October - Outreach Engineering Management EIN 6227: Lecture...

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Outreach Engineering Management EIN 6227: Lecture 4 Process Measurement and Improvement Joseph C. Hartman Industrial and Systems Engineering University of Florida Gainesville, FL OEM 2009 Orlando, FL, Fall 2008
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Outreach Engineering Management Listened to customer Converted desires to process specs Designed our process Monitored the process What if we detect a problem? Or what if we just want to get better? Time to Improve!
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Outreach Engineering Management If you do not measure results, you cannot tell success from failure If you cannot see success, you cannot reward it – and if you cannot reward success, you are probably rewarding failure If you can’t recognize failure, you cannot correct it To Improve: Must Measure
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Industrial and Systems Engineering Customer Requirements Measurements Processes Results Design Control Prediction Validation Using Measurement Information
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Outreach Engineering Management Understand customers and customer satisfaction Provide feedback to workers Establish a basis for reward/recognition Assess progress and the need for corrective action Reduce costs through better planning Benefits of Gathering Information
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Outreach Engineering Management Develop a set of performance indicators that reflect customer requirements and key business drivers Use comparative information and data to improve overall performance and competitive position Continually refine information sources and their uses within the organization Use sound analytical methods to conduct analyses and use the results to support strategic planning and daily decision making Best Practices (1)
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Outreach Engineering Management Involve everyone in measurement activities and ensure that information is widely visible Ensure that data are accurate, reliable, timely, secure, and confidential Ensure that hardware and software systems are reliable and user-friendly Systematically manage organizational knowledge and identify and share best practices Best Practices (2)
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1. Financial perspective Measures the ultimate results that the business provides to its shareholders. They include profitability, revenue growth, return on investment, economic value added (EVA), and shareholder value. 1. Internal perspective Focuses attention on the performance of the key internal processes that drive the business. They include such measures as quality levels, productivity, cycle time, and cost. 1. Customer perspective Focuses on customer needs and satisfaction as well as market share. This includes service levels, satisfaction ratings, and repeat business. 1. Innovation and learning perspective Directs attention to the basis of a future success—the organization’s people and infrastructure. Key measures might include intellectual assets, employee satisfaction, market innovation, and skills development. Balanced Scorecard
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This note was uploaded on 05/12/2010 for the course EIN 6227 taught by Professor Hartman during the Fall '08 term at University of Florida.

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October - Outreach Engineering Management EIN 6227: Lecture...

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