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Six sigma and IT implementations

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  • #26306

    MN
    Participant

    Hi
    Some people (the CFO and a consultant) in my organization want to use Six Sigma in order to enhance the rest of our ERP implementation. I (the MBB) do not agree on that it is a Six Sigma project. I can see that some tools can be used ie process mapping. Does anyone agree with me? I need som arguments supporting my opinion or making me realise I am wrong!
    Best Regards
    MN

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    #63939

    Krishnan
    Participant

    Hi,
     
    Based on the input I feel you can implement 6sigma to improve ERP results. This would not only save cost for you but also for the customer. Also the returns are huge.
    But I still would like to know more details like what is the exact reduction your CFO or Consultant proposing for achieving better results?
     
    This might give us more clarity to discuss in detail.
     
    Regards
    Krishnan

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    #63944

    McD
    Participant

    MN
    As Krishnan points out, it’s hard to be specific when your situation is so vague.  But it sounds as if you are in some sort of 2 through N rollout, so what would a Six Sigma project look like?

    Define – Let’s all agree on what we are going to try to improve in implementation number N.
    Measure – Let’s see if we can recognize what success smells like.
    Analyze – Let’s figure out what levers we have to affect the outcome and which are the most effective.
    Improve – Let’s come up with a strategy for implementation N to make it better than N-1.
    Control – Let’s put in place procedures to make sure that implementation N+1 doesn’t fall back to the N-1 situation.
    Doesn’t sound like such a bad plan to me.
    –McD

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    #63945

    MN
    Participant

    Thank you McD,
    I totally agree with your proposal, but that is not what my CFO wants to do. He wants to use Six Sigma as a way to make sure the implementation will be done on time with the correct functionality. It is not about finding the causes to the problem of expensive implementations, because that is something they think they already know, and then improve the implementation process.
    My CFO wants to use Six Sigma to get rid of his problem of escalating costs due to the implementation of a system the organization do not want. This instead of either do what you proposed or make sure that the project manager of the implementation is competent enough!
    /MN 

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    #63946

    McD
    Participant

    It sounds as if you need a DFSS to design a process to ensure you avoid hiring pointy-haired CFOs in the future.
    –McD
     

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    #63967

    mrp
    Participant

    Like MCd mentioned, u can use DFSS or a DMADV methodology can also be used.
    Using six sigma methodologies can help you quantify the success very well. However there are other approaches like the ones recommeded by PMI, through the PMP certification.
    mrp

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    #63969

    JCE
    Participant

    We have had some good success in using 6Sigma to deploy ERP systems to our distribution network. The value of an ERP is not the system itself but the associated process transformation of your core business processes. If you do not lead the organization into taking advantage to additional/enhanced business capabilities brought on by an ERP solution, the business will be disappointed with the results.
     
    Our projects are  typically run as a super or umbrella project with each core business area (in addition to IT and change management) having a team being led by a lead GB or BB. With this structure, you can make sure everybody is in lock step marching towards the same gateway dates and deliverables which is important with finite go-live date.
     
    Just some examples, in the define phase if you have inward facing core processes like finance, you could do a voice of the business to help define improvement areas, service levels, expectations (CBRs), etc… If you had  customer facing process areas, like sales, it would be a great opportunity to do a VOC in addition to a VOB to help define what you need for new sales capabilities in the marketplace. For the IT team, your CBR’s could be related to downtime, run-rate of help-desk calls after go-live, overtime, and so forth. You could do as-is process mapping on each key process per area, then follow-up with a qualitative NVA analysis. Also, you could do a process capability analysis per process area if you wish which is typically a real eye opener.  One of the deliverables for each area could key business metrics; whither it is DSO (days sales outstanding), receivables due, or opportunities per salesperson, along with the current baseline in each area. This will allow you to measure process performance (which should be linked to business performance) after implementation.
     Hope this helps. The key is to make the methodology work for you instead of the other way around.

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    #63980

    abdul
    Participant

    dear all,
    this may not be the right forum for this type of query. but i am left with no other option.
    i am a student of MBA, doing a project which invloves comparison of 6 sigma implementation across IT industry. I have been trying to get some info on  how the IT companies have implemented 6 sigma but till date, have not been met with success. I have to submit a report on 8 july. So i request all of u to pl send me any material/ word doc/ presentation which can throw some light on how 6 sigma is applied in IT industry.
    thanks in anticipation.
    with best regards
    abdul wahid
    MBA, 2nd yr.
     

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    #63981

    TipperG
    Member

    Sounds like your boss already cycled through the define, measure and analyse phases ;^). You first challenge is trying to back-track: get him in one way or another to articulate his thinking.
    So, what does the boss think (in his words)
    – where and how Six Sigma (or which individual tools/elements of SS) can/should be deployed
    – what according to him would be changed by this deployment
    – how this change (or changes) would lead to projects being on time, within budget and satisfying business requirements
    Could very well turn out to be a SS project, and by the sound of it so far, one where in the EQ of the MBB will be the differentiating factor for success (it is already a challenge to understand the boss, making him realise he might have jumped to conclusions a bit too fast is even more so)

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    #63984

    anuradha rawani
    Participant

    hi Abdul,
    im too doing a project on six sigma applying it to software projects at tata technologies,if u can provide me ur mail id,i can write to u,regarding ur need,i hope my information can help u,and u too can provide me with some help.
    waiting for ur reply..
    Anuradha.Rawani

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    #63985

    Zubair
    Member

    hi!!
    I am a mba-IT student and  working with a IT firm on applying six sigma to software projects as a project trainee..Basically software projects are done considering two factors:
    1). project delivery on scheduled time,
    2).defects eliminating,
    so considering these two factors how am i supposed to apply six sigma phases to software projects.I am supposed to identify projects on the basis of the above factors,study and analyze the projects on the basis of the above factors which have already been done,and then apply the factors on a current project so that it gives an output with total quality level.I need advise in order how to begin,and how to plan the process.I request you all to please kindly provide me help,so that i can successfully complete my work.
     

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    #63998

    rahul bijalpure
    Participant

    hello zuber
    in your case what i would suggest is, pick out the data, of both type of projects, those which got delayed as well as which were complete within schedule.
    these projects must be having metrics collected; study it and try to find out what were the good areas and what were the bad ones. And while implementing it in your assignment keep focessed on these.
    and if you want more information on Sixsigma process implementation————->
    http://www.6sigma.us/six-sigma.php  
     
    regards
    rahul

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