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©2006 OLC 1 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide.

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Presentation on theme: "©2006 OLC 1 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide."— Presentation transcript:

1 ©2006 OLC 1 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide

2 ©2006 OLC 2 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Examples Which Illustrate the Application of Process Management Worldwide Six Sigma The Project Management Institute Body of Knowledge The Carnegie-Mellon Capability Maturity Model International Business Excellence Awards ISO 9000:2000

3 ©2006 OLC 3 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Six Sigma Six Sigma has three basic parts all of which focus on the processes in the organization: Process Improvement Process Design/Redesign Process Management Without process management, Six Sigma is often doomed to become just another flavor-of-the-month program. Improving processes is not a necessary evil, but an essential step toward building competitive advantage by delivering real value to customers.

4 ©2006 OLC 4 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Project Management Institute’s Body of Knowledge (PMBOK) PMI’s overview of the processes for managing a project:

5 ©2006 OLC 5 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Process Groups Project management processes can be organized into five groups of one or more processes each: Initiating processes - recognizing that a project or phase should begin and committing to do so. Planning processes - a devising and maintaining a workable scheme to accomplish the business need that the project was undertaken to address. Executing processes - coordinating people and other resources to carry out the plan. Controlling processes - ensuring that project objectives are met by monitoring and measuring progress and taking corrective action when needed. Closing processes - formalizing acceptance of the project or phase and bringing it to an orderly end.

6 ©2006 OLC 6 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Project Process Groups in a Phase The process groups are not discrete one-time events but rather overlap and vary in intensity as the project proceeds. The process groups are linked by the results they produce - the output of one becomes the input to another. The links between the process groups are iterative - the initial planning documentation may be updated to reflect changed circumstances as the project progresses.

7 ©2006 OLC 7 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide The Carnegie-Mellon Software Engineering Institute Capabilities Maturity Model The Capabilities Maturity Model (CMM) was developed as a result of six years of experience with software process improvement and contributions of hundreds of reviewers. The CMM was needed as projects in many organizations were often excessively late and over budget, and it was realized that improved methods and tools could not be effectively utilized in an undisciplined and chaotic project environment.

8 ©2006 OLC 8 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide The Carnegie-Mellon Software Engineering Institute Capabilities Maturity Model (Cont’d.) The CMM is based on knowledge required from process assessments and extensive feedback from both industry and government. The Capability Maturity Model is useful not only for software development, but also with describing the evolutionary like development of the capabilities of organizations in general.

9 ©2006 OLC 9 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide The Five Levels of Maturity Level 5 Optimizing (continuous process improvement is adopted and in place by quantitative feedback and from piloting new ideas and technologies). Level 4 Managed (processes are measured by collecting detailed data on processes and their quality). Level 3 Defined (all processes are defined, documented, standardized and integrated into each other). Level 2 Repeatable (basic processes are established and there is a level of discipline to stick to these processes). Level 1 Initial (processes are ad-hoc, chaotic, or actually few processes are defined).

10 ©2006 OLC 10 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide International Business Excellence Awards EFQM Excellence Model US Baldrige Award

11 ©2006 OLC 11 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide EFQM Excellence Model Reference: “EFQM: Introducing Excellence,” page 5. Processes drive results

12 ©2006 OLC 12 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide 5.Processes How the organization designs, manages and improves its processes in order to support its policy and strategy and fully satisfy, and generate increasing value for, its customers and other stakeholders. 5a.Processes are systematically designed and managed. 5b.Processes are improved, as needed, using innovation in order to fully satisfy and generate increasing value for customers and other stakeholders. 5c.Products and Services are designed and developed based on customer needs and expectations. 5d.Products and Services are produced, delivered and serviced. 5e.Customer relationships are managed and enhanced. EFQM Process Criteria

13 ©2006 OLC 13 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide US Baldrige Award Criteria for Performance Excellence Framework Reference: “Criteria for Performance Excellence,” Baldrige National Quality Program, 2005.

14 ©2006 OLC 14 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide US Baldrige Award Process Management Criteria How does your organization determine its key value creation processes? How do you determine key value creation process requirements? How do you design processes to meet all your key requirements? What are your key performance measures or indicators used for the control and improvement of your value creation processes? How do you minimize the overall cost associated with inspection, tests, audits as appropriate? How do you improve your value creation processes to achieve better performance?

15 ©2006 OLC 15 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide In a Nutshell, ISO 9001:2000 … Provides a systematic process-based framework for a well-organized Quality Management System (QMS). Helps create satisfied customers, management and employees. Helps companies continually improve performance (and reduce human errors).

16 ©2006 OLC 16 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide ISO 9000:2000 is Based on Eight Quality Management Principles Principle 1 - Customer focus Principle 2 - Leadership Principle 3 - Involvement of people Principle 4 - Process approach Principle 5 - System approach to management Principle 6 - Continual improvement Principle 7 - Factual approach to decision making Principle 8 - Mutually beneficial supplier relationships Source:http://www.iso.org/iso/en/iso /iso9000/qmp.html

17 ©2006 OLC 17 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Principle 4 - Process Approach Key Benefits Lower costs and shorter cycle times through effective use of resources. Improved, consistent and predictable results. Focused and prioritized improvement opportunities. A desired result is achieved more efficiently when activities and related resources are managed as a process. Source:

18 ©2006 OLC 18 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Principle 4 - Process Approach (Continued) Applying the principle of process approach typically leads to: Systematically defining the activities necessary to obtain a desired result. Establishing clear responsibility and accountability for managing key activities. Analyzing and measuring the capability of key activities. Identifying the interfaces of key activities within and between the functions of the organization. Source:

19 ©2006 OLC 19 Process Management: The Foundation for Achieving Organizational Excellence Process Management Implementation Worldwide Principle 4 - Process Approach (Continued) Focusing on the factors -- such as resources, methods, and materials -- that will improve key activities of the organization. Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties. Source:


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