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Nancy W. Northrup ib LEAN, LLC Owner and Principal (862) 812-2014 http://www.linkedin.com/in/nancynorthrup NJ PMI Chapter International Project Management Day November 5, 2009 Faster!  Better!  Cheaper! Presentation at PMI NJ  IPM Day 11/05/09
Table of Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Increasing Demands on the Project Manager ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“ Pick two”  becomes  “ I want it all”
Relationship to Management Disciplines Project Management General Management Area  Knowledge The Lean Enterprise Customer Service Finance Information  Systems Legal Communications Human  Resources EH&S Real Estate Auditing Credit and  Controls Security Purchasing Marketing Sales Business  Development Research Quality Control
The History of Lean Thinking  ,[object Object],[object Object],[object Object],[object Object],[object Object],Standard Work VOC/VOP Quality  Cost  Alignment  Taguchi & Deming Lean Manufacturing   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1915 1980+ Lean transformation requires changes to tools, standards, and procedures
7 Lean Wastes plus 1 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],D O T W I M P
The 5 Lean Principles – Managing Change ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],PMBOK ,[object Object],[object Object],[object Object],2. Integration, Risk, Communication Management 3. Time, Cost,  Procurement,  HR Management  4. Requirements Management 5. Quality,  Time, Risk Management
Lean Examples in Corporate Functions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
LEAN Waste ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Greater Demands means Increased Controlling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Controlling
Problem Statement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Exxon, Exxon/Mobil Buy/Sell position **Dollars are for demonstration purposes only and bear no resemblance  to actual data Calendar Year 2006   2007 Honeywell Organization Purchase Sales Sales $$$ $$$ $$$ CORPORATE $$$     $1,000,000 $$$   AUTOMATION & CONTROL $$$ $3,000,000 $$$ SPECIALTY MATERIALS $5,000,000 $$$ $$$ TRANSPORTATION SYSTEMS $$$     HONEYWELL AEROSPACE SOLUTIONS
Value Stream map for Central Customer Repository Common Repository Driving Common Metadata Incoming Customer Data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Outgoing Reporting Process D&B  file ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],DUN &  Bradstreet Separation & Cleanse ,[object Object],[object Object],[object Object],[object Object],NVA NVA VA VA NVA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Supply Chain Management is Cost Management
Lean Maturity Pyramid  – Data Quality & Completeness  Sort, Store, Shine, Standardize, and Sustain 5S Workplace Organization Share Information Share Standards Build Standards into the Workplace Prevent Abnormalities  (Error-Proof) Stop Abnormalities (Prevent defects from moving on) Warn About Abnormalities  (Build in alarms) Visual Display Visual Control BU CMD Sold-to  Transactions feeds begin  Governance Council Kickoff Metrics Management Managed State Data Cleansing Effort Define CORE CMD Standards Standardize DUNS# Storage Define Metrics Tracking & Trending 2007 2006/7 2005 2007/8 Mechanize CORE CMD Standards, stage II Mechanize CORE CMD Standards, stage III Enterprise MDM alignment, stage I Enterprise MDM alignment, stage II Enterprise MDM alignment, stage III Mechanize CORE CMD Standards, stage I Assess the maturity level Lean Begins with Information Sharing 6 5 4 3 2 1
Finding Barriers and Enablers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Barriers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Enablers
The LEAN PMBOK Opportunity Identification ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Process definition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Start-up and Stabilization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Executing Blueprinting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],U D M O V C Understand Define Model Optimize Validate Control Controlling and Re-Cycling Initiating Planning Closing
Load Balancing: Leverage Business Knowledge ,[object Object],[object Object],[object Object],Misuse of the PM Project Manager / Data Steward Driving Business Data Ownership Institutionalizes Stewardship SBG N/A N/A SBG N/A N/A I’m tired
5 S  Process SUSTAIN Monitor / Measure Utilize documented standards STANDARDIZE SHINE Take corrective action STORE Create a place for everything SORT Keep only the necessary to perform the task
Sort  -  Establish goal and standard definitions ,[object Object],[object Object],[object Object],[object Object],Store Shine Standardize Sustain Sort
STORE  – Establish standard structures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sort Shine Standardize Sustain Store
Shine  – Establish standard procedures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sort Store Standardize Sustain Shine
Standardize  – Establish identification standards Sort Store Shine Sustain Standardize ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Sustain  – Establish business-centric metrics and sustained   self-discipline  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sort Store Shine Standardize Sustain
What Have We Learned? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Controlling
Lean Celebration! The Voice of the Customer shows what the customer really wants! LEAN is really valuable! I 5S all documentation!  The LEAN PMBOK is great! I create standard work. Now I can recycle all my projects! I run concurrent efforts ! No more waiting for the next iteration, no more excessive requirements inventory! Knowing the 7 wastes keeps me on my toes! The end-to end value chain provides visibility into the process!  I know where we need to work and who owns what! I load balance my resources! I push cost to the cost causer and have created the LEAN enterprise! No more waiting !  My projects complete on time! Meetings start on time! Supplies and files arrive on time! Freedom from over-production means only having what is pulled by the customer! No more process failure from defective information. My communication plan is LEAN, pulled by the customer, from a centralized repository ! Institutionalizing Lessons Learned keeps us on the continuous improvement track!
Questions?
ib Lean, LLC, Nancy W. Northrup ib LEAN, LLC, a Continuous Process Improvement  company, specializes in the areas of:  Master Data Governance Building the Project Office Project Turnarounds Six Sigma Leadership ib LEAN, LLC is currently partnering with  Vector International  to provide Six Sigma Training and Certification. Training, coaching, mentoring Nancy W. Northrup is an experienced Project Management Professional certified in Six Sigma Black Belt, Six Sigma Lean Black Belt, and trained and certified in DFSS and DMAIC.
Nancy W. Northrup ib LEAN, LLC Owner and Principal (862) 812-2014 http://www.linkedin.com/in/nancynorthrup Faster!  Better!  Cheaper! Presentation at PMI NJ  IPM Day 11/05/09

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Better Faster Cheaper

  • 1. Nancy W. Northrup ib LEAN, LLC Owner and Principal (862) 812-2014 http://www.linkedin.com/in/nancynorthrup NJ PMI Chapter International Project Management Day November 5, 2009 Faster! Better! Cheaper! Presentation at PMI NJ IPM Day 11/05/09
  • 2.
  • 3.
  • 4. Relationship to Management Disciplines Project Management General Management Area Knowledge The Lean Enterprise Customer Service Finance Information Systems Legal Communications Human Resources EH&S Real Estate Auditing Credit and Controls Security Purchasing Marketing Sales Business Development Research Quality Control
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. Lean Maturity Pyramid – Data Quality & Completeness Sort, Store, Shine, Standardize, and Sustain 5S Workplace Organization Share Information Share Standards Build Standards into the Workplace Prevent Abnormalities (Error-Proof) Stop Abnormalities (Prevent defects from moving on) Warn About Abnormalities (Build in alarms) Visual Display Visual Control BU CMD Sold-to Transactions feeds begin Governance Council Kickoff Metrics Management Managed State Data Cleansing Effort Define CORE CMD Standards Standardize DUNS# Storage Define Metrics Tracking & Trending 2007 2006/7 2005 2007/8 Mechanize CORE CMD Standards, stage II Mechanize CORE CMD Standards, stage III Enterprise MDM alignment, stage I Enterprise MDM alignment, stage II Enterprise MDM alignment, stage III Mechanize CORE CMD Standards, stage I Assess the maturity level Lean Begins with Information Sharing 6 5 4 3 2 1
  • 14.
  • 15.
  • 16.
  • 17. 5 S Process SUSTAIN Monitor / Measure Utilize documented standards STANDARDIZE SHINE Take corrective action STORE Create a place for everything SORT Keep only the necessary to perform the task
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. Lean Celebration! The Voice of the Customer shows what the customer really wants! LEAN is really valuable! I 5S all documentation! The LEAN PMBOK is great! I create standard work. Now I can recycle all my projects! I run concurrent efforts ! No more waiting for the next iteration, no more excessive requirements inventory! Knowing the 7 wastes keeps me on my toes! The end-to end value chain provides visibility into the process! I know where we need to work and who owns what! I load balance my resources! I push cost to the cost causer and have created the LEAN enterprise! No more waiting ! My projects complete on time! Meetings start on time! Supplies and files arrive on time! Freedom from over-production means only having what is pulled by the customer! No more process failure from defective information. My communication plan is LEAN, pulled by the customer, from a centralized repository ! Institutionalizing Lessons Learned keeps us on the continuous improvement track!
  • 26. ib Lean, LLC, Nancy W. Northrup ib LEAN, LLC, a Continuous Process Improvement company, specializes in the areas of: Master Data Governance Building the Project Office Project Turnarounds Six Sigma Leadership ib LEAN, LLC is currently partnering with Vector International to provide Six Sigma Training and Certification. Training, coaching, mentoring Nancy W. Northrup is an experienced Project Management Professional certified in Six Sigma Black Belt, Six Sigma Lean Black Belt, and trained and certified in DFSS and DMAIC.
  • 27. Nancy W. Northrup ib LEAN, LLC Owner and Principal (862) 812-2014 http://www.linkedin.com/in/nancynorthrup Faster! Better! Cheaper! Presentation at PMI NJ IPM Day 11/05/09

Editor's Notes

  1. (repair or rejects or wrong information resulting in sub-optimized decisions or process failures)
  2. 3
  3. 3