The Performance Management cycle typically starts when management of an organization decides on the strategic plan for the next 3-5 years. This strategic model contains objectives, strategies and financial guidelines that form the basis for the CPM processes that follow.
From this a tactical plan model is developed during the tactical planning process where initiatives, projects and investments that are needed to reach the strategic objectives are assessed. To each element of the tactical plan, resources, outcomes, milestones and priorities are assigned.
The financial plan or budget is simply the financial translation of the tactical plan along with any other resources required to run the entire organisation. It summarizes the financial impact of the decisions made during the planning process and serves as a control mechanism during the execution of the plan.
The forecasting and management reporting processes enrich the strategic, tactical and financial planning models with actual and forecast figures. These are delivered through scorecards, dashboards, reporting packs and briefing books that allow internal and external consumers to review performance and make decisions on adjustments to the various plans in order to keep the organisation on track.
CorPeuM offers this complete CPM cycle in one integrated business model.
CPM ( Corporate Performance Management ) or Strategy Execution System?
It would seem that the execution of strategy should be a focus of CPM, which Gartner define as “… an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise.”
To go with this, Gartner have identified a number of application categories that provide functionality to support those management processes, methodologies and metrics:
Budgeting, planning and forecasting. These encompass short-term financially focused budgets, longer-term plans and high-level strategic plans. Applications should deliver workflow capabilities to manage budget/plan creation, submission and approval, as well as provide the ability to dynamically create forecasts and scenarios.
Profitability modelling and optimization. This includes activity-based costing (ABC) applications that determine and allocate costs at a detailed level, and activity-based management applications that provide capabilities to enable users to model the impact on profitability of different cost and resource allocation strategies.
Scorecard applications. This includes the ability to deliver dashboards and link key performance indicators (KPIs) to a strategy map, with a hierarchical cause-and-effect relationship among the KPIs. They are often used in conjunction with a particular methodology, such as the Balanced Scorecard.
Financial consolidation. This enables organizations to reconcile, consolidate, summarize and aggregate financial data based on different accounting standards and federal regulations.
Statutory and financial reporting. These are specialized reporting tools that can format output as structured financial statements, and support specific generally accepted accounting principles (GAAP) presentation rules, such as U.S. GAAP or International Financial Reporting Standards.
To meet the challenge of CPM, vendors have developed (or acquired) a range of software products, often with different architectures, for each application area. This makes them difficult to integrate. For example, to implement a scorecard application that is linked to the budget process will require two products with different interfaces, and where a change in one application does not automatically update the other.
At CorPeuM we see this separation of applications as being detrimental to supporting strategy execution. What distinguishes a strategy execution system, is an architecture that completely integrates these capabilities so that they operate as a single application.
Without a totally integrated architecture, the overhead involved in maintaining a system not only severely impacts the time it takes to include changes, but also, because of complexity involved, means that any links becomes untrustworthy, which jeopardises the very purpose of the application.
The objective of this paper is to present and discuss the main obstacles and benefits of the use of the Earned Value Analysis in projects, including factors to be improved and implemented during the project plan and actions to be taken while the project is accomplished and controlled. Also, through a real case study in civil construction field, the applicability of the technique is faced with a theoretical reference, in order to identify aspects of the applicability of the tool tested in case study.
The Automation of Critical Path Method using Machine Learning: A Conceptual S...Dr. Amarjeet Singh
This research aims to shed light on the use of machine learning in improving, developing and automating the critical path method, solving its problems, studying this effect and its dimensions, and discussing that from many aspects.
The research is divided into two theoretical and practical parts. The theoretical part is concerned with studying the critical path method and its advantages, problems and challenges, as well as studying machine learning and artificial intelligence and its dimensions, reviewing materials and sources related to this, and then presenting suggestions and future solutions based on this study. As for the practical section, it is a questionnaire that targeted a segment of engineers, in particular, and others who have sufficient experience in both the critical path method and machine learning, and seeking their opinions on both topics.
The result of the theoretical research was 14 theories or proposals that were presented based on the foregoing study. As for the practical questionnaire, a sample of 127 was taken. Through statistical analysis, the results were analyzed and discussed separately, and then a conclusion was drawn regarding them.
Beyond Scaling Up: Key concepts from the working paperIDS
This presentation was given at the 'Beyond Scaling Up: Pathways to Universal Access' workshop which was held at the Institute of Development Studies, Brighton on the 24-25 May, 2010. This event was co-sponsored by the Future Health Systems Research Programme Consortium and the STEPS Centre. Bloom presented on key concepts from the background paper that accompanied the meeting.
The Performance Management cycle typically starts when management of an organization decides on the strategic plan for the next 3-5 years. This strategic model contains objectives, strategies and financial guidelines that form the basis for the CPM processes that follow.
From this a tactical plan model is developed during the tactical planning process where initiatives, projects and investments that are needed to reach the strategic objectives are assessed. To each element of the tactical plan, resources, outcomes, milestones and priorities are assigned.
The financial plan or budget is simply the financial translation of the tactical plan along with any other resources required to run the entire organisation. It summarizes the financial impact of the decisions made during the planning process and serves as a control mechanism during the execution of the plan.
The forecasting and management reporting processes enrich the strategic, tactical and financial planning models with actual and forecast figures. These are delivered through scorecards, dashboards, reporting packs and briefing books that allow internal and external consumers to review performance and make decisions on adjustments to the various plans in order to keep the organisation on track.
CorPeuM offers this complete CPM cycle in one integrated business model.
CPM ( Corporate Performance Management ) or Strategy Execution System?
It would seem that the execution of strategy should be a focus of CPM, which Gartner define as “… an umbrella term that describes the methodologies, metrics, processes and systems used to monitor and manage the business performance of an enterprise.”
To go with this, Gartner have identified a number of application categories that provide functionality to support those management processes, methodologies and metrics:
Budgeting, planning and forecasting. These encompass short-term financially focused budgets, longer-term plans and high-level strategic plans. Applications should deliver workflow capabilities to manage budget/plan creation, submission and approval, as well as provide the ability to dynamically create forecasts and scenarios.
Profitability modelling and optimization. This includes activity-based costing (ABC) applications that determine and allocate costs at a detailed level, and activity-based management applications that provide capabilities to enable users to model the impact on profitability of different cost and resource allocation strategies.
Scorecard applications. This includes the ability to deliver dashboards and link key performance indicators (KPIs) to a strategy map, with a hierarchical cause-and-effect relationship among the KPIs. They are often used in conjunction with a particular methodology, such as the Balanced Scorecard.
Financial consolidation. This enables organizations to reconcile, consolidate, summarize and aggregate financial data based on different accounting standards and federal regulations.
Statutory and financial reporting. These are specialized reporting tools that can format output as structured financial statements, and support specific generally accepted accounting principles (GAAP) presentation rules, such as U.S. GAAP or International Financial Reporting Standards.
To meet the challenge of CPM, vendors have developed (or acquired) a range of software products, often with different architectures, for each application area. This makes them difficult to integrate. For example, to implement a scorecard application that is linked to the budget process will require two products with different interfaces, and where a change in one application does not automatically update the other.
At CorPeuM we see this separation of applications as being detrimental to supporting strategy execution. What distinguishes a strategy execution system, is an architecture that completely integrates these capabilities so that they operate as a single application.
Without a totally integrated architecture, the overhead involved in maintaining a system not only severely impacts the time it takes to include changes, but also, because of complexity involved, means that any links becomes untrustworthy, which jeopardises the very purpose of the application.
The objective of this paper is to present and discuss the main obstacles and benefits of the use of the Earned Value Analysis in projects, including factors to be improved and implemented during the project plan and actions to be taken while the project is accomplished and controlled. Also, through a real case study in civil construction field, the applicability of the technique is faced with a theoretical reference, in order to identify aspects of the applicability of the tool tested in case study.
The Automation of Critical Path Method using Machine Learning: A Conceptual S...Dr. Amarjeet Singh
This research aims to shed light on the use of machine learning in improving, developing and automating the critical path method, solving its problems, studying this effect and its dimensions, and discussing that from many aspects.
The research is divided into two theoretical and practical parts. The theoretical part is concerned with studying the critical path method and its advantages, problems and challenges, as well as studying machine learning and artificial intelligence and its dimensions, reviewing materials and sources related to this, and then presenting suggestions and future solutions based on this study. As for the practical section, it is a questionnaire that targeted a segment of engineers, in particular, and others who have sufficient experience in both the critical path method and machine learning, and seeking their opinions on both topics.
The result of the theoretical research was 14 theories or proposals that were presented based on the foregoing study. As for the practical questionnaire, a sample of 127 was taken. Through statistical analysis, the results were analyzed and discussed separately, and then a conclusion was drawn regarding them.
Beyond Scaling Up: Key concepts from the working paperIDS
This presentation was given at the 'Beyond Scaling Up: Pathways to Universal Access' workshop which was held at the Institute of Development Studies, Brighton on the 24-25 May, 2010. This event was co-sponsored by the Future Health Systems Research Programme Consortium and the STEPS Centre. Bloom presented on key concepts from the background paper that accompanied the meeting.
This handout describes the diagnostic process to allow programs to move from broad awareness to a sharper understanding of specific systems constraints to be address by their interventions. It should be used to distinguish symptoms of under-performance from their root causes.
A set of slides that can be used alongside the Facilitator Guide to train practitioners in engaging key actors.
The Facilitator Guide can be found at http://www.slideshare.net/pmsd-map/step5training-guide
This is one of the learning documents produced by USAID's Leveraging Economic Opportunities (LEO) Programme. MaFI members will use this document to share knowledge about theories and practices related to market systems.
The Market Systems Framework initiative aims to align the VC framework with systems concepts, make the very poor more visible, and better express the fact that VCs are adaptive, multi-layered, non-linear, and relationship based. The initiative seeks to define inclusive market systems and propose recommendations for project design and implementation.
The framework will be used to develop a detailed learning agenda to address how we (i) analyse market systems, (ii) use the analysis to design inclusive interventions that achieve systemic change, and (iii) measure the results.
You can learn more about LEO at: http://www.acdivoca.org/LEO
Facilitation Training Materials - Market Facilitation: Good, Bad and UglyPMSD Roadmap
A handout to be used with the Step 0 Facilitation Skills Training Materials, which can be found here: http://www.slideshare.net/pmsd-map/step0training-guide
The handout discusses effective facilitation and communication techniques. It should be used in the “How good is our communication?” session.
Print 1 copy of pages 4-7 per participant
Produced by EWB Canada
Presentation by Lucho Osorio from Practical Action, at the Sustainable Livelihoods Approaches (SLA) seminar on 26th January 2011 at the Institute of Development Studies, Brighton, UK.
This is a USAID handout that provides examples of the Cooperation and Competition for Upgrading. It is a framework to assess the current picture and frame a future vision for value chain upgrading.
This working paper provides important background for anyone designing a training on market facilitation. The paper discusses market facilitation and what the implications are for being a facilitator in a market systems development program. It highlights main areas where facilitation intervenes and the roles of different stakeholders. Finally, this paper provides a checklist for donors and implementers to use.
What works where for which farm household: Estimated effects of different int...ILRI
Presented by Randall Ritzema, Romain Frelat, Sabine Douxchamps, Silvia Silvestri, Mariana Rufino, Mario Herrero, Ken Giller, Santiago Lopez-Ridaura and Mark van Wijk at the international conference on Integrated Systems Research for Sustainable Intensification in Smallholder Agriculture, Ibadan, Nigeria, 3-6 March 2015.
In the Engaging Key Actors step you will discover how to develop and implement a strategy to convince market actors to join the process of PMSD.
The step helps you to understand the actors that you want to engage, devise ‘hooks’ based on their incentives to attract them, and find ways to keep them interested even when things are not going to plan.
Last updated: 19/09/12
Facilitation Training Materials - SlidesPMSD Roadmap
A set of slides that can be used alongside the Facilitator Guide to train practitioners in key Facilitation Skills and Attitudes.
The Facilitator Guide can be found at http://www.slideshare.net/pmsd-map/step0training-guide
Facilitating Change explains how to take a ‘learning-by-doing’ approach. You will find a set of recommendations covering the processes of facilitation, monitoring, reflection, learning and planning.
The step also includes a summary of our lessons for facilitating key Participatory Market System Development activities.
Last updated 25/09/12
Facilitation Training Materials - Facilitator GuidePMSD Roadmap
A set of guidance notes and session plans to help a facilitator lead a training workshop for practitioners on Facilitation Skills and Attitudes. This module should be taught before practitioners are trained in how to facilitate workshops – i.e. before steps 4 to 8 of the Roadmap are covered.
All materials required for the workshop are linked to from within the guide.
This handout describes the diagnostic process to allow programs to move from broad awareness to a sharper understanding of specific systems constraints to be address by their interventions. It should be used to distinguish symptoms of under-performance from their root causes.
A set of slides that can be used alongside the Facilitator Guide to train practitioners in engaging key actors.
The Facilitator Guide can be found at http://www.slideshare.net/pmsd-map/step5training-guide
This is one of the learning documents produced by USAID's Leveraging Economic Opportunities (LEO) Programme. MaFI members will use this document to share knowledge about theories and practices related to market systems.
The Market Systems Framework initiative aims to align the VC framework with systems concepts, make the very poor more visible, and better express the fact that VCs are adaptive, multi-layered, non-linear, and relationship based. The initiative seeks to define inclusive market systems and propose recommendations for project design and implementation.
The framework will be used to develop a detailed learning agenda to address how we (i) analyse market systems, (ii) use the analysis to design inclusive interventions that achieve systemic change, and (iii) measure the results.
You can learn more about LEO at: http://www.acdivoca.org/LEO
Facilitation Training Materials - Market Facilitation: Good, Bad and UglyPMSD Roadmap
A handout to be used with the Step 0 Facilitation Skills Training Materials, which can be found here: http://www.slideshare.net/pmsd-map/step0training-guide
The handout discusses effective facilitation and communication techniques. It should be used in the “How good is our communication?” session.
Print 1 copy of pages 4-7 per participant
Produced by EWB Canada
Presentation by Lucho Osorio from Practical Action, at the Sustainable Livelihoods Approaches (SLA) seminar on 26th January 2011 at the Institute of Development Studies, Brighton, UK.
This is a USAID handout that provides examples of the Cooperation and Competition for Upgrading. It is a framework to assess the current picture and frame a future vision for value chain upgrading.
This working paper provides important background for anyone designing a training on market facilitation. The paper discusses market facilitation and what the implications are for being a facilitator in a market systems development program. It highlights main areas where facilitation intervenes and the roles of different stakeholders. Finally, this paper provides a checklist for donors and implementers to use.
What works where for which farm household: Estimated effects of different int...ILRI
Presented by Randall Ritzema, Romain Frelat, Sabine Douxchamps, Silvia Silvestri, Mariana Rufino, Mario Herrero, Ken Giller, Santiago Lopez-Ridaura and Mark van Wijk at the international conference on Integrated Systems Research for Sustainable Intensification in Smallholder Agriculture, Ibadan, Nigeria, 3-6 March 2015.
In the Engaging Key Actors step you will discover how to develop and implement a strategy to convince market actors to join the process of PMSD.
The step helps you to understand the actors that you want to engage, devise ‘hooks’ based on their incentives to attract them, and find ways to keep them interested even when things are not going to plan.
Last updated: 19/09/12
Facilitation Training Materials - SlidesPMSD Roadmap
A set of slides that can be used alongside the Facilitator Guide to train practitioners in key Facilitation Skills and Attitudes.
The Facilitator Guide can be found at http://www.slideshare.net/pmsd-map/step0training-guide
Facilitating Change explains how to take a ‘learning-by-doing’ approach. You will find a set of recommendations covering the processes of facilitation, monitoring, reflection, learning and planning.
The step also includes a summary of our lessons for facilitating key Participatory Market System Development activities.
Last updated 25/09/12
Facilitation Training Materials - Facilitator GuidePMSD Roadmap
A set of guidance notes and session plans to help a facilitator lead a training workshop for practitioners on Facilitation Skills and Attitudes. This module should be taught before practitioners are trained in how to facilitate workshops – i.e. before steps 4 to 8 of the Roadmap are covered.
All materials required for the workshop are linked to from within the guide.
7 key analytic elements for the evaluation of DSM policiesLeonardo ENERGY
This Briefing Note describes seven key analytic elements that should be addressed in the evaluation of Demand Site Management (DSM) and Energy Efficiency (EE) policy measures:
1. A policy measure theory, consisting of the domain of the policy, the expected effects of the policy, and an evaluation methodology
2. Specifications of the evaluation indicators, namely the output (= direct output of the program), the outcome (= results on the level of economy, society, and environment), and the impact (net improvements on the level of economy, society, and environment taking rebound effects into account)
3. The indicator baselines, set with consideration
4. An assessment of the outputs and outcomes
5. An assessment of the energy savings and emission reductions
6. A calculation of the cost, cost-efficiency and cost-effectiveness
7. The ambition level: how much effort should be dedicated to the evaluation, and how accurate should it be?
The changes required in the IT project plan for Telecomm Ltd would.docxmattinsonjanel
The changes required in the IT project plan for Telecomm Ltd would entail specific variation in the platforms used in the initial implementation plan. Initially, the three projects that were planned for implementation included; the installation of business intelligence platform, the implementation of Statistical Analysis System software technology, and the creation of an effectively network infrastructure. In this case, the changes would include an addition of an ERP software to ensure the performance of the workforce within the Telecomms Ltd employees.
ERP is an effectively coordinated information technology system that would ensure the company’s performance is enhanced. To understand how the implementation of a coordinated IT system offers a competitive advantage of a firm, it is essential to acknowledge three core reasons for the failure of information technology related projects as commonly cited by IT managers. In this case, IT managers cite the three reasons as; poor planning or management, change in business objectives and goals during the implementation process of a project, and lack of proper management support completion (Houston, 2011). Also, in the majority of completed projects, technology is usually deployed in a vacuum; hence users resist it. The implementation of coordinated information technology systems, such as ERP would provide an ultimate solution to the three reasons for failure, and thus would give Telecomms Ltd a competitive advantage in the already competitive market. Since the implementation of systems like ERP directly provides solution to common problems that act as drawbacks regarding the competitiveness of firm, it is, therefore, evident that its use place Telecomms Ltd above its rival companies in the market share (Wallace & Kremzar, 2001).
The use ERP, which is a reliable coordinated IT system entails three distinctive implementation strategies that a firm can choose depending on its specific needs. The changes in the projects would be as follows: The three implementation strategies are independently capable of providing a relatively competitive advantage for many companies. These strategies are: big bang, phased rollout, and parallel adoption. In the big bang implementation strategy, happens in a single instance, whereby all the users are moved to a new system on a designated (Wallace & Kremzar, 2001). The phased rollout implementation on the other hand usually involves a changeover in several phases, and it is executed in an extended period. In this case, the users move onto the new system in a series of steps (Houston, 2011). Lastly, the parallel adoption implementation strategy allows both legacy and the new ERP system to run at the same time. It is also essential to note that users in this strategy get to learn the new system while still working on the old system (Wallace & Kremzar, 2001). The three strategies effectively change the information system of Telecomms Ltd tremendously such that it positiv ...
Note: the results of this discussion are available at: http://www.slideshare.net/marketfacil/systemic-mand-e-synthesis-31jan2013
This is the first version of the paper that we will use to promote debate, reflection and progress around the systemic M&E initiative. The initiative’s main objective is to promote a rethink of how we measure our impacts on market systems and their evolution towards more inclusion, productivity and efficiency (i.e. how do we know that the markets systems we work with are actually going to continue reducing poverty and protecting the environment even after we have left the scene).
The paper is a live document and it is intended to evolve with the conversations that donors, academic researchers, and practitioners working in inclusive market development and finance/microfinance development. Most of these conversations will take place in MaFI, in USAID’s Microlinks (23-25 Oct, 2012) and the SEEP 2012 Annual Conference. Your comments and questions are welcome (please use the comments box here).
The systemic M&E is one of the concrete solutions proposed by the MaFI-festo (http://slidesha.re/mafifesto2) to make international development cooperation more facilitation-friendly, and therefore, more cost-effective.
Modelling: What’s next for Financial Services in Europe?GRATeam
This paper outlines a practical roadmap to realising cost savings, delivering a material reduction in the volume and complexity of models by outlining five key principles of model optimisation: develop a comprehensive review of models, harmonise methodologies, re-design model validation/monitoring process, re-think its modelling team’s organisation & governance and build new expertise and recruit talent.
Proven Paradigm for Creating Enterprise Project and Portfolio Management Adop...UMT
Capability Maturity Assessment is one of the tools consistently leveraged by Enterprise Project and Portfolio Manage-ment (EPM) practitioners in the creation of adoption roadmaps for organizations that are creating momentum for change with the objective of improving internal governance. Historically, the problem has been addressed in parallel at the Project, Program, or Portfolio levels, and in many cases the solutions devised have been independent of one anoth-er, potentially missing on integration aspects that could greatly improve overall results. In the past couple of years, new methodologies that attempt to encompass all three disciplines have been developed, including OPM3 from the PMI.
In this brief, the GROOVE Learning Network presents lessons learned about effective M&E for value chain interventions.
Idea in brief: The value chain approach requires a rethink of traditional monitoring and evaluation (M&E). On one hand, managers and front line staff require information with greater frequency in order to make decisions and adapt in a complex operating environment. On another hand, the focus of the value chain approach on systemic change places unique demands on evaluators and evaluation designs.
A number of traditional M&E standards do not change in the shift to a value chain approach. But, effective M&E for value chain programming does require improving feedback loops, deconstructing walls between M&E staff and front line staff, an increased focus on measuring sustainability of impacts at multiple levels within a system and new methods for rigorously assessing impact.
CHAPTER Modeling and Analysis Heuristic Search Methods .docxtiffanyd4
CHAPTER
Modeling and Analysis: Heuristic
Search Methods and Simulation
LEARNING OBJECTIVES
• Explain the basic concepts of simulation
and heuristics, and when to use them
• Understand how search methods are
used to solve some decision support
models
• Know the concepts behind and
applications of genetic algorithms
• Explain the differences among
algorithms, blind search, and heuristics
• Understand the concepts and
applications of different types of
simulation
• Explain what is meant by system
dynamics, agent-based modeling, Monte
Carlo, and discrete event simulation
• Describe the key issues of model
management
I n this chapter, we continue to explore some additional concepts related to the model base, one of the major components of decision support systems (DSS). As pointed out in the last chapter, we present this material with a note of caution: The purpose
of this chapter is not necessarily for you to master the topics of modeling and analysis.
Rather, the material is geared toward gaining familiarity with the important concepts
as they relate to DSS and their use in decision making. We discuss the structure and
application of some successful time-proven models and methodologies: search methods,
heuristic programming, and simulation. Genetic algorithms mimic the natural process of
evolution to help find solutions to complex problems. The concepts and motivating appli-
cations of these advanced techniques are described in this chapter, which is organized
into the following sections:
10.1 Opening Vignette: System Dynamics Allows Fluor Corporation to Better Plan
for Project and Change Management 436
10.2 Problem-Solving Search Methods 437
10.3 Genetic Algorithms and Developing GA Applications 441
10.4 Simulation 446
435
436 Pan IV • Prescriptive Analytics
10.5 Visu al Interactive Simulatio n 453
10.6 System Dynamics Modeling 458
10.7 Agents-Based Mode ling 461
10.1 OPENING VIGNETTE: System Dynamics Allows Fluor
Corporation to Better Plan for Project and Change
Management
INTRODUCTION
Fluor is an engineering and construction company with over 36,000 employers spread
over several countries worldwide . The company's net income in 2009 amounted to
about $680 million based on total revenue o f $22 b illion. As part of its operations, Fluor
manages varying sizes of projects that are subject to scope changes, design changes, and
schedule changes.
PRESENTATION OF PROBLEM
Fluor estimated that changes accounted for about 20 to 30 percent of revenue . Most
changes were due to secondary impacts like ripple effects, disruptions, and p roductivity
loss. Previously, the changes were collated and reported at a later period and the burden
of cost allocated to the stakeholder responsible. In certain instances when late su rprises
abou t cost and project schedule are attributed to clients, it causes friction between
clients and Fluor, w hich eventually affect future business dealings. .
CHAPTER Modeling and Analysis Heuristic Search Methods .docxmccormicknadine86
CHAPTER
Modeling and Analysis: Heuristic
Search Methods and Simulation
LEARNING OBJECTIVES
• Explain the basic concepts of simulation
and heuristics, and when to use them
• Understand how search methods are
used to solve some decision support
models
• Know the concepts behind and
applications of genetic algorithms
• Explain the differences among
algorithms, blind search, and heuristics
• Understand the concepts and
applications of different types of
simulation
• Explain what is meant by system
dynamics, agent-based modeling, Monte
Carlo, and discrete event simulation
• Describe the key issues of model
management
I n this chapter, we continue to explore some additional concepts related to the model base, one of the major components of decision support systems (DSS). As pointed out in the last chapter, we present this material with a note of caution: The purpose
of this chapter is not necessarily for you to master the topics of modeling and analysis.
Rather, the material is geared toward gaining familiarity with the important concepts
as they relate to DSS and their use in decision making. We discuss the structure and
application of some successful time-proven models and methodologies: search methods,
heuristic programming, and simulation. Genetic algorithms mimic the natural process of
evolution to help find solutions to complex problems. The concepts and motivating appli-
cations of these advanced techniques are described in this chapter, which is organized
into the following sections:
10.1 Opening Vignette: System Dynamics Allows Fluor Corporation to Better Plan
for Project and Change Management 436
10.2 Problem-Solving Search Methods 437
10.3 Genetic Algorithms and Developing GA Applications 441
10.4 Simulation 446
435
436 Pan IV • Prescriptive Analytics
10.5 Visu al Interactive Simulatio n 453
10.6 System Dynamics Modeling 458
10.7 Agents-Based Mode ling 461
10.1 OPENING VIGNETTE: System Dynamics Allows Fluor
Corporation to Better Plan for Project and Change
Management
INTRODUCTION
Fluor is an engineering and construction company with over 36,000 employers spread
over several countries worldwide . The company's net income in 2009 amounted to
about $680 million based on total revenue o f $22 b illion. As part of its operations, Fluor
manages varying sizes of projects that are subject to scope changes, design changes, and
schedule changes.
PRESENTATION OF PROBLEM
Fluor estimated that changes accounted for about 20 to 30 percent of revenue . Most
changes were due to secondary impacts like ripple effects, disruptions, and p roductivity
loss. Previously, the changes were collated and reported at a later period and the burden
of cost allocated to the stakeholder responsible. In certain instances when late su rprises
abou t cost and project schedule are attributed to clients, it causes friction between
clients and Fluor, w hich eventually affect future business dealings. ...
Supply Chain Management Plan
(Project Name)
Student Name
Walden University
Date
Table of Contents
Company Profile 3
Supply Chain Management Philosophy 3
Supply Chain Management Practices 3
Project Scope 4
Project Schedule 4
Project Cost 6
Project Budget 7
Company Profile
Prepare a company profile. The profile should include the items listed below. (1 page)
General Business Information
· Business Name
· Primary Business Location (e.g., Headquarters Location)
Company Overview
· Business Purpose (e.g., Business Function / Mission Statement)
· Size / Market Reach (e.g., Small, Medium, Large / Local, National, Global)
Business Details
· Principal Customers for Medical Devices
· Major Competitors for Medical DevicesSupply Chain Management Philosophy
Supply Chain Management (SCM) encompasses managing and integrating essential business processes across an organization. Efficient and effective SCM affords companies an advantage over its their competitors. While most organizations adhere to industry standards and best practices in SCM (e.g., ISO 9000), they may also incorporate unique aspects that differentiate them from the competition. These unique aspects are typically aligned with the company’s culture, mission, and philosophy on social responsibility and accountability.
Evaluate Johnson & Johnson’s (J&J) SCM philosophy (2-3 pages)
· Describe J&J’s philosophy on SCM
· Explain how J&J’s philosophy on SCM supports its mission statement
· Explain how J&J’s three key focus areas (People, Places, and Practices) apply to its relationships with supply chain partners.
Supply Chain Management Practices
Supply Chain Management (SCM) encompasses the end-to-end business processes necessary for a company to produce goods and services for delivery to the end consumer. Integration between the processes and collaboration among the entities involved in the processes are critical. In 2001, the Global Supply Chain Forum recommended a common definition of SCM and identified eight key business processes that they proposed should be implemented and integrated.
Supply Chain Management Process (1 page)
· Briefly describe each of the eight key business processes identified in the article “The Supply Chain Management Processes,” including the purpose of each process in managing the supply chain.
Evaluate J&J’s approach to Supplier Relationship Management (SRM) (2-3 pages)
· What is J&J’s philosophy on SRM?
· What are the requirements for becoming a supplier partner with J&J?
· What role do suppliers play in achieving the mission of J&J?
· How effective are J&J’s SRM practices?
Project Scope
The scope of the project is derived from stakeholder requirements and is used as input to create the Work Breakdown Structure (WBS). The WBS depicts the total scope of the project, and is the primary source of information for the development of the project schedule and , for the determination of project resources, and is an important element of performance measurement. ...
Supply Chain Management Plan
(Project Name)
Student Name
Walden University
Date
Table of Contents
Company Profile 3
Supply Chain Management Philosophy 3
Supply Chain Management Practices 3
Project Scope 4
Project Schedule 4
Project Cost 6
Project Budget 7
Company Profile
Prepare a company profile. The profile should include the items listed below. (1 page)
General Business Information
· Business Name
· Primary Business Location (e.g., Headquarters Location)
Company Overview
· Business Purpose (e.g., Business Function / Mission Statement)
· Size / Market Reach (e.g., Small, Medium, Large / Local, National, Global)
Business Details
· Principal Customers for Medical Devices
· Major Competitors for Medical DevicesSupply Chain Management Philosophy
Supply Chain Management (SCM) encompasses managing and integrating essential business processes across an organization. Efficient and effective SCM affords companies an advantage over its their competitors. While most organizations adhere to industry standards and best practices in SCM (e.g., ISO 9000), they may also incorporate unique aspects that differentiate them from the competition. These unique aspects are typically aligned with the company’s culture, mission, and philosophy on social responsibility and accountability.
Evaluate Johnson & Johnson’s (J&J) SCM philosophy (2-3 pages)
· Describe J&J’s philosophy on SCM
· Explain how J&J’s philosophy on SCM supports its mission statement
· Explain how J&J’s three key focus areas (People, Places, and Practices) apply to its relationships with supply chain partners.
Supply Chain Management Practices
Supply Chain Management (SCM) encompasses the end-to-end business processes necessary for a company to produce goods and services for delivery to the end consumer. Integration between the processes and collaboration among the entities involved in the processes are critical. In 2001, the Global Supply Chain Forum recommended a common definition of SCM and identified eight key business processes that they proposed should be implemented and integrated.
Supply Chain Management Process (1 page)
· Briefly describe each of the eight key business processes identified in the article “The Supply Chain Management Processes,” including the purpose of each process in managing the supply chain.
Evaluate J&J’s approach to Supplier Relationship Management (SRM) (2-3 pages)
· What is J&J’s philosophy on SRM?
· What are the requirements for becoming a supplier partner with J&J?
· What role do suppliers play in achieving the mission of J&J?
· How effective are J&J’s SRM practices?
Project Scope
The scope of the project is derived from stakeholder requirements and is used as input to create the Work Breakdown Structure (WBS). The WBS depicts the total scope of the project, and is the primary source of information for the development of the project schedule and , for the determination of project resources, and is an important element of performance measurement. ...
This is part of a USAID training on facilitating value chain development. Module 1 includes an introduction to value chains (through a large group activity) and different elements of value chains
1. The Log Frame
What and why?
How to use this generic planning and management tool, used widely among development agencies, to design
and implement projects (facilitators) and to allow oversight and accountability (funders).
Based (usually) on a matrix of four columns and four rows (16 boxes), the log frame is a systematic way of
organising and presenting information related to a project design. The ‘logical’ dimension is derived from the
relationship between each of the boxes in the matrix, especially the flow of cause and effect which joins each of
them.
Although log frames are widely used, the potential of the log frame to offer useful strategic management
guidance and to act as the basis for accountability is seldom realised.
How does it work?
The log frame links three elements found in any project situation:
The project itself: its resources, what it does and what it achieves directly.
The impact that the project is seeking to have on the real world.
The wider environment: factors outside the project’s control that impinge directly on it.
In using the log frame, there are three main steps:
Going from impact to actions. Plan down column 1, develop the initial hierarchy of objectives.
Take account of the wider environment. Think up column 4, identify the assumptions being made in the
flow of objectives and, if necessary, change these to make them more realistic.
Focus on the M&E core. The essential planning platform for thinking about indicators (column 2) and
measurement methods (column 3).
The log frame – a 16-box matrix covering three elements in a project situation
Key factors for successful use
The rules that apply to using log frames generally apply to M4P as well. These relate to, for example, having one
goal and one purpose only, the importance of process, and keeping assumptions focused on external factors
beyond projects’ control.
However, there are two specific factors to bear in mind in developing log frames related to M4P: (a) ensuring
consistency with M4P’s strategic framework and (b) balancing accountability and flexibility. Both of these
procedures expose the limitations (and origins) of log frames – namely, the log frame ideal of a relatively fixed
and predictable project (such as a construction project) where most internal and external factors are known.
This is not the complex and dynamic world of market systems that M4P is seeking to influence and the use of log
frames needs to be adapted to reflect this reality.
Consistency with M4P strategic framework
Column 1 of the log frame should conform with the underpinning logic of market development – system change
resulting in growth and/or access benefits in turn causing a reduction in poverty. In writing objectives, there are a
number of practical considerations:
Focus on the problem and not the solution at the goal and purpose level. Don’t add a ‘by’ or ‘through’ to
the objectives statement (e.g. “to increase incomes through improved market access”). The solution is
provided by the next ‘lower’ objective.
Keep impacts at purpose level and above. Outputs are what a project delivers – beyond that are ‘real
world’ changes caused by these outputs. A common mistake is for outputs to focus on the first level of
2.
impacts. While technically this is wrong, in practice, as long as the overall flow of log frame logic is
consistent with the strategic framework, it is an error that can be accommodated. Overall logical flow
matters more than precise labelling.
Dealing with the ‘not enough boxes’ problem. Three levels of real world change (system –
growth/access – poverty) need to fit in to the log frame. To do this, either insert a super goal level or
merge the growth/access and poverty objectives at goal level. This might be done by a formulation such
as “To improve the pro-poor performance of the financial services sector” (ie combining growth/access
and poverty objectives) and by ensuring that indicator choice reflects this broader.
Balancing accountability and flexibility
Facilitators are accountable for their performance and this requires assessment against targets. However, one of
the central tenets of M4P is that interventions are driven by an understanding of market system constraints and
need to be designed and implemented iteratively to reflect learning and changing conditions. This key tension –
between accountability and flexibility – is seen clearly in how projects design and use their log frames and, in
particular, how they use column 2: indicators. A number of factors emerge from experience:
Be specific ‘enough for now’. The level of detail possible in a log frame is determined by how much is
known, what data are available on the prevailing situation and the degree to which specific intervention
tasks have been fixed. So, for example, at the outset it might be possible to use information from other
published and industry sources to estimate the overall scale of performance improvement required – but
only to describe in more general terms the nature of market system changes needed, not the specific
detail of interventions.
By being ‘specific enough for now’, designers and funders therefore are committing themselves to final
ends without knowing in precise detail the means to those ends. This (unsatisfactory but unavoidable)
reality needs to be recognised. Attempts at fixing too much at purpose and outputs level inevitably
results in a tacit game of collective make-believe and self-delusion where significant detail is specified
without justification or credibility.
Learn and revise. Log frames are not intended to be fixed throughout an intervention period. They
should be adapted to reflect new information, circumstances and results from pilot interventions. Rolling
workplans – for example, annual or six-monthly – that allow more detail to be developed on what a
project will do and achieve directly are desirable. What should be fixed in a log frame is essentially
column 1; indicators in column 2 should be the subject of regular review, especially those related to the
critical purpose level. Changes in a log frame should of course be the subject of discussion between
different parties.
Accountability through performance against purpose (and goal) targets. The traditional view of facilitator
accountability – compliance with output deliverables – is less relevant in a context where deliverables
cannot be fixed in detail in advance. As a project proceeds, more output detail becomes possible and
this becomes the basis of accountability. However, the overall principle remains: M4P accountability is
not primarily about ‘hitting’ output targets.
Intermediate indicators. Indicators need to reflect the nature and chronology of change in market
systems. For example, in introducing a new service, a project might first be interested in consumers’ and
providers’ awareness and understanding of this but, over time, take-up and usage become more
important. These changed indicators should be captured in new workplans (and log frames).
Balanced indicators. Indicators need to ensure that balanced and significant market change is achieved.
In practice this means that they need to reflect key dimensions of market development outreach (how
many?), impact (how effective?) and sustainability (will it last?). For sustainability, which is often
neglected, this means considering incentives, behaviour and services that support further development
and the extent to which market activity continues independently of project support.