Quality, Cost-Competitiveness, Customer Service and First-To-Market Are

¶ … Quality, cost-competitiveness, customer service and first-to-market are all essential determinants to global commercial success. All sectors of the economic market are obliged to reduce costs and production times while increasing profits and market share. Ambitious organizations are turning to systems management programs such as Six Sigma or Total Quality Management to develop and maintain exceptional standards across the whole of an organization. This includes all aspects of production and manufacturing processes, as well as marketing, sales and distribution, financial considerations, employee motivation and customer service.

Finally, product development in the form of a perennial portfolio of projects helps to ensure the viability of a company. The incorporation of systems management programs has become integral to the renaissance and future of an organization. Often, enterprises will combine qualities from several methodologies such as integration aspects of Six Sigma with Project Management; the very topic of consideration for this essay that examines germane literature.

The aim of the research review is to determine the manner in which businesses are able to achieve and sustain process improvement across the whole of an organization through the integration of Six Sigma procedures and Project Management best practices. 2. Methodology A perusal of the research regarding the aforementioned blending of Six Sigma and Project Management attributes finds a number of resources that analyze the matter in-depth. Current available research addresses the concept in theory as well as offering the latest developments that include a combination of said perspectives.

Parameters of resources referenced for this critique include the use of information specific to the assimilation of Six Sigma and Project Management program elements. In other words, all resources in the form of academic papers and journal articles are narrowly specific to the subject of this assignment and ancillary information such as risk analysis or experimental design is beyond our current scope and concern.

The contents of the reviewed material will be synthesized and presented in a sensible order; but may be addressed multiple times according to the question under consideration. The order of the development of this essay is as follows. I began by completing a preliminary analysis of related research in general. This was the first step in the process of amassing relevant resources including technical and academic resources as well as tomes of greater length.

Keywords entered in search engines included "Six Sigma," "Project Management" and "Design for Six Sigma." Surprisingly, the amount of available information was much leaner than one might expect given the profusion of systems management models employed across the breadth of global organizations; and the particular popularity of Six Sigma and Project Management. 3. Six Sigma: concepts and definitions Let us preface further discussion with an outline of the basic concepts for each methodology.

This will aid the reader in grasping their principles of interaction as a vehicle for systems improvement across an organization. Kwak Y.H. And Anbari F.T.

[4] provide an exceptional classification of the Six Sigma Methodology; stating that it has been a "project driven" business strategy, which permits an organization to concentrate on the growth and development of its procedures founded on a deep comprehension of its clientele's needs as well as the sustained reduction of shortcomings in each and every activity of the company." Organizational advancements are achieved one project at a time; thus giving Six Sigma its moniker as a 'project-driven methodology'.

Specifically this means that each project has a problem solving component built into its design and completion that allows the organization to take advantage of an opportunity to realize improvement through the integration and execution of "knowledge of the entire business process, including statistics, engineering, as well as Project Management" [4]. Another expert on the topic of Six Sigma Management methodology, F.T. Anbari. [2, 3], created the following equation to breathe life into these advanced and sophisticated ideas.

Six Sigma = Total Quality Management (or Sustained Quality Improvement) + Added Tools of Data Analysis + Higher Customer Focus + Financial Outcome + Project Management This can be framed dichotomously as a "statistical point-of-view or a Business point-of-view" [4]. Regarding the former, Six Sigma offers a strategy that allows an organization to increase their profitability and is applicable across a company's systems - able to improve process efficiency and generating increased value for all stakeholders.

The Statistical view states there is a measure of quality that is equal to having less than 3.4 million defects per 1 million opportunities. The emphasis is on increased effort because current assessments find many organizations are currently performing at the 'three sigma level'. 3.1 DMAIC & DFSS Models Upon execution of the Six Sigma methodology as the systems improvement tool requires the use of the "life cycle process model" [9]. The steps are shortened to the acronym DMAIC which stands for define, measure, analyze, implement and control.

Each component of the acronym addresses the current and existent processes and/or products of an organization through Design for Six Sigma (DFSS); a systematic strategy aimed at developing new products and/or processes that combine to result in an outcome that exceeds customer expectations of high quality. Moreover, the Design for Six Sigma strategy also establishes a process model that has been labeled via acronym as well.

The DMAVD or define, measure, analyze, design and verify iteration of processes is yet another facet of Six Sigma that works in concert with all parts to incorporate systems management improvement across an organization. Kwak Y.H. And Anbari F.T. [4] provide extensive explanations of both methodologies in separate resources that themselves refer back to research from companies including Motorola as well as General Electric that are recognized for pioneering the Six Sigma model.

The original work was available in classic books and journals - although the work has been enhanced in the last few years. Here we will cease our consideration of this model; but shall return to this methodology later in the review of the literature when we will consider the processes developed to integrate DMAIC as a model with the strategies and tools of Project Management. Again, the goal remains always to improve the efficiency and effectiveness of organizations on a global scale.

I will also interject that my research did not uncover information concerning the integration of Project Management and DSFF. 3.2 Advantages of the execution of Six Sigma As noted previously, Six Sigma methodology was first introduced by General Electric and Motorola but has since expanded to organizations found around the world. It is vital to note that not all of the enterprises that have adopted Six Sigma are manufacturers.

Other types of organizations that utilize Six Sigma can be found in the technology, financial, healthcare, R & D, construction and engineering sectors. This serves to confirm the effectiveness of the compilation of Six Sigma strategies as a means to improving profits, trimming expenses and ensuring customer satisfaction. Too, the research confirms that these companies have reported higher earnings which they relate directly to the implementation of Six Sigma.

One article reviewed the savings of six major companies that utilized Six Sigma and in the case of Motorola the estimated benefits reached $15 billion over the course of eleven years while General Electric reported a savings of $2 billion in 1999 alone. Other companies that we will revisit regarding Six Sigma savings include Telefonica, DuPont and Dow [Anbari 1,5]. The successful implementation of this strategy is evident in several examples offered by Anbari [4]. For instance, Bechtel Corporation incorporated Six Sigma in their global engineering and construction businesses that resulted in preeminent financial savings.

The objective of these changes was to prevent the need for modifications along the design to construction continuum. Bechtel invested $30 million dollars initially to implement the program; but saw a $200 million dollar return in the form of savings. The greatest value of the Bechtel Corporation experience is that it serves as an exceptional example of the benefits that arise from the application of Six Sigma methodology.

It underscores the practicality of its use in manufacturing that calls for repetitive processes; revealing the manner in which it can operate to correct untenable situations. Conversely, the DMADV model is most instrumental in a project-driven company in which non-repetitive behaviors - such as design processing, services and solutions - drive the organization. In this case as well quality and profits are key to performance. 4.

Project Management: definition and main concepts Ultimately, this project is intended to iterate the research available on the integration of Project Management together with Six Sigma. The advantages are expounded in a study conducted by Maximiano A.C along with Soler A.M [9] where they stated that "execution of Six Sigma attempts is basically a Project Management issue." It would appear that comprehension of Project Management procedures is a prerequisite to analyzing the assimilation of the dual methodologies as they apply to this research assignment.

What follows is a succinct explanation of the necessary information regarding Project Management. The Institute of Project Management defines a 'project' as a series of tasks and activities that have a specific objective with both start as well as end dates and the necessary resources to see the project through to completion. Projects require time, money, people and equipment for a predetermined time frame.

Project Management, then, is the whole of the process that sets the parameters of what will be done and when with a written or unwritten codicil assuring desired results will be obtained. These procedures put in place are designed to ensure on-time delivery of the project that is within budget and meets the predetermined expectations and requirements of all stakeholders. The project should also be without reproach. Six Sigma is a series of strategies implemented through the execution of what is termed as 'Business Process Optimization Projects'.

They have nearly identical attributes as the 'Project Management Processes' with activities that overlap the parameters of traditional projects. According to Meyer L. And Scrima T [10] the business procedure optimization project is expected to adequately define the capacity of the procedure to ensure there is no confusion about any aspect of the project including its boundaries. Additionally, process improvement goals are incorporated into the framework that identifies areas including (but not limited to) such concerns as customer service improvement, cycle time reduction, and cost reduction as well as the 'deliverables'.

As well, allocated resources are identified; and a development and execution timetable is provided that explains the process optimization enhancements. Additionally, Maximiano A.C and Soler A.M [9] offer a complete and understandable description of the process of Project Management as explained in the Project Management Body of Knowledge Guide (PMBOK Guide) published by the Institute of Project Management.

The book examines five individual groups of processes that include "Initiating Procedures, Planning Procedures, Executing Procedures, Controlling Procedures, and Closing Procedures ." These will be aligned with their DMAIC model counterparts; at which time they will be investigated at length. 5. Integration of Project Management and Six Sigma An investigation of the conceptual foundation of both the Project Management Procedures and the DMAIC Model confirms the agency of the methodologies.

It is possible to posit that organizations that integrate each successfully will be rewarded with achievement of their predetermined strategic goals with optimum efficiency and effectiveness. Six Sigma projects are the epitome of those defined by the Project Management Institute. Each has been developed with the goal of creating singular services and products via a process change; and each can claim the like restrictions of cost, time and resources. This makes Project Management and Six Sigma Projects interchangeable through their similar processes.

Each possesses components that can be applied simultaneously to guarantee a project is completed according to preordained costs, timeframe, technical performance and greater customer satisfaction, financial gains and even dependability.

By adopting the PMBOK Guide as well as the Six Sigma strategies; a symbiotic relationship is able to be developed within project-based firms that ensures continuous improvement of all aspects of an organization's efficiency including in the areas of planning, execution as well as control - all working in concert to add value to not only the customer experience but the accomplishment of strategic aims and objectives.

But this naturally means that both approaches must be considered concurrently to maximize the applicability of each methodology - particularly in today's hypercompetitive global market. Of greatest value is the approach to improvement utilizing the Project Management processes in organizations such as construction and consulting - implementing as well the Six Sigma DMAIC Model for problem solving and as a way to guard against project failures.

The second addresses enhancement of the Six Sigma methodology with the incorporation of Project Management processes as a guarantee of greater effectiveness in implementing problem solving while enhancing the opportunity for improvement within the organizational environment. The latter is the subject of much research as will be noted in this essay. Conversely, the former is mentioned only briefly in the research; probably due to the fact that organizations are moving towards the Quality Improvement methods - i.e.

Six Sigma - despite positive responses and results found in the greater sized companies that are project driven. This study will not turn to a discussion of research related to this approach; followed by an extensive analysis of the frameworks connoted by varying authors regarding the achievement of integration of Project Management tools specific to the execution of Six Sigma Projects.

5.1 Utilizing Six Sigma to enhance Project Management Procedures Project problems and failures are not uncommon fodder for review in project-driven companies despite the research that has been done regarding all aspects of project management. Two things can be stated for a fact. First, Project Management processes have reached a level of maturity and, secondly, project failure always equates to financial and customer losses.

Maximiano A.C and Soler A.M [9] address this phenomenon by stating that "failure in Project Management should be treated as strategic challenges." The authors continue with the following reflection. The cause of failures in project-based companies can often be traced to the tendency of managers to adopt generic solutions and implement solutions that do not have a strong foundation. By opting for these obviously ineffective shortcuts to the process of project management; they are actually setting the stage for the project - and, therefore, the company - to fail.

Maturity in the process of managing projects is essential. Otherwise, the same mistakes are likely to be committed and long-term and deep-rooted problems will result in failure time and again. Underlying problems and processes must be identified, addressed and improved to ensure the health of the organization over the long-term. This is a natural segue for justifying the implementation of Six Sigma in project-based organizations.

Moreover, the DMAIC Model offers a comprehensive methodology complete with an evaluative piece that allows for the assessment and determination of organizational root problems as it relates to the specific 'forces' controlling the organization's competitive environment.

Project-driven organizations may draw upon professionally-trained personnel who are certified in the field with what is identified as a 'Black Belt' and indicative of expertise in the field should be made available to consider questions and delve for responses to such concerns as "in which corner of the 'magic triangle' - cost, time or scope - is the major problem emanating from"? Or perhaps the company is wondering what project management processes require attention first - or at all - and what are the best solutions that can be used to address the causes? Finally, what might be the impact of said solutions on the results of the projects?" [9] Project-based companies that embrace the aforementioned 'Six Sigma' approach are advised to take full advantage of their experience in project management.

This will allow for the optimization of each project as it has been developed by the resident expert - the 'Black Belt' - and objectives will then be met within the predetermined budget and timeframe. Additionally it will offer the organization a chance to adopt and internalize progressive statistical and analytical tools; thereby ensuring they have a reference by which they are able to find effective solutions to problems - all while establishing new control measures for preventing failures in the future.

Yet, the field remains unexplored both in Technical literature and practice. Research reveals Anbari [2] attempted to confirm a set of expectations in the form of authentic improvements to the application of Six Sigma were in existence. Referring to the "quadruple constraints of Project Management" - the concerns are headed towards three - cost, quality and time.

Application of Six Sigma Project Management processes would serve to reinforce a variety of improvements including those to scheduling, project monitoring along the continuum from beginning to end, risk management assessments and resource management enhancements. However, chief among concerns is a comprehensive assessment of Project Management competencies and abilities that is realistic. The important thing to note is the framework is generalized and provides only a synopsis of improvements achievable within project parameters.

What is noticeably absent is directions in the way that Six Sigma tools are applicable in a manner that makes improvements achievable. This opens up an area for future research on the subject of elements that must be factored into for successful integration of both methodologies in companies that are project driven.

For example, one might pursue the topic of what makes an acceptable organizational structure that would be able to support the dual methodologies or the growth and development relevant to Six Sigma optimization initiatives in subcontractor or outsourced projects. 5.2 Utilizing Project Management to Improve Six Sigma Projects To reiterate, the methodology of Six Sigma is define, measure, analyze, improve and control - shortened to the acronym DMAIC.

Six Sigma is an exceptional model that provides structure as well as discipline across the continuum of manufacturing and related processes with the aim of resolving business issues. Six Sigma utilizes tool that are designed specifically to name the basic causes of the process defects that prevent an organization from providing its customer base with continuous product quality and service including on-time delivery and reasonable costs. The methodology fails to address the handling of the project itself as it is conceived and realized.

In other words, in this sense, "effectual Project Management is critical to the triumph of any Six Sigma project" [8]. There can be no argument that the Six Sigma methodology is effective as a problem solving tool that is able to apply process improvements through the use of its DMAIC model; but that is not to say there are not challenges that accompany Six Sigma as well. This is evident in companies that rely exclusively on Six Sigma to drive its project development.

That is because the DMAICC approach focuses almost solely on the controls required for process improvement and not on the project management processes. One of the greatest selling points of Project Management as an approach to process improvements is that it uses a variety of tools and behaviors to complete its implementation including schedule development, risk analysis, work breakdown analysis, status reporting, cost budgeting and defining the project's scope.

These individual components are applicable to transactional and manufacturing projects as well as are recognized as common processes employed by project managers to not only plan and execute but also control and close out projects. Therefore, it is immediately obvious of the advantages for a company that can be realized with the application of both project management and Six Sigma. The former offers process control strength and the latter offers problem solving strength. The result is often organizational consistency, control, predictability and the ultimate in process improvement.

On the one hand, Project Management provides those tools necessary to monitor and track the project's progress while adding controls to address the problem. Anbari [3] offers a contrast of the roles of those who participated in Six Sigma Projects and those who worked in tradition projects. His intent was to demonstrate the similarities in organizational structure for both methodologies. The role of Project Manager is assumed by a Black Belt; Green Belts are Project Team Members.

Also, the Master Black Belts represented the Project Management Office and the Champion is the Project Sponsor of traditional projects. One expert, Lynch D.P., Cloutier E.T., offered that the [8] function of the Champion can be much better illustrated as a Project Manager of the Six Sigma Execution Procedure, at the same time as each project has its own sponsor - often represented by the area manager where the project is being developed.

As well, the literature confirms that implementation of the Six Sigma methodology regarding the classification of an issue increases the statistical knowledge of such; reducing the opportunity for incorrect evaluation of an issue. The reason is that it defines customer concerns and translates them into scope documents using process mapping tools. Concurrently, budget, scheduling and resource management pieces are added from Project Management across the life cycle of the Six Sigma optimization project. Management is then able to make informed decisions at each phase of the project.

Used collaboratively, the tools of Project Management and Six Sigma plan, act, do and check along the continuum of the process improvement project. 5.3. Integrated Frameworks and Approaches The relationship between Six Sigma and Project Management is effective and confirmed in practice. Maximiano A.C and Soler A.M [9] state that companies like both GE as well as NCR have tailored the DMAIC as a structured method, incorporating Project Management Procedures with the life cycle stages of Six Sigma project.

Concurrently, technical literature reveals different approaches can be utilized to explain the integration of both programs; with some of the research leaning towards use as technical guides in project execution and others more applicable to academia. Kwak Y.H., Wetter J.J., Anbari F.T. In their study [6, 7] offered a creative and thoughtful approach to understanding the correlation of Six Sigma and Project Management.

Their research incorporated a review of the literature on the published tools of the Six Sigma methodology as a precursor to determining which were most frequently adopted and then how well they were received by users. This work also provided a one-by-one comparison of Project Management and Six Sigma tools; revealing that the latter borrowed heavily from statistics and the Project Management Body of Knowledge. Specifically they found that "making use of the PMBOK Guide as a foundation, 18% (33) of their tools (187) had been recorded to Six Sigma.

Conversely, making use of Six Sigma as a foundation, 13% (37) of their tools had been established in the PMBOK Guide." This information confirms a deep-seated correlation between methodologies and processes. The assessment of Six Sigma's tools allows one to hypothesize that every six Sigma optimization project needs an effort to manage a project as well as to conduct a statistical analysis of business information. Yet, the Project Management connection is not as easily explained in this approach.

That is because Project Management as a methodology is not considered separately or in combination with Six Sigma. Meyer L. And Scrima T.

In [10] supported this premise in their work that stated "an effort must be made to illustrate the instruments of Six Sigma, which ought to utilized in every phase of the Project Management procedure as classified by the Institute of Project Management (Initiating Procedure, Planning Procedure, Executing Procedure, Controlling Procedure and Closing Procedure)." For example, the Six Sigma tool of SIPOC Higher Level Procedure plotting tool is used to help a project team name potential issues and develop the scope as well as essential aspects of the Procedure - and all before the organization invests considerable time and resources to an improvement initiative.

The authors then provided suggestions for project managers of Business Optimization Projects to guarantee the combination of all of these tools will actually result in the realization of organizational gains while also maintaining a position of quality and strength in the market place. The Change Control process was also of interest to these authors who recognized is as a fundamental key to ensuring the effective implementation and adoption of a solution.

Here they interject that the use of formal 'White Paper Fair' is the most appropriate method for facilitating the switch from current to novel Procedures within an organization. The authors also point out that the capability to integrate Project Management best practices within Six Sigma elements as well as methods - offers an organization not only the structure but also the discipline necessary to recognize process enhancement opportunities, build sustainable solutions, as well as lead the organization to the strategic transformation process." Maximiano A.C, Soler A.M.

In [9] present a more thoughtful method. These experts created a Six Sigma Project Management Methodology they named "The Stage Review Model" in which they work to assist the DMAIC model with knowledge gained from the Project Management environment. It is bases on the execution of problem solving by an organization and executes process development via Six Sigma.

They contend that the Black Belt should have no trouble monitoring the development of the project through the DMAIC life cycle "so as to constantly assess the project advantages as well as cost variation from the plan." This further guarantees an organization will have the ability to make appropriate decisions in a timely manner regarding the execution of all aspects of a project - thereby capitalizing on the expected benefits of the improvement process overall.

The authors continue their explanation by noting the Phase Review Model fractions the life cycle of the project into a manageable sequence of "stages" whereby each stage has a set of actions relevant to the evaluation of project performance. A summary of these activities can be found in model elements named 'gates' - each of which relies on the specific phase of the project life cycle in which it appears.

The authors state that at the threshold of each and every gate "the project sponsors are capable of reviewing the progress throughout the project execution as well as performance, figuring out the attainment (or perhaps lack of) of the standard ." Ultimately, this is considered the more structured approach for Six Sigma and Project Management integration. The framework of such provides a basis of orientation that invites future research. What follows is a succinct explanation of the five stages and four gates of the Phase Review Model.

Stage 1 corresponds completely to the Define stage of the DMAIC Model. Its main focus is a "comprehensive understanding as well as definition of the problem or opportunity." Gate 1 serves as a review of a project's feasibility by which a decision can be reached as to the reasonableness of the project stage's completion. Stage 2 is an "analysis of the project's issue or prospect, root causes definition, as well as the suggested solutions progress." This stage relates to the Measure and Analyze stage of the DMAIC method.

Gate 2 formally validates the proposed solutions revealed in the preceding stage for a project's problem or prospect. Only the authorized solutions are permitted to carry on to the subsequent phase. Stage 3 is comprised of the first activities of the Improve (ment) phase of the DMAIC Model. This is the point where a formal project strategy, "developed from a well-defined scope statement, quality needs, time as well as costs budgets along with risk responses,…" has to be developed for all the solutions that had been previously acknowledged.

Gate 3 symbolizes a feasibility evaluation for each and every solution's detailed project strategy. The information is founded on the decision to continue with the implementation of the solution or not. Stage 4 deals with the remaining Improvement stage as well as the Control stage of the DMAIC Model. Its focus is the project plan execution to occur in a manner that will ensure the achievement of the project aims as well as the consolidation of transformation in procedures.

In this context, project growth screening as well as performance management are extremely vital. Gate 4 symbolizes the final confirmation of the project outcomes and the evaluation of attainment of the anticipated aims as well as objectives. Stage 5 deals with the managerial closing of the project; to include all final documentation and - additionally - the lessons learned during the project execution.

5.4 Further considerations The elements discussed in the previous sections of this essay form a reasonable framework for further consideration of the topic while consolidating a highly structured approach to the combination of the best of the Project Management Body of Knowledge and the DMAIC Model strengths. However, it is necessary to examine the structural transformation as well as adjustments required by an organization to.