Breakthrough opportunity selection is vital for maximising the success of your 'achieving process excellence' program.
As discussed on the Process Excellence and Value Creation page process excellence typically focus on two key categories of key performance indicators – Quality (effectiveness) and Process Efficiency.
Using the combination of an organisations current KPI performance and Excellence Roadmap status a Quality vs Process Efficiency matrix can be plotted to assist the prioritisation of opportunities.
Typically breakthough opportunity selection focuses on the bottom left quadrant which receives the highest
priority, followed by those in the bottom right, with last priority those in
the top left quadrant. The goal is to achieve product / service that achieve
the customer set specifications while attaining that at set target costs.
The breakthough opportunity selection 2 x 2 above measures product and service quality along the vertical access and efficiency along the horizontal access. For simplicity, this matrix only discusses the "low" and "high" efficiency measures, and appropriate and inappropriate on the "quality" measure.
Purely measuring low of high quality prohibits an organization from creating value for itself and its customers. By focusing on what is appropriate to the customer a business avoids higher costs of produce something to the highest possible quality that is not appreciated by the customer. That is, the company avoids wasting money on creating "too good quality".
The Reverse is also true. The company must also produce products or services that meet the quality standards of the customer and not lower. Lower standards implies losses to company as it will not maximize sales over an extended period.
Breakthough Opportunity Selection Priority 1 - Bottom Left - opportunities that fall into this quadrant need to both create appropriate quality while becoming more efficient at doing so. Here the first priority is to establish the appropriate quality followed by increasing efficiency.
Breakthough Opportunity Selection Priority 2 - Bottom Right - opportunities that fall into this quadrant are efficient but need to deliver more appropriate quality.
Breakthough Opportunity Selection Priority 3 - Top Left - opportunities that fall into this Quadrant are delivering appropriate quality but need to become more efficient at doing so.
As process performance breakthroughs are achieved, an iterative process is set in motion. While already established improvements are sustained, the goal is to continuously improve the performance of all process to ever higher levels of (process) efficiency while maintaining (quality) effectiveness.
The Project Management Office (PMO) takes responsibility for ensuring that at all times resources are focussed on the appropriate breakthough opportunities to achieve the organisations objectives.
Breakthough opportunity selection ensures appropriate support is given to what is important to the organization's success.
Breakthough opportunity selection is key to continuous success of the organisation.
back to Process Excellence System page from Breakthrough Opportunity Selection
related page: Process Excellence and Value Creation