BEC-6 Flashcards
Process Management
- management approach that seeks to coordinate the functions of an organization towards CUSTOMER SATISFACTION
Activities:
Design- identification of existing processes and how they should function once improved
Modeling- introduces variables for “what-if” analysis
Execution- design changes are implemented and “key indicators of success” are developed
Monitoring- information is gathered and tracked and compared to expected
Optimization- process is continued to be refined based on new information
Dashboards
- used to monitor improvements in REAL TIME
Process Management -Other approach(memorize!)
PDCA
Plan
Do
Check
Act
Measures(“indicators”) to monitor progress
- can be financial or nonfinancial
- Gross revenue(financial)
- Nonfinancial: customer contacts, customer satisfaction , operational statistics
Selecting and implementing improvement initiatives
- key component of Process Management
-should be “rational” and not “irrational”
Crucial for implementing improvement initiatives: - must have internal leadership from senior management
-must be monitored, inspections - executive support(tone ant the top)
-internal process ownership( must have buy in from employees)
Business process re-engineering
- techniques to help organizations rethink how work is done to DRAMATICALLY IMPROVE/ RADICAL change customer satisfaction and enhance competitiveness
- process management is slow tweak vs. business process re-engineering which is radical quick
Just-in-time(JIT)
- “pull approach”
- anticipates achievement of efficiency by scheduling the deployment of resources just-in-time to meet customer needs
- Cost = down, Work in progress = down Quality = Up
- underlying concept of JIT is that inventory does NOT add value since carrying costs are high to keeping surplus inventory
Cost of Quality*
Conformance - investing on the front end to ensure standards:
Prevention costs: incurred to prevent the production of defective units
Appraisal costs: incurred to discover and remove defective parts before they are shipped to the customer or next department
Non-conformance - cost of failure of standards
Internal Failure: can cure defect before it gets to customer
External Failure: cost to cure a defect after sent to customer
Conformance and Non-conformance costs are inversely related, more prevention should equal less non-conformance costs
Total Quality management
- an organizational commitment to customer-focused performance that emphasizes both quality and continual improvement
- ongoing with no end unlike project management which has an end
Quality audits and Gap Analysis
Quality Audits - techniques in which management assesses the quality practices of the organization
Gap Analysis - determines gap or difference between “industry best” practices and current companies practices
Lean Manufacturing
- goal is to “cut the fat”, not worried about quality, all about cost reduction
- waste reduction is the focus not quality
- “Kaizen” = continuous improvement, ensures that resource usage stays within target costs
Demand flow
- manages resources using customer demand as the basis for resource allocation
- ongoing basis of demand from customers, not forecasts for sales determined at beginning of year
- just like Just-in-time
Theory of constraints
- Maximize throughput(production or output) by working around or leveraging the constraint
- turn a negative to a positive
Constraint
anything that impedes the accomplishment of an objective
Six Sigma
- the emphasis is on cost-reduction
- uses rigorous metrics
- expands on Plan, Do, Check, Act processes and is more rigorous than it
Project Management
- a Project should be a temporary undertaking with a beginning and end and intended to produce a unique service, product or result
Project Management Steps
- Authorization - must create a project charter and get permission to carry out project for the benefit of shareholders, also must describe the product or service the project must deliver
- Planning - determine all necessary activities to achieve the project objectives, continues throughout the entire project, must establish the baseline or standard for quality to assess whether this project is successful
- Implementation - assure quality by implementing the plan, make sure we deliver the project deliverables, all the activities involved in completing the work that was specified in the plans, assemble a project team and distribute the project assignments
- Monitoring - monitor and control, measure performance, identify need for any changes, control the scope of the project make sure it will have an end
- Closing - project must end, ends when the objectives have been completed.
Project Manager
- responsible for day to day management
- identify all the stakeholder expectations
- develop all project steps
- procure the project team members
- communicate the project metrics to external and internal STAKEHOLDERS and team members( not the job of steering committee)
- reports to the project sponsor
Project Members
- perform the project tasks, carry out the work
- produce the deliverables defined by the project manager
Project Sponsor
- high level executive in management, most likely from board
- responsible for getting resources and funding for project
- chairs the steering committee and reports to them not the board, the steering committee ultimately reports to the board of directors
- responsible for overall project delivery
Project Risk
- always must assume risk if want to achieve possible return
- spend money in advance to reduce possibility of worst or most sever risk(risk control)
RAM
- ” responsibility assignment matrix”
- shows all activities associated with one person and all people associated with one activity
Requirements Management Plan
- documents how requirements will be manged, analyzed, tracked and reported
