SixSigma 【Continuous Study】
- 1. Audit Project Six Sigma DMADV Storyboard Boise Potato Firm ITIL Implementation Action Plan (Hypothetical Project) Created by Yuko Soma
- 2. Audit Project Objectives: In Jan 2010, Start to develop and implement ITIL framework to reduce e.g. average Incidents backlog to Sigma Level 6 after ITIL implementation Go-Live (Aug. 2010) within 2 months (by Oct. 2010) to help sales to meet their KPI in Dec. 2010 Impacts: Assumptions: 1) Reducing average Incident backlogs/month will improve business process efficiency across all BUs 2) Will increase sales opportunity and sales 3) Improve company brand image by disclosing ITIL implementation to media for commercial purpose The Quality of business processes across all business units supported by IT services is a critical component of Sales increase. Other Documents: (Project Charter, Gantt chart) Background
- 3. Audit Project Communication Plan Stakeholder Status (See Key) What to Communicate Frequency of Contact Method Responsible Person CIO I Staring Committee Bi-Weekly WebEx James King IT Director A Alignment meeting and Staring Committee Weekly WebEx Jim White IT Service Management manager R Alignment meeting, CAB meeting Weekly Face to face Yuko Soma All Business Units Representative S Alignment meeting and Staring Committee Monthly Face to face D. Dummy (R) = Owns process/project (A) = Who (R) reports to; approves work (S) = Supportive; resource Key: Directions: 1.Identify Stakeholders & Status 2.Analyze person against criteria 3.Develop strategies to maintain support; mitigate resistance 4.Establish priorities (C) = To be consulted (I) = Keep informed; not consulted
- 4. Audit Project SIPOC Worksheet Process Name: ITIL Implementation Process Owner: Yuko Soma Date: Jan. 5, 2010 Prepared By: Yuko Soma Process Suppliers Process Inputs P R O C E S S Process Outputs Process Customers Finance Team - Financial Month end data transfer to the Oracle EBS system - Budget Input to BI tool - Correct/On Time data transfer to the Oracle EBS system - Correct/On--Time data analysis reports by BI tool CFO Sales Team Daily Sales Opportunity data to Sales force system - Correct/On-Time data transfer to Sales force system COO Sales Oepration Team Customer data update and register on Sales force system - Correct/On Time data update on Sales force system COO HR Team Send Newhire/Leaver data to ITSM Tool - Correct/On Time data update on ITSM tool on time HR Director ITIL Process All Business Process Activities Backlog Reduce Services Services Inputs Outputs Outputs Services Sales Increase
- 5. Audit Project Brake down “Planning” part of the whole business processes for BU Core Business Develop Plans Level 1 Communicate Business Plans Execute Plans Evaluate IT Services Performance Level 2 Report ITIL Performance Secure ITIL Resources Determine ITIL Needs Execute ITIL Action Plan Marketing Logistics Production New Product Introduction Customer Service Planning Sales Business Environmental Data D M A D V Project Flow - 1
- 6. Audit Project Project Scope Define IT Director Collect information and protocols Issue ITSM Reports to IT and Business Units Develop and submit CAP Review CAP Execute CAP Identify the current number of backlog Conduct: Confirming the status of the corrective actions taken against the findings of previous incident backlog analysis. Schedule IT Service Manager Project Member Schedule ITIL Design Prepare Complete ITIL design plan Conduct Conduct ITIL implementation evaluation Confirm findings Report Issue ITIL and ITSM tool Summaries CAP D M A D V Level 2 Process: Project Scope
- 7. Audit Project 1. For our team to get a common understanding, please tell us how you interpret the term “ITIL framework”? 2. What do you see as the attributes of a successful ITIL implementation ? 3. What are the top 3 attributes in order of importance? 4. How would you measure whether a ITIL meets your expectations on these top 3 attributes? Identified needs arising from current challenges 5. What are your top 3 issues related to IT services quality in your organization today? 6. Do you see ITIL is helping to resolve these issues? 7. If so, how do you see a ITIL helping to resolve these issues? 8. What information should ITIL generates for your organization? 9. How will this information be used within your organization? Identified informational needs and attributes 10. Is there anything else you would like to share with us? “Catch all” Identified key attributes of the program D M A D V Project Interview Questions
- 8. Audit Project ・ In-depth standardized IT audit modular protocols for systems and compliance ・ Determine audit schedule, type, content and team appropriate for the IT auditee in collaboration with local BU/Division Clearly identify where the current and potential risks and problems ・ ITIL reporting roll-up process Complete Communication ・ ISO20000 and ISO27001 certified by recognized 3rd party - Mechanism for benchmarking against other companies to establish competitive advantage Externally accepted ITIL frameworks ・ Decision criteria and process for consistent ratings of individual findings and overall business process performance by using IT Consistent Improvement of ITSM lifecycle ・ System for reporting status of findings and corrective actions ・ Corrective action escalation procedure Verification of completeness of Corrective Action ・ ITIL Expert certification (or ITIL Master) and Six Sigma Black belt Fair ITIL & Six Sigma ・ Incorporation of Division Quality representative in IT audit team ・ ITSM expertise at BU level to implement and adopt locally ・ IT budget is owned at BU level to enable local initiative and adoption ・ Linked to ITIL Expert certification where appropriate Locally Relevant ・ Internal validation process ・ Use external IT auditors only ・ Interdivisional IT audit teams Independent IT Audits Design Ideas CTQ D M A D V Project Design Ideas
- 9. Audit Project Potential synergies and conflicts between design ideas identified “Inclusion of Division IT in ITIL action team” and “Convertible Rating System” conflict with other design elements Top 6 design elements have no conflicts and are synergistic D M A D V Project Trade-offs (Sample from textbook)
- 10. Audit Project All Business Units needs and priorities were similar ・ Extracted solutions, issues and needs from interviews ・ 253 need statements transcribed to Post-it notes ・ Post-it notes color coded by Business Units segment ・ Top needs from each Business Units highlighted ・ Needs affinitized and sorted using tree diagrams Project VOC Analysis D M A D V
- 11. Audit Project •Identify number of ITIL process was used •Establish maturity of facility and rank operations based on potential risk. (Based on Division assessment against established criteria) •Determine ITIL type required based on IT Service maturity •Determine additional IT auditing needs (obtained by use of the collaborative routine established in the GAP) •Determine the preferred ITIL Measurement timing from the Divisions Select the ITIL Action team based on: • Qualification • Right process knowledge • Language ability • Availability Develop ITIL schedule: ▪ Firm scheduling of compliance IT audits (prioritized based on risk profile) Draft Schedule indicates: ▪ Availability of ITIL Expert Confirmation of schedule Communication of final schedule How Much: 100% match of ITIL action team on process knowledge; In 2010 at least 50% of ITSM conducted with fully certified ITIL Expert; 2011 onwards 100% of ITSM conducted with fully certified ITL Expert. Firm scheduling routines to have the right team at the right location conducting the right IT audit D M A D V Project Flow - 2 Level 2 Report ITIL Performance Secure Resources Determine ITIL Needs Execute ITIL Action Plan Level 3 Schedule ITIL Design Identify ITIL Type Establish Current Status Identify ITIL Action Team Required
- 12. Audit Project Secure IT Resources ITIL Expert Certification Program - Internal and external ITSM staffs have the right skills and competences Selection Periodic re-training and evaluation Select using criteria for: • Personal Atributes • Education • Related experience How much: 10 % of internal ITSM staffs are recruited/transitioned. How much: 100% match of ITIL action team on ITIL process knowledge How much In 2010 at least 50% of ITSM conducted with 3 certified ITIL Expert, 5 ITIL Practitioner and 25 ITIL Foundation 2011 How much: Maintain steady state of 100% of ITSM staffs Train ITIL Expert in: • ITIL principles • ITIL execution • Business Processes • ISMS • Laws and regulations • Six Sigma Black belt, Green belt ・ Certify ITIL Expert, Practitioner and ITIL foundation 2011 D M A D V Project Flow - 3 Level 3 Certification Maintenance Training Selection Certification Level 2 Report ITIL Performance Secure Resources Determine ITIL Needs Execute ITIL Action Plan
- 13. Audit Project Standardized ITIL protocol module for planning, execution and reporting of individual outcomes Standardized modules to evaluate compliance of processes and systems during individual ITIL based tasks In-depth protocols and decision criteria deliver consistent and fair IT audits How Much: • 50% of ITSM tool modules completed by June. 2010 • 100% of ITIL design modules completed by Aug. 2010 D M A D V Project Flow - 4 Level 3 Perform ITIL Plan ITIL Design Level 2 Report ITIL Performance Secure Resources Determine ITIL Needs Execute ITIL Action Plan
- 14. Audit Project • Incorporate reporting of ITIL information into established management routines for Quality performance at the BU level. Information can be used to drive resource allocation at the BU and Division level. • ITIL summary provided to BOD. Information will be used as input to resource allocation, and greater understanding of the risks in the organization. • Detailed ITIL report issued to IT Auditee that identifies critical and systemic risks • IT Service manager uses report information to drive program improvement • Formalized communication of high risk findings to appropriate management levels. • Gather, analyze and trend data to create a summary report that includes identification of high risk issues, status of corrective action, successful practices and learnings. • ITIL summary to provide comparative data of Division / BU performance against our performance. Actionable audit information available – IT Auditee to BOD How Much: Provide bi-monthly reports for BOD meetings; provide monthly reports to Steering Committee, Quality Division and BU/Vision heads by Aug. 2010 D M A D V Project Flow - 5 Level 2 Report ITIL Performance Secure ITIL Resources Determine ITIL Needs Execute ITIL Action Plan Summarize ITIL Data Communicate Detailed ITIL Findings Level 3 Communicate Summarized Info
- 15. Audit Project D M A D V 1. Average delay awaiting closing the backlog incident tickets 2. Maximum delay awaiting closing the backlog Incident tickets 3. Average the number of Incident backlog tickets 4. Maximum backlog Incident tickets Questions: ・ Is the backlog a chance event required a permanent change of process ? ・ Which type of job skills are required? ･ Will additional semi-automated process required to reduce backlog Incident thickets? ･ Will ITIL solve this problem? The Simulation
- 16. Audit Project Hows (Design Requirements) Needs (Whats) Rating TCCC Certified auditors In-depth standardized audit modular protocols for systems & compliance Determine audit & audit team appropriate for the auditee in collaboration with local SBU/division Decision criteria and process for consistent ratings of individual findings and overall facility performance Global audit program certified by recognized 3rd party to ISO 19011 Global audit reporting roll-up process for BOD & Executive Comm. Clearly Identifying current and potential risk and problems 48 9 9 9 9 9 Independent Audits 39 1 9 The Global Program is locally relevant 36 3 9 Fair Audits 30 9 1 3 9 9 Consistent Audits 24 9 9 3 9 9 Verification of completeness of corrective action 21 9 9 1 9 Externally accepted audits 21 3 1 3 Complete communication 16 9 9 3 3 9 Importance 1422 1071 987 966 900 765 Options Needs (Whats) Weight Determined using TCCQS Maturity continiuum only Determined by Quality Indicator only Determined by Previous Audit result Determined by Audit Manager Determined by Auditee Determined by Division QA Manager Hub Audit Manager Select Team Lead Auditor Selects Team Div QA Mgr Selects Team Decentralised Scheduling Centralised Scheudling Process TCCC Certified auditors 1422 In-depth standardised audit modular protocols for systems & compliance 1071 Determine audit & audit team appropriate for the auditee in collaboration with local SBU/division 987 3 1 3 1 3 3 9 3 1 9 1 Decision criteria and process for consistent ratings of individual findings and overall facility performance 966 Global audit program certified by recognized 3rd party to ISO 19011 900 9 9 1 3 3 Global audit reporting roll-up process for BOD & Executive Committee 765 Importance 2961 987 2961 987 2961 2961 16983 11061 1887 11583 3687 TEAM SELECTION SCHEDULING AUDIT TYPE P R I M E D O T S Actions 1 Update of EMS with new plant information X Quarterly review and update plant information on EMS 2 Determine number of plants to be audited (EMS) 3 Request information on plant maturity, risk and audit timing 4 Evaluate every plant against agreed criteria (DIVISION) 5 Prioritize based on risk and audit timing (DIVISION) 6 Comunicate prioritized plant list to audit group (DIVISION) X Ask for required information in advance and frequent follow up. 7 Collect prioritized list from divisions 8 Any new process identified in the prioritized list? 9 Request information regarding new process 10 Provide information regarding new process 11 Development and inclusion of the new module X Quarterly survey with Division to identify new processes. 12 Update prioritized list 13 Compare mandays required with mandays available 14 Are sufficient auditors available within SBU? X X Identify and prepare an external pool of auditors 15 Are there auditors available in other SBU´that can be used? X Get access to information on auditors in other SBU´s 16 Re-evaluate prioritized list to focus on risk priority X Ensure there are sufficient trained auditors available with the required skills 17 Do auditors have required process knowledge? X Ensure there are sufficient trained auditors available with the required skills 18 Do auditors have required language skill? X Ensure there are sufficient trained auditors available with the required skills 19 Is location of auditors suitable for conducting audits? X Ensure there are sufficient trained auditors available with the required skills in yours SBU 20 Can audit be re-scheduled? 21 Is there a lead auditor available? X Ensure there are sufficient trained auditors available with the required skills in yours SBU 22 Allocate resources to the prioritized list 23 Prepare/Review Draft Schedule X Note: Minimize this loop with more active involvement with the Divisons in the early stage of the scheduling process. 24 Communicate Draft Schedule to Divisions 25 Agree with draft schedule? (DIVISION) 26 Communicate proposed changes (DIVISION) X Note: Minimize this loop with more active involvement with the Divisons in the early stage of the scheduling process. Alternately commit the Division to respond within an agreed timeframe or the schedule would be accepted as it is. 27 Are changes feasible? 28 Communicate to Divison that changes are not possible 29 Prepare final schedule 30 Communicate final schedule PRODUCTIVITY ANALYSIS STEP Detailed design options selected, flowcharted and measures identified CTQs High Level Design Elements QFD #1 High Level Design Elements Detailed Design Options QFD #2 Value-Added Analysis VA BVA NVA 1 Update of EMS with new plant information X 2 Determine number of plants to be audited (EMS) X 3 Request information on plant maturity, risk and audit timing X 4 Evaluate every plant against agreed criteria (DIVISION) X 5 Prioritize based on risk and audit timing (DIVISION) X 6 Comunicate prioritized plant list to audit group (DIVISION) X 7 Collect prioritized list from divisions X 8 Any new process identified in the prioritized list? X YES (10), NO(12) 9 Request information regarding new process X 10 Provide information regarding new process X 11 Development and inclusion of the new module X 12 Update prioritized list X Perform updating of EMS each quarter and detec new processes 13 Compare mandays required with mandays available X 14 Are sufficient auditors available within SBU? X 15 Are there auditors available in other SBU´that can be used? X 16 Re-evaluate prioritized list to focus on risk priority X Define sufficient number of auditors, based on process knowledge, language skill, location, leading. Reduce number of audits based on risk evaluation 17 Do auditors have required process knowledge? X 18 Do auditors have required language skill? X 19 Is location of auditors suitable for conducting audits? X 20 Can audit be re-scheduled? X 21 Is there a lead auditor available? X 22 Allocate resources to the prioritized list X 23 Prepare/Review Draft Schedule X Note: Minimize this loop with more active involvement with the Divisons in the early stage of the scheduling process. 24 Communicate Draft Schedule to Divisions X 25 Agree with draft schedule? (DIVISION) X Note: Minimize this loop with more active involvement with the Divisons in the early stage of the scheduling process. 26 Communicate proposed changes (DIVISION) X Note: Minimize this loop with more active involvement with the Divisons in the early stage of the scheduling process. 27 Are changes feasible? X 28 Communicate to Divison that changes are not possible X Note: Minimize this loop with more active involvement with the Divisons in the early stage of the scheduling process. 29 Prepare final schedule X 30 Communicate final schedule X VALUE CATEGORY ACTION STEP Preliminary Flowchart Productivity Analysis Error Proofing Final Flowchart Potential Causes Current Controls Actions Recommended Resp. Actions Taken What causes the Key Input to go wrong? What are the existing controls and procedures (inspection and test) that prevent either the cause or the Failure Mode? What are the actions for reducing the occurrence of the cause, or improving detection? What are the completed actions taken with the recalculated RPN? 10 Did not provide the information or update the EMS 4 no current controls 10 400 Establish routines to quarterly for divisions to review current status against current EMS content GAP Mngr 10 2 5 9 Planning of resources ineffective 4 no current controls 10 360 Define a procedure for rigorous planning. Use auditor pool across SBU's while building SBU capability. Identify multiple external certification bodies in design phase. GAP Mngr 9 2 4 8 Process for updating is not followed 4 no current controls 10 320 Audit the updating process at a local level GAP Mngr 8 2 4 S E V E R I T Y O C C U R R E N C E D E T E C T I O N S E V E R I T Y O C C U R R E N C E D E T E C T I O N R P N Critical Risk Flow Process Auditee Hub Q.A. Audit Group Lead Auditor Division PVP ID of critical/high risk (1) Communicate finding to auditee (2) Discussion and confirmation of evidence (3) Confirmation of finding (4) Confirm with audit manager (5) Continue audit (6) Telephonic discussion with auditor (7) Agree (8) No Yes No Confirm with Hub Q.A. (9) Yes Telephonic discussion with audit manager (10) Agree (11) No Yes Inform auditor (12) Continue audit based on audit manager comment (13) Confirmation with audit manager (14) Telephonic discussion with division to get a plan for action (15) Discussion with bottler & preparation of CAP (16) Forward plan by email to audit manager (17) Agree with content of CAP (18) Inform Hub Q.A.and copy division technical director (19) Yes No Voice mail to SBU Pres. Copy PVP, Div. Pres, SBU QA, SBU Tech, Div Tech detailing critical status (20) D M A D V Determine ITIL Needs (Sample from text )
- 17. Audit Project Document Management ITIL implementation and its control of procedures, incorporating: • Document creation • Document review • Document distribution • Document archiving (Above done with electronic workflow) Recordkeeping ITSM maturity and operational data Audit reports • Field for high risk, corrective action status and successful practices • Status of corrective action receipt • Audit schedule status • Search of reports by: • Risk • BU • Division ITSM Staffs Capability • Personnel information: • Education • Work Experience • ITSM tool training • EXIN ITIL foundation Certification to all Technical Staffs • Languages, nationality, location • Course and skill profiles • Filter/search capability This functionality is available with current solutions and/or off-the-shelf software • Document revision • Document approval • Document control D M A D V Features of ITIL framework
- 18. Audit Project ・ New Standard; Install ISO20000-1 and ISO27001 ・ Modify quality appraisal and IT audit criteria ・ Update prices of product to increase sales Implementation of ITIL makes price increase of company products possible ・ Revise IT budgets ・ Revise manpower forecasts Not meant labor cost saving. Reallocate IT technical staffs to right positions. D M A D V Hard-Won Gains
- 19. Audit Project • The ITIL Design was completed on schedule and full scale implementation began Jan. 2010 • Preliminary results indicate all CTQs will be met • An estimated backlog/month reducing to Sigma Level 6.0 by ITIL in Oct. 2010 • After full ITIL implementation, the sales resulted at least 1,000,000 increase in Oct. 2010 – Dec. 2010 (FY2010 Q4) Summary
- 20. Audit Project References Thomas Pyzdek, and Paul Leller (2014). “The Six Sigma Handbook, Fourth Edition”, USA: McGraw-Hill Education. SIX SIGMA ONLINE templates, Aveta Business Institute.