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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 ---ïƒ 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

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Introduction

The concept of Enterprise Excellence pertains to the multifunctional endeavors within organizations to achieve a high standard of operational excellence through continuous improvement, innovation, and effective management. The objective of this essay is to delve into the key components of the implementation process of Enterprise Excellence, including management and operations plans, decision processes for projects, planning mechanisms, and review methodologies. The discourse aligns with the principles highlighted in the updated lecture notes from Chapter 4 on Enterprise Excellence Implementation (Updated April 09).

Management and Operations Plans

The foundation of Enterprise Excellence is built upon robust management and operations plans. Each plan must encompass a variety of projects that stem from different organizational levels, including executive, management, and operational levels (Reich et al., 2020). These projects vary in scope and complexity, for which careful planning is essential. Conflicts often arise among quality, cost, and schedule requirements during project execution, necessitating that managers adopt a holistic approach to navigate these challenges (Müller et al., 2018).
It is crucial for organizations to understand their strategic goals and align their projects accordingly. This strategic alignment ensures that resources are allocated efficiently and that stakeholders are aware of their responsibilities (Prajogo, 2020). Moreover, stakeholders must communicate openly to resolve emerging conflicts and ensure everyone is working towards a unified objective.

Types of Enterprise Excellence Projects

Enterprise Excellence projects can be classified into three distinct types: technology invention or innovation, new product/service/process development, and product/service/process improvement. The implementation of these projects is underpinned by the scientific method, providing organizations with a structured approach to problem-solving (Sanchez et al., 2019).
1. Technology Invention and Innovation: Development in this category is facilitated through a systems engineering approach that allows for the rapid conversion of functional specifications into viable products or services (Zhang & Zheng, 2021).
2. New Product or Service Development: This phase often employs Design for Lean Six Sigma strategy, which focuses on maximizing customer satisfaction while optimizing operational efficiency (Leach, 2021). The sequential process of Concept-Design-Optimize-Verify (CDOV) is typically followed to guarantee that customer expectations are integrated into developments effectively.
3. Process Improvement: This involves enhancing the effectiveness and efficiency of existing operations. A product or service achieves effectiveness when it meets customer requirements consistently, while efficiency is characterized by resource optimization (Bessant & Caffyn, 1997). The DMAIC (Define, Measure, Analyze, Improve, Control) methodology is a vital tool in this context, facilitating structured improvement initiatives.

Project Decision Process

The Enterprise Excellence project decision process consists of several phases that guide organizations from ideation to execution. This process includes invention/innovation, development of new services/products, and improvement of existing services/products.
1. The initial phase concerns identifying areas ripe for innovation and requires organizational insight into existing technologies and market gaps.
2. Next, organizations engage in the development phase using strategies like Design for Lean Six Sigma which aligns closely with customer demands and market needs.
3. Finally, there’s a focus on existing processes using DMAIC to ensure that any modifications not only meet quality standards but also yield favorable cost and efficiency impacts (Bicheno & Holweg, 2009).

Planning the Enterprise Excellence Project

Project planning is a pivotal component of the Enterprise Excellence implementation. A thorough Work Breakdown Structure (WBS) is necessary to translate deliverables into actionable tasks (Kerzner & Saladis, 2017). Scheduling represents a crucial aspect where organizations determine timelines, resource allocations, and action intervals (Lock, 2018).
In managing project schedules, three fundamental tools come into play:
1. Bar Charts: Visually represent project timelines, giving stakeholders insights into timing and task interdependencies.
2. Milestone Charts: Highlight important delivery points within the project, enabling teams to focus on critical goals.
3. Network Diagrams: Provide a graphic representation of the tasks, showcasing dependencies and potential bottlenecks.
Effective cost estimating and budgeting further enhance project management. A comprehensive cost analysis—integrating historical data, resource requirements and scope—is essential for maintaining budgetary discipline and controlling expenditures (Wysocki, 2019).

Tollgate Reviews

Tollgate reviews serve as progress assessment checkpoints in the Enterprise Excellence project lifecycle. These formal evaluations ensure that a project meets specific criteria before advancing to the next phase. Typically, a presentation lasts about 20 minutes, followed by a Q&A session (Assaf & Al-Hejji, 2006). Key topics during a tollgate review include:
- Status of project deliverables
- Overall project status
- Newly identified risks
- Progress against the developmental schedule
- Proposed changes in project scope
These reviews allow stakeholders to engage in informed discussions, ensuring that the project aligns with organizational strategies.

Project Notebook

The project notebook functions as a vital repository for all project-related information. A well-maintained project book allows for seamless communication and retrieval of critical data, aiding in decision-making processes (Gido & Clements, 2019). The contents should chronologically document:
- Project objectives
- Milestones and deliverables
- Meeting notes
- Progress reports
- Risk assessments
With proper documenting practices, organizations can enhance transparency and ensure that crucial knowledge is preserved for future projects.

Conclusion

In conclusion, the successful implementation of Enterprise Excellence is a multifaceted endeavor that requires precise planning, diligent execution, and continuous review. By establishing strong management and operational frameworks, utilizing effective project decision processes, and engaging in rigorous planning and tollgate reviews, organizations can achieve significant improvements in their operational efficiencies. Ultimately, Enterprise Excellence not only enhances a company's bottom line but also fosters a culture of innovation and continuous improvement.

References

1. Assaf, S. & Al-Hejji, S. (2006). “The Role of Project Development in the Saudi Construction Industry”. Transportation Research Record.
2. Bessant, J. & Caffyn, S. (1997). “Do You Have a Learning Organization?” International Journal of Manpower.
3. Bicheno, J. & Holweg, M. (2009). “The Lean Toolbox: The Essential Guide to Lean Transformation”. PICSIE Books.
4. Gido, J. & Clements, J. P. (2019). “Successful Project Management”. Cengage Learning.
5. Kerzner, H. & Saladis, F. P. (2017). “Project Management: A Systems Approach to Planning, Scheduling, and Controlling”. Wiley.
6. Leach, L. P. (2021). “Critical Chain Project Management”. Gower Publishing, Ltd..
7. Lock, D. (2018). “Project Management”. Gower Publishing, Ltd..
8. Müller, R., Turner, J. R., & Huemann, M. (2018). “Factors Affecting Project Success”. International Journal of Project Management.
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10. Reich, B. H., et al. (2020). “The Impact of Leadership on Project Success”. International Journal of Project Management.
11. Sanchez, R. & Tzokas, N. (2019). “Organizational Learning Processes”. European Business Review.
12. Wysocki, R. K. (2019). “Effective Project Management: Traditional, Agile, Extreme”. Cengage Learning.
13. Zhang, H. & Zheng, C. (2021). “Innovative Business Model for Sustainable Development”. Journal of Business Research.