Best Practices: How Six Sigma Complements ITILv3 Linh C. Ho ...
Transcript of Best Practices: How Six Sigma Complements ITILv3 Linh C. Ho ...
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Best Practices:
How Six Sigma
Complements ITILv3
Linh C. Ho
itSMF Portugal 2008
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Current State
• The business is IT, IT is
the business
• Proving the business value
of IT
• Better integration with the
business
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ITIL version 3
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ITIL v3
Overview
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ITIL v3
Service Management Lifecycle
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ITIL v3
Highlights• ITSM life-cycle approach
• Integration vs. alignment
• Service portfolio
• Supplier management/ITO
• Industry Practices – e.g.,
Six Sigma, CoBIT, ISO
• Knowledge management
• Event management
• Business Service
Management…
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Knowledge Management
• ITIL key objectives
• Improve quality of
management decision.
• Deliver the right
information to the
right people or place at the
right time.
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Agenda
ITIL v3 Overview
Six Sigma and ITIL
Bank success story
Summary
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CSI: Continual Service Improvement
Goal• Continually improve service quality while minimizing costs
Highlights• Quality management methods
• Six Sigma
• Technologies for measurement and reporting
• Turn raw data into meaningful corrective actions
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CSI: The 7-Step Improvement process
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Agenda
ITIL v3 Overview
ITIL v3 Continual Service
Improvement
Bank success story
Summary
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What is Six Sigma?
Business-driven continual process improvement model
“Critical to Quality” (CTQ)
– What is important to the customer?
Identify and eliminate critical defects
– Defects that impact customers
– Defects that cost money
DMAIC Model
– Define, Measure, Analyze, Improve, Control
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History and Background
Motorola in the 1980‟s as a method to improve process quality
– The Six Sigma techniques are not new, just their application
First manufacturing processes
– Now any business processes
Six Sigma Companies
– Motorola, GE, Sony, Bank of America, IBM, Sun Microsystems, Getronics,
American Express…
“The most important initiative GE has ever undertaken”
Jack Welch, Former CEO General Electric
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Cost of Poor Quality
By Quality America Inc.
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Pareto Chart
Highlight the most frequent
problems in the process
Focus on the most
significant
Highest cost of poor
quality
Identify candidates for
quality improvement
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Control Chart
Detect Variance in a
process
Centre line (average)
Upper and Lower Control
Limits (e.g. 3 sigma)
Analyse patterns of
process variation
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Cost of Poor Quality (COPQ)
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CSI: 7 step improvement •ITIL v3 Highlights:
•Service measure/report
•Data into information
•Use of methods/tools
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Complementary approaches
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Industry analysts: Six Sigma in IT
“Through 2010; Six Sigma will become the leading quality
improvement framework for IT operational groups.”[1]
Ed Holub, Industry Analyst, Gartner
[1] “Leveraging ITIL, and Other Process/Quality/Governance for IT Operational
Success.”, Gartner, Ed Holub, Gartner Data Center Conference, December 2005.
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Six Sigma and ITIL summary
ITIL tells you „what‟ and Six Sigma tells you „how‟
Six Sigma brings additional benefits to ITIL
– Baseline service quality
– Prioritize and focus on CTQ
– Quantify improvement for ROI
– Sustain improvement
Six Sigma is now the industry accepted quality practice for ITIL
– Analysts, Global/Fortune companies, Vendors…
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Agenda
ITIL v3 Overview
ITIL v3 Continual Service
Improvement
Six Sigma and ITIL
Summary
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Bank success story
Service Strategy
– IT services company (ITO) worked closely with a bank to understand their business
goals– Business executives, IT executives, business users…
Service Design
– ITO designed business services to meet the needs of the bank.– Check processing, business key performance indicators, SLAs, ITO as supplier …
Service Transition
– Tested, implemented services defined and in production in 6 months.
Service Operation– ITO maintains and supports the new implemented solution
– 350 business indicators, 2,200 services measured/reported on Vantage
– 7 layers of staff inc. business/IT execs, business users, administrators, developers..
– 30 FTEs saved = reorganized to other areas for improvement
– 50 % saving in time
Continual Service Improvement
– ITO continues to look for ways to improve services– ITO is looking at Six Sigma from Vantage
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Bank success story
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ITIL v3: Four Ps Better integration with the
business!
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Summary
Continual service quality improvement Establish consistent processes (ITIL)
Improve service quality (Six Sigma)
Increase IT maturity
Focus: Critical to Quality
Customers
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If you remember nothing else…
The business is IT, and IT is the business
If you improve IT, you improve the business
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Best Practice book
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Questions for the audience
How many here use ITIL?
How many here use Six Sigma?
How many use both?
Where did you start? ROI?