Improvement of Project Management in an SME - A Six Sigma Approach Master’s thesis in Quality and Operations Management Abdulruhman Khelil Chetan Vijay Kumar DEPARTMENT OF TECHNOLOGY MANAGEMENT AND ECONOMICS Division of Innovation and R&D Management CHALMERS UNIVERSITY OF TECHNOLOGY Gothenburg, Sweden 2024 www.chalmers.se Master thesis 2024 Improvement of Project Management in an SME A six sigma Approach Abdulruhman Khelil Chetan Vijay Kumar Department of Technology, Management, & Economics Division of Innovation and R&D Management Chalmers University of Technology Gothenburg, Sweden 2024 Improvement of Project Management in an SME A Six Sigma Approach Abdulruhman Khelil Chetan Vijay Kumar © Abdulruhman Khelil 2024 © Chetan Vijay Kumar 2024 Supervisor: Petra Bosch & Christoffer Eklund, Consilium Safety Group AB Examiner: Prof. Petra Bosch, Department of Technology Management and Economics, Chalmers University of Technology Master Thesis 2024 Department of Technology, Management, and Economics Division of Innovation and R&D Management Chalmers University of Technology SE-412 96 Gothenburg, Sweden Telephone +46 31 772 1000 Summary Enterprises all throughout the world, especially small and medium-sized businesses (SMEs), are essential to economies because they create jobs, innovate, and contribute value. However, in project based SMEs, because of their different structures, dispersed locations, and cultural barriers, SMEs especially those operating globally present distinct project management challenges because of their dynamic nature. This paper examines the project management difficulties that a developing medium-sized global organization has and suggests solutions to meet goals in the face of changing circumstances. Examining the existing information available on project oriented SMEs that work with project management and continuous improvement methodologies like Kaizen and Hoshin Kanri, this research investigates structural issues arising from growth and increasing targets. The methodology employed aligns with the Six Sigma DMAIC method, addressing research questions centered on project management challenges and pathways to achieving organizational objectives. The research finds out a few challenges affecting the Project Management such as lack of Standard Operating Procedures (SOPs) and other un sustainable growth plans causing stress to the employees. The study later on moves forward in bringing out the causes of these challenges and finally marks out the areas of improvement with some recommendations. Important findings point to organizational structural challenges that are in need for focused adjustments. The fundamental objective of the recommendations is to match short-term improvements with long-term objectives by using continuous improvement approaches and improving organizational control while preserving project flexibility. This study adds to our understanding of project management in SMEs, especially when it comes to international expansion, and offers practical advice for businesses trying to successfully manage growth-related obstacles. Key words: Small to Medium sized Enterprises, Project management, Underlying causes, Affinity interrelationship matrix, Effective scoping, Fishbone-diagram, Multivariate analysis, Acknowledgements The following people and organizations have our deepest gratitude and appreciation for their vital support and assistance during our writing and research process: We want to start by expressing our gratitude to my supervisors Christoffer Eklund from Consilium Safety Group and Petra Bosh from Chalmers University, for all their help, encouragement and criticism during our research. Their expertise, support and patience have been instrumental in the completion of this thesis. We are grateful to Consilium Safety Group AB who entrusted us and provided us with the opportunity which made this research possible. We want to express our gratitude to our family and friends for their continuous encouragement and support which endured us through this journey’s highs and lows. Finally, We would like to sincerely thank everyone who has encouraged us and helped us develop both personally and professionally. We sincerely appreciate all of your wonderful help and inspiration. Abdulruhman Khelil, Chetan Vijay Kumar, Gothenburg 2024 Table of contents List of Acronyms and abbreviations 1 List of figures 2 1. Introduction 3 1.1. Background 3 1.1.1. Purpose 4 1.2. Scope 5 1.2.1. Organization for the study 6 2. Theory 7 2.1. Project based SMEs 7 2.2. Project management 7 2.2.1. Challenges faced in PM 9 2.3. Quality management 10 2.4. Continuous improvement 11 2.5. Improvement of project management 12 2.5.1. Six Sigma 13 2.5.1.1. Six Sigma in process improvements 13 2.5.2. Lean methodology 14 2.5.3. Lean Six Sigma 15 2.5.4. Agile 15 3. Methodology 17 3.1. Research approach 17 3.1.1. Mixed method approach 17 3.2. Research Design 18 3.2.1. Define 18 3.2.2. Measure 19 3.2.3. Analyze 19 3.2.4. Improve 19 3.2.5. Control 19 3.3. Research Methods 20 3.4. Interviews 20 3.4.1. First stage interviews 21 3.4.2. Second stage interviews 21 3.4.3. Third stage interviews 21 3.4.4. Quantitative data 22 3.2.3 Data analysis 22 3.5. Ethical considerations 23 3.6. Data trustworthiness 23 3.7. Discussion of Methods chosen 24 4. Results 25 4.1. Project management at Case Company 25 4.2. Process map 26 4.3. Affinity Interrelationship Matrix 27 4.4. Effective scoping 29 4.4.1. Procedure 30 4.4.2. y1: agreed delivery time vs actual delivery 30 4.4.3. y2: Difference between planned work boundaries in PM 31 4.4.4. y3 : available work potential vs executed work 31 4.4.5. y4 : Amount of changes made in execution phase 32 4.5. Analysis of the small ys’ 33 4.6. y1 33 4.7. y2 36 4.8. y3 39 4.9. y4 40 4.10. Fishbone-diagram 43 5. Recommendations 45 6. Discussion 47 7. Conclusion and future work 56 8. Bibliography/References 58 9. Appendix 64 Appendix C 66 Appendix D 67 Appendix E 68 List of Acronyms and abbreviations Below is the list of acronyms that have been used throughout this thesis listed in alphabetical order: PM Project Management CRM Customer Relationship Management SMEs Small to Medium sized Enterprises CI Continuous Improvement AIM Affinity Interrelationship Matrix DMAIC Define Measure Analyze Improve Control QM Quality Management KPI Key Performance Indicator SOP Standard Operating Procedure PMBOK Project Management Body Of Knowledge VSM Value Stream Mapping PMI Project Management Index IPMA International Project Management Association CQI Continuous Quality Improvement TQM Total Quality Management ROI Return On Investment SPC Statistical Process Control FMEA Failure Mode Risk Analysis DFSS Design For Six Sigma MNC Multinational Company NIST National Institute of Standards and technology IPEC Initiate, Plan, Execute, Control C&E Cause & Effect SIPOC Suppliers, Inputs, Processes, Outputs and Customers LSS Lean Six Sigma 1 List of figures 2 No Name Pg No Fig 1 Project Management structure at Case Company 30 Fig 2 Process Map of PM processes 32 Fig 3 Affinity Interrelationship Matrix 33 Fig 4 Graphical Analysis of y1 38 Fig 5 Time factor influencing y1 40 Fig 6 No of changes influencing y1 41 Fig 7 Project type influencing y1 41 Fig 8 Survey results of y2 42 Fig 9 Analysis of Fig 8 and appendix I 43 Fig 10 Survey results of y3 44 Fig 11 Graphical Analysis of changes affecting delays 46 Fig 12 Survey results of y4 47 Fig 13 Fishbone diagram of potential root causes 48 1. Introduction This chapter offers the reader the relevant background information to establish a brief description of the study. It elucidates the study’s aim and scope while acknowledging the inherent limitations. Additionally the chapter provides a comprehensive understanding of the case in interest and the problem being investigated through the duration of the study. 1.1. Background Enterprises across the world exhibit diverse scales and structures, with one notable category being the small to medium enterprise (SMEs). SMEs play a pivotal role in the national economic landscapes globally fostering employment, adding value and catalyzing innovation. There is no single universally accepted definition of what constitutes a small and medium sized enterprise as it changes from country to country and between segments of statistics as described by Anderson (2011).The study focuses on project based SMEs that develop ad hoc mechanisms to carry out their tasks and complete the undertaken projects for business that demand and anticipate rapid innovation (Rvj, 2023) Some small to medium sized project based global companies with multiple locations that are conducting multiple projects simultaneously serve a wide range of customers. These types of organizations are a source of innovation and entrepreneurial spirit; they create competition and are vitally important for a healthy dynamic market economy (Hillary, 2000). A significant growth objective in such organizations could lead to increased complexity in managing projects effectively. The substantial physical distance serves as both a geographical and cultural barrier for the companies when trying to coordinate and align resources to reach strategic objectives. Such global firms are defined as firms that participate in the international economy along multiple margins and account for substantial shares of aggregate trade (Bernard et al, 2018). Different locations and departments usually work differently making it a challenge to utilize all the resources effectively across the company. This could mean when moving a team or individual to another location they have to relearn a new way of conducting work putting extra constraints on a company's ability to move resources around. Even Though many of the global firms are either product based or service based, most of them tend to have a project management approach. Looking in the product based firms dealing with research and development projects or just development the project management approach plays a pivotal role. In the case where most companies use different strategies for different project domains, the move of teams or individuals to other departments can be problematic. This is confirmed by Aaron & Shenhar (2020) who mention that the reason companies struggle with project management is the usage of different strategies for different projects. The flexibility of using different strategies for projects is something a company needs in order to adapt to the market. However, having control of the project management organization might be needed in order to better utilize the resources within a global company. This is why Olausson et al. (2010) mention that companies must find a balance between formal organizational control and project flexibility. 3 Kaizen (Kai - do, change, Zen- well) is a philosophy meaning gradual and continuous progress with increase in value, intensification and improvement (Karkoszka and Szewieczet, 2007). It is translated in the west as continuous improvements which are associated with a variety of organizational developments like lean, total quality management, six sigma and other waste reduction methods (Singh & Singh, 2015). Adoption of these developmental methods plays a crucial role for achieving organizational objectives in the small to medium sized global organizations. Since many of these organizations are focused on ambitious growth, it is vital to remember to make improvements along every step of the way in order to adapt to the changing dynamics of the organization. Japanese firms evolved a management process to coordinate the methods across departments, involve everyone and connect shop-floor improvements to company goals or strategically aligning the short-term improvements to the long term goals which came to be called hoisin kanri (HK) (Nicholas, 2014). Although continuous improvements harness the participation of all the employees to improve performance, quality and reliability every step of the way, it is a necessary step in order to avoid the pitfalls (Singh & Singh, 2015). There is very little research that focuses on project-based SMEs, especially those operating on a global scale and working in different sectors. Given their critical role in driving economic growth, understanding how these firms manage and continuously improve their project management processes is essential. Acknowledging the importance of continuous improvement methodologies in achieving organizational objectives where adapting to changing dynamics is paramount, this thesis intends to study a particular department in a medium sized global organization for uncovering areas of improvement. By doing so, the study seeks to contribute valuable insights on these enterprises in achieving their ambitious growth objectives while maintaining alignment across diverse operations. 1.1.1. Purpose Having diverse approaches across different sectors within the same division hinders the smooth collaboration between the personnel. The purpose of this thesis is to investigate the current challenges and look into how a project based global SME can focus on developing improvement strategies catering to the functionality and complexity of the Project Management division at the organization. Standardized project management practices are essential for organizations to improve efficiency and leverage collective knowledge. The goal of this research is to improve these techniques in project based industries, guaranteeing broad application. An organization without standard operating project management procedures, for example, would find it difficult to collaborate across projects, which is why this endeavor is so important. The aim of this thesis is to address the current situation of the organization by discovering the challenges faced in project management. Then analyzing the same through literature and other proven methods for finding a way for small to medium sized global companies to endure transformation by dealing with short and long term challenges in project management. 4 The first research question focuses on the common struggles or pitfalls faced by medium sized global companies when trying to meet their ambitious growth plan. RQ1:What are the major challenges in Project Management in a growing medium sized global company? While the first research question was on understanding the challenges and identifying the potential root causes of the same, the authors had to leverage scientific tools in order to analyze its severity and effects. The results derived from the first research question will be used to answer the second research question. The second research question talks about what necessary steps to be taken from organizations to eliminate these challenges and achieve their objectives. This question will also involve looking into the various proven improvement methodologies suitable for medium sized global companies analyzing the existing literature. RQ2: How can SMEs working on a global scale overcome the identified challenges in Project Management? 1.2. Scope When bringing about an organizational change, inherent challenges are expected. It is critical to acknowledge that the focus of this thesis is exclusively directed towards a single organization and digging deeper into the various nuances and disparities within the organization itself. Specifically the scope of the Thesis is focused on observation and analysis on a particular department of a growing small to medium sized global company. The intent is to delve deep into the analysis of the distinctive features, practices and challenges within the specific department and uncover the pitfalls faced by organizations in similar situations. The department of Project Management in particular is chosen in this case, as it involves processes that have a number of important characteristics, such as resources, work and outputs which significantly impacts the overall business operations of an organization (Zwikael & Smyrk, 2011). The scope of this thesis extends to both short-term and long-term improvements for the organization chosen for the study, with distinct objectives for each. In the short term, the focus is on detailed analysis and optimization of the processes under the Project Management division. This involves identifying the inefficiencies, bottlenecks and areas for improvement in the overall project management workflow. The short term modifications will be carefully aligned with the objective of laying the groundwork for sustained long term transformation. The long term scope of this thesis will be oriented towards establishing a structured and standardized framework for operations of various Project Management departments, within the organization. The overall aim is to develop a cohesive and consistent approach to project management, ensuring uniformity in the processes. By striving for long-term improvements, 5 the thesis will seek to create a lasting sustainable impact on the organization’s project management practices, promoting collaborative and adaptive environments over time. The suggested improvements put forth within this thesis are conceptual in nature. This makes it important to note that the practical implementation of these suggestions are beyond the defined boundaries of this thesis. The thesis is intended to serve as a guide, offering recommendations into potential improvement areas for standardization with the project management domain. 1.2.1. Organization for the study Consilium Safety Group AB is a company that develops fire, flame and gas safety solutions and was founded 1912. Their journey started with selling speed logs for the marine sector, but from the late 1950s onwards they began to also develop gas, fire detection systems through acquisitions . The acquisitions of other companies enabled the development of integrated detection systems for both fire plus gas while entering new sectors to serve in safety solutions. Today, Consilium is a global company for safety solutions serving many sectors. Their main target sectors are: Marine, Transport, Energy, Building and industrial sectors. Their commitment is to ensure the protection of people's lives and ensure their safety with their products and services. They are located in 27 countries and 55 office locations with over 900 employees. Consilium has installed around 75,000 fire and gas detection systems so far and had a turn over of 1,9 billion sek in 2022. Consilium is a growing company that aims at being a world leader in safety solutions by continuously innovating their existing products, way of working and acquiring companies with products/services that complement their business for example their acquisitions of Salwico, Nittan Marine and Servoteknikk. In 2020 Consilium got new owners, Nordic Capital which have made them “stronger than ever, always looking forward” (Consilium Safety Group AB) Our history – where we come from | Consilium Safety 6 https://www.consiliumsafety.com/en/about/history/ https://www.consiliumsafety.com/en/about/history/ 2. Theory This chapter includes the necessary theoretical description of relevant topics for the thesis project presented. In this study we delve into the theoretical framework surrounding Quality Management shedding light into the key concepts and providing insights. By synthesizing existing literature and introducing innovative perspectives, we aim to contribute throughout the duration of this thesis. 2.1. Project based SMEs According to Madani (2018) the currently used definition by the EU of an SME is an entity engaged in economic activity with a number of employees numbering no more than 250, turnover of 50 million £ or less and a balance sheet of 43 million £ or less. When it comes to PM in SMEs the literature suggests that it requires less structure compared with large organizations PM (Aquil, 2013). This is because SMEs compared to large organizations are more constrained in their finances and overall resources which require a higher degree of flexibility. Aquil (2013) mentions four major parameters to compare differences between large organizations and SMEs in relation to PM: Processes, Procedures, Structure and People. When it comes to the processes, SMEs require simple planning while large organizations apply formal processes that are bureaucratic in nature. The procedures in the SMEs have a low degree standardization and in large organizations have a high degree of standardization. Looking at the structure, SMEs have little specialization with a lot of multitasking, large organizations have well defined roles and designated tasks. Lastly, in the people parameters in an SMEs people are more likely to use tested techniques when doing assignments while in large organizations people are put in existing systems where the focus is to maintain the system and not the people. According to Dasari, et.al. (2015) most assignments in SMEs are conducted as a project. This could be a tiny modification in an existing product or the development of a new product from scratch which supports the gradual implementation of PM methodologies, tools and techniques (Dasari, et.al., 2015). This is supported by Turner et al., (2009) who mention the need of a light version of Project Management with a simple set of tools adapted for each enterprise. This project focus will be SMEs in a production based setting, because of the case-company in study. 2.2. Project management In the past project management was primarily focused on providing schedule and resource data to top management in just a few industries, but in recent times it involves much more, and people in every industry and every country manage projects (Schwalbe, 2009). According to the Project Management Body of Knowledge (PMBoK) a project is a temporary 7 endeavor undertaken to create a unique product, service or result which is different from operations as projects are terminated once they reach their objectives. Projects are crucial in helping an organization achieve its strategic goals like venturing into global markets, shortening product life cycle or narrow product launch windows (Pinto, 2019). In order for the project activities to meet the project requirements, it is essential to apply specific knowledge, skills, tools and techniques in the form of Project Management. The framework of project management process groups include initiating, planning, executing, monitoring/controlling and finally closing the activities (Schwalbe, 2009). Project management serves as an excellent training ground for future senior executives in organizations as it provides the true test of an individual’s ability to master both the technical and human challenges in the business (Pinto, 2019). The project management methodology represents a set of methods, techniques, procedures, best practices used in a project, which is based on a specific project management approach, that defines the manner in which the project is approached (Špundak, 2014). The best known PM methodologies are mainly process methodologies which include certain subprocesses or phases, namely PMI, IPMA, Agile and various others according to Jovanovic, & Beric (2018). All projects have three main components which are cost, time and quality; where the project methodologies are the means of organizing and directing projects. While methodologies help organizations to achieve outcomes that are aligned with strategic objectives, choosing the right methodology plays a pivotal role (Rasch, 2019). Although there exist several PM methodologies, they were developed with a focus on large companies and little has been written about the project management in small to medium sized enterprises (Turner et al, 2009). Turner et al. (2010) research into the PM in SMEs uncovered some interesting findings where; in one example, i.e., the Swedish companies that were interviewed for the article showcased a similar trend where the project teams wanted to be involved in developing the plans but adhere to them and the project manager providing laissez-free guidance. In this type of setting methodologies such as agile PM, which provides the individuals with more autonomy would be most suitable. Finally the end decision of choosing the right methodology in an SME would depend on; their strategic objective, key performance indicator and appropriate PM tools and technique. In the other three examples discussed in Turner et al. (2010), three other types of projects were conducted: i.e, change project: in which change/customer projects were used to help companies implement the right type of PM. “Research projects:” to develop research and innovation. Product development projects in which new products are developed (Turner et al, 2010). The previous article describes the three out of four types of projects mentioned by Koch and Friis (2015) which are: Change projects, production projects, product development projects and innovation projects. The final project type looked into is called Project or Job Based Production (PBP/JBP) which is to produce small/limited batches of product output that is high quality and highly customized (Celano et al., 2016; Koch & Friis, 2015). It is considered to be a mix of production projects and product development projects. This is because it has a production setting where it is customer driven with a product focus, but without a stable repetitive 8 process (Koch & Friis, 2015). PBP is considered to be a production characterized by high complexity, high value, many stakeholders and unique production examples are construction projects and offshore (Thuesen, 2012). PBP is Project Based Organization/Enterprise (PBO/PBE) in a complex products setting (Oerlemans & Pretorius, 2014). PBO has been discussed more in the literature for example the literature has discussed PBO compared with a functional organization (Hobday, 2000). According to Hobday (2000) PBO is more innovative and is more adaptable to emerging properties and customer needs compared with functional organizations. This was seen in the case of a company used by Hobday (2000) which had both a functional division and a project based division for projects to make the comparison. In the coming section short descriptions on the challenges faced by PM managing in the different project types will be presented. 2.2.1. Challenges faced in PM The project types discussed were production projects, Change projects, product development projects, innovation projects, PBP and PBO. This is to understand that there are different project types that are used in different settings which mean that they face different challenges. Therefore the project type that the authors will focus on is the project type in the case-company (PBP/PBO) where the challenges and ways to overcome them will be identified in order to answer RQ1 and RQ2. When it comes to PM dealing with production projects one of the challenges is the need to have a highly capable project team, accurate planning, control process and quality measures as these factors highly influence the outcome of those projects (Ishtiaq et al., 2023). It is especially important for the PM to choose the right project team as it influences both the success of the Production project as well as financial performance. One of the challenges faced by a project based companies according to the literature is a managerial inefficiency due to the temporariness of each project and because each project has its own unique demands regarding resources making project planning and allocation of human resources crucial (Ogrezeanu et al, 2019). Ogrezeanu et al. (2019) also mentions although resource planning is important, it is under prioritized due to overworked managers running multiple projects simultaneously while at the same time underplaying the resource demands of a project. The underplay of resources is done due to on the one hand lack of resources and on the other a desire for increased efficiency. In addition to this is the negligence in bringing in technical leaders and senior analysts early on in the project in order to make the resource planning realistic. The consequence of which usually leads to delays, insufficient quality which could negatively affect customer relationships and in many cases projects could be redone leading to higher costs (Ogrezeanu et al, 2019). Another challenge project based companies face is the ineffective knowledge sharing between project teams due to the “fragmentation and lack of uniformity of organizational structures, processes, practices, 9 and technologies (Almeida & Soares, 2014). The reason knowledge sharing is important is because it enables an organization to prepare for uncertainties in the organizational environments and enable continuous improvement of organizational performance. Almeida and Soares (2014) mentions that sharing problems of PBO is due to projects being structured in a way where it can't be utilized by other projects so called “informational limbo”. Overcoming the challenges for PM in the project based companies will be the focus for the case-study. 2.3. Quality management The Project Management Institute (PMI) acknowledges that project quality management must address both the management of the project and the product of the project, the quality tools and techniques identified in the PMBOK are explicitly described in terms of their application to project deliverables and not the management process (Orwig & Brennan, 2000). Quality has always been the important outcome of the project and the quality philosophy suggests that a good management will continually improve processes focusing on customer needs which can be achieved through feedback loops throughout the organization (Orwig & Brennan, 2000). Quality management (QM) is one of the most widespread and popular operations management practices to improve organizational effectiveness in the world with origin from Japan in the 1950s (Ebrahimi & Mehran, 2013). The meaning of quality according to Ebrahimi & Mehran. (2013) is multi dimensional, depending on the situation for example, in design it’s “Fitness for use”. Ebrahmi and Mehran. (2013) also mention that Garvin (1984, 1987) proposed eight dimensions for product quality (performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality). This is also added with Demings proposed “14 principles to improve quality in organizations” (Ebrahimi & Mehran, 2013). This shows that quality is an operations management practice that focuses on optimizing any process, product and service that it’s incorporated in. This is done through continuous improvement of processes, products and services to achieve and even surpass customer needs & expectation (Prajogo & McDermott, 2005). QM is in short based on principles, practises and techniques. The principles offer a framework for practitioners of it with general guidelines, which are followed through with practices. QM practises are in turn supported with the techniques, but there are multiple frameworks for practises. According to Ebrahimi & Mehran (2013) there are two ways of choosing framework for practises: the first one is using a quality award as proxy such as Malcolm Baldrige National Quality Award (MBNQA) and the second one is to conduct surveys and interviews to identify most relevant practise. Since QM is as previously mentioned one of the most popular management practices in the world it has factual data on large, medium and small seized enterprises in different contexts regarding performance. 10 Customer focus, continuous improvement, strategically based and total employee involvement are key elements in QM which affect organizational performance (Pambreni et al., 2019). This makes QM an appropriate operations management for any organization that seeks to improve its performance by satisfying its external and internal stakeholders. Since it has customer focus it is assumed it will focus on external stakeholders, but also the continuous improvement could lead to organizations continually satisfying stakeholders (both internal and external) and surpass expectations. Likewise, since it is strategy based and total employee involvement one can assume it will engage both top management, lower management and workshop in the operations practices encompassing the entire organization that implements it. There is not much empirical research that demonstrates a link between quality management practice and better project management performance. However the study conducted by Barad and Raz (2000) regarding the same showed some link such as the improvement of process control is likely to improve process stability and improvement of training is likely to improve all outcome oriented variables. Either way QM will aid the PM directly or indirectly by improving the overall efficiency of the organization. 2.4. Continuous improvement Quality management and continuous improvement have a shared goal of achieving excellence and driving organizational success. Quality management frameworks such as Six Sigma or Total Quality management emphasize the importance of continuously monitoring and improving processes to enhance quality and efficiency. The concept of continuous improvement (CI) and/or continuous quality improvement (CQI) is a concept taken from the Japanese word “Kaizen” and used in operational management practices like for example Lean and Total quality management (TQM) (Doshi & Desai, 2014; Singh & Singh, 2015). Singh and Singh (2015) mention that CI has three main notions: ● Firstly, Kaizen is continuous – which is used to signify both the embedded nature of the practice and also its place in a never-ending journey towards quality and efficiency. ● Secondly it is usually incremental in nature, in contrast to major management initiated technological innovation.. ● Lastly it is participative, entailing the involvement and intelligence of the workforce, generative intrinsic psychological quality and quality of work-life benefits for employees. CI has been a topic in the industrial world since the increased global competition intensified with rapidly changing customer needs, but how to achieve this has been a matter of debate. This is because there is one size fits all as there have been companies that have been investing CI approaches in terms of money and resources, but have not received a satisfying return on investment (ROI) (Singh & Singh, 2015). According to Doshi and Desai (2014) the benefits of CQI is that it will help to improve processes, activities, employees, products and management performance in the whole production cycle. CQI can be implemented using 11 many different types of tools for example Failure Mode & Effect Analysis (FMEA), Statistical Process Control (SPC). The challenges with CQI is that there are no clear frameworks or models for companies to choose from so every organization can take one best suited (Doshi & Desai, 2014). A growing number of organizations are adopting project management as part of their management practices and a typical goal of project management is to execute the project within a targeted budget, schedule and performance. As organizations gain more project management maturity, Jung and Wang (2006) emphasize on making continuous improvement to project management as a new avenue towards achieving improved results. Meredith and Mantel (2010) also discuss how implementing continuous improvement in project management is essential for the success of international organizations. Since international business tends to have a higher number of dynamic variables influencing the business operations compared to a locally operating organization. The CI could aid in keeping up with the changing variables and adapt to the requirements as the organization grows. Since CI is primarily suited for repetitive processes and PM can be seen as an on-going repetitive process aiming for CI by PBO as it has a lot of on going projects due to it producing most of its products in projects (Backlund & Sundqvist, 2018). In conclusion CI/CQI is a concept that offers increased organizational performance through the entire organization if implemented in a way that is suited for the organization, but if it’s not then it can be a costly endeavor without benefits. This makes it necessary that organizations do their due diligence in how, where and when to apply CI/CQI. 2.5. Improvement of project management Initially there is a lot of effort and knowledge put into developing a process. Nevertheless the amount of effort put into design and implementation of a process does not really matter; there is always room for improvement (Wysocki, 2004). Looking into growing multinational companies, it is essential to adapt to changing environments by using a holistic framework to take control of the growth crisis in order to be successful (Wood-Kline & Evans, 2003). For example the continuously changing power balance between nations, the increases in terrorist threats and cybercrime and the ongoing technological advancements can perhaps be considered as interdisciplinary issues (Konstantinou & Müller, 2016). In many cases these challenges are time critical and reflect the context in which all projects will need to be inspired, designed, executed and delivered. This exploration delves into the strategies and methodologies needed for large companies to optimize project management processes and ultimately achieve sustained success in the face of evolving business landscapes. Additionally this section will elaborate on a variety of approaches and methods that support change and continuous improvement, including Six Sigma and Lean, to effectively address the dynamic challenges posed by shifting global environments and interdisciplinary issues. 12 Identifying and actively monitoring the key performance indicators for the project management is vital for tracking the progress of projects. KPI can be either financial or non-financial measures that organizations use to reveal how successful they were in accomplishing long lasting goals (Velimirović et al., 2011). It is essential to have defined and standardized processes in the organization to constitute an effective system of performance measurement. Continual measuring of performances is significant and acts as a base for continual improvements of organization performances which is one of the most important management principles (Besic & Djordjevic, 2007). In most of the cases, the reason behind low performance is waste in different forms. By identifying the waste and implementing actions that reduce these waste in turn improves the performance which can be measured using KPIs (Lindberg et al., 2015) 2.5.1. Six Sigma Six Sigma is a business philosophy, an improvement methodology and a performance metric. The aim of the business philosophy is to achieve top level customer satisfaction through quality and continuous improvement. The methodology aims to improve process performance by utilization of data and statistical tools in a phase wise manner Define, Measure, analyze, improve and Control (DMAIC). The aim is to achieve 3.4 faults per million opportunities in processes as well as aligning customer needs and expectations with the organization's strategic objectives (The Black Belt Memory Jogger). In a study by Bañuelas and Antony (2004) comparing Six Sigma and Design for Six Sigma (DFSS), it was noted that Six Sigma is mainly used in improving existing processes through incremental improvements of existing processes while DFSS is for creating a new process from scratch. In the case of Six Sigma application it is assumed that the products/ services generated from a process satisfies customer needs and functional requirements and are the most economical (Nave, 2002). Based on this one can assume Six Sigma (DMAIC) is a methodology that should be used on a system that is working and just needs some tweaking to get the most out of it. 2.5.1.1. Six Sigma in process improvements Six Sigma as mentioned is mainly applied on existing processes, products and services Bañuelas and Antony (2004). For example, in a subsidiary of a British multinational company (MNC) that produces many types of abrasives Six Sigma DMAIC was used to reduce waste in an already existing non-stop continuous process line that produces rolls (Bañuelas and Antony, 2004 & Sheparhard, 1995). Six Sigma DMAIC showed a positive connection in improving process capability when the root causes of variation in British MNC were understood it was possible to eliminate them. This was also the case when six sigma was applied on a semiconductor manufacturer that specializes in producing circuit cartridges that was suffering from high rate of test failures. The semiconductor manufacturer was able to reduce the test failures by half once the root causes were identified (Valles et.al, 2009). 13 In conclusion it is observed that Six Sigma methodology is well versed when it comes to existing processes. This was observed in the two mentioned examples of two companies with different processes and products benefiting from the implementation of Six Sigma on their processes. Six Sigma methodology is not confined to any specific type or size of industry and SMEs with focus on Project Management can also reap the same benefits by the application of this methodology. 2.5.2. Lean methodology Lean is defined as” a systematic approach to identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection” by National Institute of Standards and technology (NIST). The waste mentioned above, is commonly referred to as non-value-added-activities by Lean practitioners, which are categorized into eight types of waste (Kilpatrick, 2003). (1) Overproduction (2) Waiting (3) Transportation (4) No-Value-Added-Processing (5) Excess Inventory (6) Defects (7) Excess Motion (8) Underutilized people (Kilpatrick, 2003). The innovations achieved at the shop floors of Toyota Motor Corporation is where the origins of lean thinking can be traced back to (Ohno, 1988). Lean thinking is a management philosophy and a set of principles that originated from the Japanese manufacturing practices in the 1950s (Liker, 2008). The practices of lean have since been widely adopted across various industries ranging from healthcare, software development and services. Over the years Lean has introduced many tools or building blocks to reduce or eliminate the wastes. The most common methods are the Pull system for understanding customer needs, Total Quality Management used for continuously improving all areas of the company’s operation,visual controls which give immediate apparent understanding of a condition and Kanban used for maintaining orderly flow of material (Kilpatrick, 2003) . Lean methodology provides a systematic approach to improving efficiency, reducing waste and to foster a culture of continuous improvement. Lean is applied to PM to deliver the products while maximizing value and minimizing waste which is different from the traditional PM not only in the goals it pursues but also in the structure of its phases (Ballard et al., 2003). . 14 2.5.3. Lean Six Sigma Lean Six Sigma (LSS) is a method aimed at understanding root cause through data collection, process improvement and cost reduction (Knapp. 2015; Voehl et al., 2013). There are three main components to Lean Six Sigma implementation: Top management involvement, Statistical/graphical analysis and project champions. According to Beer (2003) the involvement of the higher management by taking action can influence success or failure of the Lean Six Sigma initiative. The analysis of the statistics and graphs are usually done with Value stream maps (VMS), Pareto charts, histograms, box plots and control charts (Trusko et al., 2003). The project's champions are usually black or green belts in Six Sigma that oversee the initiative and drive the implementation of it (Knapp, 2015). The current literature shows the spread of Lean Six Sigma implementation in four industrial sectors: healthcare, human resources, finance and education (Singh et al., 2018). It also shows that it is usually implemented in sequential manner going in between Lean and Six Sigma, but information regarding the complete integration of these two is miniscule (Singh et al., 2018). In Conclusion Lean Six Sigma is methodology that is a synergy of both Lean & Six Sigma. Where the aim is to reduce variation in processes and reduce waste. This is usually done through sequential implementation of Six Sigma & Lean. Tenera and Pinto (2014) discuss the attempts to enlarge the DMAIC cycle to project management as DMAIC will focus on finding solutions to problems and PM standards will provide the formal procedure for the implementations of these solutions. The results obtained from this study shows that process improvement on project management stable practices can be reached through continuous identification and evaluation of improvement opportunities in PM. 2.5.4. Agile Agile methodologies represent a paradigm shift in the way software development and project management are approached. Agile methods are a reaction to traditional ways of developing software and acknowledge the need for an alternative to documentation driven, heavyweight software development processes (Cohen et al., 2004). The Agile manifesto emphasizes on the individuals and interactions , customer collaboration and responding to change which has made the agile framework usage across various industries due to its flexibility and focus on delivering value. Although the birth of agile can be traced back to the software industries, the agile manufacturing concept has started to emerge in SMEs but due to the depth in the available literature and lack of emphasis within the industries, the advantages of such philosophies are not fully appreciated (Moradlou & Asadi, 2015). Agile is not a single methodology but an umbrella term consisting of different frameworks and practices , each with its own theoretical nuances such as Scrum and Kanban. The rewards of using this framework can be increased flexibility and improveroved team collaboration, 15 https://www.emerald.com/insight/search?q=Susan%20Knapp https://www.emerald.com/insight/content/doi/10.1108/IJHCQA-06-2015-0079/full/html?casa_token=iliktRi4tagAAAAA:rI-cn_mmkEfq2vqJ1ff3J3JzPtbhnRpOlU977bVYwfVQRV1WOqA6ns3WE-MAm-0ML1CUaSbXfZlpSOj4h9yN5C42jZgrNcjn41ckCoVtGBVvFP9AkjlE#b15 https://www.emerald.com/insight/content/doi/10.1108/IJHCQA-06-2015-0079/full/html?casa_token=iliktRi4tagAAAAA:rI-cn_mmkEfq2vqJ1ff3J3JzPtbhnRpOlU977bVYwfVQRV1WOqA6ns3WE-MAm-0ML1CUaSbXfZlpSOj4h9yN5C42jZgrNcjn41ckCoVtGBVvFP9AkjlE#b14 https://www.emerald.com/insight/content/doi/10.1108/IJHCQA-06-2015-0079/full/html?casa_token=iliktRi4tagAAAAA:rI-cn_mmkEfq2vqJ1ff3J3JzPtbhnRpOlU977bVYwfVQRV1WOqA6ns3WE-MAm-0ML1CUaSbXfZlpSOj4h9yN5C42jZgrNcjn41ckCoVtGBVvFP9AkjlE#b14 https://www.emerald.com/insight/search?q=Susan%20Knapp however it also comes with certain challenges while implementing as it requires cultural change and buy-in from all stakeholders which can be difficult to scale in large organizations. The Agile project management strategies which are iterative and adaptive in nature were developed to counter the traditional PM approaches which are linear and incremental strategies (Fernandez & Fernandez, 2016). Agile in PM represents a transformative approach where the projects are broken down into small manageable units called sprints which typically last from one to four weeks, during which a cross-functional teams work on specific deliverables. 16 3. Methodology The methodology chapter of this thesis serves as a comprehensive guide to the different processes undertaken to accomplish the research objectives. It explains the research approaches chosen by talking about how data was collected and analyzed, furthermore discusses any concerns or criticism about the methods used. This chapter attempts to give transparency and reliability to the research approach used in this thesis by carefully explaining these features. 3.1. Research approach According to Bell et.al. (2022) “Business research” refers to the academic study of topics related to questions relevant to business, including management and organizations. Business research conducted where research thinks there is an aspect of business management that is poorly understood . When conducting “Business research” there are three main types of approaches: abductive, deductive and inductive. A research approach is the way researchers are going to do their research in order to understand the aspect that is poorly understood. The first mentioned approach abductive is the way where the researchers begin with objective observation of a phenomena and try to bring forth explanations for them. This is done by regularly working with both existing theory and empirical data in parallel, which helps find gaps in the theoretical knowledge by exposing current frameworks inability to explain empirical findings. After exposing the gaps in the theory it is advised to creatively make new theories that can explain the researched phenomena by using the existing empirical data which will need further research (Tavory & Timmermans, 2014), which is incorporated in this study to analyze the empirical data. The two other approaches mentioned work with the relationship between theory and research, but in two opposing ways. The deductive conducts research using the theory as a reference regarding hypothesis and ideas and then examines them with the empirical findings. This is executed by using the existing framework to then observe what the result was of the implementation. The inductive approach conducts research to make empirical findings which generates new theories with new hypotheses and ideas (Bell et al., 2022). The research approach for this case study is a abductive approach utilizing a mixed method in which the authors combine both quantitative and qualitative data to reach research conclusions. 3.1.1. Mixed method approach The reason the authors chose a abductive approach with a mixed method of both qualitative and quantitative was because according to Thompson (2022) that abductive approach is a mix of data and hypothesis driven research. The abductive approach enables the authors to conduct the project using existing theories and complement them with new theories as 17 mentioned earlier which makes it a more comprehensive research approach. Since the research for this project is about improving project management in SME which is a wide topic since there are all kinds of SME in all different types of industry with different needs being reliant on only the theory is assumed to not be sufficient. Using the abductive approach will enable the authors to see in the case company which models/frameworks could improve PM according to the literature and see if there are challenges that need more investigation to overcome if it’s missing in the literature. The mixed method for this research approach is to rely on both quantitative and qualitative data to complement each other for increased validity. The quantitative data will be extracted from the organization’s existing database, but the qualitative data will be collected for the study to enforce quantitative data or generate new theories as mentioned by Bell et al., (2022). This will enable the authors to generate improvement suggestions for PM in SME that are enforced by more reliable data and potentially generate new theories for further investigation. 3.2. Research Design A research design provides a framework for the collection and analysis of data and the choice of research design reflects decisions about the priority being given to a range of dimensions of the research process (Bell et al., 2022). As mentioned earlier this study uses the case study design due to the practical nature of the topic for the thesis. The case study approach is a popular and widely used research design in business research and some of the best known studies in business and management research are based on it (Bell et al., 2022). This study was carried out on behalf of Consilium Safety Group under the consultation of the supervisor from the organization. Based on the supervisor’s area of expertise and the organization's emphasis on continuous improvement, a six sigma methodology was chosen for this study which is widely practiced in the same organization. The Six Sigma methodology follows a DMAIC cycle which consists of scientific flow of information. While the methodology consists of five stages, the scope of the study includes onlys the first four, as the practical application of the results is in the hands of the organization rather than the authors. 3.2.1. Define The Define phase is started off by understanding the voice of the customer and by assessing the business benefits. In the initial stages, the objective is to find out what the problem is/what to improve which is referred to as the big Y in the effective scoping framework made by Peter Hammersberg. Secondly, to know the jurisdiction of influence for the research in the process. Lastly, identifying all the little y’s which are used as key performance indicators to measure the progress of the big Y. The authors have carefully selected the tools required for the particular purpose from all the recommended Six sigma tools like Affinity interrelationship matrix (AIM), Effective scoping and Value stream mapping (VSM). 18 3.2.2. Measure The Measure is the second phase in the DMAIC methodology, where the objective is to measure the identified problem in the Define phase by mapping out all the processes inputs, outputs, current baseline and target involved. The process map should represent the “as is” process and be detailed enough to represent improvement opportunities. Once this is achieved the measurement system is analyzed followed by reconfirming project charter and risk management plan. This is achieved usually by the recommended Six Sigma tools VSM, Data collection template, Processes capability studies and others. 3.2.3. Analyze The purpose of the Analyze phase is to analyze information about the process and prove the root causes of the problem documented in the Measure Phase. The deliverables in this phase include making a list of potential root causes, on which graphical and statistical analysis is conducted to determine a list of proven root causes with an assessment of their effects. Upon completion of this phase, the team is expected to have enough understanding to start identifying solutions. 3.2.4. Improve The impactful phase in DMAIC is the Improve phase where the main purpose is to improve the process by implementing solutions that address the root causes that were confirmed in the Analyze phase. This is the phase where the objective is to identify a portfolio of potential improvements for the process and then conclude with a final improvement. This is mainly done with these recommended Six Sigma tools: Brainstorming, Idea generation, Solution selection, Prioritization Matrix, Process Mapping, Failure Mode and Effects Analysis (FMEA), Implementation plan, Piloting Solutions and others. 3.2.5. Control The final part is the Control phase where the task at hand is to maintain the gains there verified on the pilot basis in the Improve phase. This is achieved by assigning accountability regarding documentation, monitoring of the improvements implementation to ensure its long term sustainability. When the Control phase is complete, measures are in place to maintain the gains for the long term and the project is closed out. In the case of this project the control phase is outside the scope as mentioned earlier. 19 3.3. Research Methods This section outlines the different data collection methods used in this particular thesis. This involves the interviews conducted which serve as the primary method for gathering qualitative data directly from the participants. It also includes the empirical data from the surveys and internal resources of the case company containing the information relevant to the research objectives. 3.4. Interviews In this study, qualitative data collection was chosen due to the nature of the problem, which doesn't lend itself to specific quantitative metrics in PM. To explore inefficiencies or potential improvements in PM processes, semi structured interviews were conducted. Qualitative interviews in semi-structured format follow a structure where the researcher has a list of questions on fairly specific topics to be covered (Bryman & Bell, 2022). The interviews were between one to two hours each and were transcribed either manually or by audio recording. During the data collection the authors conducted the semi- structured interviews in three different stages which is explained below. The three stages of interviews enabled the author to have a robust understanding of what are the input fueling PM processes as well how it functions at large and in detail. The data collected during the interviews would later be used as primary input during various stages in the study which the authors discuss in the results section. In total four interviews were conducted using the case-companies own project management structure known as “Initiate, Plan, Execute, Control” (IPEC) phases in addition to their position in PM as guide for making the questions. The question focused on their position were as follow: What do you do in the PM department? What challenges are you facing in PM? What is/is not working in PM? Have you worked in other positions in the PM? Have you worked in other departments? What would make PM easier/effective for you if changed? The questions regarding the PM overall were as follows: What is done in each IPEC phase? What is the usual duration of each IPEC phase? What are the challenges in each IPEC phase? What is not challenging in each IPEC phase? What is the skill set required to fulfill each step in each IPEC phase? What skill if absent will cause issues in PM? What would make PM easier/effective for the department if changed? In total four semi-structured were conducted and four informal interviews were conducted. The semi-structured are spread across three stages of interviews conducted during working hours in a formal setting and were structured by going from the macro level in the first stage to the micro level and cross departmental in the second and third stages. The informal interviews were conducted outside business hours, usually around breaks and free time, in a casual manner to uncover insights for the same problems from potentially a different perspective. 20 Since many of the interviews were semi-structured it enabled each interviewee to speak freely after receiving a question leading to different spontaneous follow up questions from the authors which are not listed in text. This is because the authors were focusing on collecting the data in the form of answers for these questions which will then be used as input for the AIM. 3.4.1. First stage interviews The interviews were classified into three different stages based on the when and who were the participants. In the first stage interviews, the authors interviewed one senior manager responsible for multiple market segments. The interview with the senior manager was conducted in order for the authors to understand how the PM process looks overall across the department and general issues affecting the entire department regardless of segment. 3.4.2. Second stage interviews In the second stage of interviews the authors interviewed two managers, the first is responsible for the Marine/Navy segments and the second is responsible for the Transport segment. The interview with the manager for the Marine/Navy segments was to enable the authors to understand specifically these segments in PM regarding processes and issues faced in detail. The interview with the manager for the Transport segment was to enable the authors to understand the transport segment in the same amount of detail as the Marine/Navy segment. It was also conducted inorder to make a comparison between the segments to find out commonalities and differences in the processes and challenges faced. In addition to this, informal interviews were conducted continuously with both the project leader and manager for the Marine/Navy segments as well as the senior manager in order to assist the authors in the processes of extracting relevant data and interpreting them. 3.4.3. Third stage interviews The final stage was to interview the sales department since the output from this department was the input of the PM. The authors conducted an interview with the bid team manager in order to understand what the sales handover to the PM and why. This was conducted to also know how the external factors could affect or potentially affect the PM. The data collected through the interviews were also later used in the define phase of the thesis to gain deeper insights and conclusions on the underlying causes of the problem. The authors also conducted an informal interview with the case company expert regarding data interpretation methodologies in order to support the authors in finding potential ways in analyzing data. 21 3.4.4. Quantitative data The quantitative data collection was conducted through the primary means of surveys and data extracted from the Customer Relationship Management (CRM) system in place at the organization acted as the secondary data. The survey involved a self-administered questionnaire through online forms where the respondents answer the questions by completing the questionnaire themselves (Bryman & Bell, 2022). The questionnaire included the ordinal scale of measurement level to capture the perspective of the respondents. The ordinal scale reports the ranking of the data without determining the degree of variance among them capturing the quantitative information with naturally existing orders and how they vary is uncertain (Akman, 2023). The questionnaire also included a series of questions for which the respondents had a chance to give examples of certain situations or circumstances in order for a deeper understanding. The design of the questions in the questionnaire was two types of multiple choice questions with a “other” option that allows respondents to explain their choice that is not in the list in text. In the first type; respondents are only allowed to pick one choice, in the second type respondents could choose the options they think apply. The questionnaire allows the respondents to consult with peers and note down the answer without the interviewer control which ensures the correctness of the answers is controlled by the respondent (Aini et al., 2018). The questions were designed to capture the perspectives of the respondents regarding the challenges that were uncovered in the initial stage of the study. The questionnaire consisted of nine multiple choice questions and two additional questions regarding the respondents position and experience. The survey was sent out to the division of Project Management in the marine segment which consisted of 12 members out of which 10 responses from varying roles were recorded. Additional quantitative data was collected from the case company CRM system where the motive is to analyze the cost, time efficiency and other related factors of the selected sample. The sample chosen for the study was a particular department in the organization which was involved in the majority of the business. The survey conducted was in focus of all the personnel in the chosen department. The data extracted consisted of all the projects that were worked on by the same personnel which accounted for about 71 projects in the year 2023.The challenge with this is that there is no control over the quality of data which will affect the conclusion (Bell et al., 2022). 3.2.3 Data analysis The data analysis is indeed something that occurs typically at the late stage in the overall process; however this does not mean one can postpone the methods to analyze the data till then (Bryman & Bell, 2022). The primary method for analysis involved leveraging the data analyzing software JMP to conduct multivariate analysis in order to understand how the different variables affect data (if they do) and also observe the relationship between them 22 (variables) visually. The second analysis is fishbone-diagram (C&E), based on empirical data, as well as input from the interviews in order to further expose what affects the main problem in question. The analysis conducted to identify the main problem in question was the AIM which was used to organize the input of the semi-structured interviews into problem statements. These statements were then clustered into main problem themes for the authors to focus on. The analysis conducted to identify the scope of the main problem was effective scoping in order to identify what processes to improve (identify input, output and how to improve). Some of the identified processes did not have sufficient quantitative/qualitative data so a survey was conducted in order to confirm the validity of quantitative/qualitative data when analyzing. 3.5. Ethical considerations This section sheds light on the ethical initiatives undertaken by the authors to ensure integrity of the research process and credibility of the findings. The main ethical principles have been broken down into four main areas: avoidance of harm, informed consent, privacy and preventing deception (Bryman & Bell, 2022). The authors managed the data with utmost discretion and informed the participants how their data will be used to avoid any kind of harm for all the involved parties. The authors have supplied sufficient information about the study and observation techniques used, to ensure that the participants are willingly engaging in the research knowing all the risks and benefits. The third ethical criterion is the obligation to respect the privacy of the participants which was assured by providing an alternative of refusing to answer some questions for whatever reason they believe are legitimate. The authors have aimed to avoid any kind of deception by making study procedures completely transparent to earn the participants trust and faith. 3.6. Data trustworthiness This study incorporates the concept of data triangulation and audit trails which involves employing multiple data sources which can enhance the credibility of the findings and by maintaining detailed record data interpretations along with analytical decisions allowing the transparency and accountability of the findings. This study also incorporates the concept of reciprocity where the idea is that the research should be of mutual benefit to the researchers and participants enhancing the trustworthiness of the data (Bryman & Bell, 2022). The authors incur credibility of the study by incorporating the processes of triangulation. Triangulating means using several sources of information or procedure from the field of study to repeatedly establish identifiable patterns (Fossey et al., 2002). The methodology provides a thick description by which a rich enough portrayal of circumstance for application to others’ situations in order to ensure transferability of the study conducted. The authors have relied on constructs like precision and accuracy in this research practice and also the study was constantly inspected by the peers by which researchers had to be careful with what was 23 recorded as fact and what was recorded as researcher’s interpretive comments about the data. Through these measures taken by the authors, the study fulfills the different perspectives of the trustworthiness of the study such as dependability and confirmability as described by Fossey et al. (2002). 3.7. Discussion of Methods chosen The chosen methods were suitable for efficiently gathering and analyzing data within the constraints such as availability of time and resources which allowed the authors to draw conclusions within the boundaries of the study. The semi-structured interviews that were conducted during this study were an effective data collection method which enabled the accumulation of information under the specific area of interest for the study. Its qualitative nature which offered flexibility allowed the interviewees to speak freely and delve deeper into the topic of interest. Although it had several advantages, the semi-structured interviews were dependent on the interviewee’s ability and willingness to articulate their thoughts and experiences. Hence the data gathered through other empirical means such as surveys aided in this regard complementing the mixed method approach inculcated in this study. The DMAIC research design was adopted for this study for its effective problem solving capability with the structured five step approach. DMAIC is applicable to empirical problems running from well-structured to semi-structured, but not to ill-structured problems (De Mast & Lokkerbol, 2012). Taking into account the scope of the study, DMAIC is well suited for extensive problem solving tasks, requiring comprehensive components of problem definition. However, it is less effective for tasks with a smaller scope. Due to the nature of the study which starts with a broad perspective and eventually narrowed down over the duration of the study, the research questions evolved and adapted effectively. As a consequence the data collection was getting specific and deeper, seeing that the authors gained extensive information of the necessary areas. 24 4. Results The main purpose of the Define phase in the Six Sigma Project was to gain a comprehensive understanding of the key problem description by utilizing a variety of tools and techniques to give an outline to it. By achieving a deeper comprehension, the analysis can be performed more effectively by identifying the root cause of the issue. A broader perspective of the Project Management department was gained through a series of interviews and observations. The initial interview with the managers from the Project Management division acted as the base for getting a clear insight into the day-to-day working of the division. This aided in differentiating the market segments within the division and also the different roles and their working procedure. 4.1. Project management at Case Company The Project Management department at Consilium is divided into different divisions based on market segments and regions. The headquarters at Gothenburg contains the marine and transport division working closely with the administrative office offshore in India. Every division of the department is supposed to follow a structure working between roles of project engineer, project administrator and project leaders managed by project manager. [Fig 1] Project Management structure at Case Company The project layer model [fig 1] depicts how the requirements of the project are supposed to match with the existing resources based on effective planning by the project leaders. Elaborating on this, the requirements layer is the translation of the customers expectations for deliverables within the project which is typically identified in the initial phase. These specifications are subjected to change during the execution from a project change request which can be generated by either the customer or Consilium. The plan layer is the list of 25 activities broken down from the project requirements where the project leader is responsible for ensuring the activities are executed in accordance with the plan. Finally the resource layer is a specific or a group of resources that are assigned to carry out certain activities in the project. During the data collection the authors found varying ratios of different roles and competence subjected to specific market segments. The primary focus will be on the Marine division, where the current structure consists of one manager, nine project leaders and two project engineers, where the part admin work will be assisted by the Kochi office staff. Upon individually assessing the different divisions inside the Project Management, various patterns can be interpreted. A few divisions consist of a pattern where they function as an independent entity and in other divisions which consist of multiple segments collaborating with each other or some divisions where collaboration is completely restricted. The reasons why this can be observed may range from restrictions from the customer, specialized competence to high turnover rate in the department. 4.2. Process map After completing the initial stage of defining the problem, authors developed a process map which acted as a visual aid for picturing work processes and helping align system elements in the same direction to allow process improvements (Curtis et al., 1992). The process map of PM was developed based on the information gathered by the authors from available documents on the flow of value chain in the organization’s system [Fig 2]. The adopted structure in the (mentioned)shows a process map that identifies the flow of events in a process as well as the inputs (x’s) and outputs (y’s) in each step of the process. The process functions are the tasks that transform the inputs of the process into the outputs of the process. The inputs were classified into three groups based on its influence to alter the output, which are: ● Controllable (C): Inputs that can be changed to affect the output. ● Standard operating procedures (S): Standard methods or procedures for running the process. ● Noise (N): Things that cannot or that have been chosen not to be controlled due to cost or difficulty. These classifications were defined based on the interviews in order to understand what factors could be influenced to bring about a change for improvement in PM. The purpose of the process map with the mentioned structure was to identify the opportunities to improve the original process (Klotz et al., 2008). The basis of the process map is adopted from the standard framework set by the Organisation’s management for how a project shall be managed, regardless of segment or type of system, and covers the general activities that shall take place from the sales handover to aftermarket handover. 26 [Fig 2] Process Map of PM processes The sales team starts off the process by onboarding the customer by making the list of all the requirements and resources, which is then handed over to the Project Management team. The manager of the particular market segment will appoint the project leader and engineer incharge of the project. Following this, the standard Initiate, Plan, Execute and Close framework is followed where the various steps in each stage differ based on the market segment, duration, complexity and requirements of the specific project. While all the market segments have the same standard operating procedures, the method in which it is carried out is specific to the individual in charge of the project. The inputs and the outputs mentioned are general in nature and are required by all the projects irrespective of the segment, which are essential in proceeding to the next stage. Every activity describes what the organization shall do to assure that the customer gets the value expected. 4.3. Affinity Interrelationship Matrix AIM is a tool that is being used to find the underlying causes of a problem. It helps the researchers to have a pull thinking frame of mind and avoid falling into a push thinking frame of mind. In other words, keep pulling data to deeply understand what is happening and avoid falling too quickly into conclusion. This is crucial in order to avoid problem solving before the problem is properly understood. 27 [Fig 3] Affinity Interrelationship Matrix During the Define phase in this case an AIM workshop (Alänge, 2009) was conducted inorder to expose what are the problems hindering PM from working smoothly at Consilium. An AIM is usually conducted with four to six people plus one or two AIM team leaders which in this case were the two authors of this report. These people are often picked from the targeted areas of a company, for example the PM department. In this case the people that were supposed to be part of the AIM workshop did not have the time to join in a lengthy workshop. This prompted the authors to interview all the stakeholders and conduct the AIM themselves using it as a data analysis tool to analyze the interview material. The authors read through the notes taken from the interviews as well as listening to the recorded audio of the interviews to extract valuable insights to form concrete meaning on yellow post-its during the AIM workshop. The authors then proceeded with clarifying the meaning of all the yellow post-it notes with a stakeholder in Consilium. Once all the post-it had a clear concrete meaning the authors started with the first level grouping which is grouping the yellow post-it notes in groups of two & three or lone wolves. The authors then added post-its in orange which they wrote titles on that were less concrete for the grouping of yellow post-its. After that the Authors conducted a second grouping of two & three orange post-its or lone wolf and then added blue post-its and wrote on them titles that were abstract in nature. The authors got four major groups with blue titles and two orange lone wolves as the underlying problems hindering PM from working smoothly which can be seen at [Fig 3]. The underlying problems are as follows: 1. No appropriate well defined structure for PM processes (Blue), 2. Competence gap in PM (Blue), 3. Ineffective workload management (Blue), 4. External factors affecting PM (Blue), 5. Difficulties for inter-departmental collaborations (Orange) and 6. Poor performance by Sales and PM in the initial stages (Orange). Once the underlying problems were presented the authors proceeded with making arrows of cause & effect (C & 28 E) or contradiction. This was done in order to know the connection between the groups as seen in [Fig 3]. Once the connections were known the authors in collaboration with a stakeholder from the case company then voted on which of the orange post-its that were the most critical, second most critical and third most critical. The authors and the stakeholders each had three votes, a three point vote, a two point vote and a one point vote. The result of the voting can be seen in [Appendix A] which was that the most critical problem hindering PM from working smoothly at six points is the “lack of structure for every individual processes”.Second most critical is shared at three points each between the “Workload imbalance due to lack of competent pool of engineers”, “Work Overload in PM” and “Poor performance by sales and PM in the initial stages”. The third spot had two points which is “Difficulties for inter-departmental collaborations”. Since the voting was conducted with only one stakeholder and the authors there is a chance of missing out the perspectives of the other stakeholders. The Authors then concluded the AIM workshop with these final statements which can be seen at [Appendix A] “ The project management lacks a well defined structure and a required number of competent engineers. This causes poor performance in the initial stages, also influenced by sales leading to work overload. This also leads to the difficulty for inter-departmental collaborations, which prevents PM from working smoothly”. 4.4. Effective scoping Effective scoping is an essential tool that is used to make sure that project teams transition from traditional push oriented thinking for solutions to pull oriented thinking for more input before considering solutions (Carleton, 2016). This is because effective scoping helps in identifying the relevant inputs, outputs and all the relevant stakeholder for example who puts the input and who takes it for these two as well as identifying the small ys’. The small ys are measurable factors that influence the big Y (problem statement) that was identified in the AIM. Effective scoping achieves this by using the framework called “Suppliers, Inputs, Processes, Outputs and Customers (SIPOC)” which are the parts the framework is divided in. The SIPOC framework review on the processes on a deeper level, were it precise the scope of what the project will focus on regarding a through out a specific processes. This will help the project team develop a more complete process map in the measure phase of the project as well as identifying what small ys to measure. The effective scoping was executed by the authors alone, but has been reviewed by the case company supervisor. The objective for this effective scoping is to find the scope on what to improve in PM in the case company. The SIPOC framework for the effective scoping can be seen in this [Appendix C,D,E,F]. 29 4.4.1. Procedure The first part of effective scoping is to identify the output, customers, measures to be improved, baseline for improvement and constraints of improvements that cannot change, all of which can be seen in the following [Appendixes C,D,E,F]. The authors identified that the output of the process is “completed projects with no hiccups” and it is shipped from the warehouse[Appendix C,D,E,F]. The customers were identified as the case companies' end customers (external) as well as the case companies' production (internal) and also the eight improvement proposals for the big Y were identified [Appendix C]. The big Y is the main output of the PM, this output is affected by multiple variables/inputs known as small “ys' '. The small “ys” are usually measurable processes parameters that can be controlled or manipulated in order to improve the Big Y (Bañuelas et al., 2005). The small ys were identified & confirmed by the authors after brainstorming based on the data collected from the semi-structured interviews and AIM result. Four small ys were identified : “y1=the time difference between agreed delivery time by sales and the actual delivery by PM” , “y2=the difference between the planned work boundaries for each PM position”, “y3= the difference between available work potential and the executed work” and “y4= Amount of changes made in execution phase”. After this step all the other steps are repeated four times for every small y which will be described in the coming sections. When dealing with broad problems with multiple factors (ys’), as in our case the problem statement (Y) derived from AIM, it is necessary to identify small measurable factors so a deeper investigation can be conducted on them. This enables the practitioners to get a thorough understanding of the factors and their behavior which will later on aid in uncovering the causes of their behavior. 4.4.2. y1: agreed delivery time vs actual delivery It was identified by the authors that the baseline for y1 is that there is data regarding the agreed delivery time by sales and the actual delivery time by PM and that any improvements for this cannot cause loss of business. The jurisdiction for the project is that the solution is a recommendation, but the project team is not responsible for the application of the solution to the PM. This is because any changes to the PM in the case company will require more time and resources then what is set on for the project. The competences that will be needed based on the data from the semi-structured interviews and the results of the AIM-workshop are the “technical expertise for the sales”, “the awareness of the case company regarding the capabilities and potential regarding product design & delivery” and “ project engineers should be capable of taking any project”. This is because firstly when sales has the technical expertise it is assumed that they are less likely going to agree on a delivery date that is unsustainable for the PM to uphold. Secondly, when there's awareness throughout the company regarding the capabilities for product design and delivery it is assumed that the case company will be able to seek to take orders they are capable of and avoid those outside of it. 30 Lastly the engineers should be able to take on any order from the sales since it is their job and anything compromising that should be minimized. When it comes to the input it has been identified that it is “number of projects” and “list of technical specifications” both inputs have one supplier respectively. Supplier for the “number of projects” is the sales team who bring new projects to reach their sales goals and the supplier for the “technical specification requirement” for a project is the end customer who dictates what specification they want for their product. The inputs should be calculated with consideration to the workload capacity of the PM as well as their technical competence so they don’t work more than expected and with products outside their scope of expertise [Appendix A & C]. 4.4.3. y2: Difference between planned work boundaries in PM It was evident based on interviews that managers are taking on the role of an engineer and administration more than they are actually supposed to by calculating approximately (in%) the time managers allocate for non-managerial work. The solution that comes from this should not cause the loss of business, no outsourcing of work, no further delays in delivery and lastly it should not go against the wishes of the customers regarding product specification. The jurisdiction for this solution is that they are presented as recommendations and any implementation of them is in the hands of the case company. In order to solve this there must be universal competence across the case company regarding the jurisdiction of each role so that every employee knows what's their work and what's not based on the semi-structured interviews and the AIM-workshop. This is to reduce the difference between planned and actual work boundaries. The inputs for this process is the “working structure within PM” and ”availability of resources' ' both of which are supplied by the upper management. The inputs should consider the capacity and competence requirement for the work structure so managers don’t have to work as engineers or admin according to the semi-structured interviews and the AIM-workshop [Appendix A & D]. 4.4.4. y3 : available work potential vs executed work Based on the interviews with employees, they thought that they worked too much and that any solution for this problem cannot cause loss of business, outsourcing, delivery delays and can’t go against customer specifications. This solution is also a recommendation and any form of implementation is within the jurisdiction of the case company and for this solution to work the competence regarding work management needs to be better based on the semi-structured interviews and the AIM-workshop. The inputs for this process are “Projects” supplied by the sales team and “Availability of competent engineers” supplied by HR. The input should involve and consider all the stakeholders affected by the project in the decision 31 making. This is to prevent compromising the interest of any stakeholder according to the semi-structured interviews and the AIM-workshop [Appendix A & E]. 4.4.5. y4 : Amount of changes made in execution phase According to the semi-structured interviews, there are a lot of undocumented changes during the execution phase conducted on emails internally. The few documented in the case company lime database shows one or two changes, but the interviewees says it’s an underestimated number [Appendix B]. These changes according to the semi-structured interviews cause extra costs and delays on the case company, but since it does not want to lose customers it does not transfer the costs to customers. The Case company requires that any solution presented cannot cause loss of business, outsourcing, delivery delays and can’t go against customer specifications. The solution is a recommendation and any form of implementation is within the jurisdiction of the case company. The solution is a recommendation and any form of implementation is within the jurisdiction of the case company itself. The competence that will be needed to manage this problem is better communication between sales and PM according to the semi-structured interviews. The main inputs regarding changes for the execution phase are the “changes in technical specification for making product”, “number of units (product)” and ” less units (product)”. The first input is supplied by the PM and the other two is supplied by the end customers. The input should have better handovers from sales and this is done by having better communication between sales, PM and end customer [Appendix F]. 32 4.5. Analysis of the small ys’ As a result of the effective scoping the authors uncovered the four measurable ys’ which were leading to the problem or big Y. In this section of the report, each individual y has been measured and analyzed further to get more insight in the problem and finally map out the potential root causes of the Y. 4.6. y1 The first y1 affecting the big Y is “ The time difference between agreed delivery time and the actual delivery”. This y explains when a project is supposed to be delivered to customers and when it actually is, after measuring the 71 projects in the [Appendix B] there was a significant gap between them as can be seen in the image below. [Fig 4] Graphical Analysis of y1 The [Fig 4] depicts the process capability analysis, which has five windows that explains the CRM, the first window is a histogram that shows the distribution of the CRM data points 33 regarding delays. The 0 stands for a project being delivered as promised, anything to the right of the 0 is delayed and anything before is earlier than planned. The second is a summary of the data point values in terms of Upper specification limit (USL) (estimated limit of acceptable delivery postpone) which is set for 30 days, Lower specification limit (LSL) (estimated limit of acceptable delivery prepone) also set for 30 days. The reason 30 days was chosen was because usually the project duration lasts for years and the customers require the product delivered within the promised month irrespective of the day. The data points (N) for this sample is 71, Sample mean is the average value of this sample. The value within sigma is the short term estimate of sigma which is around 32, Overall sigma is the long term estimate of sigma which is around 46,7 (Walsh & Lancaster, 2015). The Stability index divides “overall sigma” with “within sigma” (Overall sigma/value within sigma) (Stability Index, 2023). The third and fourth windows respectively focus on “Within Sigma Capability” shows the short term capability of a process Cpk (Cpk = Process capability) and “Overall Sigma Capability” which shows the long term performance of the process Ppk (Ppk = Process performance) (Hessing, 2024), (Admin, 2022)(Carleton, S.A, 2016). The last window “Nonconformance” shows the percentage of data points that are above/ below the specification limit in separate and combined values (Calculating Capability Indices Using the Distribution Platform, 2021). The image shows the low capability and performance of the PM processes when conducting projects at the case company according to the analysis of sampled data. Since most data points tilt to the right of the green line as well as the red upper specification limit (USL) with an average delay of more than three weeks. According to the Carleton, S. A. (2016) for a process to be considered good in the short term and long term it needs to have both an Cpk and Ppk of around 1,5 , but in this case it’s 0.08 and 0,055 respectively [Fig 4] (Mapue, 2018) . This means that the delivery of the PM is subpar to customer expectations when it comes to delivering according to schedule. The delays could have been caused by one or multiple causes, therefore the authors made a multivariate analysis on JMP with these factors: delays, shipping date (planned), delivery date (Actual), number of changes, type, status, delay and Time of the year. Out of all these factors analyzed, the time of the year showed a prominent effect compared to others on the delays. The analysis [Fig 5] shows that most delays and the longest delays were in the first quarter of the year with improvements in the time delivery for every quarter. The volatility in the beginning of the year and successive stabilization at the end of the year as can be seen in the image below, could potentially mean that the PM pushes projects until next year which causes the extreme delays in the first quarters of years. 34 [Fig 5] Time factor influencing y1 These delays in the early part of the year could also potentially be caused by processes changes in PM which usually means a slower execution of work. Another cause could be the restructuring of teams in PM, because of new employees joining and old/experienced employees leaving the job which causes change in team dynamics, competence level and work redistribution. Apart from the extreme delays in the first quarter of a year the analysis showed that different “project types” and “number of changes done to a project” have differences in the average delays as can be seen in the images below. 35 [Fig 6 & 7] No of changing and project type influencing y1 The analysis [Fig 6 & 7] shows that the two project types with greater number of data points “Normal” and “Retrofit” had a slightly lower average of delay in project delivery. The number of changes done to a project did seem to affect the average delay. However the category of “No record” has the greatest amount of data points which also lacked information regarding changes done to the project. This could mean a lot of undocumented changes have been done or none. The authors observed in both “2 changes” and “No record” that some projects were delivered before their shipping date as well that the project with 12 changes was only delayed with three days which could give a small indicator that more changes increases likelihood of less delays. This can be seen in the image above about both aforementioned categories having lower average delay time than the category of “1 change”. However since the “No record” is an unknown variable no clear conclusion can be taken it’s more of an indication of a potential source of the delay. In conclusion the potential causes identified by the authors of the delays are primarily the extreme delays in the first quarters of a year, secondary the project type and number of changes done in the project. 4.7. y2 The second small y impacting the big Y is “The difference between the planned work boundaries and the actual work boundaries”. The difference in focus is how the work involved in an individual project is divided between the different roles in the department. Currently there are four different roles in the department which are the manager, leader, engineer and administrator. Upon investigation, there was no clear description found on who the process owners were for all the tasks involved in completing a project. Although it was evident that, the lack of these boundaries was creating a state of confusion and frustration in the employees as expressed in the interviews conducted by the authors. One of the possible 36 ways in which the authors could have measured this was through tracking down the individual process owners of all the tasks completed in the project and comparing it to the expected boundaries. This method was not possible with the current data recording system present at the organization in interest. The observations also uncovered that the major tasks of a role were clear to every individual but many of the tasks overlapped between different competencies. To gather further evidence, the authors conducted a survey focusing on the larger growing department based in Sweden of the organization in interest. The survey was designed based on ordinal scale which is the second level of measurement for research purposes to understand the higher or lower value of the data set (Chaudhari, 2021). The first question was focused on the frequency of the existence of the problem in question. The respondents were asked to choose the frequency of the employees working beyond their work boundaries, which they had observed in their experience working in the department. As observed from the results obtained in [fig 8] it is evident that all of the respondents, which makes up the majority of the people in the department, have observed employees doing tasks outside their boundary more often. Since the value is in the higher data set, providing clear evidence into the existence of the problem. [Fig 8] Survey results of y2 The second question [Appendix I] was framed in order to understand the deviation of the problem from the expected setting. The respondents were now asked to estimate the extent of the difference between the expected work boundaries and the actual work boundaries that exist in the department. As observed from the results obtained [Appendix I] which shows a spread of the value in the data. Curious of the results, the authors decided to take a look deeper into the results and found out that all the engineers responded chose the option minimal or moderate. Whereas all the managers responded with significant difference indicating noticeable deviations while the 37 project