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Medical Devices: SEM Essentials Where Financial Performance Meets Quality Presented at the 19th Annual INCOSE Region II Fall Mini-Conference November 1, 2014 Yves Theriault, PhD, PMP President The California Institute for Performance Management © 2014 – All Rights Reserved: The California Institute for Performance Management. Permission granted to INCOSE to publish and use.
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  • Medical Devices: SEM Essentials

    Where Financial Performance Meets Quality Presented at the 19th Annual INCOSE Region II Fall Mini-Conference November 1, 2014

    Yves Theriault, PhD, PMP President The California Institute for Performance Management

    © 2014 – All Rights Reserved: The California Institute for Performance Management. Permission granted to INCOSE to publish and use.

  • Defining Performance “The way someone or something functions” ◦ “The pilot thought that the plane performed well” ◦ The American Heritage Dictionary of the English Language, 4th Edition, 2009, Houghton, Mifflin,

    Harcourt.

    Performance must be measured.

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • Defining Performance (2) Performance is a quantitative attribute,

    associated with a metric or set of metrics taken in their appropriate context, which determine the relative level of success of a process, system, individual or organization. ◦ Yves Theriault, 2014

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • Defining Performance (3) A word On Overall Organizational

    Performance ◦ The is more than Financial Metrics ◦ Social Responsibility; Sustainability…

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • Performance Metrics for R&D Cost of Development per commercial Medical

    Devices. ◦ Is not a great metric. ◦ Some devices may cost more to develop but bring

    higher revenues.

    The Ratio of Total Revenues over a defined period of time to the R&D cost of the commercial devices developed during same period. ◦ Is a better metric.

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • Performance Metrics for R&D Number of proprietary products versus

    competitors.

    Time to develop new products.

    Affordability on the Marketplace.

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • About Performance Performance must be planned for. Performance must be monitored and measured. Performance enhancement is realized via lessons

    learned and the consequent taking of appropriate actions.

    Strategic implementation constitutes the cornerstone of any R&D-based organization.

    To ensure performance in strategic implementation, a SYSTEM must be put in place

    The Integration of PMI and SEM Global Standards Constitute a Framework for that System.

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • Multidirectional Alignment Multidirectional Alignment is the

    ensemble of processes enabling real-time triggering of responses from strategically deployed core competencies at all levels of an organization’s multi-functional infrastructure in order to ensure the deployment, execution, focused compliance, re-assessment, modification, improvement and re-deployment of its strategic programs on an ongoing basis.

    Yves Theriault, 2008

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • SEM and MDA

    SEM is MDA applied in the context of integrated system engineering team and total quality management.

    Optimization of Total Life Cycle Value Management

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • © 2014 – All Rights Reserved: The California Institute for Performance Management

    Organizational Performance

    Portfolio Performance

    Program Performance

    1 2 …10

    … 2 1 3 4 5 6 7

    Project Performance

  • A Project Management Perspective

    Performance Baseline

    COST

    TIME

    QUALITY

    SCOPE

    © 2014 – All Rights Reserved: The California Institute for Performance Management

    Performance Baseline

    NOVELTY

    AFFORDABILITY

    ACCESSIBILITY

    RELIABILITY

    R&D Perspective

    Marketplace Perspective

  • Performance Baseline Uncertainty

    © 2014 – All Rights Reserved: The California Institute for Performance Management

    The ability to establish a reliable performance baseline and conform to it is directly proportional to the degree of control that the performing organization has on the project development.

  • Performance Baseline Uncertainty

    © 2014 – All Rights Reserved: The California Institute for Performance Management

    By Phase

    Detailed Design &

    Production

    Preliminary Design & Validation

    Concept Feasibility

    Increasing Degree of Uncertainty

    Developmental Direction

  • P M E C

    P M E C

    P M E C

    P M E C

    Portfolio Management

    PMO

    PROJECT MANAGEMENT

    Training

    Historical Database

    Strategic Program Creation

    Standardized Templates &

    Guidelines Performance Assessments &

    Balanced ScoreCards

    PERFORMANCE MANAGEMENT SYSTEM = PMO

    IT Infrastructure

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • PM - SEM

    WBS Iterative Process

    PMI Global Standards

    ANSI/EIA-632; ISO-15288; IEEE-1220 ISO 13485 Standards

    © 2014 – All Rights Reserved: The California Institute for Performance Management

  • Political Pyramid ≠ Leadership

    © 2014 – All Rights Reserved: The California Institute for Performance Management

    Program Manager

    Preferred Engineer

    Engineer

    SEM

    The Glory of Technology Advancement

  • The Face of Leadership

    © 2014 – All Rights Reserved: The California Institute for Performance Management

    Project Leader/Mentor

  • Conclusion

    © 2014 – All Rights Reserved: The California Institute for Performance Management

    SEM is essential in achieving developmental and quality performance.

    The Integration of PM and SEM Global Standards is essential to optimize overall organizational performance.

    Program Manager and System Engineering Manager must work in harmony.

    Leadership is a must, not an option. All of the above are essential to

    affordable healthcare.

    Medical Devices: SEM EssentialsDefining PerformanceDefining Performance (2)Defining Performance (3)Performance Metrics for R&DPerformance Metrics for R&DAbout PerformanceMultidirectional AlignmentSEM and MDASlide Number 10A Project Management PerspectivePerformance Baseline UncertaintyPerformance Baseline UncertaintySlide Number 14PM - SEMPolitical Pyramid ≠ LeadershipThe Face of LeadershipConclusion