Rutgers University 33:620:301 Introduction to Management- Hamilton Final Exam Topic 4 – Flashcards

The ongoing assessment & improvement of key business processes in order to drive superior results -Goal: to improve FASTER & BETTER than the competition

-Performance Management works by FOCUSING ON CAPABILITIES/PROCESSES -USING PERFORMANCE MANAGEMENT WILL NOT ASSURE SUCCESS SUCCESSFUL FIRMS STILL NEED TO... -Develop effective strategies -Design & build effective organizations -Continue to learn & innovate -Have sufficient resources -Build defensible positions -Consistently outperform competitors -Anticipate & outmaneuver disruptive technologies

-PROCESS MANAGEMENT -BUSINESS ASSESSMENT -BUSINESS IMPROVEMENT

Define - use flow charts to identify customers, suppliers, and those who perform key steps in the process (SIPOC model) Measure - create outcome measures & predictive measures that allow complete understanding of process performance Analyze - use the measures & process maps to understand the performance of the process vs goals & benchmarks Improve/Innovate - make improvement a routine activity using basic/advanced tools & methods Control - make sure the process & improvements continue to provide consistent, predictable performance Process Mapping -Used to DESCRIBE THE PROCESS visually -Clarifies the STEPS/SEQUENCE in the process -Clarifies WHO performs each step -Identifies HOW the work flows through the organization -Identifies WHERE THE KEY LINKAGES ARE with other parts of the organization -Helps to IDENTIFY AREAS OF IMPROVEMENT

comprehensive evaluation of business performance & business process management against a core set of fundamental business excellence criteria

-Key Role of Leadership -Customer Focus -Process Management/High Performance Environment -Fact-Based Management & Evaluation -Improvement & Innovation -Continuous Assessment & Renewal

-Create and communicate a clear vision and direction for the business & fully align the organization in support -Build capabilities for future success while delivering current results by effectively balancing long term & short term priorities

Design, develop, & deliver products & services based on an accurate understanding of, and a commitment to, creating true value for the customer that is superior to competitive options

Use a process-based view of work that integrates multiple functions working in collaboration to create a high performance environment

-Use a system of balanced measures that are aligned with the business goals & strategy -Include outcome & driver metrics that are both leading & lagging indicators of performance -Benchmark against standards of excellence as well as competitors

-Use proven improvement methodologies to address strategic needs & performance gaps -Use highly competent improvement experts who rely on a common language & toolset & who are skilled in collaboration & project leadership -Seek to find new, innovative ways to create value for customers & the organization

-Use comprehensive criteria to routinely assess the business & validate findings through an independent review -Develop clear strategies to sustain & enhance business results in the future -Align plans, policies & practices to support these strategies

-LEADERSHIP -PRODUCT DEVELOPMENT -DEMAND GENERATION -SUPPLY CHAIN -ORGANIZATION & PEOPLE -COMPLIANCE

-CLEAR DESCRIPTION of the outcome being measured with link to strategic objective -All axes & data are CLEARLY LABELED -PROVIDES COMPARISONS to: prior periods, goals, & benchmarks -IDENTIFIES THE OWNER of the measure (person responsible for preparing/updating) -INDICATES THE DATE of the last update -Indicates any CURRENT IMPROVEMENT INITIATIVES specifically directed at improving this result & projected timing & impact -Clearly states the CURRENT PERFORMANCE STATUS & provides comments on the results shown in this measure

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

-Higher project success rates -Better overall performance results

-Role of Leadership -Experts & Training -Proven Methodologies/Tools think ("REP")

-Establish the compelling CASE & PRIORITY for improvement -APPOINT & EMPOWER improvement experts & provide sufficient resources & support for building the necessary infrastructure -IMBED IMPROVENET PRIORITY & PHILOSOPHY into strategic objectives & the organization's culture -HOLD THE ENTIRE ORGANIZATION ACCOUNTABLE for progress & results (regular progress reviews) -REWARD & RECOGNIZE results

Role of Experts: --Business Improvement Leader - experienced in working with business leaders to identify improvement opportunities & establishing effective improvement project management system & training system --Master Black Belt - Expert & experienced in process, methods, and tools used in improvement projects. --Black Belt - Demonstrated expertise in managing multiple successful improvement projects using the methodologies & tools --Green Belt - Trained in using methods & tools with only one successful project completion Training : -Train ALL management teams in the core concepts of Performance Management including Business Improvement -Train BUSINESS IMPROVEMENT LEADERS in each business unit in the Performance Management process -Train MASTER BLACK BELTS to train Black Belts & Green Belts in core and advanced improvement methodologies & tools -Train MASTER BLACK BELTS to coach project leaders & project teams and to fully master improvement methodologies & tools -Train GREEN BELTS in basic project management and in basic improvement methodologies & tools

Methodologies: -PDCA (Plan, Do, Check, Act) -Six Sigma -Lean -Design for Six Sigma (DFSS) -Business Process Reengineering (BPR)

1) 4 step management method used for the control & continuous improvement of processes & products (Deming Circle)

1) utilizes advanced statistical methods to improve quality by REDUCING DEFECTS & VARIABILITY in the performance of business processes by using the DMAI2C methodology (3.4defects/million)

1) Define Value - Specify VALUE FROM THE STANDPIONT OF THE END CUSTOMER for each product 2) Map Value Stream - Identify all the steps in the value stream for each product, ELIMINATING WHENEVER POSSIBLE THOSE STEPS THAT DO NOT CREATE VALUE 3) Create Flow - Make the value-creating STEPS OCCUR IN TIGHT SEQUENCE so the product will flow smoothly toward the customer 4)Establish Flow - As flow is introduced, LET CUSTOMERS PULL VALUE FROM THE NEXT UPSTREAM ACTIVITY 5)Pursuit Perfection - PERFECT VALUE IS CREATED WHEN ALL WASTE IS ELIMINATED -WASTE IS ANYTHING THAT DOES NOT CREATE VALUE FOR THE CUSTOMER

1) Used to DESIGN NEW PROCESSES (new products/services) & 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 2) Utilizes DMADV methodology 3) Define, Measure, Analyze, Design, Verify

1) Involves RADICALLY REDESIGNING and streamlining how an activity is performed with the intent of achieving improvements in performance

All Businesses face 6 types of risk... 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)

1- Starts at the 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 management 5- Risk management is more than policy, it is culture 6- A risk aware culture requires 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