Topic 4B Performance Management Flashcards
DEFINITION of Business Improvement
The creation of an improvement oriented culture and management process that utilizes improvement experts and proven methodologies/ tools to achieve superior levels of performance
Why organizations implement a FORMAL, ongoing business improvement process?
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
REASONS improvement projects fail (12)
- 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
ELEMENTS of Business improvement(3)
A.Role of Leadership B. Experts & Training C, Proven methodologies/ tools
Success factor of Senior Leadership (6)
1.Establish Priority 2.Appoint Experts 3.Provide Resources 4.Imbed in Culture 5.Review Progress 6.Recognize Results
Success factor of Experts & training(7)
- Hire Experts
- Train Organization
- Imbed in Culture
- Train New Experts
- Assist Project Selection 6.Monitor Projects
- Deliver Results
Success factor of Methods & Tools
- 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)
Role of LEADERSHIP
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
Role of EXPERTS (1/4)
BUSINESS IMPROVEMENT LEADER– Experienced in working with business leaders to identify improvement opportunities and establishing effective improvement project management system and training system
Role of EXPERTS (2/4)
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)
Role of EXPERTS (3/4)
BLACK BELT – Demonstrated expertise in managing multiple successful improvement projects using the methodologies and tools
Role of EXPERTS (4/4)
GREEN BELT– Trained in using methods and tools with only one successful project completion
TRAINING—all mgmt team
core concept of PM including Business Improvement
TRAINING— BI LEADERS
in each business unit in the PM process
TRAINING— MASTER BLACK BELTS(2)
1.to train BLACK and GREEN Belt— core and advanced improvement methodologies and tools 2. coach project leaders, project teams, monitor their progress
TRAINING—BLACK BELTS
manage multiple projects and project teams, fully master improvement methodologies and tools
TRAINING—GREEN BELTS
basic project mgmt and basic improvement methodologies and tools
METHODOLOGIES—PDCA (4)
4 step– control and continuous improvement of processes and products (deming circle) Plan– Do– Check– Act
METHODOLOGIES—SIX SIGMA
(Six sigma = 3.4 defects/million opportunities) To improve quality by reducing defects and variability in the performance of business process– use DAMI2C
METHODOLOGIES—LEAN
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.
LEAN PRINCIPLES
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
Design for Six Sigma (DFSS)
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)
Business Process reengineering( BPR)
BPR involves radically redesigning and streamlining (合理化)how an activity is performed, with the intent of achieving quantum improvements in performance
Business Improvement Tools
Process Maps/ Value Stream Maps
Control Charts
Defect Rates
Sigma level
House of Quality (QFD or Qualit Function Deployment)
