19 th ,20 th Feb 2010 Feb 2010 1
19 th ,20 th Feb 2010 Feb 2010 2
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 Feb 2010 S Anilkumar,BHEL,Ranipet 3
Project Selection Process A Project is a problem scheduled for solution . JM.Juran
The task given to three BBB (Blind black Belts) was to move the elephant in the forward direction. Three BBBs are trying to move an Elephant! Feb 2010 S Anilkumar,BHEL,Ranipet 5
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! Feb 2010 S Anilkumar,BHEL,Ranipet 6
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 Feb 2010 S Anilkumar,BHEL,Ranipet 7
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 other’s effort! Feb 2010 S Anilkumar,BHEL,Ranipet 8
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 out of box thinking – Create organization wide learning – A framework is needed Feb 2010 S Anilkumar,BHEL,Ranipet 9
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. Feb 2010 S Anilkumar,BHEL,Ranipet 10
How we experience the world? All these also has an impact on our project selection & execution. Courtesy: Finding the Leader in you By Anton G Camarota 1 1
What is the last picture? Don’t say it loud! 12
What is the last picture? Don’t say it loud! 13
What is this picture all say it aloud! 14
Data is the same, interpretations are different depending on the history of interactions 15
Process for Project Selection “Organizational defense routines are anti-learning and over protective”. A. Argyris Feb 2010 S Anilkumar,BHEL,Ranipet 16
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. Feb 2010 S Anilkumar,BHEL,Ranipet 17
Project Selection Projects aiming The Purposeful High Low Low hanging Projects fruits Focus Failed Initiative The frenzied No commitment T oo many projects but no visible improvement Low High Energy 18 Adapted from Ref(7)
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 Feb 2010 S Anilkumar,BHEL,Ranipet 19
Exciting Exciting Audits +TQ ? Reviews SKP Needs Needs Idea Suggestions BSC PDSA Generator PQ1 PI 1 PI 2 PQ2 Project Hopper PI 3 PQ3 PI 4 PQ4 Legend PSM Coding PSM- Project Selection Matrix PI 5 PQ5 PC – Project Coding & Channelizer PQ - Project Uniqueness PI-n PQ-n PI - Project Initiatives SKP – Solution Known Projects Project Selection Process 20
BHEL Ranipet Experience (Annual Business Planning Meet) ABPM-Projects
ABPM Project triggering Process 3C- Capacity, Capability & Competence Environment Scanning ABPM 3C Strategic Plan Process Building Project selection, Monitoring , KCM Review & Key Concerns Process R&R Improvement CBSFs Learning & Leadership T riggering S Anilkumar,BHEL,Ranipet 22 Feb 2010
Integrated Approach for Making Quality Happen IT Leveraging Enhancing Stakeholder Value OEE TPM QMS 5S EMS Process e-Map OHSAS BSC Focus TQM APBE HR focus KM Learning & Six Sigma Growth Approach P-D-S-A Capability Building Learning KRAs 23 Cycle BHEL:BAP:Ranipet
ABPM Project triggering Process Pre-requisites •Understanding of the environment •Sensitization of key concerns •Capability building needs •Internal customer-supplier meets •Ensure alignment S Anilkumar,BHEL,Ranipet 24 Feb 2010
Visionary Leadership Wave of ABPM Projects ABPM(n+1)th) Unit BSC Articulate vision & Involve all Articulate Inv olv e all VISION , success Dept Score Stories card ABPM(nth) E-Map Status Feedback &Learning Monitoring Reward & IMPRESS Recognition Training & Implementation Review Results Of ABPM Projects Empowering 25 A Road Map for sustainable Improvement Project Implementation Process
ABPM Process Integrated Approach Reacting to Problems •Project selection •Project Execution •Learning & KM Feb 2010 S Anilkumar,BHEL,Ranipet 26
Results of ABPM Projects 60 No: of Projects Savings (Rs Crores ) 52 400 50 27% 350 41 40 300 250 30 200 335 150 20 231 100 10 50 0 0 ABPM -1 ABPM -2 ABPM -1 ABPM-2 Feb 2010 27
Financial Growth Trend (Rs. Cr.) 3150 25 % CAGR - 5 Yrs - 31 % 26 % 2527 41 % 2007 33 % 31 % 1427 1075 819 05-06 06-07 07-08 08-09 09-10 10-11 Plan 23-Feb-10 BHEL: BAP: Ranipet 28
Physical Growth Trend (MT) 25% 295026 24% 236046 30% 190398 14 % 145822 21 % 127746 105904 05-06 06-07 07-08 08-09 09-10 10-11 Plan 23-Feb-10 BHEL: BAP: Ranipet 29
Cycle time Reduction 115 90 No of Shifts 60 Cycle time reduction of Spiral Casing Assembly 23-Feb-10 BHEL: BAP: Ranipet 30
Cycle time Reduction Cont’d… 52 43 No of Shifts Earlier method Modified method Cycle time reduction of Connecting Plate Assembly 23-Feb-10 BHEL: BAP: Ranipet 31
Cycle time Reduction Cont’d… 50 No of Shifts 44 Earlier method Modified method Cycle time reduction of Axial Fan 23-Feb-10 BHEL: BAP: Ranipet 32
Awards BHEL, Ranipet won Commendation Certificate for “Strong commitment to Excel” in the CII-Exim award 2009. 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.” 18-Jan-10 BHEL: BAP: Ranipet 33
Quality Circle Awards • Quality circle from BAP Production shops win Excellent award at NQCF convention. • Quality circle from WTC/Production won 2 nd best model award at the 20 th Interunit Quality Circle Convention held at Haridwar during November 2009. 18-Jan-10 BHEL: BAP: Ranipet 34
Quality Circle Awards Cont’d… QC from Finance w on QC from Production w on Excellent aw ard Par excellence aw ard Quality circles from BAP win awards at Quality Circle Forum of India Chennai chapter conventions during the year. QC from Production w on QC from Engineering w on Distinguished aw ard 18-Jan-10 BHEL: BAP: Ranipet 35 Distinguished aw ard
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 Feb 2010 S Anilkumar,BHEL,Ranipet 36
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 37
Process for Project Selection Conclusions Conclusions . . . contd contd . . . • More likelihood of project success • BSC-SS tells us a whole story • Easy communication • Visible top management support • Structured improvement in project selection 38
Process for Project Selection Any Questions? Any Questions? Feb 2010 S Anilkumar,BHEL,Ranipet 39
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