FMEA Can Add Value in Various Project Stages

The failure mode and effects analysis (FMEA) tool has several variations. In transactional environments, it is sometimes referred to as an EMEA – where E stands for human errors. Other variations include the process FMEA (pFMEA) and design FMEA (dFMEA). The fundamental purpose of any FMEA, however, is to identify, evaluate and take actions to reduce risk of failure.

Just as there are many variations of the FMEA, there are also many uses for the tool within Six Sigma projects. Although it’s typically taught in the Improve stage (DMAIC [Define, Measure, Analyze, Improve, Control]) of training, it has a place in other phases as well. But before practitioners can gain varied benefits from the tool, they must first be clear on how to use it.

How it Works

Before proceeding with how to use an FMEA within the different phases of a Six Sigma project, it is best to review some key FMEA terms:

◉ Failure mode – The way in which a process can fail
◉ Effect – The impact on the process or customer requirements as a result of the failure
◉ Severity – The impact of the effect on the customer or process
◉ Root cause – The initiating source of the failure mode
◉ Occurrence (or frequency) – How often the failure is likely to occur
◉ Detection – The likelihood that the failure will be discovered in a timely manner, or before it can reach the customer.
◉ Risk priority number (RPN) – The value computed by multiplying the values assigned to Severity, Occurrence and Detection

In a pFMEA, failures (or errors) occur at a process step. The effects of the failure may be felt immediately after the failure occurs, or they may be felt downstream of the process. Conversely, root causes of the failure may occur immediately before the failure, or way upstream in the process.

Severity is always associated with the effect of the failure. What causes confusion is how to rate occurrence and detection. Occurrence can be associated with the failure mode or root cause, and detection can be associated with the root cause, failure mode or effect.

To simplify the association, it is best to associate occurrence and detection with failure mode because usually the root causes have not yet been properly identified.

The following is a user-friendly example of a pFMEA:

Process Step	Failure Mode	Occurrence	Detection	Effect	Severity	RPN
Putting tag on suitcase	Wrong destination on tag	3	5	Suitcase goes to the wrong destination	3	45
Putting tag on suitcase	Tag does not adhere to suitcase (falls off)	2	3	Does not leave airport and goes to lost and found	5	30

This simplifies the template in that occurrence and detection follow immediately after the failure mode and severity follows the effect – there is no ambiguity. A process step can have one or more failure modes, and each failure mode might have one or more effects. This means that if a spreadsheet is used, rows are added as failure modes and effects are added. It also allows practitioners to sort by RPN.

Other columns can be added to the FMEA, such as root causes, controls, actions, responsible party and recalculated RPN based on actions. But for Six Sigma projects, the core of the FMEA is relatively simple and usually is sufficient for the Measure and Analyze phases.

As far as the numbers used in the FMEA, there are no generic scales for the three parameters (Occurrence, Detection and Severity). Each FMEA needs its own set of scales and when done in a brainstorming environment, a scale of 1-5 is usually sufficient; a scale of 1-10 tends to increase complexity without additional benefit.

Flexible FMEA Focus

While the overall approach of the FMEA does not change depending upon the DMAIC phase, the focus of its use does change.

In Measure, the FMEA can be used as a prioritization tool to understand and fine tune the focus of a Lean Six Sigma project. In addition, it also can be used to determine what can go wrong with the process, and what data the team should collect as part of its process metrics.

Example: A team launched a project to reduce reprocessing of materials in a sterilization line. To determine where to focus the initial efforts, the team created a detailed process map, followed by an FMEA to identify failure points in the process that resulted in re-sterilization. Once the FMEA was created, resulting in severity, occurrence and detection estimates, the team focused their project on four areas to eliminate or mitigate failure points.

In Analyze, the FMEA helps to address where to look for root causes. It should be noted, however, that an FMEA is not a tool to identify root cases; but, frequently practitioners can document root causes in an FMEA.

Example: Most processes are not stable, due to the existence of special cause variation. By identifying special causes (sometimes referred to as root causes), practitioners can work to eliminate them, resulting in a stable or more predictable process. For instance, a financial institution had unacceptable variation in its cycle time for processing loan applications. The Six Sigma team completed an FMEA for the whole process, which led to three problem areas (receipt of applications, location where the applications were received and type of loans) to focus on. Subsequently, they collected data and built detailed cause and effect diagrams to help identify root causes for these problem areas.

In Improve, the FMEA may be used to test a solution or process improvement. This testing can make the solution or process more robust, and help identify corrective, preventive and mitigative actions should failures or errors crop up later.

Example: In DMAIC projects and especially in Design for Six Sigma (DFSS) projects, a relatively easy way to “test” a solution is to do a table top exercise (rather than a pilot or full implementation). An FMEA can serve as such an exercise and help identify possible weak points. One example involves a process designed for individuals to send money overseas to relatives. It was a rather complex process in that it had to have proper checks and balances to minimize fraud and to provide an audit trail. Once the process was designed and reviewed by subject matter experts, the Six Sigma team did a detailed FMEA to find potential weak spots. As a result of this effort, changes to the process were made. Subsequently, the process was piloted and the FMEA was updated with the results of the pilot.

In the Measure, Analyze and Improve phases, an FMEA is typically the result of brainstorming because quantitative data is usually not available. However, in Control, an FMEA is updated based on real data and is helpful for continuous and ongoing improvement.

Example: By this stage, the Six Sigma team is ready to close out the project and transfer it to the process owner. It is critical, when appropriate, to also transfer the FMEA (typically the one done in the Analyze phase) to the process owner. This means that the process owner needs to understand the FMEA and, more importantly, how to update the FMEA based on real experiences and data. For instance, a manufacturing plant that produces gasoline tanks made out of plastic resin was experiencing a high level of regrind – meaning tanks that did not meet standards were recycled through a regrinding process. However, there was a limit to how much reground resin could be mixed with virgin resin, so there also was a high scrap rate, as not all the reground resin could be reused. The team made a number of changes to the process (temperatures, pressures, flow rates, curing time, etc.) and used the FMEA to help develop standard operating procedures (SOP). The process owner – who also was a project team member – understood the FMEA well and reviewed and updated it every six months based on process performance. Additionally, this activity resulted in further enhancements to the process.

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Be a better project manager in 2020

Remember January 2019’s lengthy list of New Year’s resolutions? That determination to be a better you, be fitter and healthier, learn a new skill, or spend less? What if you change your approach for next year? The new calendar year is a great time to take ownership of your career development and vow to be a better project manager.

Work less

That’s right, our first tip for being a better project manager is to work less! A recent work life study has shown that workers average just 2 hours and 48 minutes of productive device time a day. In this way, overworking and working long hours is unlikely to be worthwhile. In fact, research shows that when our work-life balance is thrown off, our sleep becomes impaired, we’re more likely to feel stressed, and less likely to get things done.

So, what better way to prioritise your career advancement than working smarter not longer, to stay productive and avoid burnout.

Prioritise communication

Taking time to reflect on how this year has been for you as a project manager can be really beneficial. Consider how you have communicated with your team, stakeholders, and clients in 2019 and if there are areas for improvement. You should also take into account your team’s view of how you communicate.

Make simple tweaks to be seen more, be available, ask questions and discuss issues. Prioritise effective communication in 2020 and you are bound to reap the rewards.

Eliminate unnecessary meetings

Before you start penciling in loads of meetings to improve communication, remember tip number one – work smarter!

By eliminating unnecessary meetings, such as full team catch-ups every week, you will free up your time for smaller meetings to discuss any issues that have arisen. This will also enable your team to crack on with the work at-hand and be more productive.

Take a course

As part of your New Year’s resolution to be a better project manager in 2020, why not fill a skills gap by taking a course?

Our PRINCE2 courses teach you leading project management skills, improving your knowledge and working practices. This qualification is also hugely beneficial for improving your future employment prospects. We offer online and virtual courses which are really convenient for busy project managers.

Better your negotiation skills

Perhaps your negotiation skills were your downfall? You are not alone. Balancing what a client or stakeholder wants versus what your project team can realistically offer can be extremely testing. But as a project manager, it is often part of your role to be the middleman and to negotiate with all parties.

Preparation can go a long way when trying to reach mutually beneficial agreements so be sure to set aside time to carry out research before important talks. Read up on further tips and negotiation techniques used by professionals, or even consider talking to a negotiation coach if this is an area where you struggle.

Improve quality

Ticking tasks off the to-do list is one thing, but getting them done to a high standard is another. Improving the quality of your deliverables is sure to pay off. This will vary massively dependent on your industry, and from project to project, but may involve investing in new technology, bringing in a new team member or skillset. Simply motivating or training your project team to push the boundaries of doing their best could also help.

Taking steps to improve the quality of deliverables this year is sure to impress stakeholders, and do wonders for your reputation as a project manager.

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PeopleCert PRINCE2 2017 Foundation Certification – What You Need to Know

To pass PeopleCert PRINCE2 2017 Foundation exam with flying colors and show your best knowledge of the PRINCE2 methodology, your revision and exam preparation must be approached in the right way.

PeopleCert PRINCE2 Foundation Exam Pass Rates

In the UK, the national average PeopleCert PRINCE2 2017 Foundation exam pass rate is 97%. You don’t require to be one of the unlucky 3%. Also, candidates who score highly on the Foundation exam are likely to do better on the harder Practitioner exam.

PeopleCert PRINCE2 2017 Foundation exam aims for the highest mark you can on your PeopleCert PRINCE2 2017 Foundation exam by using this guide to help you.

PRINCE2 Foundation Syllabus Topics to Know

The PeopleCert PRINCE2 2017 Foundation exam assesses whether your knowledge and understanding of the method are enough to be able to work efficiently with or as a member of a project management team working within an environment promoting PRINCE2.

The exam addresses all of the following syllabus topics:

• Understand key concepts relating to projects and PRINCE2.

• Understand how the PRINCE2 principles underpin the PRINCE2 method.

• Understand the PRINCE2 themes and how they are applied throughout the project.

• Understand the PRINCE2 processes and how they are carried out throughout the project.

PeopleCert PRINCE2 Foundation Exam Summary

• The exam is made up of 60 multiple-choice questions, which you finish in 60 Minutes. All the questions are covered within a question booklet.

• The pass mark is 55%, so you require to score at least 33 correct answers to pass. The exam is a closed book, which means that you cannot take the manual or any other printed or electronic materials with you into the examination room.

• The PRINCE2 Foundation exam contains three types of question styles: ‘classic,’ ‘list,’ and ‘missing word.’ The questions are always in multiple-choice format, so you require to select one answer out of the four options given. There are no trick questions on the exam paper, and every question only has one correct answer.

Revision

PRINCE2 Foundation Exam Practice Exam

• The most current revision method is to practice those exam questions! As the questions are composed of a limited question bank, the more practice questions you try, the more prepared you will be. The PRINCE2 exam board provides 2 sample Foundation exam papers to PRINCE2 Accredited Training Organizations, so if you have considered using an accredited training course, these should be provided to you.

• PRINCE2 2017 Foundation practicing sample exam papers helps refine your exam technique.

Paraphrasing

• There will be a substantial number of questions that ask you the purpose of a management product, a theme, or a process. Since there are 26 products, and seven themes and procedures, that’s 40 purposes you need to remember. That can be too many things. You need some trusted methods to aid you in recognizing, so try paraphrasing.

• Go to Appendix A in the PRINCE2 manual and, one by one, read the determination of each of the 26 management products. To be clear – that’s subsection A1.1, A2.1, A3.1, etc. If you don’t know it, reread it. Then write down in your words the meaning of the product. Try to write it in less than ten words.

• Paraphrasing forces your brain to engage with the subject matter, which helps with longer-lasting memory retention, and deeper learning.

• Try paraphrasing the purposes of the seven themes and seven processes too.

Mind-maps

• Visual revision tools, such as mind-maps or flow charts, can also help. Creating these for yourself will improve your knowledge of PRINCE2, and ultimately increase your possibilities of exam success. Try to create one mind-map for any theme and one for each process.

• After you have created your mind-maps, you can compare them against the ones we produced inside our themes and processes ebooks.

• Drawing mind-maps is a way to aid your knowledge of PRINCE2.

PRINCE2 Foundation Exam Day

• Do not use too long time on difficult questions, skip them, and answer them last.

• Don’t over-analyze questions.

• Think carefully before changing answers. Your first response is often correct.

• Only select one option for each question and assure you have filled in your answers correctly.

• Preparing well, understanding what to expect, and thoroughly understanding the PRINCE2 methodology, will all significantly improve your possibilities of success. Also, statistics show that high-scorers in the Foundation exam will have a better chance of getting a high score in Practitioner, which is certainly something to keep in mind.

• On the day of the exam, you must bring:

• Photo ID such as a passport or driving license; differently, you cannot sit the exam.

• Pencil and eraser for answering those questions.

• Assure you have water to drink during the exam. Studies show that students who drink water during exams, on average, score of 4.8% higher marks than students who don’t drink water.

• Your brain needs water, so don’t forget to bring water into the exam room!

Pre-exam

• Just before the examination starts, the exam invigilator will read out the instructions and rules for the exam.

• If you registered with PeopleCert before the exam, the invigilator would give you a unique 3-digit candidate number. You must write this number onto the answer sheet. The invigilator will check your photo-ID.

During the PRINCE2 Foundation Exam

• If English is not your first language, you will automatically get 25% extra time – 75 minutes instead of 60!

• Similarly, you may find finishing the PRINCE2 2017 Foundation exam hard if you have dyslexia or another medical condition. To take the extra time, you must contact us before the exam with a statement from your doctor or other medical professional explaining your situation. This will then get approved by PeopleCert, and you will be provided extra time.

• Inform the invigilator if the exam environment is hurting you, such as noise or sunlight, or you feel unwell. Do this first before the exam begins.

• If you require to change an answer, you should clean out the wrong answer as thoroughly as you can to avoid ambiguity when the answer sheet is marked.

• All mobile phones and electronic devices must be switched off for the duration of the exam.

• If you fail the exam, you can re-take it at a later date, although you will require to pay the exam fee again.

• At the end of the exam, the invigilator will mark your answers and give you a provisional result after about 15 minutes. The exam board will provide an official result 2-3 business days later.

• If you have passed, you should demand to get the certificate at the same time as receiving your official result.

Conclusion

I hope you have found this guide to passing the PeopleCert PRINCE2 2017 Foundation exam helpful. Accurate knowledge of how PRINCE2 works and a great exam technique should encourage you to pass your exam.

The study, effective revision, and practicing sample exams will all boost your odds of passing the exam and achieving a qualification recognized in industries throughout the world.

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Think you have Project Manager skills?

Why would I want to become a Project Manager, and do I have Project Manager skills? It’s not what I dreamed about becoming at school. Saving the whales or being a professional beach bum would have been my thing, but we must put bread on the table and money in the wallet.

Do kids dream about being project managers today? I think not. It certainly does not sound exciting to a thirteen-year-old, but is Project Management exciting?

Let’s look at what it is, it pays well. Salaries get thrown around, but in the UK, Project Managers have averaged earnings of £52,000 annually the last few years in permanent positions. Contractors often earn £400 per day or more. Entry level roles like Project Support can start at about £22K depending on where you live in the UK.

So, it pays well, progression is good, but is it exciting? Well that is a big question as project management roles are all so different. A project is temporary by nature, it has an end date. Think of a local authority and how many different projects they have on the go at any one time. Some are very exciting, and some are massive. Go back a few years and think about how big the 2012 Olympics was as a project.

Project Managers I have met love working on projects because each project is different with new challenges. Any organization that is growing or evolving needs project managers. Project Managers plan, control, and manage projects that implement anything new, create new products, build buildings, fix things, deliver services and much more across a broad section of sectors like IT, construction, catering, charity, all areas of government, oil and gas, agriculture and more. Bottom line is you will find project managers in all sectors at different levels working on different types and sizes of projects.

They may be working as part of a project team or could be managing a few small projects on their own. Senior Project Managers will manage large projects or multiple projects.

I know a project manager who sits in the comfort of his home and manages 7 projects across 2 different countries using PRINCE2 as a methodology to keep control of every stage of the project.

A project manager also must work with all the stakeholders involved in the project. So that could include the customer taking delivery of the project once it is completed, suppliers, technical experts, compliance officers and anyone else who has an interest in the project.

So, what traits and skills do project managers have and if I want to be a project manager, do I need experience?

If you love organising and planning events, then you might have the right skills needed. Project managers are good communicators and have good written and verbal communication skills, they are organised, can follow processes, have a bucket load of common sense and are often nice people that get on with the team they work with or manage.

Projects are managed using a methodology. Think of a methodology as a recipe. To successfully bake a cake, you follow a recipe. You plan to bake the cake, buy the right ingredients, then follow a rigid process to ensure a successful outcome or else your cake flops. You follow a process to manage each stage of the project to help ensure the project runs smoothly and is completed on time and within budget.

Managing a project can cover areas like creating a business case, planning the project, risk evaluation, managing each stage, providing stakeholders with information and successfully completing the project. PRINCE2 and AgilePM are the most popular methodologies used in the UK, Europe and worldwide, while CAPM & PMP are popular in the USA.

For entry level job roles in project management, foundation level courses in PRINCE2 Foundation and AgilePM Foundation will give you an edge when applying for junior project roles. Having a certification will mean you understand how projects are managed and the process followed to manage the project. Think of it as a language, if a project is managed using PRINCE2, then everyone working on the project needs to understand PRINCE2. If everyone on the project speaks English, you need to speak and understand English to be effective.

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Will a Project Management Certification Help Your Career?

About 97% of companies believe that good knowledge of project management is significant to organizational success. Sadly, hardly over half of the project managers are certified and skilled in their tenure and career in the project management field.

Believe it or not, Project Management Certifications can massively aid you to advance in your career. Not only organizations favor to recruit certified professionals, but they also get to helm better projects in the future.

Why Should You Get a Project Management Certification?

Whether you are a master or newbie trying to climb up the ladder, there is a project management certification for you.

If you are still not convinced, below are some reasons describing the importance of project management certifications in today’s time and age.

Reason 1: Global Acknowledgment

There are famous institutes and online gateways like the Project Management Institute (PMI) known to offer world-class education and certifications to aspiring professionals. Once you get a certification from a good institute, you become qualified to showcase your skills and expertise to companies all over the world. Being known and sought-after name in an industry, you know the global acceptance and acknowledgment to work wherever you require.

Reason 2: Dramatic Salary Hike

Another inviting reason to think about getting a project management certification is a steep hike in salary. In a recent study, it was determined that you could expect up to a 20% increase in your PMP salary if you are PMP certified as opposed to a project manager who is not certified. It means that a quality project management certification could provide a straightaway 20% of salary growth.

Reason 3: Challenging Projects and Better Job Opportunities

A project management certification benefits you gain the trust of managers to manage challenging projects. As you receive the right skill set, they are not afraid or have any second thoughts before handing over a plum project to you. Also, certification provides you with both knowledge and experience, enabling you to make better job opportunities from great organizations confirming your trustworthiness to lead and manage projects in a better way.

Reason 4: Better Project Performance

Certified project management professionals do perform better than someone with no certification at all. A certified PM Manager is well informed of the processes such as initiation, planning, execution, monitor, closure, along with risk management and best project management practices. Such valuable information aids you make the right steps that lead to better performance and boost overall productivity.

Reason 5: A Smart Future Investment

Because these certifications are not that expensive as compared to other specific exams or courses, one should never forget the impact they could have on your career.

For example, you can take the PMP exam for $555, and if you are a PMI member, then it’s for $405. On average, the passing rate is around 60%. You don’t require formal training to pass the test. Taking everything into account, it does look like a smart investment for your career. The best thing is that certified professionals are secure even during an economic crisis.

Why Are Project Management Certifications Important?

• The average certified project manager has undergone several vigorous project development units, with each one being a training module of its nature.

• As a result of these certifications, the project manager is ultimately capable of handling a wide variety of challenges and preset tasks to help increase the flow of the business industry.

• Likewise, based on IT Project Management Certifications, such as; Agile, Scrum, or PMP modules, the certified manager can overlook a whole workforce responsible for achieving a milestone.

• We don’t expect you to know the terminologies, as mentioned earlier. However, at the helm of each project, it comes down to obtaining the concerned Project Management Certifications.

• Otherwise, you won’t be treated as an “accredited/ recognized” individual who is equipped to handle the difficult tasks within the life cycle of a project.

• The Project Management Certification, designed only for the Management and Strategy Institute, will provide you with the skills needed to lead or function within a project management team. This certification is intended for professionals who are looking to work as a project manager in a corporate environment.

• Project managers have the responsibility of preparation and proper execution of a project. Project managers can work in any industry, and their skillset can be an asset to both small and large organizations. They must have excellent communication skills and a solid understanding of how to accurately organize and map out a project. Project costs, time, and overall quality are critical components of a project, and the project manager is the one in charge. Meeting the needs of project stakeholders means understanding how to manage risk while leading teams and controlling costs.

• When we think of project management, the construction industry is often the first industry that comes to mind.

• In reality, most enterprises have project management roles. Whether it be Engineering, Software Development, Healthcare, or Manufacturing, a project manager needs the responsibility of keeping projects on-track.

Having a Project Management Certification on your resumé can give potential employers you have the skills to perform projects of importance to the organization.

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Using the DMAIC Model to Achieve Buy-in

When project managers begin studying Lean Six Sigma, the first question asked is often, “How will I get buy-in?” Although the core concepts and methodologies may make sense to project managers, the question of buy-in sometimes overshadows this powerful methodology for process improvement. There are many root causes for why people are reluctant to lend support to a process improvement project. The most popular reasons include:

◉ Misunderstanding the purpose of the improvement.

◉ A lack of understanding of the current processes and/or a belief that the process is not flawed in its current state.

◉ Misunderstanding the logic behind the proposed solutions.

◉ Belief that a better solution exists.

◉ Belief that the process may be improved but not sustainable.

However, if implemented properly, the DMAIC model itself is structured in such a way to create and sustain support of Six Sigma.

Eliminating Uncertainty

One of the first forms of resistance project leaders face – individuals not understanding the purpose of the improvement – can be tackled immediately in the Define phase of DMAIC. The overall purpose of Define is to determine the problem statement by use of a project charter and process map. Project managers should not leave Define unless they are absolutely sure everyone involved with the process improvement understands the problem being explored.

Another key intention of the Define phase is to provide enough information for those involved in the improvement to, at the very least, agree that the issue merits exploring. Getting to this point is not particularly easy. However, many tools and strategies that are often deployed during the Define phase can provide assistance. These would include cross-functional teams that involve the process owner, and the use of graphics for a clearer picture.

Performing a SIPOC (suppliers, inputs, process, outputs, customers) analysis and spending time identifying critical-to-quality (CTQ) factors are examples of two helpful tools in creating understanding. The SIPOC is a structured brainstorming model that is used to collect information on all elements involved in a process improvement. CTQs are any internal parameters that relate to the wants and needs of the customer. A detailed SIPOC chart and a list of CTQs helps project managers present a compelling and logical argument for why the process should be explored.

Agreeing on the “As Is”

Another reason that process improvement projects experience push back is that some people involved in the improvement may not understand the current process, or they believe that the current process cannot be improved. This resistance can be eliminated in the Measure phase of DMAIC.

The intention of Measure is to ensure that everyone involved in the project agrees on how the process is currently performing – the “as-is” picture. This understanding not only stifles resistance but is necessary for success. Without a clear as-is picture, project leaders can have trouble proving that the process improvement, implemented later in the DMAIC model, made a difference.

Once a project leader has approval to move forward and everyone understands the improvement being explored during Define, the next step under Measure is to take a closer look at the current state of the process by adding a sufficient amount of detail to the process map. Sometimes taking a detailed process map and creating a swim lane chart is enough to prove that issues exist. A swim lane chart divides all the activities into segments, such as individual departments. This enables those involved in the process to see potential process bottlenecks and various handoffs in a graphical fashion.

Often, another successful strategy is to create a control chart, which captures the upper and lower control limits of how the process should perform. In many cases, the core reason people don’t believe that a problem exists is that the process has been performing within the control limits. However, the process could still be showing erratic behavior within the control limits that needs to be handled. Without the application of control charts, it is also possible that there are outliers in the data that may go unnoticed.

Pointing Toward Solutions

The Analyze phase takes all the information from Measure and looks for things such as root cause, correlation, variation and impact. This key information is necessary to develop potential solutions, and is also the first step in building a logical argument as to why the solution would work. In solution development it is important to consider things such as sustainability – i.e., would the current organization be able to support the process improvement? This is as essential to success as reviewing other obvious considerations such as time, budget and resource availability.

Analyze helps with the resistance of the people involved who do not understand the logic of the proposed solution. Project leaders should not consider the Analyze phase complete unless three to five possible solutions to the process improvement have been proposed. If these solutions are difficult to understand, project leaders should repackage the information with simpler models for presentation so that it is easier to digest.

Adding Options for Solutions

The first activity in the Improve phase is to list the solutions discovered in Analyze and present evidence that the solutions are valuable. Although Improve has a number of activities that need to be facilitated prior to project rollout, this first Improve task neutralizes another potential obstacle – resistance from people who are told there is only one choice. When people are told that a particular solution is “the only game in town,” they naturally start thinking about other options. This is true even when the option is a brilliant choice. By presenting several strong solutions, the dynamic of the activity shifts away from buy-in and becomes more about consensus building about which solution should be piloted.

Sustaining Improvements

Finally, one of the last remaining hurdles is to counter resistance from those who do not believe the improvement is sustainable, also known as the “Why bother?” factor. People involved with the process are convinced that, even if the effort is made, things will go back to the way they were within a short period of time. The Control phase addresses this issue by putting sustainability models in place that are easy to use and explain. Keep in mind that the sustainability of the project was already considered and decided in Analyze; it is the belief that things will revert to the way they were that must be debunked during Control by showing the actual models for sustainability.

Fighting Resistance on Five Fronts

Though it seems like a static model, DMAIC is actively concerned with the topic of buy-in and sponsor support. The model addresses the most common resistances to a legitimate process improvement:

◉ Define considers the resistance of misunderstanding the problem.

◉ Measure considers the resistance of misunderstanding the as-is state or the seriousness of the issues.

◉ Analyze considers the resistance of misunderstanding the solution.

◉ Improve considers the resistance that comes from individuals needing choice.

◉ Control considers the resistance that the proposed process improvement might not be sustainable.

When project managers first learn about the DMAIC model, they would be well served by learning the activities, strategies and tools for each of the five DMAIC phases. Simply learning the tools presented in the DMAIC model, and understanding how each step inherently encourages buy-in, will help project leaders do projects better, faster and more cost-effectively.

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Best Practices for Data Management and System Improvement

Does your data management sometimes feel as if a giant load of sand has been dumped on your head? You may want to build a sand castle, but without some sense of order, all you’ll end up with is a million grains of useless material. The same may be true of data management.

With 2.5 quintillion bytes of data created every day, and the fact that 90 percent of the world’s data has been created within the past two years, it’s hard to imagine what efficient data management will look like in the next few years, or how anyone can expect to keep up with the deluge.

According to a 2013 Forbes magazine, John Worstall called Excel “the most dangerous software on the planet.” An inflammatory, probably hyperbolic accusation? Maybe, but Worstall lists several reasons why the use of spreadsheets alone, such as those created by Excel, can indeed be dangerous approaches.

Other respected sources have warned about organizations’ reliance on spreadsheets alone as well to manage critical data: “Financial institutions need to take full control of their vast number of spreadsheets and databases if they want to be fit for the new era of post-crisis risk management,” warns leading data management specialist Cluster Seven. (A focus on improved risk management has emerged in the new IATF 16949 standard as well.)

Netflix executives are apparently taking this kind of control, as they rely on data for millions of customers to make predictions about who wants to watch specific media offerings. As an example of Big Data, this use reflects the ways in which decisions are made in the midst of an explosion of digital information that is now available and insistent in its call.

How, then, can an organization not only manage, but tame and use available data in order to render it useful rather than simply overwhelming?

Clearly, data management systems must go way beyond the use of Excel. Savvy organizations understand that taming data demands careful analysis. Data flows into spreadsheets and database tables at an astonishing rate. It is stacking up in personal computers, laptops, tablet computers, database servers, in the cloud, and in smartphones. In these growing mountains of data there is insight to be found – insight that can lead to gains in quality and ultimately in profitability. The rate and volume of data that passes through our lives every day demands systematic development of strategies for handling the task of taming it – strategies that are critical to making any improvement in systems. Without systematic approaches to data use, managers may arbitrarily impose improvement projects that will ultimately fail, largely because data related to that project is not collected and analyzed.

Organizations that have been in the business of improving processes and products have developed best practices for collecting the right data at each step of the improvement process, rather than letting the data simply pile up throughout the organization.

Before undertaking improvement efforts, it is important to establish the aim of data collection, and to understand what one hopes to achieve by examining the data related to a system.

Understanding of/Commitment to Product Quality and Customer Satisfaction

Best business practices begin with an understanding of, and commitment to, product quality and customer satisfaction. Good business management practices are grounded in continuous improvement and data-driven decision making. While this truism may not immediately seem to relate to the idea of data management, the two are nonetheless intimately connected. Let’s look at some best practices for taming and managing data so that it provides information, rather than simply piling up around you.

Continuous Improvement and Data-Driven Decision-making: Understanding the Current System

Before looking at data, the first step has to be one of understanding the current system. Using operational definitions of processes, understanding the system entirely (for example, a sales system), and gathering data to understand how the system is currently working will give a baseline perspective that will allow you to assess whether any changes have resulted in improvement.

Collecting Data to Define the Current System

Data plays a key role in assessing that system. Control charts, cause-and-effect diagrams and other tools will expand your understanding of the system. You may want to increase sales, and you are aware of the figures associated with revenues and expenses. Do you know exactly where sales come from, what market focus you may need to consider and the effectiveness of specific sales strategies? Collecting data that will help you define the current system is essential before embarking on any plan to enhance or improve.

Developing an Analytical Approach to Improving the System

The data that has been collected and the tools that have been used to fully understand a system and assessing its needs will be useful in developing an analytical approach to improving that system. Tools that support development potential theory of improvement will ultimately assure that the theory is on the right track and can be accurately tested. Without such tools, any improvement theory is simply conjecture. Again, tools for data analysis – control charts, Pareto diagrams, cause-and-effect diagrams and others – help to give the sand castle form, so to speak.

Using Data to Test Theories About Improving the System

Testing that improvement theory involves continued reliance on data – and not just any data, but that which will contribute to an understanding of the ways the theory is working, and whether it will actually generate results that are sought. Examining data will determine whether the theory should be abandoned or standardized as practice in the organization. Without that data, this process resorts to whim or ego.

Ongoing vs. One-Off Approach to Improvement

Full implementation of improvements is not a binomial process of it-works-or-it-doesn’t. Continued reliance on data collection and analysis will not only assure that the improvements are sound, but will also give information about additional ongoing improvement that may be required.

Putting data to work in order to assure that it contributes to an outcome, rather than collecting it with no attention to its specific usefulness, assures results, eliminates waste, and saves an abundance of resources in the organization. While doing this demands vigilance with respect to the kind of data that is collected and the tools used to analyze it, it will give structure to the data collection itself and render it eminently ordered.

Sort of like planning a sand castle before filling the first bucket.

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Maintaining your PRINCE2 Practitioner status

The PRINCE2 Practitioner certification is the final part of the PRINCE2 qualification, and it’s where you learn to apply the theory from the Foundation certification.

Maintaining your Registered Practitioner status demonstrates that you’re on top of the latest best-practice developments, indicates a desire for continual improvement and will help you in the job market.

Under the previous iteration of PRINCE2 (the 2009 version), there was a re-registration exam available to project managers who wanted to maintain their Practitioner status, but that is no longer the case with 2017 version. So how do you remain certified? This blog covers all the information you need!

When does my PRINCE2 qualification expire?

PRINCE2 Foundation never expires, but your PRINCE2 Practitioner certificate will expire after three years.

How do I maintain my Practitioner status?

To maintain your PRINCE2 Practitioner status, you must either:

◉ Retake the PRINCE2 2017 Practitioner exam before the expiry date

or

◉ Take out a MY PRINCE2 subscription with AXELOS (the body that owns the certification) and collect 20 CPD points annually

What’s the benefit of having a MY PRINCE2 subscription?

You will gain access to the latest project management publications and reports, to resources that will prepare you for exams, to toolkits that will help you to apply what you’ve learnt at work and a digital badge that validates your certification.

Is there a re-registration exam I can take instead?

There used to be a dedicated course and exam for maintaining Practitioner status, but it was discontinued in the PRINCE2 2017 update. The re-registration exam was 90 minutes shorter than the Practitioner one, but now, if you collect CPD points instead, you won’t need to take any exam to stay registered. You can, however, retake the full Practitioner exam if you don’t want to go down the CPD route.

How do I check the expiration date?

The expiration date is on the Practitioner certificate. Because AXELOS owns PRINCE2, candidates also appear on their successful candidates register. If you haven’t opted out of appearing on the register, you (and potential employers) can confirm your registered status and expiration date.

What happens after the expiration date?

If you wait longer than three years and your status lapses, you can still re-take the Practitioner exam and regain the status. In the interim, you’re not allowed to advertise yourself as a Registered Practitioner. Taking the Practitioner exam before it expires will save you having to rewrite your CV and reprint business cards.

Alternatively, the PRINCE2 membership offers candidates a chance to maintain the Practitioner status if they carry out the following conditions within the three years before their status expires:

◉ Become a member within three months of passing the initial Practitioner exam

◉ Remain a member for three years by renewing the subscription yearly

◉ Maintain the PRINCE2 digital badge, which is given to the candidate after completing three years of membership

◉ Record 20 CPD points annually to extend the badge upon renewal

Is the format of the Practitioner exam the same?

When re-taking the Practitioner exam, the format is exactly the same:

◉ Objective testing

◉ 68 questions

◉ 33 out of 68 marks required to pass – 55%

◉ 2.5 hours (150 minutes) duration

◉ Open book (official PRINCE2 manual only)

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4 Lessons to be learnt from top businesses - Netflix and Kraft Heinz

From being adaptable to crafting brand experiences, there is plenty to be learned from some of the world’s top brands. Here we take a look at four case study examples.

Create a brand experience like IKEA

User experience is a hot topic. It stretches beyond products and encompasses all the interactions an end user has with a brand - and that’s why it’s so important.

IKEA excel in this as they are not just a store; they offer a complete user experience. Their warehouse buildings address all the pain points of regular furniture stores and offer innovative, well-executed solutions. From their ample parking, to their ‘collect at the end’ layout, you’re taken on a journey through their showrooms with the help of floor arrows showing you the way. They have turned their stores into a day out experience with a restaurant for hungry shoppers, right through to a child play zone for bored youngsters.

Outside of the box thinking is what has separated IKEA from its competitors, evidencing that it is never too late to be different and redefine an industry.

How Ella’s Kitchen streamlined processes

When children’s food specialists Ella’s Kitchen took the time to reflect on their internal processes in 2016, it was evident something needed to change. Programme Manager, Ellen Jarret, described their approach to projects as “chaotic”. The solution? A hybrid PRINCE2 and agile approach.

By using PRINCE2 practices, Ella’s Kitchen now use an online project management tool called Teamwork to streamline processes, prevent tasks from being overlooked and keep projects on track. So what was the outcome of improving their processes?

◉ A reduction in overdue tasks from 7% to just 2%

◉ A 97% improvement in visibility across projects for staff

◉ Winning the ‘PMP of the Year’ award at the AMP Project Management Awards 2018

◉ Being named one of the Top 100 companies to work for in the Sunday Times

These results speak for themselves, proving that internal changes contribute to business success.

Stay in touch with what your customers want - unlike Netflix!

Netflix hit the press in 2011 when they announced a significant price rise as part of a company split. Reed Hastings, founder and CEO of Netflix wanted to split the company, separating streaming and DVD rental by mail (how the company started out) by starting up a new entity ‘Qwikster’.

This proposal ruffled the feathers of stakeholders and subscribers alike, and the plans were reversed within just a couple of weeks. But the damage was already done – Netflix lost 2 million subscribers and their stock value had plummeted over 75%.

The split would have meant setting up a new Qwikster account for postal DVD rental and paying two separate accounts $7.99 each, rather than the $10 for both rental and online streaming - a 60% increase. Quartz reports how subscribers swiftly expressed their displeasure about having the DVD rentals removed from the convenience of on-demand streaming, as this is what attracted them to Netflix in the first place.

The lesson: stay in touch with what your customers want, and avoid steep price hikes!

Think before restructuring - learn from big brand Kraft Heinz

Food brands Kraft and Heinz merged in 2015 and restructuring began shortly after. The approach was to remove the inefficiencies from the businesses with zero-based budgeting. This backfired when they saw losses of $20 billion over a two-year period.

The $63 billion merger was backed by Warren Buffet, Berkshire Hathaway and iconic private equity firm 3G Capital. The management team’s methods for restructuring were implementing large-scale cost improvements to boost profit margins and add value. A similar strategy had worked for another of 3G Capital’s investments, Restaurant Brands International with Burger King, where this cost cutting approach had seen gains of 20% in a year.

The lesson learned is that zero-based budgeting in this way does not serve every company. Kraft Heinz’s cost cuts had meant that they were unable to adapt fast enough to recent seismic changes of consumer demands in the food industry. The issue being that they were under-investing in their brands, marketing and innovation.

The takeaway – be mindful when restructuring, take into consideration not only cost cutting but also your methods for competing in the industry. To stay ahead of the competition, excite your customers and evolve as a company, you need to have the resources to innovate.

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Using OEE Metrics for All Process Steps

Overall equipment efficiency (OEE) – the percentage of production time that is actually productive – has its roots in manufacturing where all production ceases when the equipment is offline. It is possible to gain a greater understanding of how effectively a system is operating, however, by expanding the concept to include all process steps in the work done. By considering all policies, processes, systems and resources to be part of the “machine” that creates value, OEE can be used to extract and communicate significantly more insight about the nature of the work being done.

OEE is simple and practical. It focuses on where time that is needed to be productive is lost – rather than just assuming that these losses are a function of how the employee works. In most systems, the differences between individual productivity, although numerically inflated, are practically trivial when compared to the built-in losses inherent in the workflows and systems we use. OEE places these designed-in constraints front and center so that they can be addressed, rather than blaming employees for minor differences.

The overall concept of OEE is elementary. There are only so many hours in a day and every hour not devoted to productive work reduces the overall efficiency. Furthermore, since most of these losses are not random or at the discretion of the individual associate, the system and its assumptions must be looked at. When reducing the built-in losses, more bandwidth is created. More can be achieved by changing the assumptions than can be managed out of the remaining few hours of potentially productive time.

Formally defined, OEE is the product of availability, performance and quality. When one or more of these three drivers is compromised, productivity must fall.

OEE = Π (availability * performance * quality)

Availability is simply the time that could be devoted to productive use. Often much of a day is consumed by various planned and unplanned activities that limit how much work can be accomplished in a given day. By formally detailing these times leadership is provided with valuable insight into why so many hours must be consumed to generate a given amount of work.

Consider the example data shown in Figure 1.

Figure 1: Observations by Each Operator

This data shows that much of the day is not available to do productive work. Putting that data into a waterfall chart quickly demonstrates to leadership where the time available is going. (See Figure 2.)

Figure 2: Waterfall of Availability Losses

By looking at availability alone, more than half the work day (57 percent) is lost time that cannot be used for productive work.

Performance is the way the efficiency of the individual employees is typically measured. It is the measure of how well work is done relative to a standard. Typically performance is measured as the ratio of the individual’s cycle time to a benchmarked cycle time designed for the process. Alternatively, the individual’s cycle time with respect to takt may be measured. Either way, how well individuals do their jobs is being judged. To keep things simple, this time is converted to time lost due to performing at a level other than ideal.

or

Figure 3: Example Performance Data

Since productivity becomes an abstract concept subject to arbitrary interpretation, it is best to convert this efficiency number to actual time by multiplying the performance by the time available.

Performance losshours = Performance * availability * total hours

In the provided example, this becomes:

Performance losshours = 0.82 * 0.43 * 3.5 hours = 1.23 hours

That result can then be added to the waterfall (Figure 4).

Figure 4: Waterfall of Availability + Productivity Losses

The final element in OEE is quality – the percentage of work which is considered to have been performed properly the first time (i.e., no rework), or the first-pass yield. In this example, first-pass yield is used because it is the goal to account for all the time devoted to rework and failed work in the system as a part of quality losses. (This may include appeals, peer-to-peer reviews, hand-offs to other functions, corrections of pervious errors and various other time-consuming tasks, some of which are not part of the value stream under study.) Since these rework tasks are large and often handled outside the function under study, do not be surprised if quality losses exceed the remaining time available. This is an indication that more work is being generated than accomplished by this function; it is part of the nature of transactional workstreams.

Figure 5: Example Quality Data

When this is added to the waterfall, the total of all of our productivity losses is visible (Figure 6).

Figure 6: Waterfall of Availability, Productivity and Quality Losses

Here is a complication. Pure OEE would indicate that the process is actually performing much better than summing the losses does. When computing the pure OEE of the process,

OEE = Π (availability * performance * quality)

OEE = 0.43% * 82% * 43% = 15.2%

That number is much higher than what is compute when the losses are added. This highlights the importance of always working in hours lost rather than the summary statistics. The true OEE of this process comes from the waterfall chart and is the resultant time available divided by the total time. This highlights not just that almost all of the time is consumed in planned losses but also demonstrates where.

True OEE = 0.29 hours / 8 hours = 3.6%

This indicates that the system used to do this work is inadequate.

As shown, the additional insight gained with an OEE will uncover more opportunities to improve that work than the typical end-to-end audit or time study.

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Ideation: The Recipe for Customer Success

Gone are the days when meeting business contract agreements was the only yardstick of success for business partners. In today’s world, customers expect more – more in terms of adding value to their business and customers through actionable insights, leveraging technological trends and constant feedback. In the best business relationships, vendors are not simply suppliers; they are considered value-adding strategic partners. But how do you move from being a vendor to a partner in success?

The key to this transformation is ideation: the process of frequently generating relevant, feasible improvement ideas through your front-line staff – whether those ideas prevent revenue leakage, save on costs, reduce overall work or lead to innovative products and service. This practice of continuous ideation – and – adds value for your clients, employees, vendors or end users.

Why Ideate?

Think of the last time you were satisfied with a stagnant product or service – the same features in your phone over the years, the same options that your cable provider offered since the beginning of your subscription, or that pizza that seemed heavenly in the beginning but wore out its welcome when you started having it every day. If as a consumer you are not satisfied with the stagnancy in the products you use, how can you expect your clients and customers to be happy with the business-as-usual services they receive year after year?

When was the last time you got some of your front-line staff members (those who interact directly with end customers) in a meeting room and asked for their opinion about the scope of improvement in the current process? Do this and expect to be wowed by the feedback that flows your way. Make this a part of your operating culture and the outcome will be reflected in your client’s satisfaction.

Gathering continuous feedback, suggestions and ideas in a structured and well-planned manner goes a long way in not only giving you that X factor among competitors but also has a profound positive impact on overall business performance. An excerpt from a Harvard Business Review article written by Rick Lash in 2012 provides an interesting insight in support of this approach: “Beyond strong financial performance, the top 20 BCL [best companies for leadership] companies have something else in common. In an era of intense globalization, rapid demographic change and accelerating technological progress, the best companies for leadership recognize the value of innovation, putting it at the heart of their corporate culture and using this targeted, focused innovation to drive shareholder value and improve efficiency.”

The Ideation Framework

Having a strong ideation framework is as important as the framework of any company department. This must be reflected in the company’s culture, not only with words but also through actions.

The model in Figure 1 below shows what should be the prominent pillars of ideation for firms embarking on this journey or trying to reorganize their innovation department. Each attribute under this model has a few important activities that can ensure a successful innovation pipeline for your business.

The STEAM Model

1. Structure

Innovation should be infused in the operating culture of a company and defined in a well-structured manner. How do you accomplish this?

1. Identify a subject-matter expert (SME) in each department (like operations, quality or training) as well as shared services like HR, finance and others.

2. Educate staff members about the ideation SMEs with whom they can share their ideas.

3. Each SME should be responsible for driving ideation through idea generation, brainstorming sessions and workshops.

4. The SMEs should do a first-level validation check of the ideas and share their feedback with the idea creators.

All feasible and relevant ideas can flow to an ideation committee comprising senior leaders, SMEs and members from supporting functions such as IT and automation.

2. Technology

Each firm has its own technological suite of solutions; the first step in leveraging these tools is understanding and mapping their capabilities and opportunities. An idea has diverse meaning across clients. For some, innovation is deploying high-end robotic process automation (RPA) or artifical intelligence capability to automate some parts or most of a job, while for others it would mean providing suggestions to improve the overall process flow by eradicating effort leakages. There is no point in pitching a RPA solution to the latter situation and vice versa. So, how do you take advantage of tech capabilities?

1. Understand what the customer’s needs are from a technological standpoint.

2. Build an ideation platform wherein employees can submit their ideas. Start with an Excel spreadsheet if you need to, but begin collecting ideas.

3. Educate staff members about all of the company’s offerings and let them assess if the offerings help the end customers, clients and employees.

4. Connect the ideas received from front-line staff to your solutions.

3. Execution

When you’ve picked the ideas that are both relevant and able to be implemented, convert them into projects. There is only one rule at this stage – execute and advertise (internally). How you market the success of your first few projects will determine the way employees will perceive the ideation initiative. Be sure that the company recognizes the idea submitter – make them a hero and you will see the urge to find opportunities in everyday work become a new water cooler topic among the rest of the staff. The following pointers will lead you to a more robust outcome.

1. Categorize ideas properly before execution.

2. Follow up and follow through. Once the project has been initiated, bring it to its logical conclusion.

3. Analyze benefits – manhours, customer satisfaction, employee satisfaction, voice of the customer and any other metrics that you measure.

4. Advertise internally.

5. Iterate and cross-replicate wherever possible – across departments, verticals, projects, etc.

4. Awareness

During the initial stage, expect more greviances than actual ideas. Instead of neglecting these, educate the idea submitters. Show them examples of the ideas you’re looking for, give them relevant problem statements and ensure proper feedback is provided.

1. Educate about the ideation framework and structure.

2. Run contests, workshops and town halls.

3. Walk the talk – make this a talking point in your reviews and meetings.

4. Use visual content such as posters, videos and mailers to communicate.

5. Involve everyone from the senior leadership to front-line staff members.

5. Motivation

An employee-centric rewards and recognition program is crucial to disperse the culture of innovation. Show appreciation to the individual who submitted the idea, the team members of the project and the SMEs. Don’t reserve this for only the great ideas – appreciate every idea. Thank everyone for their contribution. Nobody has ever been hurt from extra appreciation.

1. Reward top ideas across categories and departments.

2. Identify, nurture, coach and appreciate the best innovation SMEs across departments.

3. Thank everyone who contributes.

Phases of the Ideation Framework

This model may seem simple to implement but once you get started you will find this is much harder than it looks. You will not find immediate success. There will be a large group of employees who will not see the value in ideation. This change, therefore, needs to be managed carefully in the phases shown in the table below.

Phases of the Ideation Process
Stage Number	Stage	Focus On	Expected Outcome	Pace
1	Cultural shift	Awareness and culture	Quantity of ideas	Slow
2	Implement	Execution of good ideas	Quality of ideas	Fast
3	Feedback	Celebrating success stories	Motivation	Moderate

You will start seeing results once:

◉ You’ve established a strong ideation framework wherein an idea flows smoothly from one stage to another.

◉ The submitter receives frequent updates, is involved in the innovation process and recognized for their efforts.

Ideation is not only about generating ideas but also how well you execute, nurture, educate and replicate. It’s not a destination – it’s a journey.

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