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Project Management 101

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Chris Noel

on 8 July 2014

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Transcript of Project Management 101

So how does
Project Management work?

Project management begins when you’ve identified a problem or waste in your process.

A project is centered around solving a problem at the root cause so the problem does not come back.

Once the project has eliminated or reduced the waste, it is time to begin again – think P.D.C.A.

Any Questions?
Project Management Meetings
A training session wouldn't be complete without discussing how to conduct meetings...
Project Management 101

1. Introduction to Project Management
2. Project Management Structure
3. Let's walk through your project and use some tools!

Guidelines for completing a project using Lean thinking
Project Management 101
Are there any standard methods for running a project?
There are two common methodologies for managing a project:
D.M.A.I.C & P.D.C.A
Let's get to know each other!
What is your name?

Where do you work?

Have you owned any projects or been a part of one in the past?

What do you like to do in your spare time?

What do you expect to gain from this class?

What should we all expect?

To gain an understanding of the material and apply it to your work

To build on your existing understanding

Speak up - this class is built on participation and learning from your peers; share past experiences and examples

Put the concepts and tools learned into action and promote a culture of continuous improvement

DMAIC stands for Define, Measure, Analyze, Improve, Control
PDCA stands for Plan, Do, Check, Act or Adjust
DMAIC is a scientific method from the Six Sigma quality philosophy.

Six Sigma thinking was founded by Bill Smith while working for Motorola in an effort to bring quality to 3.4 defects per million opportunities.
PDCA is often referred to as the Deming or Shewhart Cycle.
It was originated by Walter Shewhart in the 1930’s as a scientific method for continuous improvement
It was later popularized by W. Edwards Deming when his work on Total Quality Management came into the spotlight.
“What's in a name? That which we call a rose By any other name would smell as sweet…” William Shakespeare
Step-by-step problem solving models
Uses toll gates to manage the process and keep the process on track and brings project issues to light
Creates a “common language” so all team members are solving problems the same way…allows for more effective communication and sharing with leaders and team members
While we try to categorize tools into each stage of the DMAIC or PDCA process, many tools and concepts are applicable in all stages.
Do not become a prisoner to the tools, use logic and experience to know who, what, when, where, why and how.
So what do you think happens during the DEFINE phase?
What tools would you possibly use in the DEFINE phase?
Define Stage
Purpose and Deliverables:
Articulate the business problem
(current state)
Articulate the business opportunity
(future state)
Determine the scope (boundaries) of the initiative
Build the team required for success
Prepare the data collection plan
Prepare the overall improvement initiative plan
Define Stage
Concepts and Techniques:
Voice of Customer
A3 Thinking and Charter
Team Roles and Responsibilities
Lean thinking - 8 wastes, value vs. non value add
Identify Quick Wins
Define Stage
Possible Tools and Outputs:
A3P - This is critical!

Gantt Chart

Process or Value Stream

XY Matrix

Waste Walk

Data Collection Plan
A3P is a charter for your team

Gives an entire overview of project

A good A3P tells a story

A3P is a living document because the project owner should be continually updating

Teams create and manage A3P's, not individuals.
A3 thought is more than just filling out a form. A3 thought is about planning ahead to reduce the chance of setbacks and problems which increase your chance of success!
Let's start by naming an area of focus

What's a problem or potential project in that area?

How do you think we could make it better?

How would we tell if we're successful in making a change?

Who should we include on the team?

Who owns the project?

What specific steps would we need to take to accomplish our goals?

Who's going to complete these steps and by when?

How are we going to track our progress?

What aren't we focused on? What issues should we save for another project?

How are we going to report out on results?
Let’s discuss a potential project and walk through an example:
Project Tasks & Next Steps: Gantt Chart
At this point, you’ve prioritized the projects and / or problems in your area, department, or facility, you’ve planned the project using an A3P.
Gantt charts are used to illustrate project work.
Completing the Gantt chart will help you stay on track so your project doesn’t fall behind.

The XY Matrix tool has several applications. It can be used to rank, select, and prioritize work and activities.
The first step is deciding on the criteria to rank against.
A clear definition and alignment of the meaning of each factor will make ranking easier – the more specific, the better.
These factors then will need weighted averages. These weights need to add up to 100.
The different criteria factors and the weighted averages are determined by the Voice of the Customer.
Finally, list the items being ranked and determine how each item impacts each factor.

Waste Walks

The main focus needs to be on eliminating waste!!

Defective Production
Over Production
Neglected Knowledge
Excessive Processing

Data Collection:
What should we collect:
Process Maps
Value Stream Maps
Standard Work
Productivity metrics
Cost per unit metrics
PRS data
SPRS data
Operating statements
So what do you think happens during the Measure phase?
What tools would you possibly use in the Measure phase?
Measure Stage
Purpose and Deliverables:
Identify available data and accuracy of data
Validate accuracy of data
Identify critical measures - inputs and outputs
Manage and execute data collection plan
Describe the process through data and facts
Generate and organize ideas around the process
Measure Stage
Concepts and Techniques:
Use data to drive conclusions and action
Focus and prioritize around the critical few
Understand and articulate variation
Understand and articulate lead time in processes
Measure Stage
Possible Tools and Outputs:
Define Phase Application
Use the information you have gained so far to work on the Define stage of your project.

Feel free to discuss how to succeed in this phase with your group.
30 mins
Measure Phase Application
Use the information you have gained so far to work on the Measure stage of your project.

Feel free to discuss how to succeed in this phase with your group.
30 mins
Carry out Data Collection Plan

Pareto Charts

Current State Process Maps

Time and Motion

Verify Standard Work is being followed
Data Collection:
What should we collect:
Process Maps
Value Stream Maps
Standard Work
Productivity metrics
Cost per unit metrics
PRS data
SPRS data
Operating statements
Analyze Stage
Possible Tools and Outputs:
Fishbone Analysis

5-Why Analysis

Data Collection Review and Analysis

FMEA (What is going wrong)
Improve Stage
Possible Tools and Outputs:
Future Process Map

5S and Visual Management

Standard Work

Gap Analysis

FMEA (what could go wrong)

ROI Analysis
Control Stage
Possible Tools and Outputs:

ROI validation

Sustainment follow ups
So what do you think happens during the Analyze phase?
What tools would you possibly use in the Analyze phase?
Analyze Stage
Purpose and Deliverables:
Use data from measure stage to draw conclusions
Generate hypothesis of cause and effect relationships
Validate cause and effect relationships
Root cause analysis
Quantify real opportunity
Analyze Stage
Concepts and Techniques:
Visual display of data
Visual display of processes
Value add vs. non-value add analysis
Root cause analysis
Determine critical X’s (inputs of process)
So what do you think happens during the Improve phase?
What tools would you possibly use in the Improve phase?
Improve Stage
Purpose and Deliverables:
Generate all possible ideas for improvement
Prioritize possible solutions
Articulate the impact of solutions (change management)
Articulate who will need to be involved
Develop and implement roadmap
Train and teach new standards
Improve Stage
Concepts and Techniques:
Getting all ideas on the table
Focusing on root causes of problems
Engaging all those that will be affected
Articulating risk and reward
Focused and measured pilot
Plan Do Check Act procedures written
So what do you think happens during the Control phase?
What tools would you possibly use in the Control phase?
Control Stage
Purpose and Deliverables:
Complete cost-benefit analysis

Make standards visible and simple

Measure and verify outcomes

Plan – Do – Check - Act implementation

Transfer ownership to process owners
Control Stage
Concepts and Techniques:
Leaders as teachers
Lower the water level
Make problems visible
Collaboration and change management
Capture lessons learned
Create and share best practices
Create cycle of continuous improvement
Let's take a

15 mins
Lunch Time!

45 mins
Pareto Chart
Now that you’ve collected some data, how do you focus on the most important things?
One good tool that can be utilized in the project to determine what things will make the biggest difference is the Pareto Chart.
We find that 80% of the cost, value, or trouble is accounted for by 20% of the items or categories
A typical distribution will consist of the Vital Few and the Trivial, or Useful Many
Pareto Chart
Sort Data in Descending Order
Calculate Percentage of Total
Calculate Cumulative Percentage
Pareto Chart
We typically spend 80% of our time on the trivial 20% of our problems
If we’re monitoring everything equally, we may miss bigger opportunities
We may have more power with our vital few (where are we spending our money)?
Pareto Chart
Just by using the sorting, division, and addition functions of Excel you can calculate and graph your date into a Pareto Chart.
Using the Microsoft Excel Chart Wizard, select “Custom Types” and “Line – Column on 2 Axes”.
Time & Motion
Time and Motion charts will help demonstrate where large amounts of non-value add time or excessive motion exists.
Verify Standard Work is being followed!
It is important during the Measure stage to check to see if current Standard Work is being followed.

If not, something is not going right with the process and needs to be notated and the problem documented

This will be analyzed during the Analyze phase
Root Cause Analysis
What variables drive basic stability and allow you to uncover the root cause?
Man / Woman – how are people contributing to the problem?
Materials – how are material affecting problem?
Machine – how are machines affecting problem?
Methods – how are methods contributing to the problem?
Mother Nature / Environment – how is the external environment contributing to the problem?

Measurements – how are the measurement systems contributing to the problem?
Problem – what is the problem?
Root Cause Analysis
One problem can have multiple causes (“The Perfect Storm”)
A 5-Why Analysis could be done on each one to determine the root cause
Root Cause Analysis
By repeatedly asking the question “Why?” five times on a problem, you can uncover layers and layers of symptoms which can lead to the ultimate root cause of a problem.

Write down the specific problem. Writing the issue helps you formalize the problem and describe it completely. It also helps a team focus on the same problem.

Ask why the problem happens and write down the possible answers to the problem.

If the answer you provided doesn't identify the root cause of the problem you wrote down in step 1, ask “Why?” again and write that answer down.

Repeat step 3 until the team is in agreement that the root cause of the problem is identified. This may take fewer or more times than 5 Whys.

5-Why - Operational Example
Problem: Team Member was injured cleaning up merchandise from tier rack that had been knocked over by a fork lift.
Original 5 Why:
1. Why was associate injured?
A: Pushing on dresser with tier rack post.
2. Why was he pushing on dresser with tier rack post?
A: He was trying to dislodge merchandise while maintaining a safe distance.
3. Why was he trying to dislodge the dresser?
A: To clean up fallen tier rack.
4. Why was associate cleaning up fallen tier rack?
A. To place tier rack and merchandise back into original location.

Original Root Cause: Used tier rack pole to manually clear heavy merchandise was unsafe.

Recommended action: Possibly get fork lift mounted pole or using another set of extended forks in the future to help stabilize and clear accidents in the future.
5-Why - Operational Example
Problem: Team Member was injured cleaning up merchandise from tier rack that had been knocked over by a fork lift.
Revised 5 Why:
1. Why was associate in the area?
A: To help clean a PIT accident involving tier rack in domino orientation.
2. Why did the tier rack fall?
A: Fork lift hit tier rack knocking them over across multiple aisles.
3. Why did the fork lift strike the tier rack?
A; Driver lost control of the fork lift.
4. Why did the driver lose control of the fork lift?
A: Because the fork lift changed direction of travel.
5. Why did the fork lift change direction of travel?
A: Because the steer wheel was turned and when the driver pushed on travel handle the fork lift veered unexpectedly.

Revised Root Cause: Lack of training on new fork lift equipment model. The new fork lifts have hydraulic steering versus older models with mechanical steering. Mechanical steering has a restrictive wheel stop to keep the wheels from fully turning.
Recommended action: Train drivers on new models to ensure drive wheel is in correct position before moving.

Data Collection:
Compare the actual to what's acceptable:
Process Maps
Value Stream Maps
Standard Work
Productivity metrics
Cost per unit metrics
PRS data
SPRS data
Operating statements
Failure Modes and Effects Analysis
FMEA is a way to prioritize potential failures and proactively prevent them from occurring. It is a living document that is recalculated as solutions are found.

Sometimes the FMEA form can be cumbersome

Let’s break down the steps and walk through an example:

Get a good understanding of the Voice of the Customer
As a team, clearly identify what each ranking means (similar to the XY Matrix)
Name a process (going to work, brushing your teeth, etc)
Name some things that can go wrong with that process (failure modes/causes)
List the effect(s) of that going wrong
Describe how often that could happen and whether or not it could have been prevented or detected before it happened
Brainstorm on how to fix it
That's All!
Visual Management
A Visual Workplace is Self Explaining and Self Improving
A Visual Workplace enforces Go See Management
A Visual Workplace motivates employees into ACTION

What visual management do we have?

Clearly separate necessary from unnecessary
Remove unnecessary (When in doubt, throw it out)

A place for everything and everything in its place

Clean, clear work areas

The same thing everywhere – kaizen is leveraged
Standard work allowing time to maintain first 3 S’s

Turn 5S into a cultural habit

The toughest parts of 5S:

What are some ways we can standardize?
Leverage Standard Work
Standardized Signage, Labels, & Lines
Standardization prevents confusion
Departments should look alike
Standard Audits and Metric Gauges
Audits cannot be subjective
Metrics must be able to compare all sites equally

Without 'Sustain,' 5S is no different from spring cleaning!
Culture is key!
PDCA reviews are important
Follow up and due diligence is critical to the success of 5S
This is an actual picture taken from Alcatraz

Can you imagine how big of a problem it would be if the kitchen was missing a knife?

Even worse: if they didn’t know they were missing a knife!
The Need for 5S
5S - Warehouse Examples
5S Program
Stability and the Ultimate Goal
A Lean operation exposes problems. A problem is a deviation from the standard, or more simply, a deviation from what we expected to happen. Therefore, the ultimate goal is have everyday look the same - stable and predictable. While we may never get there… this is the goal.
The Effect of Variation
Variation causes instability
Instability causes complexity
Complexity causes WASTE
What are some examples of where variation caused waste?
Standard Work
To remove variation and complexity we must institute standard work!

The goal is not to turn people into robots where they do not think for themselves; standardization promotes the opposite. We standardize in order to create a baseline from which we will improve. Define ‘purpose’ before standardizing.

The Purpose of Standard Work
Shows the safest, most effective way of doing something that we currently know

Provides a baseline from which to identify waste and make improvements

Helps in reproducibility, scalability, and training

Associates doing the work should be involved in creating and improving Standard Work

Should NOT be laminated or stuck in binder which is put on a shelve somewhere; it should be visible, near where the process is being done and easily updated
Standard Work
TIP: A good test is to give someone new to the process the Standard Work and have them execute.  If the new person can follow the Standard Work, you know you likely have a well written Standard Work.

Potential tools for Standard Work:
Time and Motion – Lists a process step by step, showing who is doing the action and how long each action takes.  Provides a good basis for Standard Work.
Process Map – Documents the steps of a process and decisions.  Steps can be translated into Standard Work.

Where can you apply Standard Work in your area?
Operational Example
Gap Analysis
Where we are now
Current State
Future State
Where we want to be
Perform GAP analysis to determine the steps needed to get to the desired future state
Gap Analysis Example
A one-page measurement tool comprising of critical measures related to a strategy or action plan
Allows for check and adjust
Provides real-time measures for real-time feedback

Dashboard Creation
What questions are we trying to answer?
Don’t think of the metric first
Ask questions, then create the visual management needed

Dashboards should operate as a Single Point Lesson

Metrics should collectively tell a story:
What did we do before?
yesterday, in the past, etc.
What do we need to get done?
today, soon, next, etc.
What’s getting in the way?
of adding value, making progress, etc.

Dashboard Creation
Actual application
What to Measure
Most dashboard metrics can be lumped into one of these five categories.

Remember Visual Management: See as a group, Know as a group, Act as a group

Return on Investment
Sustainment Checks
It is important to verify the project is operating as normal

To do this, conduct PDCA checks

Remember, PDCA is a continuous improvement cycle

Should be done at regular intervals
PDCA Sustainment Example
Kaizen Gap Analysis with PDCA:
Meeting management is one of the greatest misunderstood parts of Lean
Effective meeting management is one of the keys of driving projects forward effectively
It is a systematic, highly organized way of driving action

Thank You!
Explanation of PDCA Meeting Template
OPEX Example
Explanation of PDCA Meeting Template
Select a common place to put agendas and action items
SharePoint sites can be great tools for this…
Put Meeting agenda and notes in the same file for easy access
People buy from people and people work with people
Know your individual strengths and weaknesses
Utilize each others strengths
You can win the battle but lose the war
Say goodbye to pride and ego
Look for the best answer, not your answer
Not all voices are heard
Let everyone speak - encourage shy people
Some of the greatest ideas are never heard

Meeting Management
Individual Personalities Impact Results
Return on Investment
Let's take a

15 mins
Today we will focus on the following:
PDCA Meeting Template
Current State to Future State
Spanish Fork SSC took on a project of simplifying and streamlining the process of miscellaneous handling in their Garments on Hanger area. This project resulted in $50,000 saved over the course of a year.
Full transcript