19 th ,20 th Feb 2010 Feb 2010 1 19 th ,20 th Feb 2010 Feb 2010 2 - - PowerPoint PPT Presentation

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19th,20th Feb 2010

Feb 2010

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19th,20th Feb 2010

Feb 2010

Feb 2010 S Anilkumar,BHEL,Ranipet 3

Contents

• Importance of Project Selection
• Need for a process for Project Selection
• Alignment & Integration
• Reward & Recognition
• Learnings from implementation
• Measures for sustained success
• BHEL Ranipet Experience

Project Selection Process

A Project is a problem scheduled for solution . JM.Juran

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Three BBBs are trying to move an Elephant! The task given to three BBB (Blind black Belts) was to move the elephant in the forward direction.

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Successful completion of an Improvement project- Moving an elephant. Each BBB thought that the elephant had moved even though it was in its original place!

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Process for Project Selection

BBB Story!

• Each BBB saw only a part of the elephant
• The whole picture was not available to them –

they were blind (to the organizational reality)!

• BBBs were happy with the immediate success in

a part- which did not have any impact on the final “outcome”

• There was no alignment in their efforts

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Process for Project Selection

Moral of the story !

• Taking up improvement initiative may not move

the elephant (the organization) in the right direction unless initiatives and projects are well aligned.

• When different BBBs work together on projects

they can not be blind and insensitive to each

• ther’s effort!

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Process for Project Selection

• For Sustained Improvement :

– Processes need to be improved – Improvements happen Project by Project – Idea generation is more important than tool mastery – Idea generation needs- involvement of impacted stakeholders, experts, triggers for

• ut of box thinking

– Create organization wide learning – A framework is needed

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Process for Project Selection

“We do not so much know what we see—rather, we see what we know”

• Goethe in Common sense, science, and skepticism, A. Musgrave
• We tend to delete, distort & generalize.

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How we experience the world?

Courtesy: Finding the Leader in you By Anton G Camarota

All these also has an impact on our project selection & execution.

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What is the last picture? Don’t say it loud!

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What is the last picture? Don’t say it loud!

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What is this picture all say it aloud!

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Data is the same, interpretations are different depending on the history of interactions

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Process for Project Selection

“Organizational defense routines are anti-learning and over protective”.

• A. Argyris

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Process for Project Selection

Project Selection – Pitfalls – To much focus on short term success – Too many stand-alone projects – Lack of alignment to strategic objectives – Lack of a process for project selection – Starting with a solution in mind – Various initiatives at cross-roads – Lack of focus on key concerns of the organizations – Disillusionment sets in after the initial Hawthorne effect is over

Hawthorne effect- Any visible efforts to improve something by themselves will create improvements.

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Project Selection

Projects aiming

Low hanging

fruits

The Purposeful Projects Failed Initiative No commitment The frenzied

T

• o many projects but

no visible improvement

Low High Energy High Low

Focus

Adapted from Ref(7)

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Process for Project Selection

• What needs to be done?

– Create a generic evolutionary Process for Project Selection – Focus on Strategy & differentiation – Wave of linked projects rather than one-of - stars – generate a framework to generate project ideas – Introduce a project hopper – Linkages to knowledge generation & KM – Create an overall improvement Management System

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Reviews

Idea Generator

Suggestions

Project Hopper

PSM Coding

PQ4 PI 4 PQ2

PI 2

PQ3 PI 3 PQ1

PI 1

PQ5 PI 5 PQ-n

PI-n

PDSA

Exciting Needs

Project Selection Process

SKP

Legend PSM- Project Selection Matrix PC – Project Coding & Channelizer PQ - Project Uniqueness PI - Project Initiatives SKP – Solution Known Projects

Audits +TQ

?

Exciting Needs

BSC

BHEL Ranipet

Experience (Annual Business Planning Meet) ABPM-Projects

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Environment Scanning Strategic Plan Key Concerns CBSFs

3C

Building

KCM

Process

Improvement

ABPM Process

Project selection, Monitoring , Review & R&R Learning & Leadership T riggering ABPM Project triggering Process 3C- Capacity, Capability & Competence

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Capability Building KRAs

Process Focus

e-Map

Six Sigma Approach

OEE TPM 5S Enhancing Stakeholder Value QMS EMS

OHSAS

TQM APBE HR focus

Integrated Approach for Making Quality Happen

IT

Leveraging

Learning & Growth P-D-S-A Learning Cycle

BSC

BHEL:BAP:Ranipet

KM

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ABPM Project triggering Process

Pre-requisites

• Understanding of the environment
• Sensitization of key concerns
• Capability building needs
• Internal customer-supplier meets
• Ensure alignment

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success Stories Wave of ABPM Projects Visionary Leadership

Unit BSC

Dept Score card

IMPRESS

ABPM(n+1)th)

Reward & Recognition

Status

Monitoring

A Road Map for sustainable Improvement Project Implementation Process

E-Map ABPM(nth)

Feedback &Learning Articulate VISION ,

Inv olv e all

Training & Empowering

Review Results Articulate vision & Involve all Implementation Of ABPM Projects

ABPM Process

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Reacting to Problems Integrated Approach

• Project selection
• Project Execution
• Learning & KM

Results of ABPM Projects

231 335 50 100 150 200 250 300 350 400 ABPM -1 ABPM -2

No: of Projects

41 52 10 20 30 40 50 60 ABPM -1 ABPM-2

Savings (Rs Crores)

Feb 2010 27

27%

819 1075 1427 2007 2527

3150

05-06 06-07 07-08 08-09 09-10 10-11 Plan

Financial Growth Trend (Rs. Cr.)

23-Feb-10

CAGR - 5 Yrs - 31 %

31 % 33 % 41 % 26 % 25 %

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Physical Growth Trend (MT)

23-Feb-10

21 % 14 % 24% 25% 30%

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105904 127746 145822 190398 236046 295026 05-06 06-07 07-08 08-09 09-10 10-11 Plan

Cycle time Reduction

115 90 60

No of Shifts Cycle time reduction of Spiral Casing Assembly

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Cycle time reduction of Connecting Plate Assembly

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Earlier method Modified method No of Shifts

23-Feb-10

Cycle time Reduction Cont’d…

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Cycle time reduction of Axial Fan

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Earlier method Modified method No of Shifts

23-Feb-10

Cycle time Reduction Cont’d…

32 BHEL: BAP: Ranipet

Awards

18-Jan-10

BHEL, Ranipet won Commendation Certificate for “Strong commitment to Excel” in the CII-Exim award 2009.

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Runner-up Award in the prestigious National Safety Award Scheme- Presented on 19/09/09 by Union Minister for Labor and Employment, Govt. of India. BHEL Ranipet won Excellence in Information Integrity Bronze award of Information Integrity Coalition ,USA. for the in-house developed “On-line Shipping Management System.”

Quality Circle Awards

18-Jan-10

• Quality circle from WTC/Production won

2nd best model award at the 20th Interunit Quality Circle Convention held at Haridwar during November 2009.

• Quality circle from BAP Production shops win

Excellent award at NQCF convention.

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Quality Circle Awards Cont’d…

18-Jan-10

Quality circles from BAP win awards at Quality Circle Forum of India Chennai chapter conventions during the year.

QC from Finance w

• n

Excellent aw ard QC from Production w

• n

Distinguished aw ard QC from Engineering w

• n

Distinguished aw ard QC from Production w

• n

Par excellence aw ard 35 BHEL: BAP: Ranipet

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Process for Project Selection Conclusions Conclusions

• A comprehensive system is essential for project selection and

idea capturing

• Identify a process owner (steering committee) for this process

with process measures

• Wave of linked Projects help us align with strategy

implementation

• Project hopper concept ensures that viable project idea is

available for different initiatives without conflicts

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Process for Project Selection

Conclusions Conclusions

• Wave of linked Projects helps
• Project hopper generate project ideas for

different initiatives

• Project selection process is essential
• Project selection process helps in alignment

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Process for Project Selection

Conclusions Conclusions

contd

• More likelihood of project success
• BSC-SS tells us a whole story
• Easy communication
• Visible top management support
• Structured improvement in project selection

Feb 2010 S Anilkumar,BHEL,Ranipet 39

Process for Project Selection

Any Questions? Any Questions?

Thank Y

• u

Thank Y

• u

Anilkumar.s

E-mail –sanil@bhelrpt.co.in Phone -91 4172 254943

Project Initiative Selection Matrix SL NO

PQ- Project Uniqueness PI – Project Initiatives

1 PQ-1: Solution Unknown – Variation Reduction needs exist (based on inputs f rom BSC)

DMAIC – Waves of Linked Projects

2 PQ-2: Exciting Needs – New Process & Product Creation

DFSS

3 PQ-3 Waste (Muda)Elimination ,Process Efficiency improvement

Lean Techniques (Lean Sigma), OEE, TPM

4 PQ-4 Simple Projects

Projects for trainers!

Idea generation, not tool mastery that is essential at project selection stage.

Project Initiative Selection Matrix…contd SL NO

PQ- Project Uniqueness PI – Project Initiatives

5 PQ-5 Incremental Improvements, Low hanging f ruits – at work place

Quality Circle ,CFT

6 PQ – 6 Minor Process Improv ements & maintaining process effectiveness & Ef f iciency –triggered by IQA,Feedbacks

ISO 9001:2000, ISO/TS 16497 QMS, EMS, OHSAS, SA 8000 etc

7 PQ-7: Solution known –

Known Projects-

–Investment –Modernization -etc

Idea generation, not tool mastery that is essential at project selection stage.

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Process for Project Selection

Project Selection Metrics (PSM) Project Selection Metrics (PSM)

PSM = PPI X A F PPI = Project Priorit izat ion I ndex A F= A lignm ent f act or where

savings X Probability of success _ _ _ _ _ _ _ _ _ _ __ __ __ _ __ __ __ __ _ I mplement at ion cost * expect ed complet ion t ime ( mont hs)

A F = A lignment f act or A F = 10 For proj ect s direct ly relat ed t o BSC

AF = 5 For Project s indirectly relat ed t o BSC / D SC AF = 1 N o correlat ion t o BSC

PPI= PPI could varyfrom Organization to

• rganization

S Anilkumar,BHEL,Ranipet

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Process for Project Selection

Project Prioritization Index (PPI) Project Prioritization Index (PPI)

• The parameters used for PPI determination

could vary.

Eg:

• for a hospital following aspects be important:

– Clinical Excellence – Patient satisfaction – Regulatory & safety needs – Staff satisfaction – Sustainability – Physician satisfaction

Individual KRAs

Balanced Score Card(Dept),&Dept Customer

Financial

Internal Processes

Strategic Objectives Vision

Strategies

Enhancing stakeholder values

Strategic Plan BSC

Learning & Growth Our desired Future state Dif ferentiating activities What we must do well? How is it measured & tracked?

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Abbreviation Used

BB- Black Belts BBB- Blind Black Belts BSC- Balanced Scorecard DPMO – Def ects per Million Opportunities PM- Prioritization Matrix PC – Project Coding PDSA – Plan –Do- Study –Act PO – Purchase Order PQ - Project Uniqueness PI - Project Initiatives SCR – Special Contract Requirements SKP – Solution Known Projects

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Reference

1. Robert S Kap lan and David P No rton, (1996). “ T he balanced sco recard“ (Boston : H arwardBusiness School Process Jan – Feb 1996 ) 2. Paul R N iv en (2002) B alanced sco recard step by step Maxim izing performan ce and m aintaining results, John Wiley and sons, Inc New York. 3. Robert S Kaplan and Dav id P Norton ( 2001), T he strategy focused org anization, Harvard Business school Press, Boston 4. Robert S Kaplan and Dav id P Norton ( 2001), The strateg y focused org anization, Harvard Business school Press, Boston 5. William Michael K elly, Ciba Vision ,Three steps to project selection, six sigma forum magazine (No v 2002), quality press, ASQ USA 6. BrianSwayne and Brent Harder (2003). “ Where has all the magic gone ?”,Six sigma forum m agazine ,(May 2003) Quality press, ASQ USA 7. T homas Bertels and George Patrterson ,(2003). “ Selecting six sigma projects that matter “,Six sigm a forum magazine ,(Nov ember 2003) Quality press, ASQ USA 8. Heike Bruch and Sumantra Ghoshal ,(2004), “ABias for Action” , Penguin Books, New D elhi, India 9. Kano (1993). “A Perspective on Quality Activities in American Firm s,” California Manag ement Rev iew,35(3),Spring,PP12-31

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Process for Project Selection

Knowledge depends on theory. Information is not knowledge. Experience teaches nothing without theory. Practice makes permanent, not perfect. Copying examples does not lead to knowledge.”

Deming

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Process for Project Selection

ISO 9004:2009

Title: Managing for the sustained success of an

• rganization – A Quality Management Approach.
• Sustained Success: Result of the ability of an organization to

achieve and maintain its objectives in the long term.

• Meeting needs and expectations of interested parties in a balanced

w ay, over the long term.

• Identify associated short and long term risks and deploy an overall

strategy for the organization to mitigate them.

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Process for Project Selection

ISO 9004:2009

Deployment (5.3.3)

To deploy its strategy and policies, the organization should identify the relationships betw een its processes. A description of the sequence and interaction

• f

the processes can assist review activities by

• Showing the relationship between organizational structures,

systems and processes,

• Identifying potential problems in the interactions between

processes,

• Providing a means for prioritizing improvement and other change

initiatives, and

• Providing a framework for setting, aligning and deploying objectives

to all relevant levels of the organization.

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Process for Project Selection

ISO 9004:2009

Knowledge (6.7.2)

Top Management should consider how to obtain the know ledge required to meet the present and future needs of the organization.

• Learning from failures, near misssituationsand successes,
• Capturing the knowledge and experience of people in the organization,
• Gathering knowledgefrom customers, suppliersand partners,
• Capturing undocumented knowledge (tacit and explicit) that exists within the
• rganization,
• Ensuring

the effective communication

• f

important information content(particularly at each interface in the supply and production chains), and

• Managing dataand records.

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Process for Project Selection

Quality – Changing face

• Now , the cost of quality is something factored in up front and not

tacked on to budget as a cost of doing business.

• Importance of having better quality processes w ithin the supply

chain.

• Quality is an investment rather than a cost.
• Quality should be fully integrated into the strategic processes of

investment

• Risk mitigation strategies w ill strengthen QMS and reduce w aste
• Sustainability needs and Green practices to enhance the quality of

life.

• Reduction in the supply chain length to enhance ability to control

and manage quality.

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Process for Project Selection

The fundamental concepts of Excellence

EFQM 2010 Model

1. Achieving Balanced Results 2. Adding value for Customers 3. Leading w ith Vision, Inspiration & Integrity 4. Managing by Processes 5. Succeeding through People 6. Nurturing Creativity & Innovation 7. Building Partnerships 8. Taking Responsibility for a sustainable Future.

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Project Selection

Projects aiming

Low hanging

Fruits 20%

The Purposeful Projects

10%

Failed Initiative No commitment

30%

The frenzied

T

• o many projects but

no visible improvement 40%

Low High Energy High Low

Focus

Adapted from Ref(11) % are indicative

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Project Selection

Harmful

Zone Project results may be harmful on long- term

Productive

Zone

Failed Initiative No commitment Comfort

Zone

Low High Quality High Low

Intensity

Adapted from Ref(7)