Improve project management by using Six Sigma tools : An empirical study in Siemens Industrial Turbomachinary

Abstract: Traditional project management has been implemented by most of the companies in today’s business world in order to monitor and control the projects (Tonnquist, 2008). Project management techniques have been proven for decades and its performance has been maximized (Heldman, 2011). We think that the PM techniques have gradually reached its limits. For today’s companies, it is vital to find a more effective and innovative method which can be integrated into the project management in order to maintain their competitive advantages (Pyzdek, 2003).   As a relatively new business management approach and strategy, Six Sigma seeks to improve the quality of the product and process by using some quantitative methods and tools (Michalski, 2003). Actually, Six Sigma has been broadly implemented in many companies and received a positive effect (Pande et al., 2000). However, most of the Six Sigma usage happens just in the Six Sigma projects and these projects need the great support from the top-management level and require plenty of resources for training and maintain (Pande et al., 2002).   The purpose of this thesis is to suggest an approach/methodology for how simple Six Sigma tools and methods can be combined with the traditional project management. In this case, those non-Six Sigma projects can still use some easy Six Sigma techniques to maximize the benefits. In order to achieve this purpose, the following methodologies are implemented: literature review to identify relative factors including quality, time, cost, communication and customer satisfaction, surveys and interviews to find out the current situations and problems in Siemens Industrial Turbo machinery (SIT) project management, empirical studies to develop some models and methods in which Six Sigma tools are integrated in the project management in SIT.   In this thesis, based on the empirical research of the case company of SIT, we are going to suggest some Six Sigma tools to be integrated into project management. The research questions include:   How can the selected Six Sigma tools improve the project management? The Pros and Cons of implementing Six Sigma methods and tools in the project management. What tools of Six Sigma are suitable to increase the performance of the project management in SIT   As the result of this thesis work, once it is testified it is feasible and fit in the SIT project management process, we think that there is a great chance it should be amplified and spread to many more business areas.