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0.0.8.4 Comparison of the TenStep Process to Six Sigma
Six Sigma Overview
(0.0.8.4.P1)
Six Sigma refers to a philosophy, goal, or methodology used to reduce waste and improve the quality, cost and time performance of any business. Sigma is a Greek letter used to indicate the amount of variation or defect level in a product. (A defect is defined as anything that causes customer dissatisfaction or strays from accepted tolerances.) A typical company today might be performing at the three sigma level, meaning they are experiencing one defect out of 16 opportunities. This would equate to about 67,000 defects per million opportunities. A better company might be at the four sigma level or one defect per 160 opportunities. Not bad, but still over 6,000 errors per million. A performance level of Six Sigma is equal to 3.4 defects per million opportunities - not perfect, but pretty close.
In general, Six Sigma is a philosophy that provides companies with a series of processes and statistical tools that lead to both increased profitability and quality - whether a company produces durable goods or services. Six Sigma is a long-term process that is intended to cause continuous improvement. These improvements cannot be accomplished by restructuring the company or simply spending a lot of money. Instead, Six Sigma quality requires perseverance, focus and dedication.
A Six Sigma level of quality can be achieved through an ongoing combination of structured and systematic projects. Projects are categorized as:
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Transactional business process projects that extend across an organization
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Traditional quality improvement projects that solve chronic problems that span multiple functions within an organization
A company, organization or project that tries to achieve a Six Sigma level of quality should focus on the design of products, services, or processes. Six Sigma principles can be applied to many areas, including manufacturing, administrative and customer service. Six Sigma techniques help lower variability, which reduces the number of defects and the operating costs while increasing effective capacity. Six Sigma techniques can also be used to improve other areas, such as customer loyalty, which also helps the company’s bottom line.
TenStep Project Management Process Overview
(0.0.8.4.P2)
Project management refers to the definition and planning, and then the subsequent management, control, and conclusion of a project. It is important to recognize that all projects need some level of project management. The larger and more complex the project, the greater the need for a formal, standard, structured process. Smaller projects still need a structured process, but it does not need to be as elaborate or as complex. Obviously there is a cost to the effort associated with project management, but there are many benefits that are obtained as well. These benefits far outweigh the costs.
Not surprisingly, the TenStep Project Management Process is divided into ten steps – the first two for definition and planning, and the next eight for managing and controlling the work. These steps are as follows:
1.0 Define the Work. The project manager spends the time defining the work to ensure that the project team and the customer have common perceptions of the project deliverables, benefits and purpose.
2.0 Build the Schedule and Budget. The schedule is a vital tool to ensure that the project team knows what they need to do.
3.0 Manage the Schedule and Budget. The schedule should be kept up-to-date and should always tell you how much work is remaining.
4.0 Manage Issues. Many problems come and are resolved quickly. However, an 'issue' arises when a problem impedes the progress of the project and cannot be resolved by the project manager and project team without outside help.
5.0 Manage Change. Scope is the way that you describe the boundaries of the project. The purpose of scope change management is to ensure that the sponsor (or his designate) approves any changes made to this initial scope agreement.
6.0 Manage Communication. Properly communicating on a project is a critical success factor for managing the expectations of the customer and the stakeholders.
7.0 Manage Risk. Risk refers to future conditions or circumstances that exist outside of the control of the project team that will have an adverse impact on the project if they occur. Successful project managers try to resolve potential problems before they occur.
8.0 Manage Human Resources. Generally, the larger the project, the more human resources are required, and the more rigor the project manager must have in acquiring, developing and managing the project team.
9.0 Manage Quality. The purpose of the quality management step is to first understand the actual expectations of the customer in terms of quality, and then put a proactive plan and process in place to meet those expectations.
10.0 Manage Metrics. Metrics are used to gather quantitative data for decision making, and can tell you whether you are meeting expectations.
Comparison
(0.0.8.4.P3)
The TenStep process is used to manage projects of all shapes and sizes. One of the basic “steps” is the process of managing quality. Quality initiatives can be established for individual projects and for entire organizations. Six Sigma is an organizational philosophy specifically focused on quality, so in that respect it overlaps with one portion of the TenStep process.
Generally, Six Sigma and the TenStep Project Management Process are complementary processes. Running projects with a Six Sigma level of quality requires a standard project management process. The TenStep process would fill this need. Likewise, one of the ten aspects of the TenStep Project Management Process is to manage to an acceptable level of quality. Six Sigma could provide the overall foundation for this quality management step. Therefore, a company can implement the TenStep process as its overall project management process. The same company can also implement Six Sigma as its overall quality philosophy.
In summary, companies do not need to choose between implementing TenStep and Six Sigma. These two methodologies do not compete in the same space and they do not fill the same basic needs. Instead, companies can use both methodologies in a complementary manner – the TenStep process for project management and Six Sigma for the overall quality philosophy.
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