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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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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
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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
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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
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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
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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
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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
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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
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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
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© 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
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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
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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.
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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
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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
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Performance Management
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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
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Political Pyramid ≠ Leadership
© 2014 – All Rights Reserved: The California Institute for
Performance Management
Program Manager
Preferred Engineer
Engineer
SEM
The Glory of Technology Advancement
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The Face of Leadership
© 2014 – All Rights Reserved: The California Institute for
Performance Management
Project Leader/Mentor
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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