CHINHOYI UNIVERSITY OF TECHNOLOGY

Graduate Business School

Master of Science in Data Analytics

COURSE: Project Management Analytics

COURSE CODE: MSCDA615

ASSIGNMENT: Assignment 2

Question
Using any two real life projects, show how the Lean Six Sigma approach differs
from the Statistical approach. Everything that you say in this assignment must be
related deliberately to the data and features of the two real life projects.

Real life projects

 Improve on-time delivery of products to customers in a manufacturing firm.
 Reduce time to respond to problems in a Manufacturing firm.
Introduction
Running any size business is a difficult task. In addition to day-to-day operations, a company
must engage in long-term planning, develop new products or services, streamline production
or delivery, and find new customers while continuing to serve existing clients through project
management analytics such as lean six sigma and statistical approach. Statistics, despite the
flood of available data, give managers more confidence in dealing with uncertainty, allowing
managers to make smarter decisions faster and provide more stable leadership to staff who
rely on them. Organizations must accelerate the pace of change to adapt to new situations as a
result of growing globalization, continuous technology developments, and other competitive
challenges. Organizations must innovate and strive for operational excellence in this
atmosphere, which presents opportunities and risks. Lean Six Sigma is the most widely used
quality and process improvement methodology that aims to eliminate defects in process
according to Sankar (2010). In this article, the author will distinguish between Lean Six
Sigma and the statistical approach by using two real-life examples: improving on-time
delivery of products to customers and decreasing time to respond to problems in a
manufacturing firm.

Definition of terms
Statistical Approach: The statistical method is characterizing phenomena in numerical
terms and then using the numbers to infer or deduce cause and effect. For quantitative
researchers, statistics are an important tool (Scott and Mazhindu (2005).

Lean six Sigma: Lean-Six Sigma is a data-driven, fact-based improvement philosophy that
prioritizes fault avoidance above defect detection. It improves customer satisfaction and
bottom-line results by lowering variance, waste, and cycle time while encouraging work
standardization and flow, resulting in a competitive advantage. It applies whenever there is
variance or waste, and every employee should participate.

Project: A project is an effort that involves a series of activities and resources in order to
achieve a specific output while taking into account constraints such as time, quality, and cost,
and which frequently introduces change. (Lake, 1997) A temporary endeavour required to
produce a one-of-a-kind outcome or result at a predetermined time and with predetermined
resources.

The approach to project management analytics varies from company to company and even
project to project. It is determined by a number of elements, including corporate culture,
policies and procedures, project environment, project complexity, project scale, available
resources, available tools and technology, and the project manager's or project/business
analyst's abilities, expertise, and experience, according to Inform IT(2015). When dealing
with project uncertainties, a statistical approach is useful because it provides tools and
techniques that managers may use to identify certain patterns in data related to project
management processes in order to more correctly forecast the future.
First and foremost, and in most cases, Lean six sigma like project management, Lean Six
Sigma has a life cycle known as the DMAIC cycle. The DMAIC method is a data-driven
cycle of process improvement, optimization, and stabilization. The DMAIC cycle must be
completed from "define" to "control." Using the two real-world projects mentioned above as
examples, the manufacturing company should define the problem and customer requirements.
Measure the process's current performance (set a baseline), determine the process's desired
future performance (set a target), and conduct gap analysis (target minus baseline). Analyze
observed and/or measured data to determine root cause, address the root cause(s) to improve
the process, and control future performance variations in the manufacturing firm associated
with late project delivery as well as further reducing the time to respond to problems.

Whereas for statistical approach, When a quantitative measure of a process is repeated

several times, it is likely to follow a given frequency pattern. In other words, there is a chance
or possibility of the same quantitative measure recurring in the long term. The uncertainty of
recurrence of a specific quantitative value of the process is represented by this likelihood or
probability. In an uncertain context, statistical analysis can assist forecast particular
behaviours of processes or systems, which is critical for data-driven decision-making. To
demonstrate how a statistical approach can aid in effective decision-making in projects such
as improving on-time delivery of products to customers and reducing time to respond to
problems in a Manufacturing firm. The organisation can employ the following statistics
analytical probability distributions: Normal probability distribution, Distribution of Poisson,
Even distribution, Triangle-shaped distribution and Distribution of beta.

Change management is an essential component of project management, and the Lean Six
Sigma methodology is an excellent vehicle for successfully implementing changes. Lean Six
Sigma is a business improvement methodology that aims to maximize shareholders’ value by
improving quality, speed, customer satisfaction, and costs. It achieves this by merging tools
and principles from both Lean and Six Sigma. Lean Six sigma is a disciplined business
methodology to increase customer satisfaction and profitability by streaming operations,
improving quality and eliminate defects in every process. Lean Six Sigma is a process
improvement methodology designed to eliminate problems, remove waste and inefficiency,
and improve working conditions to provide a better response to customers’ needs. It
combines the tools, methods and principles of Lean and Six Sigma into one popular and
powerful methodology for improving your organization’s operations. For example using the
two projects Lean six sigma can be used to remove bottlenecks that are causing late delivery
of products to customers as well as late response of problems whether the problems are
affecting employees or customers.

Statistical approach provide managers with more confidence in dealing with uncertainty in
spite of the flood of available data, enabling managers to more quickly make smarter
decisions and provide more stable leadership to staff relying on them. Order-to- Delivery is a
process that spans multiple functions within a manufacturing organization. It is regarded as
one of the most critical processes in logistics. The process begins when a customer places an
order and concludes when the customer receives finished goods or services (Forslund,
Jonsson, and Matsson, 2008). Certain sub-processes must be completed in order for this to be
realized. The initial processes can be traced back to the customer's recognition of a need. This
recognition will result in a purchase order being placed with the supplier. Following the
placement of the order, the supplier takes the necessary actions to fulfil the order and deliver
the finished goods. The transportation process begins here, when the finished goods are
picked up at the supplier and continue until they are delivered to the customer or another
delivery address.

The three components of Lean six sigma complement one another. Analytical techniques are
ineffective unless there is a process for applying them and a continuous improvement mindset
that creates the need for them. An improvement process will not yield the desired results
unless it includes the tools and techniques that define the activity of the process steps and
there is a culture that insists on a systemic data-driven approach to problem solving. Finally,
a culture that strives for continuous improvement will be frustrated if there are no tools and
techniques for analysis as well as no process or methodology for organizing and focusing
improvement efforts. The Lean Six Sigma approach to business improvement incorporates all
three layers. Lean Six Sigma has three main components. Methods and tools: A
comprehensive set of problem-solving tools and techniques. Methodology and Process: A set
of steps that organizes the use of problem-solving tools to ensure that the true root causes are
identified and that the solution is fully implemented. Mindset and culture: A way of thinking
that is based on data and processes in order to achieve operational performance goals and
continuously improve.

Total order cycle time, also known as order lead time, is the duration of the process that
begins when a customer places an order and ends when the customer receives the product.
The lead time is made up of various sub-processes that contribute to the overall lead time to
the customer. The order lead time can be calculated by adding the following process times
together (Gunasekaran, Patel, & Tirtiroglu, 2001): The features to be considered are as
follows, order entry time, order planning time, order sourcing time and assembly time. The
lead time is critical not only for customer satisfaction. It also gives the manufacturing
company a competitive advantage. Short lead times reduce the amount of capital held in
reserve. It also visualizes problems in the chain and facilitates the identification of root causes
(Scania, 2017). Reduced order lead time reduces supply chain response time and creates
reliability and consistency with less variability. (Gunasekaran, Patel and Tirtiroglu, 2001).

The PDSA cycle

Project quality is an important aspect of project management. Knowledge of Lean Six Sigma
tools and processes provides a project manager with complementary and essential skills for
effective project management. The iterative PDSA (Plan, Do, Study, Act) cycle is at the heart
of Lean Six Sigma methodology, and it is a very structured approach to eliminating or
minimizing defects and waste from any process.
Normal distribution

The process of accumulation yields a normal distribution. A normal distribution is usually

formed by the sum or average of the outcomes of several uncertainties.

Lean Six Sigma is widely regarded as the world's best practice methodology for business
improvement. It aspires to achieve perfection in every product, process, and transaction
within an organization. This disciplined, evidence-based approach aims to transform business
performance by improving quality, lowering costs, and creating new opportunities.
Companies that use Lean Six Sigma methodologies strive for excellence, consistency,
customer responsiveness, speed, and cost savings. This foundation training program outlines
the key principles and practices underlying Lean Six Sigma. It is an excellent primer for those
who are new to this methodology or who want to refresh their training and knowledge in this
area. Participants will gain hands-on experience with simulated change and disaster, which
will be invaluable practice for dealing with the unexpected.

Statistical analysis of a representative group of consumers can provide a reasonably accurate,

cost-effective snapshot of the market with faster and cheaper statistics than attempting a
census of every single customer a company may ever deal with. Statistics can also provide
leadership with an unbiased market outlook, allowing them to avoid basing strategy on
uncorroborated assumptions. Statistics back up assertions. Leaders may find themselves
backed into a corner when persuading people to move in a certain direction or take a risk
based on unsubstantiated opinions. Statistics can provide objective goals with stand-alone
figures as well as hard evidence to substantiate positions or provide a level of certainty to
company directions.

For example, you may find it easier to persuade board members of the importance of
international expansion by providing data on the available market for products in a given
country. Analyze demographics, average income, and competitor products in the country.
Statistics can reveal relationships. A careful examination of data can reveal connections
between two variables, such as specific sales offers and revenue changes, or dissatisfied
customers and products purchased. Further investigation of the data can provide more
specific theories about the connections to test, allowing for greater control over customer
satisfaction, repeat purchases, and subsequent sales volume. A free gift with purchase offer,
for example, may generate more sales than a discount period.

Anyone who has looked into quality assurance or continuous improvement programs like Six
Sigma or Lean Manufacturing understands the importance of statistics. Statistics enable the
measurement and control of production processes, reducing variations that lead to error or
waste and ensuring consistency throughout the process. This saves money by lowering the
materials used to make or remake products, as well as the materials lost due to overage and
scrap, as well as the cost of honoring warranties due to defective products being shipped.
Lean Six Sigma methodology can result in significant change and necessitates specialized
management focus. Advanced Six Sigma certifications are critical for lowering the risk of
project failure and ensuring that the entire process runs smoothly. Lean Six Sigma and change
go hand in hand. A process or function that has been identified as defective or inefficient
must be refined or eliminated. Change and change management can be difficult and painful,
but it's a small price to pay for what every business leader desires: a leaner, stronger, more
competitive organization.

Conclusion

When organizations implement Lean Six Sigma as a program or initiative, it often appears
that they have only added a few new tools to their toolbox in an unstructured manner through
training classes. This approach can be extended by applying the tools as needed to assigned
projects. It is important to note, however, that project selection, management, and execution
are not typically integrated into the organization. A Lean Six Sigma program or initiative
does not typically build an infrastructure that leads to bottom-line benefits through projects
tied to the organization's strategic goals. As a result, it may not garner the buy-in required to
generate a significant return on training investment. Managing a project entails making
decisions all of the time. While experience and intuition are valuable, your decisions should
be based on objective measurement of facts. Project Management Analytics tools and
techniques, the systematic analysis of quantitative project data, enable you to obtain critical
information, identify patterns, and identify useful trends for decision-making. To summarize,
the statistical approach is useful when dealing with project uncertainties because it includes
tools and techniques that managers can use to interpret specific patterns in data pertaining to
project management processes in order to more accurately predict the future.

References
 Shanmuganathan, Sankar. (2010). Lean Six Sigma. 10.5772/17288.
 Forslund, H., Jonsson, P., & Matsson, S.-A. (2008). Order-to-delivery process
performance in delivery scheduling environments. International Journal of Productivity
and Performance Management, 58(1), pp.41-53. Doi:10.1108/17410400910921074
 Gunasekaran, A., Patel, C., & McGaugheyc, R. E. (2004). A framework for supply chain
performance measurement. Int. J. Production Economics, 87(3), 333–347.
 Gunasekaran, A., Patel, C., & Tirtiroglu, E. (2001). Performance measures and metrics in
a supply chain environment. International Journal of Operations & Production
Management, 71-87.
 Ghaleb, Abdulrakeeb & El-Sharief, Mahmoud & El-Sebaie, Mohamed. (2015). Study of
Tools, Techniques and Factors used in Lean Six Sigma.