Summary

1.1

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Lecture Notes

Chapter 1

Introduction

ENTERPRISE EXCELLENCE

1.2

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Learning Objectives

• The Law of Unintended Consequences

• Enterprise Excellence Definition

• Enterprise Excellence Model

• Continuous Measurable Improvement

• Achieving Enterprise Excellence

1.3

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LAW OF UNINTENDED CONSEQUENCES

• The five sources of unanticipated consequences for human activity are:

1. Lack of knowledge – Not enough data for good decision making

2. Errors – Analysis is inaccurate

3. Imperious immediacy of interest – purposefully ignoring unintended effects due to

strong desire 4. Basic values

– Values lead to ignoring unintended consequences 5. Self-defeating predictions

– Changing and/or manipulating the results

1.4

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ENTERPRISE EXCELLENCE

• An enterprise is defined as a systematic purposeful activity.

• In order to achieve the vision, satisfy the mission requirements, and deliver the goals of an enterprise, 8 critical functions must be performed: 1. Strategic planning 2. Market and customer research and communication 3. Research and technology development 4. Product, service and process design 5. Product and service commercialization 6. Post launch production 7. Product and service support 8. Measurement, analysis, and knowledge Update

1.5

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ENTERPRISE EXCELLENCE

• The relationships of the enterprise functions and the flow of information, products, and services are illustrated below

1.6

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ENTERPRISE EXCELLENCE MODEL

1.7

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ENTERPRISE EXCELLENCE

• The Quality Management System (QMS) requirements are:  Processes, procedures, and controls  Organizational structure with defined roles and

responsibilities  Processes & procedures communicated throughout the

organization  Decision making process  Commitment to continuous measurable improvement

• Some standardized systems are:  Voluntary (e.g., ISO 9001:2000)  Regulatory requirements (e.g., FDA, EPA, etc.)

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CONTINUOUS MEASURABLE IMPROVEMENT

• If we pursue effectiveness. we must then Lean the process, and if we Lean first we must then evaluate the effectiveness to eliminate variability.

1.9

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ACHIEVING ENTERPRISE EXCELLENCE

• Once the decision is made to implement Enterprise Excellence the question is, where to start? In other words, how can Enterprise Excellence be deployed? How can we institute a new way of thinking and operating? How doe we change in the culture of the enterprise.

• There are three common deployment strategies:  Deployment by pilot study  Project-by-project deployment  Enterprise-wide deployment

1.10

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• In this chapter, we have learned the following:

 The Law of Unintended Consequences

 Enterprise Excellence Definition

 Enterprise Excellence Model

 Continuous Measurable Improvement

 Achieving Enterprise Excellence

Wrap-up