AgilTech, LLC
RETURN-ON-INVESTMENT
ROI
In the Context of
ISO 9000 INTERNATIONAL STANDARDS
REQUIREMENTS AND GUIDANCE
Prepared By Dr. J.O. Matous
Presented By Dr. W.B. Sconyers
JOM / 06.16.03
AgilTech, LLC
PREVIEW
ENTERPRISE ROI FOUNDATION
IN ISO 9000
KEY CONTRIBUTORS TO
ENTERPRISE ROI
REVIEW
JOM / 06.16.03
AgilTech, LLC
ENTERPRISE ROI
FOUNDATION IN ISO 9000
FIVE BASIC TOPICS IN ISO 9000
Quality Management
Management Responsibility KEY
Resource Management INGREDIENTS
Product Realization TO ENTERPRISE
ROI
Measurement, Analysis &
Improvement
All Requirements and Guidance Emphasize
“EFFECTIVENESS & EFFICIENCY”
(Key Ingredient To Enterprise ROI)
JOM / 06.16.03
AgilTech, LLC
RELATIONSHIP TO ENTERPRISE ROI
Return-On-Investment is a key measure of an Enterprise’s ability
to operate in the business environment and market of its on
choosing
Efficiency (from a Return-On-Investment standpoint) is the ability
of an Enterprise to produce a product or provide a service with
minimum effort, expense, and waste
Effectiveness (from a Return-In-Investment standpoint) is the ability
of an Enterprise to product a product or provide a service meeting
all customer requirements and demands of other interested parties
RETURN-ON-INVESTMENT = k*(EFFECTIVENESS/EFFICIENCY)
(Equivalent to Output/Input)
JOM / 06.16.03
AgilTech, LLC
Quality Management
Create and implement Enterprise-wide Quality Management
systems, processes and procedures that continually improve
effectiveness and efficiency
Effective and efficient systems and processes use fact-based
customer. operations, and performance data to make
Intelligent decisions
Proactive commitment and ensuing actions to ensure both
operation and control of the processes are effective and
efficient
Specific Quality Management Principles are are used by top
management ensuring the Enterprise is managed in a
Systematic and visible manner
JOM / 06.16.03
AgilTech, LLC
Management Responsibility
Leadership, commitment and active involvement are essential
for the development, execution and maintenance of effective
and efficient Enterprise operation
Responsibility to obtain real information on effectiveness and
efficiency of the Enterprise is a conscious and visible obligation.
Assurance that the Enterprise’s systems and processes
operating as an effective and efficient network
The ethical, effective and efficient compliance with current and
prospective needs, expectations and requirements/demands of
the customer
Quality Policies are critical to achieve improvements in
effectiveness and efficiency of the Enterprise’s performance
JOM / 06.16.03
AgilTech, LLC
Resource Management
Effectiveness, efficiency and timely availability of resources
related to the Enterprise's opportunities and constraints
Just-in-time resources is the key attribute that effective and
Efficient resource management brings to the Enterprise
Empowered people provides the highest leverage towards
achieving effectiveness and efficiency of Enterprise operation
Intellectual capital of an Enterprise vested almost
totally in people contributes the most toward a effectiveness,
efficiency, and success of an Enterprise
JOM / 06.16.03
AgilTech, LLC
Product Realization
Effective and efficient preparation, coordination, communication
and facilitation of the Enterprise’s operating plan
Effectiveness and efficiency of realization processes for
Production and service of products add value to the Enterprise
Improvement in customer relations/satisfaction, better use
of resources and reduction in waste result from effectiveness
And efficiency of Enterprise realization processes
Effective and efficient planning for controlling and
monitoring the activities that produce and/or provide the significant
and critical parts of the Enterprise’s products/services
JOM / 06.16.03
AgilTech, LLC
Measurement, Analysis & Improvement
Continuous awareness, examination and evaluation are
Essential for the effectiveness and efficiency of Enterprise
operation
Fact-based decisions made possible by measurement and
Analysis is the means to realize an effective and efficient
Enterprise operation
Measured data along with effective and efficient communication
and listening to the customer is essential and mandatory to be
an Agile Enterprise remaining profitable, competitive and sustain
growth in created value
Constant awareness of advances in technology, methodologies,
testing techniques and other advances improve the effectiveness
and efficiency of Enterprise processes, intellectual capital and
operation/performance
JOM / 06.16.03
AgilTech, LLC
KEY CONTRIBUTORS TO
. ENTERPRISE ROI
Intellectual Capital
Quality Management Systems
and Processes
Realization Processes
Agility Initiatives
Quality Policies and
Objectives
JOM / 06.16.03
AgilTech, LLC
Intellectual Capital
Transfer and accumulation of information and
knowledge
Fact-based decision-making process about
Intellectual Capital
Insight, expertise, experience, education, profitability,
competitiveness, and sustained ability to create value
value
Communication, Coordination and Cooperation
Vested in the Enterprise’s most valuable asset
(Empowered People)
JOM / 06.16.03
AgilTech, LLC
Quality Management Systems
and Processes
Operational directives and disciplined execution
Operation designed to implement and maintain
continuous improvement in effectiveness and
efficiency of Enterprise performance
Needs, demands and expectations of the Enterprise’s
customers and the interested parties are prime
considerations
Systemic and visible leadership
JOM / 06.16.03
AgilTech, LLC
Realization Process
Realization process is prime vehicle for running and
creating Economic-Value-Added (EVA) to the
Enterprise’s performance
Customer’s perception of value received, relevance
to overall strategic Enterprise direction (Quality
Policies & Objectives,) and effectiveness, efficiency,
viability, worth
Returning more to the Enterprise
than it consumes in resources and capital
JOM / 06.16.03
AgilTech, LLC
Agility Initiatives
Recognition of opportunities generated by new
technology, changes in financial and/or monetary
environments, regulation and legislature changes
Sense market and/or customer changes
Quickly respond with conforming adjustments
accommodating the resulting change in the needs/
demands and/or expectations of the customer and/
or interested parties
Initiation of immediate action to take advantage
of the opportunity as soon as it is recognized
JOM / 06.16.03
AgilTech, LLC
Quality Policies and Objectives
Discipline employed with concrete direction and
communication of the Enterprise’s purpose, policies,
strategy, direction and management emphasis
Fact-based evaluation of the environment, the
customer and interested parties needs, requirements
and expectations
Decisions made on what is required to produce
Overall Enterprise effectiveness and efficiency of
operation and performance (Corollary to Quality Management
fact-based added value)
Improvement is a permanent objective
JOM / 06.16.03
AgilTech, LLC
REVIEW
Return-on Investment addressed implicitly in
ISO 9000 International Standards
Constant use of Effectiveness and Efficiency in
ISO 9000 is the Conscious Evidence of the
Importance of ROI in the operation of the
Agile Enterprises
Key Contributors to an Enterprise’s ROI
Intellectual Capital
Quality Management Systems & Processes
Realization Processes
Agile Initiatives
Quality Policies and Objectives
JOM / 06.16.03