Topic 4B Performance Management

Question 1

DEFINITION of Business Improvement

Answer 1

The creation of an improvement oriented culture and management process that utilizes improvement experts and proven methodologies/ tools to achieve superior levels of performance

Question 2

Why organizations implement a FORMAL, ongoing business improvement process?

Answer 2

When improvement experts are fully supported by senior management and trained in the use of proven improvement processes, methodologies/tools, they routinely achieve HIGHER PROJECT SUCCESS RATE and deliver BETTER OVERALL PERFORMANCE RESULT

Question 3

REASONS improvement projects fail (12)

Answer 3

1. Project scope too LARGE 2. Lack of FOCUS/competing PRIORITIES 3. Insufficient RESOURCE 4. Wrong RESOURCE(wrong project leader, wrong team) 5.Insufficient SENIOR LEADERSHIP support, MOTIVATION/incentives 6. Poor project leadership/poor team DYNAMICS (no training) 7. IMPROPER METHOD and tools used or TOO MUCH TIME (no common methods, no common language) 8. Departure/LACK OF INTEREST of team members 9. Post project INATTENTION 10. Constantly SHIFTING PRIORITIES 11. Wrong project OBJECTIVE 12.Project taking TOO LONG, using TOO MANY RESOURCES, not enough progress to justify the investment of resources/effort

Question 4

ELEMENTS of Business improvement(3)

Answer 4

A.Role of Leadership B. Experts & Training C, Proven methodologies/ tools

Question 5

Success factor of Senior Leadership (6)

Answer 5

1.Establish Priority 2.Appoint Experts 3.Provide Resources 4.Imbed in Culture 5.Review Progress 6.Recognize Results

Question 6

Success factor of Experts & training(7)

Answer 6

1. Hire Experts
2. Train Organization
3. Imbed in Culture
4. Train New Experts
5. Assist Project Selection 6.Monitor Projects
6. Deliver Results

Question 7

Success factor of Methods & Tools

Answer 7

1. PDCA (Plan, Do, Check, Act) 2.Six Sigma 3.Lean 4.DFSS (Design For Six Sigma) 5.BPR (Business Process Reengineering) 6.Control Charts 7. VSM 8.HOQ (QFD)

Question 8

Role of LEADERSHIP

Answer 8

1.Establish the compelling CASE AND PRIORITY for improvement 2. APPOINT AND EMPOWER improvement experts and provide sufficient resources and support for building the necessary infrastructure 3.IMBED IMPROVEMENT PRIORITY AND PHILOSOPHY into strategic objectives and the organization’s culture 4.HOLD THE ENTIRE ORGANIZATION ACCOUNTABLE for progress and results (regular progress reviews) 5. REWARD & recognize results

Question 9

Role of EXPERTS (1/4)

Answer 9

BUSINESS IMPROVEMENT LEADER– Experienced in working with business leaders to identify improvement opportunities and establishing effective improvement project management system and training system

Question 10

Role of EXPERTS (2/4)

Answer 10

MASTER AND BLACK BELT– Expert and experienced in process, methods, and tools used in improvement projects. Experienced training and coaching Black Belts and Green Belts (project leaders)

Question 11

Role of EXPERTS (3/4)

Answer 11

BLACK BELT – Demonstrated expertise in managing multiple successful improvement projects using the methodologies and tools

Question 12

Role of EXPERTS (4/4)

Answer 12

GREEN BELT– Trained in using methods and tools with only one successful project completion

Question 13

TRAINING—all mgmt team

Answer 13

core concept of PM including Business Improvement

Question 14

TRAINING— BI LEADERS

Answer 14

in each business unit in the PM process

Question 15

TRAINING— MASTER BLACK BELTS(2)

Answer 15

1.to train BLACK and GREEN Belt— core and advanced improvement methodologies and tools 2. coach project leaders, project teams, monitor their progress

Question 16

TRAINING—BLACK BELTS

Answer 16

manage multiple projects and project teams, fully master improvement methodologies and tools

Question 17

TRAINING—GREEN BELTS

Answer 17

basic project mgmt and basic improvement methodologies and tools

Question 18

METHODOLOGIES—PDCA (4)

Answer 18

4 step– control and continuous improvement of processes and products (deming circle) Plan– Do– Check– Act

Question 19

METHODOLOGIES—SIX SIGMA

Answer 19

(Six sigma = 3.4 defects/million opportunities) To improve quality by reducing defects and variability in the performance of business process– use DAMI2C

Question 20

METHODOLOGIES—LEAN

Answer 20

1.Specify value from the standpoint of the end customer for each product 2.Identify all the steps in the value stream for each product, ELIMINATING whenever possible those steps that DON’T CREATE VALUE. 3.Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. 4. As flow is introduced, LET CUSTOMERS PULL VALUE FROM THE NEXT UPSTREAM ACTIVITY 5.As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

Question 21

LEAN PRINCIPLES

Answer 21

Goal: eliminate all waste in value creation process Waste: anything that does not create value for customer 1. define value 2. map vale stream 3. create flow 4. establish pull 5. pursuit perfection

Question 22

Design for Six Sigma (DFSS)

Answer 22

DFSS is used to design new processes (new products/services) and seeks to avoid manufacturing/service process problems by using advanced Voice of the Customer (VOC) techniques and proper systems engineering techniques to avoid process problems at the outset. It utilizes the DMADV methodology

(Define, Measure, Analyze, Design, Verify)

Question 23

Business Process reengineering( BPR)

Answer 23

BPR involves radically redesigning and streamlining (合理化)how an activity is performed, with the intent of achieving quantum improvements in performance

Question 24

Business Improvement Tools

Answer 24

Process Maps/ Value Stream Maps

Control Charts

Defect Rates

Sigma level

House of Quality (QFD or Qualit Function Deployment)

Question 25

Process Maps/Value Stream Maps

Answer 25

•used to depict and describe a process

Question 26

Control Charts

Answer 26

•used to measure whether a process is in control (allows modest variation around a defined performance target)

Question 27

Defect Rates

Answer 27

•used to determine the number deviations from expected performance (customer specifications) for a given process for a given number of opportunities

Question 28

Sigma Level

Answer 28

•deviations per opportunity (DPO) or per million opportunities (DPMO), calculated using a DPMO conversion table. If a process performs with 3.4 or less defects per million opportunities it is said to be at six sigma quality.

Question 29

House of Quality (QFD or Quality Function Deployment)

Answer 29

•Links customer requirements to product/service design specifications using a matrix format

Question 30

Business Face 6 types of risk

Answer 30

1. Operational Risks (technology, process, org.)
2. Financial Risks (profitability, funding, liquidity)
3. Strategic Risks (general, supply chain, projects)
4. Market Risks (macroeconomic, market development)
5. Geopolitical Risks (sociopolitical, legal, infrastructure)
6. Catastrophic Risks (environmental, manmade, violence)

Question 31

Ten principles of Risk Mgmt

Answer 31

1. Risk Management starts at top
2. Risk cannot be managed from an ivory tower
3. Avoid relying on black boxes
4. Risk management is strategy, and strategy is risk mgmt.
5. Risk management is more than policy, it is culture
6. A risk aware culture requires a free-flow of information
7. What matters is the “talk”, not the “report”
8. The path is the goal
9. It is possible to prepare for unknown risks
10. Avoid the downside, but don’t forget the upside