Clint Britt _ Six Sigma Project _ MFP_ June2016

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COMCAST - MONTHLY FINANCIAL PACKAGE PROJECT
Six Sigma Black
Belt Project
May 31, 2016
Clint Britt
9844 Titan Ct, Littleton, CO
80125
p. 303.513.6348 Cbritt927@gmail.com
Comcast.com

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Table of Contents
I. Project Charter....................................................... 2
II. DEFINE................................................................ 3
III. MEASURE: ........................................................... 8
IV. ANALYZE............................................................19
V. IMPROVE:.......................................................... 25
VI. CONTROL:......................................................... 36

COMCAST MFP INTEGRITY_ PROCESS IMPROVEMENT VIA SIX SIGMA - MAY 31, 2016 2
Project Charter
Project Name: Month Financial Package (MFP) Data Integrity and Over-hall
The purpose of this charter is to establish a Process Improvement Team to rapidly address senior leadership concern surrounding the
accuracy and methodology of the Monthly Financial Package (MFP). The team will be led by Clint Britt, Finance Director with Comcast.
The team is charged with analyzing the existing monthly performance reports, examining source data, identifying inconsistencies in
reported information, developing standard control procedures, and implementing improvements to ensure consistent and reliable reporting
for all projects.
Project Sponsor: CIO, and Executive Management Office
Project Manager: Clint Britt
Email Address: cbritt927@gmail.com
Phone Number: 303.513.6348
Expected Start Date: January 2016
Expected Completion Date: June 2016
Expected Savings: $795,324
Expect Costs: $222,000
Green Belt Assigned: Matt Walters
Black Belt Assigned: Brian Rector
Project Goals: Design and develop a complete set of solutions to address root causes behind the impairment of actual cost data
in the Project Management System. At the highest level, this involves two data streams: Timesheets for Labor Costs and Expense Entries
for all other costs. Determine the causes behind timesheets not processed and / or processed incorrectly. Determine the causes behind
expense entries not processed and / or processed incorrectly. Determine the full extent of the problem through data analysis, interviews,
and other tests. Develop solutions for improving the processes and monitor the results of the implemented solutions.
Process Problem: Performance information related to IT Projects is not reliable and accurate as reported in the Monthly
Performance Reports. This information is extracted from the Project Management System. Processes are poorly defined, inconsistent, and
prone to high error rates each month. To address concerns with senior leadership regarding the integrity of cost data in Monthly
Performance Reports. This project will attempt to identify root causes behind distortions with actual project cost data in the Project
Management System and implement solutions to fix broken processes in capturing and reporting costs.

Scope: This project is limited to only those projects that are considered "developmental" since these projects must report Earned
Value Management and these projects currently rely on the Project Management System for cost data. Projects not using the Project
Management System will not be reviewed. Additionally, this project will not develop detail system requirements for the Project
Management System. The focus will be on the process itself and how the process relates to source systems for data.
Schedule
Key Milestone Start Complete
Form Project Team / Preliminary
Review / Scope
01/23/16
Finalize Project Plan / Charter / Kick
Off
02/12/16
Define Phase 02/28/16
Measurement Phase 03/18/16
Analysis Phase 4/19/16
Improvement Phase 5/16/16
Control Phase 6/07/16
Project Summary Report and Close
Out
6/5/16
Process Owner. The Chief Information Officer owns the overall process over cost performance reporting for IT investments.
Each Project Manager must make sure they follow a set of procedures for capturing and reporting actual costs correctly. The Project
Management Office provides oversight and support for the processes.
Key Stakeholders. All personnel assigned to IT Developmental Projects, including Project Managers, Project Analyst, Project
Planners, Project Schedulers, and Budget Managers. All personnel who provide leadership support above the project level, including the
Chief Information Officer, the CIO Staff, Directors and Senior Managers within the IT Department and outside departments or agencies
that have an interest in the cost performance of IT investments within the agency.
Authorized Resources: Clint Britt, Brian Rector, Matt Walters, and Erik Jensen. In addition to the four core team members,
System Administrative support has been budgeted at one-full time FTE for the life cycle of the project. Black Belt Support will come from
the CIO Council. Project Management Office staff will provide some administrative help. Projects that are reviewed may get tasked to
help with data gathering and collection. At least two of the core team members will need network access to the Project Management
System. The project will also need programming support to extract data from two other systems: Payroll and Financial Reporting.
Sponsor Approval: Prabuling Patel - Executive Vice President
DEFINE
CTQC Background Information
Critical to Quality (CTQ) or Critical to Quality Characteristics (CTQC): Specific factors or attributes that are associated with your products,
processes, and services that customers consider extremely important. This is often identified by listening to your customers through

surveys, interviews, complaints, and other ways for fully understanding the requirements of your customers. Six Sigma professionals refer
to this as Voice of the Customer or VOC. Once you have captured VOC, you can then translate this information into CTQ's.
Translation of CTQ to Operational Definitions:
This project did not rely heavily on Comcast’s "Voice of the Customer" through surveys, focus groups, and other techniques since the
customer audience (project personnel) did not provide much insights into the sources of the problems. Therefore, it was considered
necessary to create a CTQ Diagram that drilled down to the CTQ related sources.
Once each CTQ was identified per the CTQ Diagram, operational definitions were established to help indicate what is acceptable
performance. Operating definitions (acceptable performance) has been expressed in terms of three dimensions:
1. Performance Standard - Set a threshold or benchmark for measuring if performance is acceptable or not.
2. Measurement Test - Describe a procedure or task that can be performed to determine if the actual transactional data is actually
meeting the Performance Standard.
3. Measurement Results - What is the output of the measurement test?
Critical to Quality (CTQ) Diagram
Accurate Cost
Amounts
Accurate
Labor Costs
Accurate
Expenses
Accurate
Labor Rates
Accurate
Labor Hours
Vendor Invoices
Employee Expenses
Credit Card Charges
Base Rate
Fringe Benefits
Manager Approval
Charge Code
Full Accountability
Contracting Officer
Approval
Correct CodingManager Approval
Correct Coding
Full Accountability Manager Approval
Correct Coding
Timely Base Rates
Accurate Base Rates
Timely Fringe Benefits Rates
Accurate Fringe Benefits Rates
Critical to Quality Characteristics (CTQC)
CTQ per Diagram Performance
Standard
Measurement Test Measurement Results Continuous or
Discrete
Preliminary Results
Timely Base Rates Updated Listing provided
every 6 months
All System Administrators
confirm that updates received
after 6 months
Refer to Sample Procedures
and Attribute Measurement
System Analysis
Discrete Working
Accurate Base Rates Actual Base Rate of Pay for
Employee is within 1%
accurate of the source
system
Comparison of sample data
between source system and
Project Management System
System Analysis
Discrete U T D

Timely Fringe Benefits Rates Updated Listing provided
every 6 months
All System Administrators
confirm that updates received
after 6 months
System Analysis
Discrete Working
Accurate Fringe Benefits
Rates
Actual Fringe Benefits Rate
of Pay is within 2% accurate
of the source system
Comparison of sample data
between source system and
System Analysis
Discrete Broken
Manager Approval of Labor
Hours
All weekly timesheets
approved - 99% approval
processing rate
Comparison of sample
timesheets at selected cut-off
dates within Project
Management System
System Analysis
Continuous Broken
Correct Coding of Labor
Hours
All weekly timesheets coded
and entered correctly - 99%
accuracy rate
Analyze sample timesheets
for accuracy within the
System Analysis
Continuous Broken
Completeness of Labor
Hours
All weekly hours have been
accounted for and entered -
99% accuracy rate
Analyze sample timesheets
for accuracy within the
System Analysis
Continuous Broken
Officer Approval of Vendor
Invoices
All monthly vendor invoices
have been approved - 95%
approval rate
Analyze sample vendor
invoices and test for approval
in processing
System Analysis
Continuous Broken
Correct Coding of Vendor
Invoices
All monthly vendor invoices
have been coded and
entered correctly - 99%
accuracy rate
Analyze sample vendor
invoices and compare to
expense entries in Project
Management System
System Analysis
Continuous Broken
Manager Approval of
Employee Expenses
All monthly employee
expense statements
approved - 95% approval rate
Analyze sample expense
statements and test for
approval in processing
Do Not Measure - not
material to costs per Pareto
Continuous
Correct Coding of Employee
Expenses
expense statements coded
and entered correctly - 99%
accuracy rate
statements and test accuracy
in the Project Management
System
Continuous
Completeness of Employee
Expenses
expense statements
accounted for - 99%
accuracy rate
statements and test accuracy
in the Project Management
System
Continuous
Manager Approval of Credit
Card Expenses
All procurement credit card
purchases approved and
authorized - 99% approval
rate
Analyze sample credit card
purchases and test for
Continuous
Correct Coding of Credit
Card Expenses
All procurement credit card
purchases coded and
entered correctly - 99%
accuracy rate
accuracy in the Project
Management System
Continuous

SIPOC DIAGRAM - High Level
Functional Flow Diagram:
Functional Flow Chart No. 1: Labor Costs
Payroll Dept Project Analyst Project Team Project Manager
Run Payroll
Extracts
Payroll Extract
Report
Receive Request
Submit
Request
for Pay
Rates
Enter
Pay
Rates
Pull
Active
Records
Updated
Rate Table
Project
Management
System
Submit
Timesheets
Approves
Timesheets
Labor Cost
Reports
Monthly
Performance
Reviews
Employees Employee Setup Data Active Employee Record Project M anager and Team
Contractors Contractor Setup Data Active Contractor Record Project M anager and Team
Employees & Contractors Planning M eeting Project Schedule Project M anager and Team
Contracting Officer Statement of Work Project Schedule Project M anager and Team
Payroll Department Employee Pay Rates Rate Table System Administrator
Contractors Contractor Pay Rates Rate Table System Administrator
Employees Timesheets Labor Cost Report Project M anager and Team
Contractors (Time & M aterials) Timesheets Labor Cost Report Project M anager and Team
Contractors (Fixed Priced) Invoices Contractor Cost Report Project M anager and Team
Project M anagement System Timesheet & Invoices M onthly Performance Reports CIO, Program M anagers, VP Finance
► ► ► ►Supplier Input Process
Setup Resources
Assign Activities to
Resources
Assign Rates to Resources
Enter Time Sheets
Enter Vendor Invoices
Summarize and Report
Costs
Output Customer

Define Milestone Review with sponsor:
What problem is this project trying to solve? Processes related to the capturing and reporting of actual costs within the Project
Management System (PMS). These costs are not considered reliable given the current processes in place. Need to rapidly mature these
processes so that senior leadership and project managers can properly evaluate cost performance.
What is the scope of this project? Has it changed since the Project Charter was issued? All IT investments that are considered
developmental must participate in using Earned Value Management and report the results in the Monthly Performance Reviews. These
projects define the scope of this project; i.e. focus on the procedures these projects follow in capturing their costs.
No – the project scope has not changed and is not expected to change. The Project Charter is fairly specific as to scope.
What are some of the CTQ’s for this project? There are five inputs that are critical to quality: Timesheets depend upon two critical
inputs: Hours and Rates. Expense Entries depend upon three critical inputs: Vendor Invoices, Employee Expenses and Procurement
Credit Card entries. Each of these inputs can represent a CTQ, such as accurate base rates for timesheets or accounting for all hours each
week for timesheets.
Do you have some idea on what our current performance or defect rate is? Not yet, we have to sample the data to fully understand
how high the error rate is. However, our discussions with System Administrators indicates that most projects are not fully compliant with
entering all timesheets. This problem also exists with expense entries; i.e. not all vendor invoices are entered. So we suspect that the error
rate is extremely high.
What are some of the work products during this phase of the project? Thought Process Map – Outline of critical questions that need
to be answered and possible techniques for analyzing the problems. Stakeholder Analysis – How to engage each stakeholder so that this
project is successful. SIPOC Diagram – Map the overall process and input streams Critical to Quality – Define what is critical to the
quality of cost data Operating Definitions – A basic level of performance, what has to be measured, and the measurement results (to be
determined in the next phase)
What quality control reviews were conducted to ensure work products were acceptable? The project team submitted all work
products to the PMO Staff for review and approval. We also sought out guidance from the CIO Leadership Council members; especially
those who are Six Sigma Black Belts since this project is following the DMAIC Six Sigma approach.
What are some of the process areas this project will improve? Timesheet processing – making sure a control procedure is in place to
make sure timesheets are getting processed. Vendor invoices – making sure all projects have a control procedure to properly capture
vendor invoices.
When can we expect to see these improvements implemented? The current plans are to start implementing solutions in June 2016.
Since training and SOP documents will have to be distributed, you probably will not notice improvements until mid year 2017.
Is this project on schedule according to the project plan? The project is on schedule overall, but is somewhat behind in the Define
phase. This delay is due to collecting data to feed the next phase – analysis. Once we get a good sample of data, we can move quickly. The
remaining phases are expected to be on schedule since the analysis is fairly straight forward and the solutions are fairly straight forward.
The implementation and monitoring or control phases of the project can get passed over to the Project Management Office (PMO) once
the project nears completion. We will setup the control plan and implementation plan and transition these over to the PMO.

MEASURE:
Data Collection Procedures
A. Purpose – In order to ensure high quality data in this project, it will be necessary to follow a standard set of procedures. The goal
is to make sure that sufficient detail cost data is captured to gain a solid understanding of root cause issues that are creating
distortions in the Project Management System. Since the Project Management System is a stand-alone application, it does not
represent the primary source for much of the data. Where practical, the sampling of data should “go around” the Project
Management System and go directly to the related sources of the cost data.
1. Data Needed – All actual costs data incurred on IT developmental projects.
2. Data Usage – Compare this data against the actual costs that are getting reporting in the Project Management System.
Determine the accuracy level and where major errors are found, develop and implement solutions to reduce the errors.
B. Types of Data
1. Labor Costs – Includes all employees of the agency that charge time directly to an IT investment.
2. Expenses – Includes all non-direct labor costs associated with an IT investment. Expense entries include:
i. Voucher Payables – Contract personnel, suppliers, and other vendors
ii. Employee Expenses – Employees submit expense statements for reimbursements due to travel and training
iii. Credit Card Expenses – Various projects may have procurement credit cards which allow small purchases for
supplies, food, and other items the project may need.
C. Source Systems
1. Financial Reporting System (General Ledger) – All expenses will be sampled from this system since this represents the
source system for payment of all expense entries.
2. Project Management System – All direct labor costs are entered directly into the Project Management System. There is
no other source system involved with labor costs on a project by project basis. Additionally, the Financial Reporting
System does not capture any detail labor cost records and access to the direct payroll files is restricted to System
Administrative personnel.
D. Sampling Rules to Follow
1. Where practical, select all developmental projects in the IT portfolio. As of December 2016, the complete listing of
developmental project numbers is: 34332, 32221, 54443, 33443, 19834.
2. Since most cost data is captured and processed on a monthly basis, one-full month should be selected for data analysis.
The period January 2015 will be considered the baseline period for sampling data since this period falls in the current
annual reporting period and all source documents should be fully filed and processed as of the review date.
i. Automated Extracts for Labor Costs – System Administrators will be used to pull labor costs from the Project
Management System. They can easily design custom reports to extract and test data.
ii. Automated Extracts for Expenses – Expenses will be extracted directly from the Financial Reporting System
using a query program that selects all projects listed above. A formal system request is required for this extract.
3. Since timesheets are processed once every two weeks, certain measurements must be taken during a “live” two week
period when timesheets are processed. This would include:
i. Testing to see how many timesheets were submitted on time within the Project Management System.
ii. Testing to see how many timesheets were submitted without errors, such as accounting for all hours and using
the correct charge codes.
4. Standard Check Sheets should be used where applicable for capturing the measurement data. A set of Check Sheets are
listed below:
Measurement Check Sheet E.1 – Base Pay Rates within 1%
Appraiser Name: * Period Covered:
Observation Pay Rate per PMS Pay Rate per Adm
Source % Variance
Is Variance more
than 1%?
1
2
3
4
5
6
7

8
9
10
11
12
13
14
15
16
17
18
19
20
Comments and Notes:
* period covered must match-up for a correct comparison
Measurement Check Sheet E.2 – Fringe Benefit Rates within 1%
Observation Fringe Benefit Rate
per PMS
Fringe Benefit Rate
per Adm Source % Variance
Is Variance more
than 1%?
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Comments and Notes:
* period covered must match-up for a correct comparison
Measurement Check Sheet E.3/E.4 – Timesheet Processing
Employee Employee Submitted
TS?
If Yes, was TS
complete
If Yes, did Time Sheet (TS) use
correct codes?
Foot
Note*
1
2
3
4

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Comments and Notes:
* attach separate sheet of footnotes to describe coding errors where applicable.
Measurement Check Sheet E.5 – Vendor Invoice Processing
Up to 10 Invoices are Sampled over entire Jan 2007 Extract
Invoice Entry Was this entry
posted?
If Yes, is the
amount correct?
If No, is the amount off by
more than 1%?
1
2
3
4
5
6
7
8
9
10
Comments and Notes:
* period covered should be January 2007 in both systems – Financial Reporting System and Project
Management System. The source documents may relate to past service periods since invoices are processed
approximately one month late.
E. Operational Definitions – Seven operating definitions will be measured with the sample data:
1. Base Rates of Pay used in the Project Management System are within 1% accuracy of the source pay rates that are found
in the Monthly Payroll files as provided by System Administrators.
2. Fringe Benefit Rates used in the Project Management System are within 1% accuracy of the source fringe benefit rates
that are found in the Monthly Payroll files as provided by System Administrators.
3. Timesheets have been submitted in a timely manner by all personnel assigned to the IT Project. Testing of this sample
data may require that you test during the two week “live” period when people are required to submitted timesheets.
4. Timesheets have been submitted in an accurate manner:
i. Account for all hours during the two week period
ii. Hours coded to appropriate work codes for the two week period
5. Vendor Invoices have been properly posted to the Project Management System:
i. Timely posting of vendor invoices to the appropriate reporting month and year.
ii. Amounts posted are within 1% of the total invoice amount per the vendor invoice documents

F. Attribute Measurement System Analysis – The operating definitions that get measured must be validated through Measurement
System Analysis or MSA. Validation will be based on two factors:
1. Repeatability – The measurement observations by the observer or appraiser are the same with each measurement.
2. Reproducibility – The measurement observations across different observers or appraisers is the same with each
measurement.
A 95% confidence level be used for validation. The measurement attributes are gaged as “Yes or No” per the operating
definitions defined above. Two trials are made per each appraiser to gage repeatability. Three appraisers will be used to gage
reproducibility: Matt Walters, Brian Rector, Erik Jensen. Once everything has been measured and validated, a baseline level of
performance will be established to facilitate measurement going forward using Statistical Process Control or SPC.
Preliminary Data Analysis:
Components for Pareto Chart:
AT - Agency Transfers
CC - Credit Cards
EE - Employee Expenses
JV - Journal Vouchers
VP - Voucher Payables
Sum of Amount Trans Type
Project ID AT CC EE JV VP Grand Total
D001139HT03 1,373 1,374 381,174 383,921
D001196QC02 19,546 1,540 50,000 1,159,586 1,230,672
D001893SG01 23,525 23,525
D002743LB02 16,745 53,688 21,547 1,819,912 1,911,891
D002784NC01 147,913 147,913
D002784NC02 499 8,159 5,609 347,507 361,775
D002889YL02 8,142 1,443 1,715 11,300
D002965YL02 2,789 1,660 4,449
D002977BA01 10,511 2,703 13,214
D002981BR02 3,739 2,108 12,250 18,098
D003671MT03 6,532 1,560 69,340 77,432
D006122YV02 1,895 3,736 5,631
D007566MJ03 778 1,204 1,982
D008632JS02 32,656 32,656
D008763VM01 3,957 1,229 1,253,626 1,258,811
D009441GS02 7,160 878 1,013,290 1,021,327
D018322HE01 1,204 250,734 251,938
M005912LQ02 87 1,638 1,134 150,735 153,594
M005912LQ03 6,810 1,756 237,732 246,299
Grand Total 17,331 160,669 49,056 50,000 6,879,372 7,156,428

Direct Labor Costs:
Project ID Grand Total
D001139HT03 $ 167,515
D001196QC02 $ 3,244,101
D001893SG01 $ 347,566
D002743LB02 $ 488,961
D002784NC01 $ 290,077
D002784NC02 $ 303,113
D002889YL02 $ 88,164
D002965YL02 $ 13,642
D002977BA01 $ 41,672
D002981BR02 $ 264,581
D003671MT03 $ 509,462
D006122YV02 $ 28,516
D007566MJ03 $ -
D008632JS02 $ 101,681
D008763VM01 $ 648,707
D009441GS02 $ 840,203
D018322HE01 $ 101,687
M005912LQ02 $ 96,711
M005912LQ03 $ 62,331
Total $ 7,638,690

Sigma Calculator
A. All values required to calculate Sigma level
Defects: 210 DPMO: 130,031
Units: 323 Sigma Level: 2.63
Opportunities per Unit: 5
B. Sigma calculated based on defects and number of opportunities
Defects: 210 DPMO: 130031
Overall Monetary Impact of Defects for One Month:
Estimated $ % of
Type of Defect or Error Impact of Defect Total
Vendor Invoice Not Posted to PMS 1,395,727$ 77% < Critical Defect No. 1
Timesheet not entered into PMS 296,000$ 16% < Critical Defect No. 2
Vendor Invoice Amount not Correct in PMS 38,012$ 2%
Fringe Benefit Rate is off by more than 1% 36,200$ 2%
Base Pay Rate is off by more than 1% 33,000$ 2%
Timesheet activity codes are not correct 12,400$ 1%
Timesheet hours are not correct 9,600$ 1%
Total $ Amount of Defects 1,820,939$ 100%

Number of Opportunities: 1,615 Sigma Level: 2.63
C. Enter only the known Defects Per Million Opportunities
Enter DPMO 130,031 Sigma Level: 2.63
Summarize MSA Results
Purpose
Measurement System Analysis or MSA is conducted to validate the measurements in the measurement phase of the project. The goal is to make sure that wide variations are
not introduced by the measurement process itself. This will help ensure that the control phase is measuring actual variation and not actual variation + measurement variation.
Measurements
This project will measure the number of defects associated with seven different CTQC (Critical to Quality Characteristics):
1. Are employees submitting timesheets on a timely basis within the Project Management System?
2. Are the timesheets that have been submitted accounting for all hours during the two week period?
3. Are the timesheets that have been submitted using the correct activity codes for charging projects within the Project Management System?
4. Are the base rates of pay used to cost out timesheets within 1% of the source rates provided by System Administrators?
5. Are the fringe benefit rates used to cost out timesheets within 1% of the source rates provided by System Administrators?
6. Are vendor invoices posted in a timely manner to the Project Management System?
7. Are the vendor invoices that are posted accurate within 1% of the total invoice amount?
Method
A short approach known as Attribute Gage R & R will be used to measure Repeatability (variation from the same repeating measurement process) and Reproducibility
(variation from the same measurement with different observers).
Results
Overall, the Operational Definitions seem to be well defined with little room for variation during the measurement process:
Test
No.
Critical To Quality Characteristic Repeat %
Agree
Repeat %
Agree
Repeat %
Agree
Reprod %
Agree
1 Base Pay Rates within 1% 100% 100% 100% 100%
2 Fringe Benefit Rates within 1% 100% 100% 95% 95%
3 Timesheets entered into PMS on time 100% 100% 100% 100%
4 Timesheets are complete (all hours) 100% 100% 100% 90%
5 Timesheets coded correctly 95% 100% 100% 75%
6 Vendor invoices posted into PMS 100% 100% 100% 90%
7 Vendor invoice amounts correct 100% 100% 95% 90%
Trend Charts:

Histogram:
Observation Value Describe the Sample Test and Defect Measured:
1 27 Nine observations were made over a 9 month period regarding the posting of
2 22 vendor invoices into the Project Management System. Compare the invoices
3 20 that were processed and paid per the General Ledger with invoices that were
4 26 posted in the Project Management System. Count the number of invoices that
5 21 were not posted in the Project Management System.
Two
Week
Ending
Timesheets Not
Entered into PMS
10/12/15 41
10/26/15 37
11/9/15 35
11/23/15 33
12/7/15 36
12/21/15 40
1/4/16 38
1/18/16 36
2/1/16 34
0
5
10
15
20
25
30
35
40
45
Timesheets Not Entered into PMS
Month /
Year
Vendor Invoices
Not Entered
Jan 2015 27
Feb 2015 22
Mar 2015 20
Apr 2015 26
May 2015 21
Jun 2015 28
Jul 2015 25
Aug 2015 22
Sep 2015 28
0
5
10
15
20
25
30
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
Aug
2015
Sep
2015
Vendor Invoices Not Entered

6 28
7 25
8 22
9 28
Maximum 28.0
Minimum 20.0
Range 8.0
Number of Intervals based on Square Root of Observations > 3 5
< Minimum
Intervals
Width of each interval based on Range / (No of Intervals - 1) 2
Histogram Table based on above data: Simple Side Ways Plot
Interval Freq
1 Less than or Equal to 20 1
2 Between 21 and 22 3
Appears to be a Bi Modal
Distribution
More Formal Histogram Bar Chart:
Milestone Review:
Project Definition Phase is fully complete – We have a good set of Operating Definitions to drive the Measurement Phase
Preliminary Data Review – We know what needs to be measured and analyzed going forward: Timesheets and Vendor Invoices
Baseline levels of performance are now established to move us into analysis and improvement
0
0.5
1
1.5
2
2.5
3
3.5
1 2 3 4 5
Frequency
Intervals
Frequency Distribution
Freq

What have you decided to measure? Based on the January 2015 actual costs, we will focus on two big areas: Direct Labor
Costs and Vendor Invoices. Regarding direct labor costs, we will look at two critical data sources: Rates and Hours. Regarding
vendor invoices, we will measure two things: Timely posting of the invoices into the Project Management System and correct
posting of the amounts. These are the vital few attributes that will get measured.
Breakdown of Actual Costs
Total Vendor Costs
Total Labor Costs
All Other Costs
Two Preliminary Tests: Compared January 2015 General Ledger Costs to Project Management System Compared assigned
employees to submitted timesheets in Project Management System
Labor Rates are updated, but may not be accurate
Timesheet Processing is Broken: Not all employees assigned to projects are submitting timesheets into the Project Management
System!
Vendor Invoice Processing is Broken: Invoices not entered at all on several projects!
Distortions to Actual Costs appear to be material – additional testing is required
What techniques were used to validate your measurement data?
Attribute Measurement System Analysis was applied to each Operating Definition that we measured. This is a basic Gage R & R tool to
make sure we have repeatability and reproducibility:
• Repeatable – Are we coming up with the same measurement values given each observer (three used / two trial runs)?
• Reproducibility – Are we coming up with the same measurement values across all three observers?

What are the results of your MSA (Measurement System Analysis)? Everything was acceptable except for our testing of
timesheet accuracy. We had to revise the procedure and standards so that we had a better listing of activity codes to test
against. This eliminated the bias. The results of our MSA are listed here:
Gage R & R
Observers / Appraisers
CB BR MW EJ Description of Measurement
100% 100% 100% 100% Base Pay Rates agree to Source System Data
100% 100% 95% 95% Fringe Rates agree to Source System Data
100% 100% 100% 100% Timesheets submitted in a timely manner
100% 100% 100% 90% Timesheets are complete
95% 100% 100% 75% * Timesheets are accurately coded
100% 100% 95% 90% Vendor invoices posted in a timely manner
100% 100% 95% 90% Vendor invoice amounts posted correctly
What is the current baseline level of performance?
Focus on two critical to quality defects:

Critical Defect No. 1 – Vendor Invoices not posted to PMS
Critical Defect No. 2 – Timesheets not posted to PMS
Is this project on schedule according to the project plan? The project is 8 days behind schedule as a result of team members pulling
off to do other work. We still expect to meet the overall end-date since the analysis phase and improvement phases should move rather
quickly.
ANALYZE
Simple Fishbone – Invoices
Simple Fishbone - Timesheets
Fishbone Diagram
Invoices Not Posted to PMS
Not Followed
Not Trained
No Single System
Not Documented
Not Accounting
Oriented
Not Well Defined
Not Important to
Leadership
Wrong Documents
No Tracking at All
Wrong MetricsNo Integration of Data Not Available
Environment PeopleProcedures
Systems
Measurement Source Documents
Fishbone Diagram
Timesheets Not Submitted
Managers Forget to
Approve
Managers Not Trained
Manager Approvals is
Not Easy
Employees Not Trained
Employees Forget
No Email Notifications
No Approval Panels
in PMS
Employees Not Setup in
PMS
Cost Impact Not
Understood
Not Important to
Managers
No Exception TrackingNo Exception Reports All Copies are
Electronic
Environment PeopleProcedures
Systems
Measurement Source Documents

Cause and Effect:
Y
X1 X2
X4 X5
Simple Cause Effect Diagram
X3
Y: Actual Costs
X1: Labor Rates X2: Hours
X1-1: Base Pay Rate X1-2: Fringe Benefits Rate
X3: Vendor Invoices X4: Travel Vouchers X5: Credit Card Payments
X1-1 X1-2
Source System for
X1-1 and X1-2 is the
Payroll System
Source System for
X2 is the Project
Management System
Source System for X3, X4,
and X5 is the Financial
Reporting System
Output System for Y
is the Project
Management System
FMEA:

FailureModesandEffectsAnalysis
Processor
ProductName:
Preparedby:Clint
Britt
Page1of1
Responsible:FMEADate(Orig)2/10/2016(Rev)_____________
ProcessStep
KeyProcess
Input
Potential
FailureMode
PotentialFailure
Effects
HowSevere
toCustomer
Potential
Causes
Frequency
ofError
CurrentControls
CurrentAbilityto
DetectError
R
P
N
ActionsRecommendedResp.ActionsTaken
Submissionof
TimeSheets
Employees
entering
Timesheets
intoProject
Management
System
Employeesfail
toenterand
submitweekly
timesheetsfor
updatingthe
Project
Schedule
ProjectCostsare
under-statedinthe
Monthly
Performance
Reportsand
ProjectSchedules
areincorrectin
termsoftimespent
andprogressto
date
CIOconsiders
thisverysevere
sinceitimpairs
thereliabilityof
performance
information.
RPNFactor=5
Noprogram
controlsor
manualcheck
listcontrolsin
placeforallIT
projects.Project
Managersare
notapproving
weekly
timesheet
submissions.
Weekly.
RPNFactor
=4
ProjectManagers
areresponsiblefor
makingsurethat
allteammembers
haveenteredtime
sheetsintothe
Project
Management
System.Time
Sheetapproval
screenprovides
employeelisting.
Relativelyeasyif
ProjectManagers
approvetimesheets
everyweek.RPN
Factor=2
11PMOCommunicationMemoto
beissuedtoallProject
ManagerswithProcedurePaper
/ScreenShotsattached.
ProjectTeamtodevelopmore
robustsolutions.
PMOWhatarethecompleted
actionstakenwiththe
recalculatedRPN?Be
suretoinclude
completion
month/year
Submissionof
Vendor
Invoices
Contractor's
invoicesare
receivedand
enteredinto
theProject
Management
System
ProjectCost
Analystdoes
notreceiveand
entervendor
invoicesinto
theProject
Management
ProjectCostsare
under-statedinthe
Monthly
Performance
Reportsand
Budget
Comparisonsare
CIOconsiders
thisverysevere
sinceitimpairs
thereliabilityof
performance
information.
RPNFactor=5
Noautomatic
interface
between
systems.No
reconciliations
between
systems.
Monthly.
RPNFactor
=3
Contracting
Officerswho
administer
contractssend
copiesofvendor
invoicestoCost
Analystfor
Somewhatdifficult
sinceCostAnalyst
mustmanuallytrack
andmonitoreach
month.RPNFactor=
4
12
ProjectTeamwillevaluate
currentprocessanddevelop
improvements
PMO
IntegrityofCostsinMonthly
PerformanceReports
ProjectManagementOffice
(PMO)

Scatter Plots:
Vendor Invoices:
< - - Data to Plot - ->
X Values
Y
Values
1 3 3
2 4 3
3 4 4
4 2 2
5 6 5
6 5 5
7 4 2
8 6 5
9 7 7
10 6 6
11 8 7
12 4 4
13
14
15
Timesheets:
< - - Data to Plot -
->
X
Values
Y
Values
1 11 11
2 16 16
3 22 20
4 17 16
5 34 32
6 26 25
7 19 19
8 18 18
9 29 28
10 24 24
11 26 26
12 21 21
13
14
15
0
1
2
3
4
5
6
7
8
0 5 10
InvoicesEntered
Invoices Reconciled
Scatter Plot - Invoices
Invoices
Linear
(Invoices)
0
5
10
15
20
25
30
35
0 10 20 30 40
TimesheetsEntered
Timesheets Reviewed
Scatter Plot - Timesheets
Timesheets Linear (Timesheets)

z-Tests:
Critical Defect No. 1 - Vendor Invoices Posted to PMS
H0: p1 = p2 Null Hypothsis: Number of Vendor Invoices not entered is the same regardless of reconciliation control procedure
H1: p1 > p2 Alternative Hyposis: Number of Vendor Invoices not entered is higher w hen reconciliation procedure is not follow ed
n1: population of projects that have no reconciliation procedure in place
n2: population of projects that do have a reconciliation procedure in place
Size => 141 62 0.99
Observation Sample n1 Sample n2 0.01
d1 d2 2.326
1 12 2
2 11 1 You should reject the Null Hypothesis if the Test Statistic
3 8 1 is higher than the Decision Cut Off Value of: 2.326
4 9 0
5 7 0
6 11 1 1. Proportion of defects (d1 / n1) 0.55
8 9 1 3. Overall Proportion of defects (d1+d2) / (n1+n2) 0.41
Average (u) 9.625 0.750 4. Calculate the Test Statistic (z) 6.00
Variance 2.839 0.500
Std Deviation 1.685 0.707
Total Defects 77 6 Test Statistic of 6.00 is higher than 2.326
Reject the Null Hypothesis and Accept the Alternative
Critical Defect No. 2 - Timesheets Entered into PMS
H0: p1 = p2 Null Hypothsis: Number of Timesheets entered is the same regardless if Managers review and approve timesheets
H1: p1 > p2 Alternative Hyposis: Number of Timesheets not entered is higher w hen Managers do not review and approve timesheets
n1: sample timesheets on those projects w here Managers do not approve timesheets
n2: sample timesheets on those projects w here Managers do approve timesheets
0.99
Size => 436 312 0.01
Observation Sample n1 Sample n2 2.326
d1 d2
1 26 6 You should reject the Null Hypothesis if the Test Statistic
2 19 4 is higher than the Decision Cut Off Value of: 2.326
3 22 5
4 25 6
7 23 5 3. Overall Proportion of defects (d1+d2) / (n1+n2) 0.45
8 24 6 4. Calculate the Test Statistic (z) 11.98
9 22 6
10 25 5
11 21 4 Test Statistic of 11.98 is higher than 2.326
12 26 5 Reject the Null Hypothesis and Accept the Alternative
Average (u) 23.167 5.083
Variance 8.152 0.629
Std Deviation 2.855 0.793
Total Defects 278 61
Conclusion:
Confidence Level =>
Alpha or Sign Level =>
Decision Cut Off =>
Confidence Level =>
Alpha or Sign Level =>
Decision Cut Off =>
Calculate the Test Statistic:
Conclusion:
Calculate the Test Statistic:

Milestone 3 Review - Analysis Phase Complete
• Analysis is focused on two critical to quality processes:
– Processing of Time Sheets
– Processing of Vendor Invoices
– Major Analytical Steps: Identify Process Variables - Compare Impacts – All Variables
– Apply Analytical Techniques
1. Fish Bone & Five Whys
2. Scatter Plots & Regression Analysis
What variables have the biggest impact on improving the two critical processes?
Processing of Vendor Invoices (Critical Defect #1). Comparing / Reconciling to General Ledger Listing of Vendor Invoices.
Receiving all monthly copies of invoices. Manual tracking of monthly recurring contract invoices
Processing of Time Sheets (Critical Defect #2). Manager review & approval of timesheets each pay period. Employee
notifications of timesheets not entered
Describe the current sampling plan for the two critical processes. Focus on the high impact projects within the IT portfolio. Need to
sample these projects on a continuous basis as follows: Statistical sampling of timesheets every two weeks to drive control charts and
subsequent project phases (improvement and control).
What is the expected time frame for sampling? In order to ensure quality sampling, we are recommending that the team (or PMO staff)
continue to pull samples well into next year. This will also help facilitate control and improvement over the two critical processes involved.
ANOVA Test: Assess differences between various treatments:

IMPROVE:
Solutions Ration Matrix - Invoices
1.1
1.2
1.3
1.4
1.5
1.6
SolutionsRatingsMatrix-Invoices
Fullyautomatedsolutionsare
available
SolutionmustbedonemanuallySolutionmightbeautomated,but
verycostly
Solutioncanbeautomated,but
requireschange
Automatedsolutionsexist,some
changesareneeded
Nomeasurablecostsortimeare
required
Managementdoesnotsupport
thissolution
LimitedsupportforthissolutionSupportexists,butsomeare
doubtful
Goodbuy-infrommanagement
onthissolution
Fullandcompletesupportfrom
management
Veryhighcostsandtimeare
involved
Additionalcostsandtimewillbe
required
Somemodestcostsandtimeare
needed
Relativelylowcostsandtimeare
involved
Verylittleifanysupportisneeded
toimplement
Nosignificantimpacton
improvingtheprocess
Modestimpactonimprovingthe
process
SomegainswillberealizedVerysolidimprovementsCompleteturnaroundofthe
process
Veryhighsupportlevelsneededto
implement
Apermanentlevelofsupportis
neededtoimplement
Somecontinuingsupportwillbe
neededtoimplement
Onlymodestlevelsofsupportare
neededtoimplement
Extremelyeasy,projectsshould
complyquickly
1=Lowest2=SomewhatLow3=Moderate4=SomewhatHigh5=Highest
Verydifficulttoimplementacross
projects
Difficult,someprojectsmaynot
complywiththechange
Somewhatdifficult,butallprojects
complyovertime
Withinoneyear,allprojects
shouldeasilycomply
EasytoImplement
EasytoMaintain
SignificantImpact
MinimalCostandTime
SeniorManagementSupport
SolutioncanbeAutomated

Solutions Ration Matrix – Timesheets
Criteria Criteria Criteria Criteria Criteria Criteria Criteria Criteria TOTAL
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 RATING
3.1 3 3 5 3 5 3 22
3.2 5 4 3 4 5 2 23
3.3 5 5 2 5 5 1 23
3.4 0
3.5 0
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 WGHT
Weight Assigned >Weight Assigned > 100% 50% 75% 50% 100% 75% RATING
3.1 3 1.5 3.75 1.5 5 2.25 0 0 17
3.2 5 2 2.25 2 5 1.5 0 0 17.75
3.3 5 2.5 1.5 2.5 5 0.75 0 0 17.25
3.4 0 0 0 0 0 0 0 0 0
3.5 0 0 0 0 0 0 0 0 0
Most Attractive
Cost = All resources to implement, such
as funding, personnel, equipment, tiime, etc.
Benefit = Both tangible and intangible benefits
such as fewer errors, reduces time, improves
customer satisfaction, lowers costs, etc.
Least Attractive
Someone is trained / assigned to enter invoices
0
0
Projects reconcile costs to the General Ledger
Projects receive copies of vendor invoices
Projects reconcile costs to the General Ledger
Projects receive copies of vendor invoices
Someone is trained / assigned to enter invoices
Low<--Benefits-->High
High < - - - - - - - - Costs - - - - - - - - - - > Low
Solution 3.1
Solution 3.2
Solution 3.3

1.1
1.2
1.3
1.4
1.5
1.6
SolutionsRatingsMatrix-TimesheetProcessing
SeniorManagementSupport
SolutioncanbeAutomated
EasytoImplement
EasytoMaintain
SignificantImpact
MinimalCostandTime
Extremelyeasy,projectsshould
complyquickly
1=Lowest2=SomewhatLow3=Moderate4=SomewhatHigh5=Highest
Verydifficulttoimplement
acrossprojects
Difficult,someprojectsmaynot
complywiththechange
Somewhatdifficult,butall
projectscomplyovertime
Withinoneyear,allprojects
shouldeasilycomply
Verylittleifanysupportis
neededtoimplement
Nosignificantimpacton
improvingtheprocess
Modestimpactonimprovingthe
process
SomegainswillberealizedVerysolidimprovementsCompleteturnaroundofthe
process
Veryhighsupportlevelsneeded
toimplement
Apermanentlevelofsupportis
neededtoimplement
Somecontinuingsupportwillbe
neededtoimplement
Onlymodestlevelsofsupport
areneededtoimplement
Nomeasurablecostsortime
arerequired
Managementdoesnotsupport
thissolution
LimitedsupportforthissolutionSupportexists,butsomeare
doubtful
Goodbuy-infrommanagement
onthissolution
Fullandcompletesupportfrom
management
Veryhighcostsandtimeare
involved
Additionalcostsandtimewillbe
required
Somemodestcostsandtime
areneeded
Relativelylowcostsandtime
areinvolved
Fullyautomatedsolutionsare
available
SolutionmustbedonemanuallySolutionmightbeautomated,
butverycostly
Solutioncanbeautomated,but
requireschange
Automatedsolutionsexist,
somechangesareneeded

Error Proof Critical Processes:
Vendor Invoices:
1. What is the defect? Vendor invoices fail to get posted on a monthly basis within the Project Management System (PMS)
2. What is the source system involved? Expense Module within the Project Management System
3. What is the source document? - Vendor Invoices
4. What positions are responsible for running this process? Project Planners and Project Managers
5. Is it possible to automatically detect / inspect the defect? Possible matching by invoice number between General Ledger and
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 RATING
3.1 5 4 5 4 4 2 24
3.2 2 5 5 4 5 4 25
3.3 5 5 2 5 4 3 24
3.4 0
3.5 0
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 WGHT
Weight Assigned >Weight Assigned > 100% 50% 75% 50% 100% 75% RATING
3.1 5 2 3.75 2 4 1.5 0 0 18.25
3.2 2 2.5 3.75 2 5 3 0 0 18.25
3.3 5 2.5 1.5 2.5 4 2.25 0 0 17.75
3.4 0 0 0 0 0 0 0 0 0
3.5 0 0 0 0 0 0 0 0 0
Most Attractive
Cost = All resources to implement, such
as funding, personnel, equipment, tiime, etc.
Benefit = Both tangible and intangible benefits
such as fewer errors, reduces time, improves
customer satisfaction, lowers costs, etc.
Least Attractive
Managers must approve timesheets
Email notifications when timesheets not entered
Mandatory timesheet training
Low<--Benefits-->High
High < - - - - - - - - Costs - - - - - - - - - - > Low
Mandatory timesheet training
0
0
Managers must approve timesheets
Email notifications when timesheets not entered
Solution 3.1
Solution 3.2
Solution 3.3

6. Is it possible to issue a warning to the source person involved? Possible search and report blank entries when past monthly entries
have been posted for the last consecutive six months
7. Is it possible to correct the error as part of the process loop? No - PMS is outside the Accounts Payable process within the General
Ledger
Timesheets:
1. What is the defect? Employees fail to submit a timesheet within the Project Management System (PMS)
2. What is the source system involved? Time & Attendance Module within PMS
3. What is the source document? Electronic Timesheet for Employee (Resource ID)
4. What positions are responsible for running this process? All employees assigned to the project
5. Is it possible to automatically detect / inspect the defect? Yes - all active resources who are setup for timesheet entry have failed to
submit a timesheet for the two week pay cycle
6. Is it possible to issue a warning to the source person involved? Yes - once a due date and time have been reached, issue an email
notification to those resources that are past due
7. Is it possible to correct the error as part of the process loop? Yes - warnings must be issued within 24 hours on each Friday of each
two week pay cycle with a hard close the following Tuesday at 12 noon.
Corrective Action Plans – Vendor Invoices and Time Sheets

CorrectiveActionPlanasof5/10/16
ProcessingofVendorInvoices
Issue:ProjectsmaynotpostallvendorinvoicesintotheProjectManagementSystem,therebydistortingcostperformanceinformationandmakingthemonthlyreviewprocesssomewhatnon-valueadded.
Objective:NeedtoimplementspecificcontrolproceduresthatwillimprovethecurrentprocessensuringthatvendorinvoicesgetpostedinPMS.
RefNoDescribeActionItemScopeofActionItemChampionCoreTeam/POCPilot?Paper?Training?Procedure?DateDateofSuccessResolution
VS.1DevelopandDistributemonthly
GeneralLedgerReportsona
projectbyprojectbasistoall
ProjectManagerssothattheycan
review/reconcilevendorinvoices
SystemRequest
requiredcoveringallIT
projectssetupinthe
GeneralLedger
PMODirector-
ClintBritt
SixSigmaTeam
andFRS
Programmer
Yes-run
severaltestof
programbefore
puttinginto
production
No-thisis
belowthe
policylevel
Yes-develop
trainingslides
andconduct
livemeeting
Yes-
referencethis
newactivityin
EVM
Procedure9
TBD-
Depends
upon
System
Request
TBD-30
daysafter
System
Requestis
100%
complete
Allprojectsare
usingthenew
reporttovalidate
vendorinvoicesin
PMS.
TBD-3months
after
implementation
date
VS.2Payableprocessingisrevisedto
includeformaldistributionofinvoice
copiestoallITProjectPlanners
FinancialAccounting
ControlandITProject
Managers
PMODirector-
ClintBritt
SixSigmaTeam
andPMO
NotapplicableNoNoNo5/1/20166/1/2016Allprojectsare
receivingcopiesof
vendorinvoices
VS.3AllprojectshaveaProjectPlanner
assignedandtrainedintheposting
ofvendorinvoicestotheProject
ManagementSystem
AllITProjectsthat
shouldbeusingPMS
PMODirector-
ClintBritt
SixSigmaTeam
andPMO
NotapplicableNoYes-update
PMSTraining
Modules
Yes-update
PMSSOP11
5/1/20166/1/2016Allprojectshavea
trainedplanner
assigned
VL.1Developanautomatedinterface
comparisononaninvoicebyinvoice
numberbasisbetweentheGeneral
LedgerandtheProject
ManagementSystem.
AllITProjectssetup
intheGeneralLedger
System
PMODirector-
ClintBritt
SixSigmaTeam
andPMO
Yes-run
severaltest
NoYes-willneed
torevise
training
Yes-willneed
toupdateEVM
SOP
TBDTBDAllprojectsare
usingtheweb
basedtool
GlossaryofTerms
EVMEarnedValueManagement
FRSFinancialReportingSystem
ITInformationTechnology
PMOProgramManagementOffice
PMSProjectManagementSystem
POCPointofContact
TBDToBeDetermined
ImmediateActionItems
LongTermSolutions

CorrectiveActionPlanasof5/10/16
ProcessingofTimesheets
Issue:EmployeesmaynotsubmittimesheetsintotheProjectManagementSystem,therebydistortingcostperformanceinformationandmakingthemonthlyreviewprocesssomewhatnon-valueadded.
Objective:NeedtoimplementspecificcontrolproceduresthatwillimprovethecurrentprocessensuringthatemployeesentertimesheetsinPMSwitheachpaycycle.
RunTestPolicyGuideBook/StdOperatingImplEstCMeasureFinal
RefNoDescribeActionItemScopeofActionItemChampionCoreTeam/POCPilot?Paper?Training?Procedure?DateDateofSuccessResolution
TS.1AllProjectManagersapprove
timesheetsforallpersonnel
assignedtotheproject
AllITProjectsthatusePMSPMODirector-Brian
Rector&Chief
InformationOfficer
SixSigmaTeam
andProject
Managers
NoNoNoYes-update
SOP's
4/1/20166/1/2016AllProjectManagers
areapproving
timesheets
TS.2Allemployeesassignedtoa
projectmustcompletemandatory
timesheettrainingwithtwoweeks
Allnon-contractlabor
personnelassignedto
anITproject
PMODirector-Brian
Rector&Chief
InformationOfficer
SixSigmaTeam
andProject
Managers
NoNoYes-needto
revisetraining
andGuide
No4/1/20166/1/2016Allassigned
employeesare
enteringtimesheets
TL.1Developanautomatedemail
notificationmessageeachtimean
employeefailstoentertheir
timesheetwithina24hourperiod
Allnon-contract
personnelassignedto
ITprojects
PMODirector-Brian
Rector
SixSigmaTeam
andPMSSystem
Administrators
YesNoNoYes-update
SOP'sonce
implemented
TBDTBDAllassigned
employeesare
enteringtimesheets
ImmediateActionItems
LongTermSolutions

Training Plan
1. Revised Training on Timesheet Processing
2. New Training on Reconciling Costs
1. Revised Training on Timesheet Processing
A. Goal / Objective of Training
Update the current training on timesheet processing to include additional information on timesheet approval. This would include how
Project Managers can go online and approve timesheets within the Project Management System. The training should also include a closing
schedule of due dates for both submission and approval of timesheets. The goal is to make sure everyone submits timesheets on time and
to make sure Project Managers are approving timesheets.
B. Title of Training Program
Submitting and Approving Timesheets in the Project Management System. This training module is already in place.
C. Training Method(s)
Computer Based Training exists. Need to update certain pages in the training module. Also should update the Standard Operating
Procedure and announce the updated training program to all Project Managers.
D. Training Time Line / Dates
Revised training module should be available by end of May 2016.
E. Scope of Training
All personnel subject to submitting or approving timesheets in the Project Management System. This represents approximately 350 people
within the Office of Information and Technology.

F. Resources Needed / Administrative Help
Approximately one-week of content development from the System Administrators. Approximately two weeks of time from the Web
Master for updating pages. PMO will review and approve changes once uploaded. Some administrative help will be required to issue a
communication notice to all personnel impacted.
G. Length / Format
Current program will be expanded from approximately 2 hours to 2.5 hours in length. Same format – online web based training module
will be used.
H. Other Components (Handouts / Exercises / Evaluation)
Post and update on a regular basis the Timesheet Closing Schedule. Include a link in the training program. Continue to use the same
evaluation form currently in place for assessing the effectiveness of the training.
I. Training Sources
Screen shots and content should be developed directly from System Administrators – Project Management System.
J. Dependencies/Constraints/Limitations
Availability of System Administrators may represent a dependency. However, the extent of content development appears minimal and no
problems are anticipated. Also, web based training can be limited in its effectiveness – need to re-enforce with revised Standard Operating
Procedure, communications from leadership and desk side assistance for Project Managers. This will require some work on the part of the
PMO.
2. New Training on Reconciling Costs
A. Goal / Objective of Training
Introduce and describe a new control procedure on how to reconcile costs between the Project Management System (PMS) and the
Financial Management System. Goal is to get project teams into a monthly routine of comparing their project costs against the General
Ledger to ensure actual costs have been properly captured in PMS.
B. Title of Training Program

Reconciling Actual Costs to the General Ledger.
C. Training Method(s)
Combination of web based training module, desk side assistance, and live on-line meeting for project leads.
D. Training Time Line / Dates
Launch new web based training module in May 2016. Provide desk side assistance after May 2016 on an as needed basis.
E. Scope of Training
Project Planners, Schedulers, Managers and other personnel who are directly responsible for maintaining project cost data within the
Project Management System (PMS). This includes approximately 50 personnel within the Office of Information and Technology.
F. Resources Needed / Administrative Help
Need System Administrators to develop screen shots and certain narrative content for this training module. PMO will need to design and
develop most of the content. The PMO will be responsible for developing supporting materials, such as handouts, operating procedures,
and other documents. Some administrative help will be needed to setup live meetings, issue communication notices, and do other tasks.
G. Length / Format
Anticipated length of this new training module is 30 minutes. Training format will be similar to other web based training modules
previously developed by the PMO.
H. Other Components (Handouts / Exercises / Evaluation)
The web based training module should include an example of how to reconcile costs, showing screen shots, and providing links to report
examples. A separate handout should also be developed to assist with desk side help. This can include a Standard Operating Procedure to
document the monthly reconciliation procedure. Evaluation survey is the same as used by other training modules.

I. Training Sources
The PMO has developed the pilot procedure that is now ready to go. This includes an extract report from the Financial Management
System. Personnel within Financial Accounting are also useful in understanding the General Ledger data. It is important to map and align
this data between the two systems: Project Management System vs. Financial Management System.
J. Dependencies/Constraints/Limitations
New control procedures can be difficult to implement. Most of the project personnel have little or no understanding of how accounting
works. Project Managers, the PMO, and others will have to monitor implementation. This control procedure is time consuming and
project teams are often under high demands with other tasks.
Milestone Review - Improvement Phase Complete
Three Immediate Improvements
1. Require a reconciliation / comparison to the General Ledger
2. Require training:
1. Invoices – Entering Expense Entries into the Project Management System
2. Time Sheets – Entering Time Sheets into the Project Management System
3. Require Timesheet Approvals by Managers
Two Long Term Solutions
1. Automated comparison of invoices by invoice number between GL and PMS
2. Automated Email notification to employees who fail to submit time sheets
Monitor and Control
Final project phase will:
Establish a Control Plan to monitor defect rates per continuous sampling.
Set initial performance goals and revisit performance goals once initial goals have been met
Include Reaction Plans that map out how to deal with out of control process situations

Monitor progress using simple Trend Charts
CONTROL:
Control Plan
Control Plan for Critical Process 1: Vendor Invoices
Critical to Quality Issue:
Revision Number 1 Date 6/1/2016
Organization
A. Critical to Quality Characteristics to Reduce Defects
A.1
A.2
A.3
A.4
A.5
B. Control Chart Process
B.1 What type of control charts will be used?
B.2 Chart control process champion is:
B.3 Where are the charts located at?
B.4 What measurement method will be used?
B.5 What is the control target?
C. Readiness for Control Charting
C.1 Has a measurement study been conducted?
C.2 What is the current defect rate?
C.3 Does the control process have a reaction plan?
C.4 Is the process currently stable?
D. Sample Plan
D.1 Is there a documented sample plan in place? Yes
D.2 What is the frequency of sampling? Monthly
D.3 What is the sample size? 10
D.4 Who will take the samples?
D.5 Where are the sample results located at?
Office of Information & Technology
Simple Trend Chart
Posting of Vendor Invoices to PMS
Reconcile Invoices to the General Ledger
Complete distribution of invoice copies to project control personnel
Project Management Office (PMO)
Brian Rector - PMO
Count and plot number of defects
95% of monthly vendor invoices have been posted to PMS
PMO
Brian Rector - PMO
Yes - Attribute Measurement System Analysis
20% overall based on samples of prior months data
Yes - see next tab in this workbook
No - project solutions just now getting implemented

Reaction Plan for Critical Process 1: Vendor Invoices
Organization
In the event that the Control Chart indicates an out-of-control condition, follow this plan of attack to address the condition:
Monthly sample of
vendor invoices per
the General Ledger
Does the sample meet Process is under control.
the control target of Consider calculating process
95%? Yes capability and setting a
new target and sample.
No
Identify the project id and
vendor invoices related to
the defects
Update the distribution list to
Is the defect due to Is Financial Control include the project id and point
a missing invoice copy sending copies of invoices of contact involved. Re-sample
not sent to the project? Yes to the project team? No next month to see if this problem
has been addressed.
No Yes
Train the Project Planner in
Does the project have Does the project reconciling invoices and make
a trained planner in reconcile invoices to sure the Planner gets copies
posting invoices to PMS? Yes the General Ledger? No of monthly GL Extract Reports.
No Yes
Enroll the Planner in the Notify the Planner and
new training program on Manager of the defects.
invoice processing and Re-sample this project
provide desk side help. next month.
Posting of Vendor Invoices to PMS

Control Plan for Critical Process 2: Timesheets
Organization
A. Critical to Quality Characteristics to Reduce Defects
A.1
A.2
A.3
A.4
A.5
B. Control Chart Process
B.1 What type of control charts will be used?
B.2 Chart control process champion is:
B.3 Where are the charts located at?
B.4 What measurement method will be used?
B.5 What is the control target?
C. Readiness for Control Charting
C.1 Has a measurement study been conducted?
C.2 What is the current defect rate?
C.3 Does the control process have a reaction plan?
C.4 Is the process currently stable?
D. Sample Plan
D.1 Is there a documented sample plan in place? Yes
D.2 What is the frequency of sampling? Bi Monthly
D.3 What is the sample size? 35
D.4 Who will take the samples?
D.5 Where are the sample results located at?
Simple Trend Chart
Timesheets Submitted to PMS
Timesheets are submitted and approved by Project Managers every pay cycle
Project Management Office (PMO)
Brian Rector - PMO
Count and plot number of defects
90% of timesheets are entered and approved
PMO
Brian Rector - PMO
Yes - Attribute Measurement System Analysis
21% overall based on samples of prior months data
Yes - see next tab in this workbook
No - project solutions just now getting implemented

Reaction Plan for Critical Process 2: Timesheets
Organization
In the event that the Control Chart indicates an out-of-control condition, follow this plan of attack to address the condition:
Bi Monthly Timesheets
are entered into
Project Management
System (PMS)
Does the sample meet Process is under control.
the control target of Consider calculating process
90%? Yes capability and setting a
new target and sample.
No
Identify the project id,
the employees, and the
pay period for all defects.
Make sure the Manager is
Is the defect due to Is the employee setup aware of the approval process
the Manager not and trained for entering within PMS and notify the
approving the timesheet? No timesheets into PMS? Yes Manager of all missed employees
Yes No
Make sure the Manager Have the employee
understands how to complete PMS setup
approve and process forms and related
timesheets. Followup training. Followup with
in next pay cycle. employee when done.
Resample these defects
to make sure the
proposed solutions are
implemented.
Timesheets Submitted to PMS

Trend Charts - Initial Implementation
A. Processing of Timesheets:
The Six Sigma Project pilot was launched in Feb 2016 and started to test and implement new procedures
Period Defects
1 9
2 11 Average Before 10
3 8 Average After 2
4 10
5 10
6 11
7 9
8 10
9 11
10 10
11 8 This is a period when improvements were proposed and tested
12 3 against four major projects within the Office of Information and Technology.
1 3 This is a period when the improvements were fully implemented against
2 1 the four major projects.
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10 11 12 13 14
NumberofDefects
Period
Trend Chart - Timesheets Not Entered QC02
Defects

Best Practice Log
B. Processing of Vendor Invoices:
The Six Sigma Project pilot was launched in Feb 2016 and started to test and implement new procedures
Period Defects
1 2
2 3
3 3 Average Before 3
4 1 Average After 1
5 3
6 3
7 2
8 3
9 3
10 3
11 3 This is a period when improvements were proposed and tested
12 1 against four major projects within the Office of Information and Technology.
1 1 This is a period when the improvements were fully implemented against
2 1 the four major projects.
0.5
1
1.5
2
2.5
3
3.5
4
1 2 3 4 5 6 7 8 9 10 11 12 13 14
NumberofDefects
Period
Trend Chart - Invoices Not Entered QC02
Defects
BEST PRACTICES LOG
Project Name: Month Financial Package (MFP) Data Integrity
Project Sponsor: Project Management Office
Project Manager Name: Clint Britt
Project Description:
ID Date
Identified
Point of
Contact
Source of Best Practice Describe Best Practice Recommendations & Comments Follow-Up Actions
1 06/01/16 Brian Rector Project Management System - System
Administrators Group
Report of Pending Timesheets that must be
approved w ithin Project Management System.
Communicate this practice to all projects. Include
in training and SOPdocuments w here
applicable.
Yes - Post Implementation Review to
see if other projects are using this
best practice
2 06/01/16 Brian Rector Financial Control Systems Group - Accounts
Payable Processing Unit
Electronic access to vendor invoices - print
copies for posting into Project Management
System.
Communicate this practice to all projects. Include
in training and SOPdocuments w here
applicable.
Yes - Post Implementation Review to
see if other projects are using this
best practice
Improve the quality of cost data reported in monthly performance review s

Milestone 5 Review - Control Phase Complete
• Control Phase is fairly straight forward:
1. Monitor progress on Trend Charts – Four Initial Projects Only (QC02, LB02, VM01 & GS02)
2. Implement Improvements on all remaining projects (over 12 projects subject to control)
3. Start Trending remaining projects for FY2008
4. Long Term Goal: 80% of all monthly project costs are at Sigma Level 5 by end of FY2008.
Good Progress
Continuous Improvement Practices
Desk Side Mentoring and Assistance to fully institutionalize the changes
• PMO will continue to track defects within PMS through the end of FY2016 (10/31/16)
• PMO will evaluate how to automate control procedures:
– Comparison of Invoices by Invoice Number between PMS and FMS
– Email notification and kick-out reports when timesheets are not submitted
What was this project’s overall cost performance?
– The project came in under budget since fewer resources were required to complete the project. Also, the solutions to
improve the processes were fairly easy to develop and implement. So this was a good “quick win” type project.
– Final Project Costs . . . . . . . . . . . . $ 164,000
– Project Budget . . . . . . . . . . . . . . . .$ 222,000

– Under Budget . . . . . . . . . . . . . . . . $ 58,000

Clint Britt _ Six Sigma Project _ MFP_ June2016

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