An Empirical Investigation of Lean Six Sigma Tool Selection in a Program Management Organization

Program Management is a complex network of projects, encompassing various stages of program phases and tollgate reviews, involving multiple functional support from organic and inorganic agencies, and chartered with a specific set of program costs, schedule and performance objectives. Lean Six Sigma is a continuous improvement methodology built upon a Define-Measure-Analyze-Improve-Control framework, and encompassing a vast array of tools. Unfortunately, there is no specific research on applying Lean Six Sigma within Program Management, such as an understanding of what Lean Six Sigma tools are most applicable in this environment. The general question that guided this research was: What combination of Lean Six Sigma tools are applied in a Program Management organization? This dissertation determined if there was a set of Lean Six Sigma tools that was predominantly applied in a Program Management organization, and if a relationship existed between a combination of Lean Six Sigma tools, and project and process outputs. The research included 511 Lean Six Sigma Green Belt and Black Belt projects completed by 13 Program Management organizations from 2006-2015.

 A Categorical Principal Components Analysis (CATPCA) applied to the research data yielded a dimension one subset (Variance Accounted For of 8.10% and Cronbach’s Alpha of 0.90) composed of:  Voice of the Customer and Critical Customer Requirements; Voice of the Business and Critical Business Requirements; Communication Plan; Supplier-Input-Process-Output-Customer (SIPOC) Process Map, Top Down Process Map, and Swim Lane Process Map; Operational Definitions; Data Collection Plan; Descriptive Statistics, Histogram and Normality Test; Control Charts and Capability Analysis; Brainstorming; Non Value Added Analysis; Pilot Solution; Transition Plan, Responsible-Accountable-Consulted-Informed (RACI) Chart and Risk Mitigation; and, Implementation Plan and Training Plan.  The CATPCA model did not include Inferential Statistics or a quantifiable Measurement Systems Analysis within the first dimension.  Regression analysis examined Lean Six Sigma tools, along with the input factors for project scope, program phase, and functional area, against the output responses of Lean Six Sigma project duration, average financial benefit and percentage of improvement.  Only the regression models for average financial benefit (R_sq (adj) value of 31.47%) and percentage of improvement (R_sq (adj) value of 21.43%) had overall adequate regression model fits, and the relationships occurred when combined with the additional input factors of program phase and functional area.  Only the Quality Function Deployment (QFD) tool was positively correlated to both average financial benefits and the percentage of improvement.  In addition to Lean Six Sigma tools, the input factors with positive correlation results to the project and process outputs included the Logistics functional area, as well as the program phases of Test and Evaluation, Sustainment and Disposal.  Further research is recommended to determine what Program or Project Management tools could be combined with, or substituted for, Lean Six Sigma tools to create a more tailored continuous improvement approach, as well as expand upon the analysis of Lean Six Sigma projects based upon the Lean Six Sigma application to different project scopes, program phases and functional areas.

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