Business Excellence & Project Management Review Q&A Session Bologna, 27 th of November 2009

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1 Business Excellence & Project Management Review Q&A Session Bologna, 27 th of November 2009 Aims of the Course Environmental and quality aspects are driven by standards, directives, guidelines and models. The main learning-outcomes are: Fundamentals of Quality Management, Environment Management, Business Excellence and Project Management. Knowledge and understanding of the key concepts behind them. Illustration of these elements on issues from the electronics industry. 1of14

2 Business Excellence & Project Management To understand what Business Excellence is, we need first to define what Quality and Environment mean. Then we analyse their different levels of management. To understand how Business Excellence impacts on projects, we will first define what Project Management means and what its specific tools and methods are. Then we apply the Business Excellence concepts on Project Management issues, looking with some details how an Excellent Project Manager must look like! Levels of Learning What? How? Why? Knowledge: you know the what. Understanding: you understand the what and you know the how. Master: you can explain to somebody the what, the how and the why. 2of14

3 Quality - Definitions The standard of something as measured against other things of a similar kind. The degree of excellence of something. A high level, an usually good characteristic, a special feature. How good or bad something is. There is a subjective appreciation! Subjective Appreciation Perception: the ability to see, hear, or become aware of something through the senses. Expectation: a strong belief that something will happen or be the case in the future. A product or a service can be of the highest quality if it meets the expectations of its consumers, given the price range and intended use. 3of14

4 Example: Meal at restaurant Does a 3-star gastronomic restaurant offer better quality than a fast food store? -No! Each one is offering a different service to a different type of customer. How to Measure Quality? It can be measured by the extent to which the meals meet customer expectations : Speed Price Food Beverages Service Time-keeping Cleanliness Etc. 4of14

5 Quality - Why? Each organization must: conduct its activities in accordance with a management model that helps to achieve its goals efficiently and in compliance with the requirements of the Society: Environment, Safety, Health; challenge the status quo and effect changes by utilising learning to create innovation and improvement opportunities; develop a methodology to obtain reliable and reproducible results. Quality What & How Management levels in ascending order of complexity: Quality Control Quality Assurance Total Quality Control Total Quality Management Business Excellence see overview on next page 5of14

6 From Quality Control to Business Excellence Business Excellence = Total Quality Management Total Quality Management = Total Quality Control + Customer Satisfaction + Involvement + Continuous Improvement Total Quality Management = Quality Assurance + Customer Satisfaction + Involvement + Continuous Improvement Total Quality Control = Management System All employees improve quality & processes Quality Assurance = Conformity to Standards (Statistical) Quality Control = Inspections

7 1. Adding value to customers 2. Building partnerships 3. Succeeding through people 4. Management by processes 5. Nurturing creativity & innovation 6. Leadership with vision, inspiration & integrity 7. Taking responsibility for a sustainable future 8. Achieving balanced results 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationship Plan-Do-Check-Act 7of14

8 Improvements Effectiveness Do the right things : Extent to which planned activities are realized and planned results achieved. Efficiency Do things right : Relationship between the result achieved and the resource used. Effectiveness and efficiency Do the right things right. Focus on the "what & how", not on the "who & where". Benchmarking A systematic and continuous measurement process. A process of continuously comparing and measuring an organisation's business process against business leaders anywhere in the world to gain information that will help the organisation take action to improve its performance. Benchmarking is the art of opening your mind to what has made other organisations successful combined with the ability to translate creatively such insight into successful implementation and results. 8of14

9 What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Constraints - Example Less time assigned Cost Scope 9of14

10 IEEE vs. ISO Human Resources Integration Scope Time Costs Communications Procurement Risk Quality Management responsibility Resource Product realization: Interdependecy Scope Time Cost Communication Purchasing Risk Measurement, analysis and improvement Competences Behavioural competences Contextual competences Technical competences from ICB of 14

11 Questions & Answers 1. As the managers in many companies know/implement the eight fundamental principal as the guideline, why in fact still a lot of managers mess up their business instead of improving the business? Ask them! Probably (I emphasize the probably ) because: they are not committed to Business Excellence, they don t realize the value added by the Business Excellence approach yet, they are not convinced, or As discussed together on Friday afternoon, it takes time to implement Business Excellence. On pages 5 and 6 of the document Total Quality Management (which is a Management Brief Report on Total Quality Management from there is a section called Barriers to TQM Implementation Identified. Some elements of answer are given there. 2. One of the reading material ( Benefits of Adopting the Model US ) says that for all the companies implemented TQM, the smaller, the focused and the low capital intensive companies have more significant improvement than those bigger, diversified and high capital intensive companies, what's the reason for this? The answer is given on p. 16 of the referenced document (it is necessary to invest some time in understanding the statements given there!) 3. Actually I don t understand who the customer is and who is the consumer? In the lecture 7 (see Handout of Lectures 7-8, on p. 10) we defined customer and (end) user. Consumer is another way to say (end) user. 4. I am a customer. Should I buy a product from a company which is ISO certified when there is another company which gives us same quality product with cheaper rate, but that company is without ISO certified? It depends on your needs and expectations (consider the example of the restaurant versus the fast food). If the price of the item is the only selection criteria, then go for the company offering it at the cheapest price, irrespective of the ISO certification. If you are looking for a good item, at a reasonable price, with good after-sales service and you need a long-term business partner, then the products and services of the certified company should (I emphasize should ) be more suitable to satisfy your needs. 5. When a company does not have enough time to implement business excellence how to act? It is not a question of time, but of strategy! It should be however implemented stepwise and it is a never ending process (continuous improvement). 6. I fear about the final examination of this course. Because you have given a lot of files which contain lots of points. Do we have to memorize them all? And what will be the question pattern? Besides the handouts, the other files are meant to be used at your convenience for your personal use towards the understanding process. They should deliver some elements to the questions How? and Why? Module I

12 Q & A session 7. Is there any database like scientific journal which consists of the previous project experiences, faults, and results? If there is, how to access them or how to interpret or integrate them in an ongoing project? There are journals, conferences, training companies, workshops, webinars, etc. As starting points, dig as much as possible information from IPMA, the International Project Management Association on and from BPIR, the Business Performance Improvement Resource on Besides the free information, an organisation could get a lot of valuable information against the payment of a membership fee (for your information I am not a member). 8. There are some business institutes for research and problem solving institutes. How actually they can help to solve problems in a project? There are plenty of consultant companies offering their services for project management. See also the answer to the above question Every project is unique. Please clarify the words. At what extent is it unique? In terms of project manager, peoples, agendas, budget, internal or external environment? Yes! What happens if a project is a repetition of another in terms of? Learn from it and improve! Can't it be told project then because of the absence of so called unique parameter? No, it is of course a project. 10. If any catastrophe happens in the company (say: In a fictional project having 10 research labs, 1 lab suffers a fatal accident with casualties. How the project stakeholders actually need to behave in crisis i.e. crisis management?) Project team should immediately sit down, analyse the situation, discuss alternative, inform, inform and inform. 11. What to do when a bad news broke out for a project manager? Say, in same company other projects are facing trouble financially or in the worst cases lay offs of the general employees? Does he panic, behave frantically on fear of losing job? Or how to divulge of a bad news to a co-worker, colleagues and subordinates? No panic, work here too on alternatives, inform, inform and inform, also bad news. Go to top management, senior managers, steering committee with solutions, not with problems and ask for decisions. 12. When it comes of economic downturn or maybe loss of one significant financier, how to manage the risks of these if indeed there is only financier? And also is there any risk partners who manage and also shares the risks? Risk assessment could be very helpful, may be you need to plan some reserve money in your budget or you plan as an alternative a contingency plan (keep in mind the triangle). 13. I also appreciate that you still remember the question related to the small firms I raised in the very beginning of the course. Unfortunately I still have some doubts on the application to the small or medium company especially for the project with a narrow budget. Most of the advanced methods from your lectures such as business excellence take some time like 4--5 years to be shown effective. The competition in real business is very high and in most of the cases it is not possible for a small 2

13 Q & A session company to survive for such a long time. How to achieve the balance of these conflicts still seems to be a question to me. This question is related to Question 5 and its answer above. Consider that the implementation of a Business Excellence model is a strategic decision. What could cost (a lot of) money is to go for a Business Excellence award or for an ISO Certification. Keep in mind that it should be a stepwise approach, e.g. start with the implementation of PDCA cycle, describe processes, measure key performance indicators (agree on them beforehand, set targets), improve, compare (benchmarking), and star again. This could be done as discussed together in the past weeks at the level of (small) projects. Dear Students, I would like to take this opportunity to thank you for your attention and participation during these lectures. It has been a pleasure to be with you, I have learned also a lot, believe me. I wish you all good luck and success in your private and business life! Looking forward to meeting you again somewhere some time, who knows? Gaetano C. D Emma Bologna, 27 th of November

14 Exam Only one written exam session will take place on Monday, December 21, 2009 at 15:00. Meeting point is at DEIS main door, (2nd floor, building of classrooms 5-x). Put your names in the electronic list latest Dec. 21, :00 for written exam latest Jan. 13, 2010, 12:00 for verbal exam Results given on January 7, The verbal exam session takes place on Wednesday, January 13, 2010 at 14:00. Meeting point is at DEIS main door, (2nd floor, building of classrooms 5-x). Registration of the exam results take place on January 13, 2010 at 14:00, same meeting point. Please note that in case of a positive outcome of the written exam, participation into the verbal exam cancels the result of the written exam. Thank you for your active participation! Good luck! 14 of 14

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