Project caponera lssgb

Lean
Lean Manufacturing
Fetac Level 5:
Project
Annalisa Caponera
Course Title: Lean Manufacturing Fetac Level 5
Course Code: L22586
By
Improvement of the Tender
Management Process (TMP)

Lean Manufacturing Fetac Level 5: Project
Annalisa Caponera -Course L22586
Table of Contents
Introduction............................................................................................................................................................................................ 3
Glossary of terms............................................................................................................................................................................... 5
Table of Acronyms ............................................................................................................................................................................ 5
Define..................................................................................................................................................................................................... 6
Project Charter ................................................................................................................................................................................... 6
Project Plan: Gantt ............................................................................................................................................................................. 0
Project Objectives, Business Case, VoC and CTQ ............................................................................................................................ 0
Business case: Cost Cutting........................................................................................................................................................... 0
VoC ............................................................................................................................................................................................... 0
CTQ- smart goals .......................................................................................................................................................................... 0
Stakeholders....................................................................................................................................................................................... 1
High Level Process Map (SIPOC)..................................................................................................................................................... 2
Measure.................................................................................................................................................................................................. 3
Current performance of the process ................................................................................................................................................... 3
Problems’ potential causes................................................................................................................................................................. 3
Problems from Brainstorming ....................................................................................................................................................... 3
Value Stream Map ............................................................................................................................................................................. 4
Data Collection Plan .......................................................................................................................................................................... 5
Analyze .................................................................................................................................................................................................. 7
8 WASTE........................................................................................................................................................................................... 7
Information: affinity and Pareto diagrams ......................................................................................................................................... 8
Delays: error proofing with fishbone diagram ................................................................................................................................. 10
Improve ................................................................................................................................................................................................ 11
Brainstorm solutions ........................................................................................................................................................................ 11
Selection of practical solutions ........................................................................................................................................................ 12
Step one: Method......................................................................................................................................................................... 12
Step two: Infrastructure ............................................................................................................................................................... 13
Step three: People........................................................................................................................................................................ 14
Best solution .................................................................................................................................................................................... 14
SCRUM....................................................................................................................................................................................... 14
Content management system: Joomla! ........................................................................................................................................ 15
Future State Map.............................................................................................................................................................................. 16
Control ................................................................................................................................................................................................. 17
SCRUMWISE Story Board & BURNDOWN Charts...................................................................................................................... 19
Conclusions.......................................................................................................................................................................................... 20

Effect of the process Improvement .................................................................................................................................................. 20
Bibliography......................................................................................................................................................................................... 21
Graphical contents
Figure 1 tenders distribution in the year................................................................................................................................................. 3
Figure 2 organization chart..................................................................................................................................................................... 4
Figure 3 yearly distribution of revenue and procurements for client ..................................................................................................... 4
Figure 4 highlights of Tools described in this document ....................................................................................................................... 9
Figure 5 Gantt ........................................................................................................................................................................................ 0
Figure 6 Stakeholder Priority Grid......................................................................................................................................................... 1
Figure 7 Stream Map Value ................................................................................................................................................................... 4
Figure 8 Waste map on the vsm ............................................................................................................................................................. 7
Figure 9 Type of information required................................................................................................................................................... 9
Figure 10 pareto's chart for the tenders distribution............................................................................................................................... 9
Figure 11 error proofing: fishbone diagram for delays ........................................................................................................................ 10
Figure 12 brainstorm solutions............................................................................................................................................................. 11
Figure 13 Improvement of brainstorm solutions .................................................................................................................................. 12
Figure 14 Kanban vs scrum.................................................................................................................................................................. 12
Figure 15 PDCA................................................................................................................................................................................... 13
Figure 16 time involvement for the new resources .............................................................................................................................. 14
Figure 17 Improvement of brainstorm solutions .................................................................................................................................. 14
Figure 18 Overview of Scrum Framework........................................................................................................................................... 15
Figure 19 Improved value stream map................................................................................................................................................. 16
Figure 20 effects of the new value stream............................................................................................................................................ 16
Figure 21 controlling tools ................................................................................................................................................................... 17
Figure 22scrum flow ............................................................................................................................................................................ 18
Figure 23 example of Burndown chart on scrumwisetm
....................................................................................................................... 19
Figure 24 screenshot from Scrumwisetm
............................................................................................................................................... 19
Table 1 first step: immediate tasks ......................................................................................................................................................... 7
Table 2 team........................................................................................................................................................................................... 8
Table 3 metrics for improvements.......................................................................................................................................................... 8
Table 4 Smart objectives check.............................................................................................................................................................. 1
Table 5 sipoc .......................................................................................................................................................................................... 2
Table 6 Baseline for the project ............................................................................................................................................................. 3
Table 7 Data collection planning............................................................................................................................................................ 6
Table 8 Waste analysis........................................................................................................................................................................... 8
Table 9 brief description of scrum meetings ........................................................................................................................................ 18
Table 10 Table of results...................................................................................................................................................................... 20

Introduction
After the turmoil of the global financial crisis many institutions/companies have started to revising their business model and re-
considering their approach. This project was developed in Italy for an IT & services company as a consequence of the Italian
Government’s incapacity to pay the bills to their supplier. In the desperate intent to save itself my company started a program of
austerity in which every single form of waste was managed and removed.
Unfortunately that didn’t save completely it from the bankrupt and at the end of the fair it had been divided in several smaller
companies that fortunately are healthy and prosperous. The new improved tender management process described in this document is
still used at least in three of them.
The company name was COMPANY1
(CN) and for 25 years it was one of the most competitive supplier of XXX and XXX systems
in Italy. It had a very wide portfolio and very important clients, like Telecom Italia, Enel, Sogei, ESA, the Italian government etc. In
average the 80% or more of its procurements had always been from tenders.
In Italy Government and big companies use a request for tenders to obtain the best at the lowest price. As a company is competing
against many other companies, that may have the same or better qualities and lower prices, the art of tender management or writing a
winning tender is highly skilled.
For every potential supplier the tender starts when an appropriate Invitation to Tender (ITT) has been identified. The ITT is a formal
document that is published by a purchasing company in order to notify other companies that bids for a piece of work, project or service
is required. There is always a fixed deadline that the tenders must be returned by and this makes bid management very time dependent.
The number of tenders to be processed every month is not constant, there are peak periods during which the office needs extra help
from the company’s delivery Managers (DM):
In CN the Tender Management Process was managed by the Project Management Office who required for every tender the support
in writing and decision making of the delivery Managers.
1
The name of the company has been changed in COMPANY and the acronym in CN. Every logo has been removed.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0
1
2
3
4
5
6
7
8
9
Number of tenders Team Capacity
FIGURE 1 TENDERS DISTRIBUTION IN THE YEAR

FIGURE 2 ORGANIZATION CHART
The goal of this project is to change the process reducing costs without lowering the quality standards (0 final-defects, 90% of
placement in the first 4 positions and 40% of success).
In the Italian market (with very big competitors) this is an excellent result.
For an IT service multi-client provider there is not a standard for tenders: the final customer decides tender by tender everything
(company’s references, contents, format, length, architecture, price, milestones, deadlines, resources’ skills etc.) in average:
FIGURE 3 YEARLY DISTRIBUTION OF REVENUE AND PROCUREMENTS FOR CLIENT
CEO QMS
Commercial
Direction
PMO
Accounts
Technical Direction
Telecommunication
Service Line
Delivery Managers
Public Administration
Service Line
Delivery Managers
Energy Service Line Delivery Managers
17
5
3
4
n. of procurements
Public Administration Telecommunication
Energy Others
10
6
7
2
revenue (M€)
Public Administration Telecommunication
Energy Others

Glossary of terms
Business Proposal: it refers to the COMPANY solution for a specific tender. It contains at the least an economic offer and a technical
one.
Customer: it refers to the customer for this project, the PMO.
Delivery-Defects: they are defects detected by the Final Customer
Final Client/ Final Customer: it refers to the beneficiary of the business proposal for a specific tender. The final client is also the
one who issued the invitation to participate.
Process-Defects: they are defects occurred during the Tender Process.
Tender process: (in this document) the sequence of activities carried out for the tender just from the decision to participate to the
delivery of the business proposal to the final client.
Project: improvement of the tender management process
Table of Acronyms
PMO Project Management Office VoC voice of the customer
CD commercial direction VSM value stream map
PA public administration CTQ critical to quality
DM Delivery Manager QMS quality management system
PM project Manager TC technical direction
ITT invitation to tender TT tender Team
FC final customer CN COMPANY Spa.
CPA central public administration LPA Local Public Administration
CMS content management system PIT Process Improvement Team

Define
In this phase the leaders begin to understand the needs of the customer of the process (PMO). A project charter and a high level view
of the process are created.
STEPS:
1. Define the problem by developing a “problem statement”
2. Define the goal by developing a goal statement
3. Define process by developing maps of process
4. Define customer and their requirements
TOOLS:
1. Project Charter
2. SIPOC
3. Deployment Map
4. Tree Diagram
Project Charter
PROJECT CHARTER
Project Management Office (PMO)
Improvement of the Tender Management Process
Project no.: 671 Revision: 1.0 Effective Date: gg/mm/yyyy
1. CURRENT STATE
The Project Management Office (PMO) is responsible for developing the technical and economical business proposal. The Tender
Team (TT) is a part of the PMO and it is dedicated to the tender management.
To produce the most competitive solution at the best price Commercial and Technical Directions are both involved in the process
with senior account Managers and delivery Managers. They normally have a role of advisor, but during the peak of work the can be
involved in the writing process2
.
Results are excellent but the current process is very manual and subjective and there is a need to address several inefficient activities
associated with the interaction between the stakeholders, and the consequent excessive cost.
When a tender is closed the PMO writes a report for the Commercial Direction to describe how the work has been done (chance to
success, issue, opportunities and complaints). In the 80% of cases the following complaints are included in the report:
 To deliver on-time the team works late into the night or on the weekend or bank holiday (an average of 120 day per year of
overtime).
 Difficulty to detect company’s business data (too fragmented, outdated and on different archives)
2
Please see Figure 1 to have more detail about peak of work.

 An extra involvement of the Delivery Managers had been required
 Lack of commitment of Delivery Managers in the process of writing tenders
2. GOAL STATEMENT
The purpose of this charter is to improve the Tender Management Process (TMP) increasing performance of the Tender Team,
cutting costs and maintaining the same quality.
At the end of the project (improvement of the tender management process) the PMO expects:
 A reduction of delivery Managers’ involvement
 No overtime
 New resources to manage tenders (people and/or tools)
This project represents also the chance to aggregate all company’s business data in a unique digital archive.
3. PROJECT AND PROCESS SCOPE
The scope of this project is define a new smooth process to manage tenders able to:
 Decrease DM Work-time (Goal: -50% in 2 years)
 Reduce Overtime PMO (Goal: -50% in 2 years)
 Increase Process speed (Goal: reduce the Lead Time)
The project is based on the DMAIC and it will last two years.
First Step: It is define the statement, the following table summarizes a basic schedule to kick-off this project.
The short term tasks outlined above will provide a basis for understanding and defining the scope of this project.
Once the scope is clearly understood, the core team will be able to develop a more complete project plan and schedule.
Final step: It is to include the new process in the ISO 9001:2008 Quality Management System.
It’s not in scope for this project:
 Modify the input and the output of the process.
 Remove the Commercial and Technical Directions from the stakeholders’ list.
 Interfere with the decision about contents of tenders.
TASK TASK LEAD START DATE END DATE
Identify all current steps in the actual TMP and
report its cost data.
Annalisa Caponera
Examine reports to determine inconsistencies and
possible problems.
Annalisa Caponera
Examine the overall process and identify control
weaknesses.
Rxxxxxx Dxxxx
Brief the CIO on preliminary findings and
recommendations to initiate improvements
Rxxxxxx Dxxxx
Define the Project Scope and Plan Rxxxxxx Dxxxx
TABLE 1 FIRST STEP: IMMEDIATE TASKS

4. PROCESS IMPROVEMENT TEAM COMPOSITION
In the table below is showed the composition of the process improvement team.
Name Title Usual Role
Rxxxxxx Dxxxx Project Manager PMO Manager
Annalisa Caponera Project Leader Project Manager/Master Scrum
Vxxxxxx Cxxxxxxx Quality Supervisor Quality Manager
Mxxxxx Gxxxxx Senior Cost Analyst Bid Manager
Rxxxxx Ixxxxxx Consultant Commercial Director
Gxxxxx Mxxxx Cxxxxx Consultant Technical Director
Fxxxx Mxxxxx Sponsor CEO
TABLE 2 TEAM
All PIT Members have completed in-house Six Sigma / Lean training, although no-one on the team is Six Sigma certified. Other
certification R. Dxxxxx (PMP), A. Caponera (Master SCRUM and SCRUM Product Owner) Vxxxxxx Cxxxxxx (ISO 9001:2000
Auditor).
5. METRICS FOR IMPROVEMENTS
The metrics for the improvement are:
Metric Unit of measure Baseline Goal
Delivery Manager effort Day/tender 4 d/t 3 (-25%) first year
2 (-33%)second year
Overtime TT Day/year 120 d/y 90 (-25%) first year
60 (-33%)second year
Lead Time Time (weeks, days, hours) 3w and 4d 3 (-25%) first year
2 (-33%)second year
TABLE 3 METRICS FOR IMPROVEMENTS
6. CONSTRAINTS
The project must ensure the same or better standard of quality for the business proposal (0 defects, 90% of placement in the first 4
positions and 40% of success)
The cost of the improvement must be in the budget
7. ASSSUMPTIONS
The Project Management Office is given full authority to carry out the activities and responsibilities described in this Charter. The
Process Improvement Team is sponsored by the CEO and PMO.

8. TOOLS
The solution has been developed following the DMAIC and lean Principles. In the picture below there is a map of the main tools
used in the project.
FIGURE 4 HIGHLIGHTS OF TOOLS DESCRIBED IN THIS DOCUMENT
9. BUDGET
The budget for this project is 80.000 € in 2 years
After the delivery, the new process should ensure an annual saving of 30.000-40.000€ per years.
10. AUTHORIZATION AND SUPPORT
The Project Management Office is given full authority to carry out the activities and responsibilities described in this Charter. The
Process Improvement Team is sponsored by the CEO and PMO.
Authorizing Signature
Fxxxx Mxxxxx
Define
Measure
Analyze
Improve
Control
PROJECT CHARTER
VALUE STREAM
MAP
SIPOC
STANDARD WORK
PROCESS AUDIT
(ISO9001:2008)
BURNDOWN
CHARTS
KAIZEN
EVEN
POKA YOKE
CHANGE
MANAGEMENT
PLAN
SPAGHETTI
DIAGRAM
DATA
COLLECTION
PLAN
TAKT TIME
FISHBONE DIAGRAM 5 WHYS
VOICE OF THE CUSTOMER
(VOC)
BRAINSTORMING
VISUAL MANAGEMENT
FMEA
5S

Project Plan: Gantt
FIGURE 5 GANTT

Project Objectives, Business Case, VoC and CTQ
Business case: Cost Cutting
1. Target at 50% reduction of Delivery Managers’ involvement
 Daily rate of a DM 500€/d
 Time= 4day/tender *68 tender= 272 day
 Cost= 272 day *500 €/day= 136.000 € per year
2. Target at 50% reduction of tender team’ Overtime
 Daily overtime rate (in average) 350€/day
 Time= 10 day/month *12 month= 120 day
 Cost=350 €/d * 120 day=42.000 €
3. Increase speed
4. Add resources (specialists and tools) to the tender team to manage secondary aspects of the TMP
 Budget 40.000 € per year (50% of the yearly saving 79.000€ from point 1 and 2)
VoC
PMO wants
 to reduce the involvement of Delivery Managers in Tender Management at 2 day per tender
 Increase process speed
 Add resources to the tender team
PMO doesn’t want:
 the cost of the improvement exceeds the budget
 the quality of the business proposal decreases
CTQ- smart goals
From the Voice of Customer these elements are critical to quality:
1. Decrease DM Work-time:
 Goal1: -50% in 2 years
 -25% effort first year (4 to 3d)
 -33% effort second (3 to 2d)
2. Reduce Overtime PMO:
 Goal2: -50% in 2 years
 -25% effort first year (120 to 90 day per year)
 -33% effort second (90 to 60 day/year)
3. Increase Process speed
 Goal3: reduce the Lead Time:
 -15% Lead time first year
 -15% lead time the second year
4. Keep Quality Standard
 ≥90% of placements in the first 4 positions General
 ≥90% of placements in the first 4 positions Technical
 ≥40% of success (procurements)

The ultimate scope of a tender is not have a cheap process to write a business proposal but win! The customer wants a formally correct
proposal which satisfies their spoken and unspoken needs and results cheaper and better of the others.
This project of improvement should be done in one year, but to consider the feedback of all the tender completed in the first year it is
necessary to wait for more time (the tender evaluation, in Italy, is a very long process and it can take 6 months or more from the
applications to the announcement of the winner).
Features Goal 1 Goal 2 Goal 3 Goal 4
S Specific Yes Yes Yes Yes
M Measurable Yes Yes Yes Yes
A Assignable Yes Yes Yes Yes
R Realistic Yes Yes Yes Yes
T Time-related Yes Yes Yes
Yes
TABLE 4 SMART OBJECTIVES CHECK
Stakeholders
In the figure below there is the map of the stakeholders involved in the Project. The list of stakeholder for every single tender is a bit
wider and involve government, different types of suppliers (Hardware, Software, Couriers, etc.).
FIGURE 6 STAKEHOLDER PRIORITY GRID
INTEREST
POWER
Keep Satisfied Manage closely
Keep Informed Monitor
Project Manager
Project Lead
Tender team
Finance CEO
Final Customer
Quality
Competitors
Partners
Suppliers
Delivery Managers
Manager
HR
Technical Direction
Commercial Direction
Influencer

High Level Process Map (SIPOC)
Supplier Input Process Output Customer
Customer Tender requirements Tender publication
Top management Margin and availability Decision and margin
PMO Team Tender Scheme
Writing contribution
Strategy, Tender scheme,
Request for contribution
Writing, Control
business proposal
(technical financial)
Respect of rules
PM Information writer
contribution
Writing business proposal
(technical)
Respect of delivery
deadline
HWSW suppliers quotation Writing business proposal Evaluation:
technical score +
financial score
Writers Contribution
Schemes pictures
Writing business proposal
Bid Manager Administrative and
financial contributions
Writing
closure
business proposal
TABLE 5 SIPOC
S I P O C

Measure
In this phase the team focused on data collection. They have two goals: determine the start point or baseline of the process and find
clues to understand the root cause of the problem in the process. This phase can be divided as shown in the following box
STEPS:
1. Determine how the process currently performs
2. Look for what might be causing problems
3. Create a plan to collect the data
4. Ensure data is reliable
5. Update the project charter
TOOLS:
1. Data collection plan
2. Check-sheets
3. Operational definitions
4. Value stream map
Current performance of the process
COMPANY is ISO 9001 certified, all processes, documents about tenders, projects and procurements are registered and stored (the
most of them in hard copy, catalogued per year and stored in different files). The baseline has been defined by an investigation on the
past 3 years’ files.
Elements to measure Baseline Unit of measure
Delivery Manager effort 4 d/t Day/tender
Overtime TT 120 d/y Day/year
Lead Time 3w and 4d Time (weeks, days, hours)
TABLE 6 BASELINE FOR THE PROJECT
Problems’ potential causes
Evidence of problems from the last year Tender reports:
1. To deliver on-time the team works late into the night, on the weekend or bank holidays and they feel themselves overwhelmed
all the year (average of 120 day per year of overtime).
2. Company’s business data are fragmented, outdated and on different archives (3 DB, 2 hard copy archives)
3. The technical direction considers excessive (and expensive) the involvement of the Delivery Managers (the center of cost for
DM is different from the PMO one).
4. The PMO complains with the technical direction about the lack of commitment of Delivery Managers in the process of
writing tenders, as inaccurate and always late.
Problems from Brainstorming
People involved in the brainstorming: all the internal stakeholders
Problems emerged from it:
1. RFI requires a lot of time: response time is too high

2. Information about internal skills and experience are difficult to be collected (personal records)
3. People don’t like to share information about their projects
4. Past procurements Information are on paper
5. DMs are busy and don’t respect deadlines
6. Contribution from DMs are often fragmentary and incomplete
7. DMs write too slowly
8. Works from different tenders could be mixed
9. Long time to correct defects (overwriting, more realize)
10. No time to organize data
Value Stream Map
FIGURE 7 STREAM MAP VALUE
tender is
emitted by a
Final
Customer
CN decides
to apply
CN prepare
a Business
proposal
CN sends
the proposal
The final
customer
evaluate it
the FC give
the
procurement
to the best
proposal

In this map DM are present as “external” consultants and as part of the team, to distinguish the two situations there were used two
different symbols:
DM as part of the team DM as consultant or influences
The value stream map describes the sequence of the following processes
1. Approval: this is the key process for quality. In this phase the top management decide if participate in to a tender or not. The
decision is taken considering: revenue and requests, competitors, and CN skills. The ultimate decision is taken considering
the chance of success (win or a good placement3
)
2. Brainstorming: this meeting involve every component of the tender team and it is focused on how realize the business
proposal (economic and technical aspects). A check-list of requirement is written and it will be examined in the control phase
3. RFI: this is the process to collect all the information needed to write the tender. It requires a lot of interactions between the
members of the team, partners, suppliers and delivery Managers.
4. Draft: when all the information has been collected a draft (the index) of the business proposal is made: for every chapter of
the document it is indicated who must do what and in how much space. A copy of the draft is sent to all people involved
5. Editing parts: in this part every one fulfills their draft and send it back to the tender leader. Defect are very common and they
are fixed in the merge process
6. Merge: the merge process is long and very critical for success (deliver with 0 defects) and quality. All contribution are
reviewed and organized in a new draft to compose the final proposal which will be process in the control process
7. Control: In this process all tender requirement are checked (using the checklist produced during the brainstorming process):
 Contents
 Attached documents
 requirement
8. Closure: In this phase all documents are printed and packed following the final customer standard. Everything is checked
again and the parcel is closed.
9. Delivery: the proposal is delivered by courier to the final customer. A member of the team brings the parcel to the courier,
who delivers it.
Data Collection Plan
As result of the brainstorming and the exam of reports about tenders a new area of investigation has been found: define the chain of
tender’s information. The VSM supports this issue too.
The complete data collection plan is as follows in the next page.
3
A good placement is important to establish partnerships or procurements for manpower services.

Measure Data Type When Operational
Definition
Sampling notes Who and how Why
Delivery
Manager
effort
Day/tender During all
the tender
process
Register all
involvement in
term of
requests, and
effective work
For privacy reasons
every person has a
different file to
register data.
All file will be
aggregate by the team
lead
Team Lead: registers
every request (who,
what, when, deadline,
delay, notes) on an
excel file. DM
(request, work time,
notes) on an excel file
Delivery Managers
involvement is a cost. One
of the goals of this project
is reduce their involvement
and costs.
Single
Overtime
TT
Day/tender During all
the tender
process
Register all the
overtime effort
of every
member of the
team
Value required to
evaluate the yearly
overtime
PMO Manager on an
excel file (who, when,
tender deadline,
notes)
Delivery Managers
involvement is a cost. One
of the goals of this project
is reduce their involvement
and costs.
Yearly
overtime
Sum of
every single
overtime
yearly Sum of every
single overtime
this value is obtained
automatically
Team Lead
excel file
Ultimate value to measure
the effect of the project in
term of overtime reduction
Goal: -50% in 2 years
Yearly DM
effort
Day/tender yearly Yearly-DM-
effort=
Sum(DM
effort)/total of
tenders
(average) Team Lead
excel file
the effect of the project in
term of DM involvement
reduction
Goal: average of 2
days/tender
Lead Time Time
(weeks,
days, hours)
For every
tender
as on the value
stream map
this value is obtained
automatically
Team Lead
excel file
increase of speed in the
process
N. of
tenders
processed in
the year
(NT)
Tender/year Update
every
tender
Tenders
approved by the
Direction
Value required to
evaluate the yearly
overtime and defects
Team Lead
excel file
This value is important to
ensure the quality of the
process
N. of
business
proposal
delivered
(BP)
Tender/year Update
every
tender
Tenders
delivered to the
final customer
Value required to
evaluate the number
of defects per year
Team Lead
excel file
process
Placement place in the
ranking
Every
tender
place in the
ranking
Value required to
evaluate the number
of defects per year
PMO Manager
excel file with data
from the bid Manager
process
defects Tender/year Every
year
D=NT-BP Value required to
evaluate the number
of defects per year
Team Lead This value is important to
process
Content
defects
Number of
placements
under the
fourth
position
Every
tender for
Economic
proposal
and
technical
proposal
Placement<4th
position
Value important for
SWOT analysis
PMO and TT
Brainstorming
Improvement
proposal
improve, it is not a real
defect but an indicator to
assess the position of CN
on the market compared to
its competitors
list of tender
requirement
Questionnai
re
Last year
and all
new
tenders
Type of
reference
Important to define
the new system of
data management
PMO Pareto chart to decide what
information is better
organize soon
Winners’
proposals
collection
Official
business
proposal
Every
tender
Solution from
winner
competitors
Value important for
SWOT analysis in
future tenders
Bid Manager
Storage in Data
wherehouse
improve
TABLE 7 DATA COLLECTION PLANNING

Analyze
In this phase the team reviews the data collected during the Measure phase. They analyze both the data and the process in an effort to
narrow down and verify the root causes of waste and defects:
STEPS:
1. Closely examine the process
2. Visually display the data
3. Brainstorm potential causes of the problem
4. Verify the causes of the problem
5. Update the project charter
TOOLS:
1. Process Analysis
2. Data Analysis
3. Cause & effects Diagram
4. Value stream map
The analysis is led by the Manager of the Project Management Office and it is charged with analyzing the existing monthly
performance reports, examining process interactions, identifying waste, developing standard control procedures, and implementing
improvements to ensure consistent and reliable reporting for all tenders.
8 WASTE
FIGURE 8 WASTE MAP ON THE VSM

During an accurate exam of the value stream map the following types of waste have been detected:
TYPE OF WASTE WHERE WHY SOLUTION
T
Transportation
Closure Material for packing, prints up and down on
the building
PMO office, material’s cabinet and
printer on the same floor
Delivery Parcel moved to the courier’s shop before to
be delivered
courier on site
I
Inventory
RFI Excess of work in progress (WIP); New design of the process
Editing Before merge all parts should be written Make contributions independent
Merge Excess of work in progress (WIP); New design of the merge process
M
Motion
Editing Moving for consulting/checking Web-based system to share data
Closure CEO come from another office to sign the
proposal on request
Plan the closure time
W
Waiting
RFI Idle time between request and answer New design of the process
Editing Idle time between request and answer New design of the process
Merge Delay and queue New design of the process
P
Overproduction
RFI the same information is required several
times
New design of the process
Merge Double contributions New design of the process
O
Overprocessing
RFI the same information is required several
times
New design of the process
Editing Contribution not needed New design of the process
Merge removing of content New design of the process
All processes For every single process everything is
checked twice or more
New design of the process, but in
most of cases the waste cannot be
eliminated
D
Defects
Editing Editing mistakes writing validation
Merge Cut and paste mistakes writing validation
Closure Printing mistakes Check
U
Non-utilized talents
All processes Team overwhelmed New design of the process
TABLE 8 WASTE ANALYSIS
Information: affinity and Pareto diagrams
To participate in to a tender a company usually has to furnish some references:
1. Past projects references:
 Revenue (cumulative, cumulative for public administration, specific for a client etc.)
 Technology (Oracle, Sun Solaris, Linux…)
 Programming language (Java)
 Specific Services (noise monitoring…)
 Value of HW furnished
2. Bank credit
3. Internal Skills
4. Certifications:
 Police’s anti-mafia certificate
 Taxes’ receipt of payment
 ISO 9001,14000, 13485
These information, surveyed in the measure phase now are organized in categories with the help of some tools: the affinity diagram
ad the Pareto charts. The result will be very precious in the improve phase to fulfill and manage the content management system.

In Figure 9 there is a Pareto chart which shows the types of requests. In Figure 10 there is the distribution of tenders per client, as
detected with the affinity diagram.
FIGURE 9 TYPE OF INFORMATION REQUIRED
FIGURE 10 PARETO'S CHART FOR THE TENDERS DISTRIBUTION
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
60
70
OCCURRENCES CUMULATIVE PERCENT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1
2
3
4
5
6
7
8
9

To organize properly all the information (business proposal included) the idea is to insert them in a content management system in
which is possible to find everything is needed quickly. The tool used to achieve the scope has been the 5S. A CMS is not very
different from a shed full of tools:
1. First a sorting of all the data and their storage systems. It has been possible with the help of Pareto’s charts
2. Set in order: with the affinity diagrams it has been possible to upload data on the new system with criteria
3. Shine: al data are controlled and all parts not useful removed
4. Make the standard: for every action on the system a procedure is included to manage it in the right way
5. Sustain: the system is uploaded tender by tender and with ScrumwiseTM
data can be sent directly (by XML) to Joomla!
Delays: error proofing with fishbone diagram
With the fishbone diagram it has been possible to analyze the root causes of delay in the tender management process.
FIGURE 11 ERROR PROOFING: FISHBONE DIAGRAM FOR DELAYS

Improve
In this phase the team moves on to solution development. A structured improvement of the effort can lead to innovative and elegant
solutions:
STEPS:
1. Brainstorm solutions that might fix the problem
2. Select the practical solutions
3. Develop maps of processes based on different solutions
4. Select the best solution(s)
5. Measure improvement
TOOLS:
1. Weighted Criteria Matrix
2. To-be Maps
3. PDCA/PDSA
Brainstorm solutions
Improvements have been achieved by acting on three elements:
 Infrastructure
 Method
 People
FIGURE 12 BRAINSTORM SOLUTIONS
From these six ideas for improvements real solutions has been detected evaluating positive and negative aspects, costs and Inspect &
adapt capability (continuous improvement).
Infrastructure
One System for all data +
search engine
Tool to manage and
monitoring the process
Method
Lean framework
team-work
New process with a
standard for data
People
New skills: Training
New Resources for the
PMO

Selection of practical solutions
After a first analysis the solutions came out from a new brainstorming.
FIGURE 13 IMPROVEMENT OF BRAINSTORM SOLUTIONS
Step one: Method
KANBAN vs SCRUM4
Scrum and Kanban are lean process tools that help people to work more effectively, telling them what to do.
Scrum and Kanban are both highly adaptive, but relatively
speaking Scrum is more prescriptive than Kanban. Scrum
gives you more constraints, and thereby less options are
open.
The choice is oriented on Scrum for these reasons:
1. The TT is looking for rules to reduce the opportunity of
defects in the process and to have time-boxed iterations
2. A business proposal is the planning of a complex
project, it needs cross-functional skills
3. this framework is widely used by the company with
excellent results
4. In Kanban, cross-functional teams are optional, and a
board doesn’t need to be owned by one specific team. A
board is related to one workflow, not necessarily one team.
Scrum ensure that the board is related to the team.
Standard template for contribution and Poka Yoke
Information (RFI and Writing contributions) provided in a standard format are the best way to reduce opportunities of defects. They
are the source of delay, over-production, over-processing and defects. To design the right standard it has been used a PDCA
approach.
4
For more information the SCRUM Guide is available here:
https://www.scrum.org/Portals/0/Documents/Scrum%20Guides/2013/Scrum-Guide.pdf
Infrastructure
Content Management System
(all in 1)
Tool to define, measure analyse
and control (Visual monitoring)
Method
Kanban or Scrum framework
Standard template for
contribution +
Poka Yoke
People
Training about: the new process
and tools Lean Six Sigma
New Resources for long and
low profile activities: graphics,
formatting, printing...
A Kanban
Board helps to
manage the
WIP of a value
stream or
process.
A Scrum Board
helps to manage
the WIP
associated with
a complex
project.
A Kanban
Board is usually
better suited to
manage the
WIP of
individuals
a Scrum Board
is better suited
to manage the
WIP of cross-
functional
teams.
FIGURE 14 KANBAN VS SCRUM

FIGURE 15 PDCA
Step two: Infrastructure
After the method has been defined it is possible to choose the best solution for the SW infrastructure. The most important
requirement is that this infrastructure has to support every single tender process in all its steps and the PMO for extended data (all
tenders). It needs also to be friendly to use and team work oriented.
Content Management System (all in 1)
To create a content management system able to manage the history of tenders the only two solutions able to satisfy all requirements
are SharePoint and Joomla!
The first one is very powerful, but it is expensive and a bit slow, the second one instead is open source, continuous improvement
oriented and smart, but needs some developments before being used.
Comparing the cost of SharePoint with the cost of a Joomla! Developments, the second one is more convenient.
Tool to define, measure analyse and control (Visual monitoring)
The tool to support the development of a business proposal is strongly dependent from the method.
For Scrum there are two very powerful tools5
:
 OnTimeTM
 ScrumwiseTM
They are very close, as performance, costs and functionalities:
 Use of a visual monitoring approach to show information
 Use of a special diagram to monitoring on (the burn-down charts: it is very simple to read and give soon evidence about
how much work has been done, how much remains what in changing and how this impacts on the delivery)
 Availability of effective forecast about the end of the project.
The biggest difference is that ScrumwiseTM
allows the import of data into Joomla! and gives the chance to have an automatic
alignment between the two systems.
5
https://www.youtube.com/watch?v=XU0llRltyFM
•let's do what we
said!
•Have we met
our
expectations?
•what are we
going to do?
•Do we need any
changes, where
do we go from
here?
Act Plan
DoCheck

Step three: People
To increase the cross-functional skills of the team is necessary:
1. Improve skills about the new instruments and approach
2. Insert new people with specific abilities.
CN as ISO 9001 certified company has a training plan and new courses for lean six sigma, Scrum and ScrumwiseTM
have been
added on it. For every argument there is an in-class-course (length can vary) with final exam and several on-line sessions to refresh
contents. The on-line session is composed of video and text, available on a dedicated content management system. It is 24/7
accessible and include free resources on the web.
FIGURE 16 TIME INVOLVEMENT FOR THE NEW RESOURCES
Best solution
After a first analysis of the solutions came out from the brainstorming a more accurate
FIGURE 17 IMPROVEMENT OF BRAINSTORM SOLUTIONS
SCRUM
A key principle of Scrum is its recognition that during a project the customers can change their minds about what they want and need
(often called requirements churn), and that unpredicted challenges cannot be easily addressed in a traditional predictive or planned
manner. As such, Scrum adopts an empirical approach—accepting that the problem cannot be fully understood or defined, focusing
instead on maximizing the team's ability to deliver quickly and respond to emerging requirements.
The main components of Scrum Framework are:
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1
2
3
4
5
6
7
8
9
Graphics
prototypes
Pictures Stylistic
corrections
Formatting Layout set-up Spelling
corrections
Cross-
references
Infrastructure
Joomla! +search engine
(5s) DATA
Scrumwise (control)
Method
SCRUM (framework)
Standard templates (Poka Yoke)
People
ISO 9001 Training plan
1 technical writer
1 designer

 The three roles: Scrum Master, Scrum Product Owner and the Scrum Team
 A prioritized Backlog containing the end user requirements
 Sprints
FIGURE 18 OVERVIEW OF SCRUM FRAMEWORK
Scrum Events are: Sprint Planning Meeting (WHAT-Meeting, HOW-Meeting), Daily Scrum Meeting, Sprint Review Meeting,
Sprint Retrospective Meeting
A central aspect is the continuous improvement: inspect & adapt. The Scrum Teams have to frequently inspect and assess their
created artefacts and processes in order to adapt and optimize them. In the midterm this will optimize the results, increases
predictably and therefore minimize overall project risk.
The Scrum Framework tries to deal with the fact that the requirements are likely to change quickly or are not completely known at
the start of the project. The low-level requirements are only defined at the time when they are going to be really implemented. In
Scrum, changes and optimizations of product, requirements and processes are an integral part of the whole engineering cycle.
Content management system: Joomla!
Joomla is a free and open-source content management framework (CMF) for publishing web content. It is built on
a model–view–controller web application framework that can be used independently of the CMS
Joomla is written in PHP, uses object-oriented programming (OOP) techniques and software design patterns, stores
data in a MySQL, MS SQL or PostgreSQL database, it includes features such as page caching, RSS feeds, printable
versions of pages, news flashes, blogs, polls, search, and support for language internationalization. This solution
can be integrated with powerful tools (pdf library, pdf search engine, statistical etc.) and all contents are published
following rules: if, for example, the document with financial references for public administration is update, and
there is a link to this kind of document in the homepage, that link is automatically updated to.
The biggest challenge with a powerful instrument like this is the implementation. Contents must be organized
well.
For this reason the CMS has been designed considering the 5 S: for everything a place and a place for everything!
The homepage is the team work-board and on all the main contents (divided following an affinity diagram) are
easy accessible moreover a very powerful search engine supports advanced researches also on pdf files.

Future State Map
The value stream map of the improved process is described in
FIGURE 19 IMPROVED VALUE STREAM MAP
The new value stream map is simplier there is a process less and a big part of interaction has been changed with a query on the CMS
database. The main difference are illustrated on Figure 20.
FIGURE 20 EFFECTS OF THE NEW VALUE STREAM
Before
3 in box
(queue)
9
processes
Total P/T: 8 d
Total W/T: 2w
and 1d
Total FTQ: 0.4
Lead time: 3w
and 4d
After
1 in box
(queue)
8
processes
Total P/T: 6 d 4
h
Total W/T: 3d
Total FTQ: 0.72
Lead time: 1w
4d 4h

Control
In this phase the team begins to document exactly how they want to sustain improvements by passing process improvement
infrastructure on the employees who work within the process:
STEPS:
1. Continuously improve the process using lean principles
2. Ensure the process is being managed and monitored properly
3. Expend the improved process throughout organization
4. Apply new knowledge to other processes in your organization
5. Share and celebrate your success!
TOOLS:
1. Control plan
2. Response plan
3. Control charts
4. Documentation
Control means at the least these 5 things:
 Operational’ Improvement in Place
 Standard Work Documentation Updated
 Training Plan Complete
 Updated Communications (Storyboard)
 Lessons Learned Review
 Benefits confirmed & signed off
The most part of them are achieved just with SCRUM and ScrumwiseTM
FIGURE 21 CONTROLLING TOOLS
With the SCRUM meetings it is possible to control the process when it is going, resolves occurring problems, monitoring the team
capacity:
In the Figure 22 there is a brief scheme of the scrum meetings flow and in the Table 9 their descriptions.
Inventory
Change management
Capacity/ Respect of deadline
(Burn-down charts)
Daily scrum
Issues resolution
Visual control (Scrumwise
Board)
Error control
Process audit every 2-4 week:
Retrospective meetings
Standard template for
contribution:
Poke Yoke

FIGURE 22SCRUM FLOW
TABLE 9 BRIEF DESCRIPTION OF SCRUM MEETINGS

SCRUMWISE Story Board & BURNDOWN Charts
A burn down chart is a graphical representation of work left to do versus time. The outstanding work (or backlog) is often on the
vertical axis, with time along the horizontal. That is, it is a run chart of outstanding work. It is useful for predicting when all of the
work will be completed. It is often used in agile software development methodologies such as Scrum. However, burn down charts
can be applied to any project containing measurable
progress over time.
A sprint burn-down chart:
 indicates total remaining team task hours within
one Sprint
 Re-estimated daily, thus may go up before going
down
 Intended to facilitate team self-organization
 Fancy variations, such as itemizing by point person
or adding trend lines, tend to reduce effectiveness at
encouraging collaboration
 Seemed like a good idea in the early days of
Scrum, but in practice has often been misused as a
management report, inviting intervention. The Scrum
Master should discontinue use of this chart if it becomes
an impediment to team self-organization.
Below there are some picture to show how scrumwise looks like
FIGURE 24 SCREENSHOT FROM SCRUMWISETM
FIGURE 23 EXAMPLE OF BURNDOWN CHART ON SCRUMWISETM

Conclusions
Effect of the process Improvement
All the goals have been met. With this solution every year there is a saving of over 30.000 € and a consistent reduction of
complaints, the quality of the business proposal has kept their quality standard and there was an increment of good placement for the
business proposal:
Results has been very surprising in term of money saving, process improvement and quality assurance:
 Reduction of process steps
 2 part-time resource employed
 New Content Management system for RFI
 New Agile Method
 New Agile tool for continuous Improvement
 Reduction of process time
 Increase of quality
KPI Before After Difference
Total P/T: 8 d 6 d 4 h 1.5days less
Total W/T: 2w and 1d 3 d 1W 3d less
Total FTQ: 0.4 0.72 +0.32
Lead time: 3w and 4d 1W 4d 4h ≈2W less
Use of delivery Managers
4 day/tender
(136.000€)
2day/tender (68.000
€)
68.000 € less
Overtime PMO Team
10 days/month cost
42.000 €
0 day/month (0€) 42.000 € less
defects, 0 0 none
% of placement in the first 4
positions – general
90% 90% none
% of placements in the first 4
positions for the technical
proposal
90% 98% +8%
% of success 40% 40% none
TABLE 10 TABLE OF RESULTS
Cost of the implementation:
8.000 € CMS
1.000€ HW+ installation
7.000€ Data entry cost
Cost of SCRUM Tool: 2.500€/y

New Resource:
• 1 designer (part-time) 12.000€/y
• 1 technical writer (part-time) 10.000 €/y
TOTAL: 30.500€
Improvements for the future:
Introduce a set of KPIs to monitor the number of partnerships derived from tender placements
Bibliography
[1] “What is six sigma?” by Pete Pande and Larry Holpp McGraw Hill
[2] “Lean Six Sigma for services” by Michael L. George McGraw Hill Professional
[3] “Go Get Your Muda!” by Mark H Davis BOOK
[4] “Six Sigma Demystified” by Paul Keller McGraw Hill Professional
[5] The Scrum Guide™

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