Operational In Index for Public Sector (P (PSOEI): Increasing - PowerPoint PPT Presentation

Operational In Index for Public Sector (P (PSOEI): Increasing Puerto Rico’s Global Competitiveness and Public Value Progress Report José A. Santiváñez, PhD Rosselló Scholar and Professor Department of Industrial and Management Engineering June 19, 2019 Department of Industrial and Management Engineering José A. Santiváñez, PhD

Outline ▪ Introduction ▪ What have been done? ▪ What do we want to do? ▪ What have we accomplished so far? ▪ Work in progress Department of Industrial and Management Engineering José A. Santiváñez, PhD

In Introduction Prosperity and Economic Growth Higher Levels of Income for Citizens Level of Competitiveness Productivity Rate of Return of Investments Department of Industrial and Management Engineering José A. Santiváñez, PhD

In Introduction ▪ The Global Competitiveness Index (GCI) aims to measure factors that determine productivity. ▪ The GCI is a highly comprehensive index to measure national competitiveness introduced by the World Economic Forum in 2004 Department of Industrial and Management Engineering José A. Santiváñez, PhD

In Introduction World Economic Forum. Reports (2016). The Global Competitiveness Index 2015- 2016 Department of Industrial and Management Engineering José A. Santiváñez, PhD

In Introduction 𝐻𝐷𝐽 𝑗𝑡 = 𝛽 𝑡1 𝐶𝑏𝑡𝑗𝑑 𝑗 + 𝛽 𝑡2 𝐹𝑔𝑔𝑗𝑑𝑗𝑓𝑜𝑑𝑧 𝑗 + 1 − 𝛽 𝑡1 − 𝛽 𝑡2 𝐽𝑜𝑜𝑝𝑤𝑏𝑢𝑗𝑝𝑜 𝑗 𝑡 = 1 st , 2 nd , and 3 rd stage of development How do they get the parameters? Department of Industrial and Management Engineering José A. Santiváñez, PhD

In Introduction World Economic Forum (2017). The Global Competitiveness Report 2017-2018 Department of Industrial and Management Engineering José A. Santiváñez, PhD

In Introduction Operational Excellence is made up of four main categories. They include: ▪ Strategy Development ▪ Performance Management ▪ High Performance Work Teams ▪ Process Excellence Butler Active Business Solutions LLc. Operational Excellence – What It Really Is?. Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have been done? In 2016, PRMA established the Committee of Operational Excellence, with the objective Puert erto Ric ico o Manufacturing g of promoting activities that Association (P (PRMA) improve the GCI of Puerto Rico. Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have been done? Operational Excellence Index (OEI) Structure Alignment to GCI Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have been done? ▪ A comparative assessment of the performance of projects presented by Puerto Rican companies in Quest 2017 and 2018, using the OEI to determine if actual improvements in productivity are attained. ▪ The results show that the index is sensitive to weighting schemes 𝑃𝐹𝐽 2017 = 0.4𝑁𝑓𝑢ℎ𝑝𝑒𝑝𝑚𝑝𝑕𝑧 + 0.4𝑆𝑓𝑡𝑣𝑚𝑢𝑡 + 0.2𝐷𝑣𝑚𝑢𝑣𝑠𝑓 𝑃𝐹𝐽 2018 = 0.7𝑁𝑓𝑢ℎ𝑝𝑒𝑝𝑚𝑝𝑕𝑧 + 0.15𝑆𝑓𝑡𝑣𝑚𝑢𝑡 + 0.15𝐷𝑣𝑚𝑢𝑣𝑠𝑓 Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Design an operational excellence index focused on projects undertaken by the public sector aligned with the GCI Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Design an operational excellence index focused on projects undertaken by the public sector aligned with the GCI, termed the Public Sector Operational Excellence Index (PSOEI) Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? ▪ Citizens want effectiveness in exchange for their tax dollar ▪ Customer focus to process improvement ▪ Performance Measurement ▪ Assessment of contribution of projects to competitiveness Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Project Level Public Sector Operational Excellence Index (PSOEI) 1. Project Structure 2. Public Value Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Project Structure DMAIC Methodology ▪ D efine​ ▪ M easure​ ▪ A nalyze​ ▪ I mprove​ ▪ C ontrol Source: https://www.sixsigmadaily.com/what-is-dmaic Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Public value ▪ Public services should add value to their communities. ▪ Public value is added by first providing something that the public values and add value to the public sphere. ▪ Public value has two components: benefits to individuals and their families and benefits to the society. Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Public value Systems view Authorizing Public Value Environment Proposition Operational Capacity Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Public value: Input-Output Transformation Process Service Quality measures Resources Outcomes Processes Outputs Resources Output Input Process Outcomes measures measures measures measures Pidd, M (2012). Measuring the performance of public services. . Cambridge University press Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? Public Value Scorecard​ 1- Is it profitable?​ 2- Is it useful?​ 3- Is it decent?​ 4- Is it politically acceptable?​ 5- Is it a positive experience?​ Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? 1. Public Value Award for Start -UPS, (2018), What is public value?, Available from: http://eypva.com/en/ 2. Hannover, (2015), New Design Competition: IF PUBLIC VALUE AWARD 2016 - impact beyond design, Available from: https://ifworlddesignguide.com/press-releases/new-design-competition-if-public-value-award-2016-impact-beyond-design 3. World Economic Forum (2007). The Global Competitiveness Index: Measuring the Productive Potential of Nations. Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? ▪ The PSOEI must be aligned to the GCI ▪ Weighting scheme needs to be determined ▪ Outcomes addresses impact of projects, a rather difficult task Department of Industrial and Management Engineering José A. Santiváñez, PhD

• This is about to get complicated Department of Industrial and Management Engineering José A. Santiváñez, PhD 23

What do we want to do? 𝑄𝑇𝑃𝐹𝐽 𝑗 = 𝛾 1 ∗ 𝑄𝑠𝑝𝑘𝑓𝑑𝑢 𝑇𝑢𝑠𝑣𝑑𝑢𝑣𝑠𝑓 𝑗 +𝛾 2 ∗ 𝑄𝑣𝑐𝑚𝑗𝑑 𝑊𝑏𝑚𝑣𝑓 𝑗 𝛾 1 + 𝛾 2 = 1 𝑗 = 1,2, … … (specific project) Department of Industrial and Management Engineering José A. Santiváñez, PhD

What do we want to do? 𝑄𝑇𝑃𝐹𝐽 𝑗 = 𝛾 1 ∗ 𝑄𝑠𝑝𝑘𝑓𝑑𝑢 𝑇𝑢𝑠𝑣𝑑𝑢𝑣𝑠𝑓 𝑗 +𝛾 2 ∗ 𝑄𝑣𝑐𝑚𝑗𝑑 𝑊𝑏𝑚𝑣𝑓 𝑗 𝛾 1 + 𝛾 2 = 1 𝑗 = 1,2, … … (specific project) Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have we accomplished so far? Poster Presentations (UAGM Engineering day) Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have we accomplished so far? Conference Presentations 2019 Institute of Industrial and Systems Engineers Annual Meeting. May 18-21 2019. Orlando, Fl. Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have we accomplished so far? Conference Presentations 2019 Institute of Industrial and Systems Engineers Annual Meeting. May 18-21 2019. Orlando, Fl. Department of Industrial and Management Engineering José A. Santiváñez, PhD

What have we accomplished so far? Conference Proceedings Paper 2019 Institute of Industrial and Systems Engineers Annual Meeting. May 18-21 2019. Orlando, Fl. Department of Industrial and Management Engineering José A. Santiváñez, PhD

Work in progress Conference Proceedings Paper ▪ Measure outputs (somehow straightforward) and outcomes (difficult structural equation models) ▪ Determine the weights for the categories using either regression analysis or Analytical Hierarchy Process. ▪ Disseminate best practices and findings resulting from the implementation of the PSOEI. Department of Industrial and Management Engineering José A. Santiváñez, PhD

Work in progress Thanks Department of Industrial and Management Engineering José A. Santiváñez, PhD