OPM and CAR Once special causes are removed from the execution of your chosen process in a project it is now possible to address common causes of variation. If the performance of the process is not good enough to meet business objectives even though absence of special causes of variation mean it is stable then we should concentrate on addressing common causes of variation in order to optimise it….improve it to meet the business objectives. OPM sets the objectives and then sees if the company can use the process to meet the objectives.

ORGANIZATIONAL PERFORMANCE MANAGEMENT PROCESS MANAGEMENT (ML5) The purpose of Organizational Performance Management (OPM) is to proactively manage the organization’s performance to meet its business objectives.

SG 1 The organization’s business performance is managed using statistical and other quantitative techniques to understand process performance shortfalls and identify areas for process improvement. SP 1.1 Maintain business objectives based on an understanding of business strategies and actual performance results. SP 1.2 Analyze process performance data to determine the organization’s ability to meet identified business objectives. SP 1.3 Identify potential areas for improvement that could contribute to meeting business objectives. If you are a baker you might have as one of your business objectives to offer the most luxurious and high quality products on the market. If after prioritising all your business objectives this is still high on the list then you must ensure that it is a realistic objective. Use performance baselines to balance desires with reality. You may need to introduce further measures so that you can best understand the ability of your baking process This is about understanding the VOP which is only visible after it is stable Identify shortfalls in performance…what are the risks in the shortfall? Understand the VOC….what the customer wants Identify where you think improvements could be made and identify initial costs for making improvements i.e aligning VOP with VOC. VOP VOC

SG 2 Improvements are proactively identified, evaluated using statistical and other quantitative techniques, and selected for deployment based on their contribution to meeting quality and process performance objectives. SP 2.1 Elicit and categorize suggested improvements. SP 2.2 Analyze suggested improvements for their possible impact on achieving the organization’s quality and process performance objectives. SP 2.3 Validate selected improvements. SP 2.4 Select and implement improvements for deployment throughout the organization based on an evaluation of costs, benefits and other factors. These SPs utilise the results of CAR…it uses the improvements that CAR has provided Elicit from all stakeholders ideas for improvement Select the improvements you want to make Analyse costs and benefits of the various improvements and any risks…then select a number of potential improvements for validation CAR is now used to provide the improvements OPM then proceeds to validate improvements maybe using pilot studies, modeling or simulation…create a trial implementation Prioritise improvements for deployment…select and determine how to deploy

SG 3 Measurable improvements to the organization’s processes and technologies are deployed and evaluated using statistical and other quantitative techniques. SP 3.1 Establish and maintain plans for deploying selected improvements. SP 3.2 Manage the deployment of selected improvements. SP 3.3 Evaluate the effects of deployed improvements on quality and process performance using statistical and other quantitative techniques. OPM now carries out the deployment of the selected improvements and evaluate the effects on performance

CAUSAL ANALYSIS AND RESOLUTION SUPPORT (ML5) The purpose of Causal Analysis and Resolution (CAR) is to identify causes of selected outcomes and take action to improve process performance. SG 1 Root causes of selected outcomes are systematically determined. SP 1.1 Select outcomes for analysis. SP 1.2 Perform causal analysis of selected outcomes and propose actions to address them. SG 2 Root causes of selected outcomes are systematically addressed. SP 2.1 Implement selected action proposals developed in causal analysis. SP 2.2 Evaluate the effect of implemented actions on process performance. SP 2.3 Record causal analysis and resolution data for use across projects and the organization Here CAR is simply discovering the underlying causes of the problems and coming up with solutions. Six sigma is an implementation of CAR.

Even though the baking process is stable… the VOC demands this quality of cake but unfortunately the baking process is delivering this quality of cake NB: The baking process is stable because QPM and OPP have removed special causes of variation

Even though this is stable it may still fall short of that expected by the VOC

We need to exercise both OPM and CAR so that we can move from this To a new band of performance Simply reducing the common causes of variation will improve the precision (VOP) but this might not meet the VOC. We need to improve our accuracy (VOP) so that on average we are producing cakes to the standard of the VOC. This may or may not be possible depending on our current circumstances.