AgilTech, LLC RETURN-ON-INVESTMENT ROI In the Context of ISO 9000 INTERNATIONAL STANDARDS...

AgilAgilTech, LLCTech, LLC

RETURN-ON-INVESTMENTRETURN-ON-INVESTMENTROIROI

In the Context ofISO 9000 INTERNATIONAL STANDARDS

REQUIREMENTS AND GUIDANCE

JOM / 06.16.03JOM / 06.16.03

Prepared By Dr. J.O. MatousPresented By Dr. W.B. Sconyers


PREVIEWPREVIEW

ENTERPRISE ROI FOUNDATIONIN ISO 9000

KEY CONTRIBUTORS TOENTERPRISE ROI

REVIEWREVIEW

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ENTERPRISE ROI ENTERPRISE ROI FOUNDATION IN ISO 9000FOUNDATION IN ISO 9000

(Key Ingredient To Enterprise ROI)

KEYKEY INGREDIENTSINGREDIENTSTO ENTERPRISETO ENTERPRISE ROIROI

FIVE BASIC TOPICS IN ISO 9000

All Requirements and Guidance Emphasize ““EFFECTIVENESS & EFFICIENCY”EFFECTIVENESS & EFFICIENCY”

Quality ManagementManagement ResponsibilityResource ManagementProduct RealizationMeasurement, Analysis & Improvement

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RELATIONSHIP TO ENTERPRISE ROIRELATIONSHIP TO ENTERPRISE ROI

RETURN-ON-INVESTMENT RETURN-ON-INVESTMENT = k*= k*(EFFECTIVENESS/EFFICIENCY)(EFFECTIVENESS/EFFICIENCY)(Equivalent to Output/Input)

Return-On-Investment is a key measure of an Enterprise’s ability to operate in the business environment and market of its on choosing

Efficiency (from a Return-On-Investment standpoint) is the ability of an Enterprise to produce a product or provide a service with minimum effort, expense, and waste

Effectiveness (from a Return-In-Investment standpoint) is the abilityof an Enterprise to product a product or provide a service meeting all customer requirements and demands of other interested parties

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Quality ManagementQuality ManagementCreate and implement Enterprise-wide Quality Managementsystems, processes and procedures that continually improveeffectiveness and efficiency

Effective and efficient systems and processes use fact-basedcustomer. operations, and performance data to make Intelligent decisions

Proactive commitment and ensuing actions to ensure bothoperation and control of the processes are effective and efficient

Specific Quality Management Principles are are used by topmanagement ensuring the Enterprise is managed in a Systematic and visible manner

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Management ResponsibilityManagement ResponsibilityLeadership, commitment and active involvement are essentialfor the development, execution and maintenance of effective and efficient Enterprise operation

Responsibility to obtain real information on effectiveness andefficiency of the Enterprise is a conscious and visible obligation.Assurance that the Enterprise’s systems and processes operating as an effective and efficient network

The ethical, effective and efficient compliance with current and prospective needs, expectations and requirements/demands ofthe customer

Quality Policies are critical to achieve improvements ineffectiveness and efficiency of the Enterprise’s performance

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Resource ManagementResource ManagementEffectiveness, efficiency and timely availability of resources related to the Enterprise's opportunities and constraints

Just-in-time resources is the key attribute that effective and Efficient resource management brings to the Enterprise

Empowered people provides the highest leverage towards achieving effectiveness and efficiency of Enterprise operation

Intellectual capital of an Enterprise vested almost totally in people contributes the most toward a effectiveness, efficiency, and success of an Enterprise

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Product RealizationProduct Realization

Effective and efficient preparation, coordination, communication and facilitation of the Enterprise’s operating plan

Effectiveness and efficiency of realization processes for Production and service of products add value to the Enterprise

Improvement in customer relations/satisfaction, better use of resources and reduction in waste result from effectiveness And efficiency of Enterprise realization processes

Effective and efficient planning for controlling and monitoring the activities that produce and/or provide the significant and critical parts of the Enterprise’s products/services

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Measurement, Analysis & ImprovementMeasurement, Analysis & ImprovementContinuous awareness, examination and evaluation are Essential for the effectiveness and efficiency of Enterprise operation

Fact-based decisions made possible by measurement and Analysis is the means to realize an effective and efficient Enterprise operation

Measured data along with effective and efficient communicationand listening to the customer is essential and mandatory to be an Agile Enterprise remaining profitable, competitive and sustaingrowth in created value

Constant awareness of advances in technology, methodologies, testing techniques and other advances improve the effectivenessand efficiency of Enterprise processes, intellectual capital and operation/performance

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KEY CONTRIBUTORS TO KEY CONTRIBUTORS TO ENTERPRISE ROI ENTERPRISE ROI .

Intellectual Capital

Quality Management Systems and Processes

Realization Processes

Agility Initiatives

Quality Policies and Objectives

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Intellectual CapitalIntellectual Capital

Vested in the Enterprise’s most valuable asset (Empowered People)

Transfer and accumulation of information and knowledge

Fact-based decision-making process about Intellectual Capital

Insight, expertise, experience, education, profitability,competitiveness, and sustained ability to create valuevalueCommunication, Coordination and Cooperation

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Quality Management Systems and Processes

Systemic and visible leadership

Operational directives and disciplined execution

Operation designed to implement and maintain continuous improvement in effectiveness andefficiency of Enterprise performance

Needs, demands and expectations of the Enterprise’s customers and the interested parties are primeconsiderations

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Realization ProcessRealization Process

Realization process is prime vehicle for running and creating Economic-Value-Added (EVA) to the Enterprise’s performance

Customer’s perception of value received, relevance to overall strategic Enterprise direction (Quality Policies & Objectives,) and effectiveness, efficiency, viability, worth

Returning more to the Enterprise than it consumes in resources and capital

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Agility InitiativesAgility InitiativesRecognition of opportunities generated by newtechnology, changes in financial and/or monetary environments, regulation and legislature changes

Initiation of immediate action to take advantage of the opportunity as soon as it is recognized

Sense market and/or customer changes

Quickly respond with conforming adjustments accommodating the resulting change in the needs/demands and/or expectations of the customer and/or interested parties

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Quality Policies and Objectives Quality Policies and Objectives Discipline employed with concrete direction and communication of the Enterprise’s purpose, policies,strategy, direction and management emphasis Fact-based evaluation of the environment, the customer and interested parties needs, requirementsand expectationsDecisions made on what is required to produce Overall Enterprise effectiveness and efficiency of operation and performance (Corollary to Quality Management fact-based added value)

Improvement is a permanent objective

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REVIEWREVIEWReturn-on Investment addressed implicitly in ISO 9000 International Standards

Constant use of Effectiveness and Efficiency in ISO 9000 is the Conscious Evidence of the Importance of ROI in the operation of the Agile Enterprises

Key Contributors to an Enterprise’s ROI Intellectual Capital Quality Management Systems & Processes Realization Processes Agile Initiatives Quality Policies and Objectives

JOM / 06.16.03JOM / 06.16.03

AgilTech, LLC RETURN-ON-INVESTMENT ROI In the Context of ISO 9000 INTERNATIONAL STANDARDS...

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