Approaches • Each one developed to: • Address a certain principle • Resolve a certain issue

14. ISO 9001 • Requirements: • 4. Quality management system • 5. Management responsibility • 6. Resource management • 7. Product realization • 8. Measurement, analysis and improvement Focus in practice is usually on establishing foundational processes and being able to “Fly the Flag”. Should be used for much more.

15. CMMI 5 Maturity Levels 22 Process Areas Specific Goals Specific Practices Generic Goals Generic Practices Staged Representation Continuous Representation • Process areas • Requirements Management • Project Planning • Project Monitoring and Control • Supplier Agreement Management • Measurement and Analysis • Project and Process Quality Control • Configuration Management • Requirements Development • Technical Solution • Product Integration • Verification • Validation • Organizational Process Focus • Organizational Process Definition +IPPD • Organizational Training • Integrated Project Management + IPPD • Risk Management • Decision Analysis and Resolution • Organizational Process Performance • Quantitative Project Management • Organizational Innovation and Deployment • Causal Analysis and Resolution Level 2 Managed Level 3 Defined Focus is on Product Development Process Maturity Level 4 Quantitatively Managed Level 5 Optimizing

16. MBNQA (and MQLA) • 7 Categories (1,000 pts. Total) • Leadership (120 pts.) – Sr. leaders, governance, ethics • Strategic Planning (85 pts.) – Strategic objectives, action plans, deployment • Customer and Market Focus (85 pts.) – Customer, customer, customer • Measurement, Analysis, and Knowledge Management (90 pts.) – Data availability/usage/ communication, systematic performance improvement • Workforce Focus (85 pts.) – High performance, alignment, capability, capacity • Process Management (85 pts.) – Core competencies, work systems, customer value, sustainability • Results (450 pts.) – Outcomes, performance, process effectiveness, customer-focused, financially-focused, workforce-focused, leadership driven Focus is on Business Excellence

17. SPiCE (ISO/IEC 15504) • European answer to CMMI • Process Reference Model (PRM) and Process Assessment Model (PAM) • Domain specific (e.g. Automotive SPiCE – software development only for the auto industry) Focus on process maturity and continuous improvement with customization to specific domains.

18. ISO/IEC 15504 (SPiCE)

19. Automotive SPiCE (European Auto Mfrs.)

20. HIS (basically German Auto Mfrs.) Scope

21. TQM • "TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society." ISO 8402:1994 Focus is in involving everyone and all aspects of the business in problem solving.

22. 6-Sigma • Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects (driving towards six standard deviations between the mean and the nearest specification limit). • DMAIC (problem solving approach) • Specialists – black belts and green belts Focus on eliminating sources of error/variation with emphasis on the financial impact.

23. Lean • A practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Focus on cutting waste

24. Where are we going? • Why? • How? • Is there something better?

25. Pros and Cons • What are your goals/objectives and strategies? • What’s your SWOT look like? • What are your “Pain Points”? • What do your customers want/demand? • What is your corporate culture?

26. Why do we put blinders on? • Is your organization the same as that of the developers of any of these models? • Do your needs match theirs? • It’s easy to take what worked for them and apply it (as is) in your organization – We don’t have to think! No analysis required! • Does it make sense?

27. Toolboxes Key # 2!

28. Match Process Improvement Methods to Needs Key # 3!

29. How Can the Organization Realize the Greatest Benefit? • Good - Which of the models/ approaches seems to be the best fit or already has a champion? • Better – What combination of elements from them will give the strongest/quickest benefits short term? • Best – How is the choice going to help us reach our goals/objectives, achieve our goals long term?

30. How do you decide? • What methods would you suggest? • Look at things like decision matrix, force field analysis, mind maps, etc.

31. Conclusions • Program Management – • Strategies  Process Improvement  Outcomes • Don’t get hung up on one methodology • Don’t just “Study to the test” • Think “toolboxes” • Look at the needs/benefits • Stop focusing on the model/approach • They are just tools

32. Final Recommendation • Remember Deming’s 1st Point • “Constancy of purpose” • Roudabush (plagiarized) paraphrase - “Keep On, Keepin’ On!”