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4.1

Updated April-09

Lecture Notes

Chapter 4 Enterprise Excellence

Implementation

ENTERPRISE EXCELLENCE

4.2

Updated April-09

Learning Objectives

• Management & Operations Plans

• Enterprise Excellence Projects

• Enterprise Excellence Project decision Process

• Planning the Enterprise Excellence Project

• Tollgate Reviews

• Project Notebook

4.3

Updated April-09

MANAGEMENT AND OPERATIONS PLANS

• The scope and complexity of the implementation projects will vary from the executive level, to the management level, to the operational level

• Each plan, as it is developed and deployed, will include projects to be accomplished

• Conflicts typically will occur amongst requirements of quality, cost, and schedule when executing a project

4.4

Updated April-09

ENTERPRISE EXCELLENCE PROJECTS

• An Enterprise Excellence project will be one of three types:

1. Technology invention or innovation

2. New product, service, or process development

3. Product, service, or process improvement

• Enterprise Excellence uses the scientific method

• The scientific method is a process of organizing empirical facts and their interrelationships in a manner that allows a hypothesis to be developed and tested

4.5

Updated April-09

ENTERPRISE EXCELLENCE PROJECTS

• The scientific method consists of the following steps:

1. Observe and describe the situation

2. Formulate a hypothesis

3. Use the hypothesis to predict results

4. Perform controlled tests to confirm the hypothesis

4.6

Updated April-09

ENTERPRISE EXCELLENCE PROJECTS

• Figure 4.1 shows the project decision process

4.7

Updated April-09

ENTERPRISE EXCELLENCE PROJECT

DECISION PROCESS

• Inventing/Innovating Technology:

 Technology development is accomplished using system engineering

 This system approach enables critical functional parameters and responses to be quickly transferred into now products, services, and processes

 The process is a four-phase process (I2DOV): Invention & Innovation – Develop – Optimize – Verify

4.8

Updated April-09

ENTERPRISE EXCELLENCE PROJECT

DECISION PROCESS

• Development of Products, Services, and Processes

 The Enterprise Excellence approach for developing products, services, and processes is the Design for Lean Six Sigma strategy.

 This strategy helps to incorporate customer requirements and expectations into the product and/or service.

 Concept – Design – Optimize - Verify (CDOV) is a specific sequential design & development process used to execute the design strategy.

4.9

Updated April-09

ENTERPRISE EXCELLENCE PROJECT

DECISION PROCESS

• Improving Products, Services, and Processes:

 Improving products, services and processes usually involves the effectiveness and efficiency of operations.

 A product or service is said to be effective when it meets all of its customer requirements.

 Effectiveness can be simply expressed as "doing the right things the first time and every time."

 Efficiency can be expressed as "doing the right things faster and with less resources."

 The process is (DMAIC): Define – Measure - Analyze- Improve - Control.

4.10

Updated April-09

PLANNING THE ENTERPRISE

EXCELLENCE PROJECT

• The work breakdown structure (WBS) is a powerful tool for breaking a task into subtasks.

• WBS translates the deliverables, constraints, and scope into a detailed project plan.

4.11

Updated April-09

PLANNING THE ENTERPRISE

EXCELLENCE PROJECT

• Scheduling is deciding when work will be performed, and when it will be completed:  When does the work need to be completed?  What actions are required?  How long will it take?  What resources are needed?  Where will the work be done?

• There are three basic tools for scheduling:

 Bar charts

 Milestone charts

 Network diagrams

4.12

Updated April-09

Cost Estimating and Budgeting

• When the cost estimate is combined with the project schedule, the project manager can monitor the progress of the project with enough information to be able to optimally control the project and develop cost forecasting.

• When preparing the cost estimate, review the following:

 Project scope  WBS  Cost performance on past projects  Projected resource requirements

4.13

Updated April-09

TOLLGATE REVIEWS

• A tollgate is a formal review and progress report that an Enterprise Excellence project must pass through in order to proceed to the next phase.

• It is recommended that a tollgate review presentation takes no more than 20 minutes, followed by 30 to 40 minutes for questions and answers.

• Topics during a tollgate review include:  Status of the project deliverables

 Overall project status

 New risks that may have been discovered or encountered (e.g., technical roadblocks or resource allocation issues)

 Progress against the project schedule

 Recommended changes in project scope or charter

 Links of the project to strategic goals of the organization

4.14

Updated April-09

PROJECT NOTEBOOK

• The project book is a valuable tool for recording and maintaining up-to-date information regarding the project.

• It can facilitate project management and fact based program decisions, by providing ready reference and a repository of project status and data.

• It provides for easy retrieval of information in ad hoc situations.

• Use your detailed and chronological project book throughout the life of your project.

• The contents of the project book needs to include ---

4.15

Updated April-09

• In this chapter, we have learned the following:

 Management & Operations Plans

 Enterprise Excellence Projects

 Enterprise Excellence Project decision Process

 Planning the Enterprise Excellence Project

 Tollgate Reviews

 Project Notebook

Wrap-up