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How does an organzation identify process performance enhancement opportunities?

As you may know, organizations can't afford to invest resources in projects which do not meet some accepted level of potential performance, return, or improvement, and solid feasibility studies on projects will incorporate structured consideration of all important factors. Feasibility studies include attention to these measures as quantitative and qualitative benchmarks.

How does an organization systematically identify process performance enhancement opportunities?

Describe briefly the types of project justification techniques that can be used by an organization. What are the strengths and weaknesses of a project justification technique?

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How does an organization systematically identify process performance enhancement opportunities?

An organization systematically identifies the process performance opportunities by first setting the vision and process enhancement objectives. This is important because at this stage the organization decides what kind of performance enhancement it wants to do. The enhancement may be to increase the capacity of a facility, to speed up the processing time, to reduce cost or to reduce the number of rejects. You may feel excited about the opportunity and may even feel success enter you, but this is not acceptable unless the organization decided about the standards that will be used to establish performance goal, the model against which we can compare ourselves, if we will work as cross-functional teams and how we will reward performance. For example, you may walk into a chocolate plant in Sweden and feel the flavors embrace you; however, the improved quality must be compared to the industry standards. The quality of the chocolate may be compared to that of a competitor in the same district and the results used as benchmark. Again if there is a systematic improvement of the process then those responsible for the performance improvement should be rewarded.

The organization next sets up an organization chart. This is specifically for the purpose of performance enhancement. If a new person is required to enter the organization and expand it for the purpose of performance enhancement, then the person needs to be recruited and suitably placed. At this stage it is important to make change manageable, manage employee expectations and identify cultural barriers. If a new chocolate making line is installed that would improve the tasting experience of chocolate, making it penetrate your senses and improving the customer satisfaction, there would be an expectation of higher salaries from employees. The company needs to anticipate the areas in which organizational infrastructure must change to implement redesigned ...

Solution Summary

In a 1277 word solution, the response presents a comprehensive review of project justification techniques used to identify performance enhancement opportunities.