Project management

Project management is the application of functional (and other) management skills under time-limited, goal-directed conditions. The success of the six sigma methodology depends on the selection of the appropriate and applicable project and its completion. Therefore all concerned should be at least familiar with some basic concepts of project management. In the six sigma methodology the key project manager is the black belt. As such, to ensure effectiveness in their projects they must avoid pitfalls, although that is not enough. To be truly effective, the black belt must guide the project forward in the best possible manner. Guiding the project has to do with leadership and entrepreneurial skills. Black belts must be able to influence people.

But what is a project? It involves effective utilization of human and non-human (i.e., technological, financial, informational and material) resources to achieve a specific purpose, such as:

• To establish a set of well defined, related and controllable tasks.

• To establish goals that are consistent over extended period of time.

• To establish goals that may be defined for longer or shorter duration.

• To establish a convergence (a culmination point) in a major output.

In the six sigma methodology, by a project we mean elimination of a problem in a process or preventing the problem from entering the process. In other words, there are unique aspects of project management as we try to implement it within the six sigma methodology. That uniqueness can especially be seen under the following circumstances:

• When something is new, or never been done quite like this before.

• When there is a need to deal with diverse people in a team setting.

• When strict time deadlines and performance expectations are highly visible.

• When there is a need to manage interface problems—especially in cross-functional departments.

When uniqueness is present in a project, the implication is that we cannot count on past experience risk and uncertainty. When inter-relatedness is present in a project, the implication is that we need a broader perspective (e.g., a system view, schedule adherence, or a need for replanning flexibility). When goal orientation is present in a project, the implications are that we deal with a set of interrelated goals. This is very important, because it implies that we must zero in on the goal definition and operational definitions that we are dealing with that we need to control group processes— and in fact preferably isolate each one as much as possible—and that we understand our success or failure is highly visible. When resources are present in a project, the implications are that we need some form of negotiation and strong leadership for support. Under this condition the champion's contribution is of paramount importance.

Project management depends, therefore, on three items:

• People. The person in charge should be very familiar with the concepts of team, conflict management, project organization and managing for task accomplishment.

• Planning. The person in charge should be very familiar with statement of work, project planning, work breakdown structures, project risk analysis and responsibility charts.

• Control. The person in charge should have at least a basic knowledge of the critical path of the project, costs and budgets, project scheduling, project control and replanning.

Why project management principles are essential to the six sigma methodology

The single most important characteristic of project management is the consistent ability to get things done. It is a results or goal-oriented approach, where other considerations are secondary, so the single-minded concentration of resources greatly enhances prospects for success. This also implies that the results, success or failure, are quite visible.

Integrative and executive functions of the project manager provide another inherent advantage in the project management approach that improves the likelihood for success because of the single point of responsibility for those functions. Specific advantages of the single-point integrative characteristic include:

• Placing accountability on one person for the overall results of the project.

• Assurance that decisions are made on the basis of the overall good of the project, rather than the good of one or another contributing functional department.

• Coordination of all functional contributors to the project.

• Proper utilization of integrated planning and control methods and the information they produce.

Advantages of integrated planning and control of projects include:

• Assurance that the activities of each functional area are planned and carried out to meet the overall needs of the project.

• Assurance that the effects of favoring one project over another are known.

• Early identification of problems that may jeopardize successful project completion, which enables effective corrective action to prevent or resolve the problem.

Project management is a specialized management form. It is an effective management tool that is used because something is gained by departing from the normal functional way of doing things. This departure from the norm requires changes in three areas: people, organizations and methods. Conflict, confusion and additional costs are often associated with significant changes of this nature. Poorly conceived or poorly executed project management can be worse than no project management at all. Project management should be used well or not at all. Executives should not permit a haphazard, misunderstood use of project management principles.

Although simple in its concepts, project management can be complex in its application. Project management is not a cure-all intended for all projects. Before project management can succeed, the application must be correct. Executives should not use project management unless it appears to be the best solution. The use of project management techniques seems most appropriate when:

• A well-defined goal exists.

• The goal is significant to the organization.

• The undertaking is out of the ordinary.

• Plans are subject to change and require a degree of flexibility.

• The achievement of the goal requires the integration of two or more functional elements and/or independent organizations.

Even though project management may not be feasible, good project management principles have contributed to the success of thousands of small and medium-size projects. Many managers of such projects have never heard of project management, but have used the principles successfully.

Executives play a key role in the successful application of project management. A commitment from top management to ensure it is done right must be combined with the decision to use this approach. Top management must realize that establishing a project creates special problems for the people on the project, for the rest of the organization and for top managers themselves. If executives decide to use this technique, they should expend the time, decision-making responsibility and executive skills necessary to ensure that it is planned and executed properly. Before it can be executed properly, sincere and constructive support must be obtained from all functional managers. Directives or memos are not enough. It takes personal signals from top management to members of the team and functional managers to convey that the project will succeed, and team members will be rewarded by its success. In addition, necessary and desirable changes in personnel policies and procedures must be recognized and established at the onset of the project.

The human aspect of project management is both one of its greatest strengths and most serious drawbacks. Only capable staff can make a project successful. However, good people alone cannot guarantee project success; a poorly conceived, badly planned, or inadequately resourced project has little hope for success. The project leader, more than any other single variable, seems to make the difference between success and failure. Large projects require one person to be assigned the full-time role of project manager. If a number of projects exist and there are not enough project managers available for full-time assignment to each of them, several projects can be assigned to one full-time project manager. This approach has the advantages that the individual is continually acting in the same role, that of a project manager, and is not distracted or encumbered by functional responsibilities.

To conclude, project management is an effective management tool used by business, industry and government, but it must be used skillfully and carefully. In review, the following major items are necessary for successful six sigma results from project management:

• Wholehearted executive support and commitment when the decision is made to use this approach.

• Project management is known to be the best solution or right application for the project.

• Emphasis is placed on selecting the best people for staff, especially the project leader.

• Proven principles of project planning and controlling are applied.

Effective use of project management reduces costs and improves efficiency. However, the main reason for its widespread growth is its ability to complete a job on schedule and in accordance with original plans and budget.

Factors leading to project failure

Applying project management as part of a six sigma initiative does not guarantee that the project will be a success. It may still fail! The following are some reasons:

• Management is not involved:

  • Does not support the project for any reason.

  • Ignores, or does not act, on reports.

  • Is too too broad.

• Management is too involved:

  • Fails to delegate.

  • Is too restrictive.

  • Floods the project with demands.

• Improper planning:

  • Planning is incomplete or indefinite.

  • Planning is done in isolation, without usufructuary (to hold property for use by usufruct, as a tenant) or other contributors.

  • Pressure exists for unstructured change in budgets or schedules.

• Ineffective operations:

  • Lack of a formal change system.

  • Inadequate reporting structure.

  • Lack of priorities.

  • Project leader lacks authority.

• Incompetent project leader.

• Unwilling team members.

• Uncooperative functional departments.

• Poor controls.

• Failure to assure key relationships and cooperation.

• Lack of sanctions.

How can we overcome these problems? Some suggestions follow depending on the specific issue:

Management is either not involved or too involved. In this case, the champion is in the supportive mode and the black belt is the primary mode. To avoid these pitfalls:

• Create a formal project charter and project plan, including reporting requirements, structure, change procedures and approval mechanisms.

• Disseminate the document.

• Have a formal project plan acceptance meeting.

Incomplete plans, completed in isolation, unstructured changes in budgets and schedules. The black belt here is the primary mode and project team is the supportive mode. To avoid these pitfalls:

• Create a project schedule, work breakdown structures and budgets. Stress formalism in the planning process. Use a team approach. Get approvals and disseminate information.

• Ensure that changes in budgets and schedule are carried out according to established procedures only. Apply discipline! Benefits go beyond the project.

Incompetent project leader, poor team interaction, uncooperative functional managers/departments. The black belt is primary, and the champion plays a supportive role. To overcome these obstacles:

• Understand the requirements of a project manager; pick the right individual and train if necessary.

• Involve the project team early to create a sense of ownership, project mission and scope.

• Communicate freely and frequently with functional managers regarding such matters as project goals, charter, need for replanning and so on.

• Tell people not only what but also why.

• Use a project plan acceptance meeting as a forum to get commitment.

• Take on a synergistic attitude. Tie the project plan to the business plan and goals.

• Set up a reward system.

• Create an obligation to perform.

Factors determining the success of a project

In the six sigma methodology, the project is the focus in any improvement initiative. Therefore, how one goes about specifying the project requirements becomes very important. Six items are fundamental in the process of specifying these guidelines:

1. State requirements explicitly and have project staff and users sign off on them.

2. Be realistic. If a requirement can be misinterpreted, it will be misinterpreted.

3. Recognize that changes are inherent in projects.

4. To as great an extent as possible, include nonverbal depictions of requirements. For example, when you purchase a car you do not ask the salesperson if the vehicle comes with battery, or brakes, etc. You expect those items to be part of the vehicle. This is an example of a non-verbal requirement.

5. Establish a system to monitor changes in requirements.

6. Educate project staff and users on the importance of accurately specifying requirements.

Specifically, these fundamentals may be expanded on a project basis into the following factors that will improve the chances of success:

• Promulgation by higher management of the project and the black belt.

• Choosing a competent black belt.

• Charter and authority for black belt.

• Well-chosen, well-staffed, goal-oriented team.

• Sound planning.

  • Project definition:

    • Phases.

    • Work breakdown structures.

    • Resource designation and allocation.

  • Budgeting of adequate time and resources.

  • Detail, schedules.

  • Promulgation.

  • Participation of management and usufructuary.

• Administrative and technical means and support.

• Operating systems:

  • Direction and launch mechanisms.

  • Congruent with plan and organizational goals.

  • Obligation to perform.

  • Change procedures.

  • Reports and information flow.

  • Control mechanisms.

• Participation and involvement of management.

• Sanctions.