Transcript LECTURE 23.pptx

MGT 563
OPERATIONS STRATEGIES
Dr. Aneel SALMAN
Department of Management Sciences
COMSATS Institute of Information Technology,
Islamabad
Recap Lecture 22
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Technology Strategy and Development
Technology Generation
S Curve of Technology Evolution
Dan Tapscott- Four Principles for the Open world
Using Models to Drive
Process Improvement
Where are we going?
• Why?
• How?
• Is there something better?
Where are we going?
• Why?
• How?
• Is there something better?
Experience That Is Too Common
• A 2-year process improvement effort is completed
• Quickly or slowly, but steadily it begins to fade
away
• A year or so later there is little evidence anything
was done!
Why Do Organizations Most Often Do Process
Improvement?
• Follow the leader - Everyone else is doing it
• A champion - An executive heard about it or read
about it somewhere
• A prod - A customer demands it
• A cause – If we don’t do something, we won’t
survive
Why Should Organizations Do Process
Improvement?
• As a means to achieve organizational
goals/objectives derived from strategic plans.
• Always maintain the link to the goals/objectives and
strategies
• If you don’t, the process improvement effort will not
survive an economic downturn or the loss of the key
sponsor
Think “Programme Management”
• My advice to organizations used to be to treat process
improvement efforts as a project
• This may not give enough emphasis to critical success
factors
• Programme management is about tying the improvement
effort to the goals/objectives and ensuring that the
process capabilities developed return measurable results.
• For more info, google “OGC Managing Successful
Programmes”
Where are we going?
• Why?
• How?
• Is there something better?
Lots Of Ways To Do “It”?
• SPC
• TQM
• ISO
• 6 Sigma
• CMMI/SPiCE
• Lean
• Lean/6 Sigma
• Other
Define “Models”
• What do you think of
when you hear the word
“Model”?
Presidential Citizen’s Medal Awarded to U.S. citizens who have
performed exemplary deeds or
services for his or her country or
fellow citizens
Process Improvement Models
• Definition - A model is a collection of process elements
and practices that can be used as a pattern for process
development and a criteria against which a process can
be assessed objectively.
• Some examples:
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ISO 9001
CMMI (Capability Maturity Model Integrated)
MBNQA (Baldrige Award)
ISO 15504 (SPiCE)
“Approaches”?
• Definition - An approach is any methodology or
system of tools that is been used to guide problem
solving, management, etc.
• Some examples:
• TQM
• 6-Sigma
• Lean
Look at Models/Approaches
• Each one developed to:
• Address a certain principle
• Resolve a certain issue
ISO 9001
• Requirements:
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4. Quality management system
5. Management responsibility
6. Resource management
7. Product realization
8. Measurement, analysis and improvement
Focus in practice is usually on establishing
foundational processes and being able to “Fly
the Flag”. Should be used for much more.
CMMI
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Level 2
Managed
Level 3
Defined
Level 4
Quantitatively Managed
Level 5
Optimizing
Process areas
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Requirements Management
Project Planning
Project Monitoring and Control
Supplier Agreement Management
Measurement and Analysis
Project and Process Quality Control
Configuration Management
Requirements Development
Technical Solution
Product Integration
Verification
Validation
Organizational Process Focus
Organizational Process Definition +IPPD
Organizational Training
Integrated Project Management + IPPD
Risk Management
Decision Analysis and Resolution
Organizational Process Performance
Quantitative Project Management
Organizational Innovation and Deployment
Causal Analysis and Resolution
5 Maturity Levels
22 Process Areas
Specific Goals
Specific Practices
Generic Goals
Generic Practices
Staged Representation
Continuous Representation
Focus is on Product
Development Process Maturity
CMMI
• Process areas
Level 2
Managed
Level 3
Defined
Level 4
Quantitatively Managed
Level 5
Optimizing
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Requirements Management
Project Planning
Project Monitoring and Control
Supplier Agreement Management
Measurement and Analysis
Project and Process Quality Control
Configuration Management
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Requirements Development
Technical Solution
Product Integration
Verification
Validation
Organizational Process Focus
Organizational Process Definition +IPPD
Organizational Training
Integrated Project Management + IPPD
Risk Management
Decision Analysis and Resolution
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Organizational Process Performance
Quantitative Project Management
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Organizational Innovation and Deployment
Causal Analysis and Resolution
5 Maturity Levels
22 Process Areas
Specific Goals
Specific Practices
Generic Goals
Generic Practices
Staged Representation
Continuous Representation
Focus is on Product
Development
Process Maturity
MBNQA (and MQLA)
• 7 Categories (1,000 pts. Total)
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Leadership (120 pts.) – Sr. leaders, governance, ethics
Strategic Planning (85 pts.) – Strategic objectives, action plans, deployment
Customer and Market Focus (85 pts.) – Customer, customer, customer
Measurement, Analysis, and Knowledge Management (90 pts.) – Data
availability/usage/ communication, systematic performance improvement
• Workforce Focus (85 pts.) – High performance, alignment, capability, capacity
• Process Management (85 pts.) – Core competencies, work systems, customer
value, sustainability
• Results (450 pts.) – Outcomes, performance, process effectiveness, customerfocused, financially-focused, workforce-focused, leadership driven
Focus is on
Business
Excellence
SPiCE (ISO/IEC 15504)
• European answer to CMMI
• Process Reference Model (PRM) and Process
Assessment Model (PAM)
• Domain specific (e.g. Automotive SPiCE – software
development only for the auto industry)
Focus on process maturity and
continuous improvement with
customization to specific domains.
ISO/IEC 15504 (SPiCE)
Supporting Life Cycle Processes
Primary Life Cycle Processes
Acquisition Process Group
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ACQ.1 Acquisition preparation
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ACQ.2 Supplier selection
S A ACQ.3 Contract agreement
S A H ACQ.4 Supplier monitoring
S
ACQ.5 Customer acceptance
A ACQ.11 Technical requirements
A ACQ.12 Legal & Admin requirements
A ACQ.13 Project requirements
A ACQ.14 Request for proposals
A ACQ.15 Supplier qualification
Engineering Process Group
Support Process Group
S A ENG.1 Requirements elicitation
S A H ENG.2 System requirements analysis
S A H ENG.3 System architectural design
S A H ENG.4 Software requirements analysis
S A H ENG.5 Software design
S A H ENG.6 Software construction
S A H ENG.7 Software integration
S A H ENG.8 Software testing
S A H ENG.9 System integration
S A H ENG.10 System testing
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ENG.11 Software installation
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ENG.12 Software & System Maintenance
S A H SUP.1 Quality assurance
S A SUP.2 Verification
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SUP.3 Validation
S A SUP.4 Joint Review
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SUP.5 Audit
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SUP.6 Product evaluation
S A SUP.7 Documentation
S A H SUP.8 Configuration management
S A H SUP.9 Problem resolution management
S A H SUP.10 Change request management
Supply Process Group
Operation Process Group
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SA
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SPL.1 Supplier tendering
SPL.2 Product release
SPL.3 Product acceptance support
OPE.1 Operational use
OPE.2 Customer support
Organizational Life Cycle Processes
Process Improvement Group
Management Process Group
Resource & Infrastructure Process Group
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MAN.1 Organizational alignment
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MAN.2 Organizational management
S A H MAN.3 Project management
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MAN.4 Quality management
S A MAN.5 Risk management
S A MAN.6 Measurement
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RIN.1 Human resource management
RIN.2 Training
RIN.3 Knowledge management
RIN.4 Infrastructure
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PIM.1 Process establishment
PIM.2 Process assessment
PIM.3 Process improvement
Reuse Process Group
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SA
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REU.1 Asset management
REU.2 Reuse program management
REU.3 Domain engineering
Automotive SPiCE (European Auto Mfrs.)
Supporting Life Cycle Processes
Primary Life Cycle Processes
Acquisition Process Group
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ACQ.1 Acquisition preparation
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ACQ.2 Supplier selection
S A ACQ.3 Contract agreement
S A H ACQ.4 Supplier monitoring
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ACQ.5 Customer acceptance
A ACQ.11 Technical requirements
A ACQ.12 Legal & Admin requirements
A ACQ.13 Project requirements
A ACQ.14 Request for proposals
A ACQ.15 Supplier qualification
Engineering Process Group
Support Process Group
S A ENG.1 Requirements elicitation
S A H ENG.2 System requirements analysis
S A H ENG.3 System architectural design
S A H ENG.4 Software requirements analysis
S A H ENG.5 Software design
S A H ENG.6 Software construction
S A H ENG.7 Software integration
S A H ENG.8 Software testing
S A H ENG.9 System integration
S A H ENG.10 System testing
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ENG.11 Software installation
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ENG.12 Software & System Maintenance
S A H SUP.1 Quality assurance
S A SUP.2 Verification
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SUP.3 Validation
S A SUP.4 Joint Review
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SUP.5 Audit
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SUP.6 Product evaluation
S A SUP.7 Documentation
S A H SUP.8 Configuration management
S A H SUP.9 Problem resolution management
S A H SUP.10 Change request management
Supply Process Group
Operation Process Group
SA
SA
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SPL.1 Supplier tendering
SPL.2 Product release
SPL.3 Product acceptance support
OPE.1 Operational use
OPE.2 Customer support
Organizational Life Cycle Processes
Process Improvement Group
Management Process Group
Resource & Infrastructure Process Group
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MAN.1 Organizational alignment
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MAN.2 Organizational management
S A H MAN.3 Project management
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MAN.4 Quality management
S A MAN.5 Risk management
S A MAN.6 Measurement
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RIN.1 Human resource management
RIN.2 Training
RIN.3 Knowledge management
RIN.4 Infrastructure
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SA
PIM.1 Process establishment
PIM.2 Process assessment
PIM.3 Process improvement
Reuse Process Group
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SA
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REU.1 Asset management
REU.2 Reuse program management
REU.3 Domain engineering
HIS (basically German Auto Mfrs.) Scope
Supporting Life Cycle Processes
Primary Life Cycle Processes
Acquisition Process Group
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ACQ.1 Acquisition preparation
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ACQ.2 Supplier selection
S A ACQ.3 Contract agreement
S A H ACQ.4 Supplier monitoring
S
ACQ.5 Customer acceptance
A ACQ.11 Technical requirements
A ACQ.12 Legal & Admin requirements
A ACQ.13 Project requirements
A ACQ.14 Request for proposals
A ACQ.15 Supplier qualification
Engineering Process Group
Support Process Group
S A ENG.1 Requirements elicitation
S A H ENG.2 System requirements analysis
S A H ENG.3 System architectural design
S A H ENG.4 Software requirements analysis
S A H ENG.5 Software design
S A H ENG.6 Software construction
S A H ENG.7 Software integration
S A H ENG.8 Software testing
S A H ENG.9 System integration
S A H ENG.10 System testing
S
ENG.11 Software installation
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ENG.12 Software & System Maintenance
S A H SUP.1 Quality assurance
S A SUP.2 Verification
S
SUP.3 Validation
S A SUP.4 Joint Review
S
SUP.5 Audit
S
SUP.6 Product evaluation
S A SUP.7 Documentation
S A H SUP.8 Configuration management
S A H SUP.9 Problem resolution management
S A H SUP.10 Change request management
Supply Process Group
Operation Process Group
SA
SA
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S
SPL.1 Supplier tendering
SPL.2 Product release
SPL.3 Product acceptance support
OPE.1 Operational use
OPE.2 Customer support
Organizational Life Cycle Processes
Process Improvement Group
Management Process Group
Resource & Infrastructure Process Group
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MAN.1 Organizational alignment
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MAN.2 Organizational management
S A H MAN.3 Project management
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MAN.4 Quality management
S A MAN.5 Risk management
S A MAN.6 Measurement
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RIN.1 Human resource management
RIN.2 Training
RIN.3 Knowledge management
RIN.4 Infrastructure
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SA
PIM.1 Process establishment
PIM.2 Process assessment
PIM.3 Process improvement
Reuse Process Group
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SA
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REU.1 Asset management
REU.2 Reuse program management
REU.3 Domain engineering
TQM
• "TQM is a management approach for an
organization, centered on quality, based on the
participation of all its members and aiming at longterm success through customer satisfaction, and
benefits to all members of the organization and to
society." ISO 8402:1994
Focus is in involving everyone and all aspects of the
business in problem solving.
6-Sigma
• Six Sigma is a disciplined, data-driven approach and
methodology for eliminating defects (driving
towards six standard deviations between the mean
and the nearest specification limit).
• DMAIC (problem solving approach)
• Specialists – black belts and green belts
Focus on eliminating sources of
error/variation with emphasis on the
financial impact.
Lean
• A practice that considers the expenditure of
resources for any goal other than the creation of
value for the end customer to be wasteful, and thus
a target for elimination.
Focus on
cutting waste
Where are we going?
• Why?
• How?
• Is there something better?
Pros and Cons
• What are your goals/objectives and strategies?
• What’s your SWOT look like?
• What are your “Pain Points”?
• What do your customers want/demand?
• What is your corporate culture?
Why do we put blinders on?
• Is your organization the same as that of the
developers of any of these models?
• Do your needs match theirs?
• It’s easy to take what worked for them and apply it
(as is) in your organization – We don’t have to
think! No analysis required!
• Does it make sense?
Toolboxes
Match Process Improvement Methods to
Needs
Model/Approach
Focus
ISO 9001
Usually establishing foundational
processes and being able to “Fly
the Flag”
CMMI
Product Development Process
Maturity
MBNQA
Business Excellence
SPiCE
Process maturity and continuous
improvement with customization
to specific domains.
TQM
Involving everyone and all
aspects of the business in
problem solving.
6-Sigma
Eliminating sources of
error/variation, emphasis on the
financial impact.
Lean
Focus on cutting waste
How Can the Organization Realize the Greatest
Benefit?
• Good - Which of the models/ approaches seems to be the
best fit or already has a champion?
• Better – What combination of elements from them will
give the strongest/quickest benefits short term?
• Best – How is the choice going to help us reach our
goals/objectives, achieve our goals long term?
How do you decide?
• What methods would you suggest?
• Look at things like decision matrix, force field
analysis, mind maps, etc.
Conclusions
1. Program Management –
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Strategies  Process Improvement  Outcomes
2. Don’t get hung up on one methodology
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Don’t just “Study to the test”
Think “toolboxes”
3. Look at the needs/benefits
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Stop focusing on the model/approach
They are just tools
Final Recommendation
• Remember Deming’s 1st Point
• “Constancy of purpose”
• Roudabush (plagiarized) paraphrase “Keep On, Keepin’ On!”