One of the most important aspects of Outsourcing Governance is the governance Committee Structure.
The nature of Outsourcing Governance Committees are several:
It is important to note that the structure must be customized to work with the scope, terms and conditions of the contract, as well as the structure of the client organization. Remember that the committee structure does relieve the client of making decisions, rather it serves to inform the client and assist with the resolution of issues, and the furtherance of communications between client, client organization and service provider.
Need to Develop an Outsourcing Governance Team?
Many of our clients, after completing an outsourcing contract, realize that they need to get down to the business of creating a governance organization to oversee the scope of the contract. Sometimes, our clients believe that a single person can perform all the activities associated with the new delivery model. Occasionally, with very small deals and a very experienced person, that may be the case.
But in most situations, this is just too broad a scope of activities, and requires experience in areas that are too specialized for one person. Here we outline a sample of a governance organization, with roles and responsibilities and skillset requirements.
The basic template below can be used to design a customized organization for your outsourcing agreement.
This, of course, is just a starting point. You must analyze your outsourcing agreement and customize the organization to meet the special needs of your contract, including scope, relationship intent and organizational maturity.
In our daily work, we all know our duties and how to do our job, but often, although the procedures are not well-defined, we do our job a particular way because "we have always done it this way".
In the last posts (Kaizen in Time Managing and Kaizen in Time Managing - 2) we improved our daily job, managing it with daily-planned tasks, dividing our jobs in "categories" or "process" and planning our working hours to reflect our tasks-categories, so we split the day in standard work time-spans. Also we learned how to eliminate fire-fighting habits related to emergencies.
Now it is time to standardize each of our own processes.
To Read More, Click the Link Below.
Process Evaluation for Waste Reduction
In this post I want to show a method to check whether or not your process is creating value, so you can easily recognize what are your improvement possibilities to eliminate wastes.
This method can be easily used on micro-processes since it is useful to identify all possible wastes.
This method consists in building a simple list of tasks to accomplish in order to get our job done. Then you must assign a category to each one of them.
Categories are aimed to check what is waste and what is not, and what kind of waste they represent.
Click Below to read more.
Supplier Evaluation with KPIs
Measuring supplier performance is something that is often done discontinuously, for example, whenever you think performance is lowering or you feel dissatisfied with the supplier.
However, a constant measurement of supplier performance is very important because it allows you to react to problems, prevent disasters, and set new goals. Measuring performance is not just a way to criticize or obtain cost reduction/refunds because of quality problems; it should also be a tool to help suppliers maintain service and build improvement plans.
Moreover, as discussed in the defining requirements post, a requirement can't be expressed just by feelings, because you need to justify what you are telling the supplier and avoid false alarms that can make the supplier judge you as unreliable. Because of these considerations, the starting point is that you and your suppliers need to speak a shared language, embodied in the key performance indicators, or KPIs.
A KPI is a numerical objective measurement that expresses performance from a single point of view. An example of a KPI might be “defects per thousand parts” or “percentage of delays per month”.
The Dimensions of Supplier Evaluation
Click Below to Read More..
Four Challenges of Managing in a Lean Environment, Part 3
Challenge: Knowing when our work is meeting customer needs in quality and quantity
The final task of the Lean Manager is to monitor and maintain performance by measuring it. You may have heard the adage, “what gets measured, gets done.” Unfortunately, the measures typically in place in government are overall costs and little else. Using total cost or total FTEs as a blunt instrument, budget reduction efforts may ensnare your organization in a cost-cutting spiral without a way to defend yourself. What you need is a way to tie outcomes to process measurements. Thankfully, this is how to improve performance as well.
To read more, click below...