Another paper from 12 years ago.

Cycle Time of Protein Crystallization: As-Is versus utilizing a microcrystallization robotic system

I.                   Background

The Macromolecular Crystallography Facility (MCF) at the Advanced Light Source (ALS) is a national user facility of E. O. Lawrence Berkeley National Laboratory, which itself is under the umbrella of the U.S. Department of Energy. The goal of this facility is to unravel the atomic structure of protein. An accurate and comprehensive understanding of most, if not all, cellular processes requires that we know the atomic-resolution structure of the biomolecules involved. Critical structures have been solved using laboratory x-ray sources, but the use of synchrotron radiation (the radiation emitted by charged particles circulating in accelerators at speeds very near the speed of light), from sources such as the ALS, has become increasingly common, and in many cases, vital. Synchrotron-based sources have contributed immeasurably to the output of the community of crystallographers. The use of synchrotron radiation to determine the atomic-resolution structures of biological molecules and biomolecular complexes has dramatically extended our understanding of molecular and cellular biological processes. Perhaps of more import, specific therapeutic agents for human disease can be designed once the structures of the molecules involved are known which is a significantly more rapid route to drug discovery than previously available. Similarly, the use of molecular engineering to design and produce proteins with altered functions and specifications depends on three-dimensional structural information. The MCF makes it possible for a pharmaceutical company to identify a particular protein function and create a corresponding drug, which will be tremendously effective.

Before we continue it is vital that we understand what a protein is, what a crystal is and what a crystallographer does. A protein is a collection of amino acids (which are a collection of atoms, there are only 20 different varieties of amino acids found in proteins). A crystal is a solid of definite geometrical shape dictated by the arrangement of molecules it is composed of. Finally, a crystallographer is someone who uses electromagnetic radiation to determine the atomic composition of a crystal.

II.                Process As-Is

The entire process of crystallography is quite cumbersome and challenging. The entire process of solving a protein structure is quite often a graduate student’s entire project while earning their Ph.D. For the purposes of this paper, I will narrow the scope to a small band of the entire process: It is within this process that many exiting developments are happening. The stage I refer to is from post-expression through screening (description to follow).

After expressing the protein (expression is finding how to create a large amount of the protein, often using DNA-altered bacteria), it becomes necessary to create a larger amount then was initially expressed, a process called overexpression. As the steps have already been tackled while learning an efficient methodology, this is usually a rather simple task to create any given amount. It takes approximately 24 hours for this process, of which only about 1 hour is labor intensive. The complication is that while you have created a large supply, most of it is still tied up in bacteria (either E. Coli or yeast mostly). It is necessary to extract the protein from the other gook (not a technical term…).

Thus begins the process of purification, which, in itself, is an art of it’s own. Tools of the trade employ a column, which is nothing more than a large tube filled with beads (e.g. nickel) which in turn attracts the proteins like a magnet. It does this through ionic binding, wherein a molecular tag will have been added to the protein (most likely before expression), and this tag sticks like glue to the beads in the column. The overexpressed protein is put through a centrifuge to breakdown any organic structure continuing the protein, and what remains is a soup of carbohydrates, lipids, DNA, RNA, various undesired proteins, and most importantly the desired protein (a very short time is involved being that the protein is spun for about 10 minutes; more time is spent setting up and cleaning up). This soup is poured through the column where everything flows through except for the protein that is bound to the beads as a result of the ionic tag. This process is known as chromatography, and it takes 2 hours at present for the liquid to filter through the beads of the column.

At this point there is a column now filled with the desired protein. To get it out an enzyme is poured through the column, which cleaves the tag from the protein, and the protein simply washes through and is collected – a very simple process taking up only about 2 minutes of time. Thus ends the process of purification.

Now, so that we can use this protein we need to crystallize it. Unfortunately this is not as easy as making rock candy on the stove, but it does use some of these scientific principles. After purification we have a collection of aqueous protein, quite like the pot of sugar and water. If you can imagine if we were to leave out the pot of sugar and water, as the water evaporated we would be left with not one, but may sugar crystals. We just want a single crystal. In addition, proteins are extremely sensitive to temperature. Where the molecular structure of table salt is incredibly stable, the protein will break down very rapidly if it experiences temperature change (and it will breakdown even in crystal form). The most efficient technique for crystallizing a protein is with vapor diffusion.

We know that each body of liquid has a given surface tension (the cause for the meniscus to form when you have inadvertently overfilled your glass). Just as there is this surface tension there is also a vapor pressure which acts on the surface of the liquid. What you may not know is that different liquids have different vapor pressures depending on the contents of the liquid. For example, a glass of salt water has a lesser amount of vapor pressure acting on it then a glass of pure water. We take advantage of this in the process of vapor diffusion.

A trial tray is prepared to find the best way to crystallize the desired protein. A tray with 26 wells (4 wells by 6 wells) is filled with the protein and varying amounts and type of salts. In addition the pH (the acidity/base) of the protein solution also plays a role in the effectiveness of the crystallization. The goal of the trials is to determine what is the best combination of salt type, salt content, and solution content to provide a useful crystal. In terms of actual labor, this is one of the most demanding tasks. Although it takes only about 15 minutes to prepare a tray (if all the solutions are purchased in kit form and do not need to be made), accuracy is critical, and filling a well that is 2 millimeters in diameter with two microliters of solution tends to give an error margin of 50%.

After preparing this tray, it is put aside and allowed to crystallize. Since this process is using microliters of solution, to get any useful information the trays will have to sit undisturbed for two weeks or more. After this time has elapsed, the researcher will assay the trays for quality of the crystal and determine a crystallization strategy for the crystals to be exposed to synchrotron radiation. This generally takes but 10 minutes, but there is little record kept of results, save for those recorded in the lab notebook.

III.             Robotic Process

A very large amount of time is currently occupied in the task of overexpressing, purifying, and crystallizing protein crystals. In addition, the volumes of solution required are in microliters, which may sound small, but steps are underway to convert that to nanoliters, down by a factor of two.

Currently being researched and engineered is a two component robotic system. One component is responsible for overexpressing the protein, purifying it, and preparing the trial tray. The other component is used for evaluation and analysis of the crystallization trials. While there are present commercial prototypes for the former, there does not exist one for the latter. In addition, the capabilities of the commercially available systems are being improved in the engineering process.

There has been evolving an array of prototypes for the processes described above. The first version was released in 1987 by ICN Biomedicals, which featured two-dimensional screening (which could vary only two of the components, i.e. salt type and quantity). In addition the well solutions were man-made. A few other companies took a shot at development (Douglas Instruments, Cyber Lab, and Molecular Structure Corporation), but improvements on the ICN Biomedicals design were minimal. In addition all of these systems wad a minimum solution size of 2 microliters.

Present technology will allow a drop size of 50 nanoliters of solution, allowing the engineers a reliable and feasible delivery of 100 nanoliters. This may be improved upon in future technology to the 10-30 nanoliter volumes.

Along with the use of smaller drops, a novel plate design can be employed from 24 wells to 96 wells in the same plate size, reducing the storage area by a factor of four. In addition, each plate will be bar-coded to automate plate identification.

Since the goal of automation is high-throughput, it is estimated that the setup of a single tray could be prepared in 7.5 seconds with a high degree of accuracy. We can then calculate that 120 plates could be prepared in 12 hours using only 0.15 milliliters of solution. Compare this to more then 15 minutes per tray by hand, with limited accuracy, and twenty times as much protein.

Accuracy is assured with the robotic systems not only in the quantity of solution provided, but also that the environment can be completely controlled. The control of humidity and temperature in an inert atmosphere is necessary for crystallization at these small volumes. Fortunately the robot will allow this. In addition, the use of an inert atmosphere will eliminate oxidation of the protein samples, extending their shelf life.

At present there is no commercial system available for screening the individual crystal trials. This robotic system is currently being engineered, and will consist of three parts – optical imaging, optical screening, and database analysis. The first and most logical part is the recording of the individual crystal trials via a CCD camera. This image will be stored along with the trial determinants. Since this stage of screening is rapid and since the physical handling of trays is unnecessary, the images may be viewed from a remote site. To determine preliminary results from the trials, an optical screening process will be employed. Using laser light scattering and measuring the polarization, the system will be able to determine whether a crystal has formed, and determine (within a very wide margin) its quality. This information will, again, be stored over time to be retrieved from a remote site. Finally the storage and retrieval of the trials will cumulate in a large database which presumably, could give researchers even more valuable information. Optical imaging and screening is a relatively fast process, and it is estimated that approximately 8,640 conditions could be surveyed in 24 hours.

IV.             Conclusion

The goal of the Macromolecular Crystallography Facility at the Advanced Light Source is to make drug design and protein engineering into a reasonable iterative process. The introduction of a robotic system into the scientific research would save not only a considerable amount of money (based on the smaller volumes of liquids used), but the timesavings would be enormous. It is far from productive to have researchers waiting around for crystals to form, but with a robotic system involved more time would be spent on the steps leading up to overexpression and from screening. This would mean that, perhaps the most time consuming stages of crystallography would shrink from a several week process to less then a week, and it would not need to be staffed by a researcher.

I thought it would be fun to post some papers from my past. This one was written 12 years ago for an information systems and decision sciences class by Larry Bell, Sara Whitaker, and I.

Future Trends In Information Technology And Decision Systems - From The CEO’s Perspective

Introduction

Whether we like it or not, Information Technology (IT) is changing at a break-neck pace.  What was once a valuable technological marvel now sits dusty in a warehouse, or worse is being maintained yet has no users.  Obviously the world of IT exists not only for the Chief Information Officer (CIO), but for the organization as a whole.  So, what role and impact these systems have greatly effects the way the organization and the Chief Executive Officer work.

In this paper we will take a look at the CEO's perspective of IT both currently and the future trends.  We will attempt to describe a realistic information, communications, and decision environment from the current perspective through to the year 2005.  Rather than relying on jovial trivialities about living like the cartoon ‘The Jetsons’, we will apply the ideas, visions, and needs of the CEO to this environment.

In addition to traditional research methods, we talked to two CEOs to get their perspectives, specifically Mr. Sam Ginn of AirTouch Communications and Mr. John Maitland of Business Information Technology.  We prepared an outline of questions (Appendix A) focusing on these issues.

AirTouch Communications started in the mid-eighties as an outgrowth of Pacific Telesis.  Since that time it has become the largest company in the world focused on wireless communication services.  With a base of 31 million customers, they have spanned the globe to service 13 countries and have a total market capitalization of $40.6 billion. (Airtouch)

Business Information Technology was founded in 1981 by Mr. John Maitland and is a PeopleSoft Solutions provider.  "[Their] unique approach to supporting [their] client implementations combines a package of highly-trained veteran consultants, innovative tools, proven methodologies and industry-specific expertise.  This consulting package ensures a rapid project initiation to a high quality implementation."(BIT)  They employee approximately 400 people and have divisions nationally and in Canada.  Their growth has been remarkable with $54 million revenue last year, they are expecting a 40% increase to about $70 million this year.  In 1996, Business Information Technology became a subsidiary of CIBER, Inc.  (CIBER, Inc, is a full-service, systems and network integration firm, that was founded in 1974, and has over 50 locations and 4,700 employees.  It is traded on the NYSE under the symbol CBR, and has annual revenues that exceed $500 million.)

Information

Information Technology has become a strategic advantage to the corporation.  "In service industries such as banking and airlines, information technology has established itself as a vital strategic tool."(Rolf-Deiter & Ringbeck)  Furthermore, the way in which IT is growing, it is establishing itself as a critical venue into all business models, including manufacturing.

The job of the Chief Executive Officer (CEO) has very little to do with day to day operations.  Typically he/she is put in the role of driving the company and strategic planning.  They are responsible to the shareholders first, and to the organization second.  With this in mind, the type of information needed by a CEO is much different then information needed by a Chief Operating Officer or a department manager.

Sam Ginn (AirTouch) said, "I need broadly based information on competitors, technologies, and regulatory and legal issues."  Unlike an officer or manager in an organization, the CEO is not parked in front of a computer all day.  Rather, they spend much of their time in communications.  The form of information that they need to conduct their daily activities can not generally be found in a detailed ledger.  It is found instead in interpreted facts from those who work for them.

A good example comes from Mr. Ginn when asked about stock performance.  He gave insight that most of the time, although he looks at the figures, stock performance is essentially irrelevant.  And, he found himself, more often then not, having to call the department handling investor relations to get interpretation on the events.  For instance, if AirTouch stock went up 2 points, the figure would be irrelevant to Mr. Ginn if he was unaware of an announced emerging market.

The role of information is of critical importance to the CEO.  However, as is the case with AirTouch, the need for Information Technology solutions is great and the time is short.  Mr. Ginn described three historical problems in IT:

• They don't meet their budget,
• The solutions are not on time, and
• IT created bottlenecks for the business needs.

While he sees the trend to be getting better, he explained that budget and time factors certainly are still major issues, and yet, the velocity of change was too slow.  "IT is holding me up," he said.  With this in mind, he was unable to give high marks.  When asked about future trends (a question pertaining to whether these problems would be getting better or worse) he reported that he assumed that time and budget goals would still improve.  But he saw no changes evident in the alleviation of bottlenecks.

At the same time Mr. Ginn does see that Information Technology offers a competitive advantage.  For illustration, he pointed to MCI and their Friends & Family service offering.  MCI was able to take advantage of an opportunity that no other telecommunications company was capable and designed for.  And with almost no alteration to its systems, MCI created a well-known and remarkably successful product.  “Then you started to see Friends & Family.  That was the initiation of billing as a product.  It wasn't done on the [telecommunications] network.  There was a lot of talk how it was a virtual [telecommunications] network.  But the truth was, it was just a pairing that was built into a billing system.  So, what has happened is billing has moved more and more out into the forefront.”(Blake)  By utilizing what was capable in the billing systems at MCI, they were able to use the IT department to give them a distinct strategic advantage.

Business Information Technology (BIT) uses their expertise in IT in a unique way.  As a solutions provider with a large consultant base, qualified engineers are available and often have useful input.  Mr. Maitland said at our interview, "We use renaissance thinking to spawn new [products] that are implemented at home and outsourced."  An excellent example is a homegrown product BIT developed that offers decision support for placing bids based on criteria set forth by the sales people.  Using a series of algorithms, Costpro is able to be accurate in estimates and gives the ability to change estimates based on service criteria.  Rather then an IT department, Mr. Maitland created a Computer Technical Division (CTD) which handles both in-house IT and client services.  In this method, the resources needed are available for both.

Mr. Maitland sees good things for the future of information.  One of his primary visions for the company is to have their business practices fully automated.  By incorporating data into the proper format without reentry, more time can be given to the business itself.  In addition, as a subsidiary of CIBER, Inc., Mr. Maitland would like to have integrated analysis available across the entire company to track performance of their goals as it relates to the entire enterprise.  In process within a data mart for proposals and solutions offered, so in the future a sales member can instantly access past customer history and similar proposals to work from.

On May 28^th, 1998 a summit of more then 120 CEOs and corporate executives from Fortune 1000 companies gathered in Redmond, Washington to "share best practices among large corporations and discuss how technology can help them improve their businesses."(Microsoft)  Amongst the items discussed was the future of Information Technology and how IT will work with their businesses.  Out of this summit several key items were decided that are of utmost importance for a corporations survival.  Information Technology must be:

• Business driven
• Value based
• Achieve technical simplicity and flexibility
• Focused on near term results
• Constantly improve operations
• Cross-fertilize both IT and the business unit
• Able to react quickly to major structural changes

In order to achieve these goals, look for Information Technology to be componentilized (exists in an object-oriented mode consistently), create and maintain a three-tiered environment, create tool interoperability, and create ubiquitous information and communication requirements.

Communications and Decision Environment

Various companies use various communications tools to transfer data.  These tools may differ due to numerous means: travel, office locations, departmental needs, size of the company, and the individuals requiring the communication or using the venues.  Dependent upon the situation, communication – in whatever form – is vital to the overall success of an individual or the success / growth of the company.

When viewing the communications tools in a large, Fortune 100 firm – such as AirTouch Communications – the venues typically utilized are more of a state-of-the-art type.  Since Sam Ginn is required (and enjoys) to make numerous speeches nationally and internationally, communication with home base in San Francisco becomes vital to his overall success.  Some speeches may be to shareholders.  They may be to supporters or investors; whomever the recipient, Mr. Ginn relies on his ability to receive remote support from his Administrative Assistant, Ms. Gerry Garber, on a timely basis no matter where he may be.  And, typically this communications is through email, voicemail, or whenever necessary, video conferencing.  Overall, it keeps him abreast of the progress of the business.

A “vast majority of information comes from external resources” and the need to be broadly aware of technology are important.  (Sam Ginn)  The need to have a “broad-based [accounting] of information regarding the competition, their strengths, weaknesses, and an up-to-date [rendition] on Regulatory, Legal and Political issues” is typically conveyed to the CEO through his Vice Presidents, Directors and other personnel who are in the know.

Flash reports that are produced weekly and monthly are transmitted via a personal computer.  And due to old habits, some of which may never die, are conveyed in a hardcopy, paper bound binder.  These are Financials and Operational Performance criteria.  They cover how many new customers have been gained, how many existing customers may have been disconnected, and other key operational issues.  Typically, this communication is strategic and broadly based.

The interaction at Business Information Technology, as a smaller company than AirTouch, typically does not have the same demands on the CEO as larger firms.  Travel is throughout the five regions and Canada, therefore, not as extensive.  “Typically I try to see each region two to three times each year, and have the Division Directors come twice a year to Concord for a meeting.” (John Maitland)

Email and voicemail are the venues utilized most frequently.  The Virtual Office and the use of information technology are the “ultimate success of the company.”  Everyone within Business Information Technology has a “robust” personal computer and uses email and voicemail.  The internal network is home built and based on 7x24.  “We will be moving all technology to the web – Internet and Intranet – to assure timely data.”  Typically, the Human Resources and time card reports are sent via the email; but, at the home base, it is manually processed.  By moving all technology (Time Reports, Scheduling of Consultants, and Reporting Production, etc.) to the web, communication will be more efficient and accurate, let alone on line and on time.

General Observations on IT

There were general observations made by the CEO’s interviewed as well as found in the research material.  It is interesting to note that many of these observations of today’s IT organizations were quite similar.  For the most part, CEO’s view the products provided by their IT Departments as a competitive advantage.  Obviously this notion is relative to the business the company is in and the degree that business depends upon IT to deliver products to the external customer.  Subsequently, due to the increased dependence on IT, CEO’s view long lead times as a “Bottleneck” to the businesses ability to move fast in a highly competitive environment.  The intensity of competition and the pace at which technological change is occurring is seen as overwhelming to IT.

Over time process improvements and more focus on the “Vital View” has enabled Information Technology to improve its ability to manage costs.  In the technology-based companies where the use of performance metrics is the norm, IT related costs are measured and tied directly to the incentive programs.

In a significant turnaround, CEO’s view their IT Departments as delivering products and services that are more closely aligned with what their internal customers are requesting.  In the past, soaring costs and long lead times were exacerbated with delivering products that fell short of what the internal customers or the business in general required.

This is thought to be due in part to an increased focus on being a business partner versus a cost center.  Other contributing factors include new rapid prototyping techniques and the desire to get a product quickly in front of the user that meets most if not all desired functionality.

In all cases, current billing systems seem to fall short of expectations.  The need for more flexibility and enhanced functionality driven by market needs and the competitive environment require IT to search for new ways to make changes better, faster and cheaper than were ever thought possible.

IT Trends

There are many trends related to where Information Technology is heading that is both technology as well as process based.  As you might imagine, the CEO’s perspective differs from that of a CIO.  The CEO for the most part focuses more on process or what types of services will best serve the needs of the business.

Making sure that all employees have a PC and are adequately trained in their use is very important as in all cases the businesses we look at depend heavily on the sharing of information electronically.  There is a growing dependence on the use of internal corporate Internets as a foundation for this information.  In the case of BIT, they also depend on the Internet to deliver proposals for their customers.

There is a significant trend to automate current manual and labor intensive systems and processes like the tracking of time cards, human resource and financial data.  While AirTouch has invested in Lotus Notes for E-Mail and the sharing of data based information, BIT has decided to migrate from Lotus Notes to the Microsoft Suite of products.  The data bases that are used seem to all be migrating from a regional management configuration to a central one.

The outsourcing of functions that are not considered core competencies is a standard practice.  This tends to vary on the type and size of the business as well as the degree to which core business processes depend on IT products and services.

There is tremendous growth and dependency on the Internet not only for the delivery of products but a method to assist field personnel.  Documentation needed in the field can be downloaded from data marts via the Internet.  Proposals used by sales personnel can be obtained remotely in template form for re-use, leveraging work others have already completed.  Solutions libraries are being deployed that provide via key word search capabilities critical information to both office based and field personnel.

Conclusions

It is our understanding that the trend into the next millennium concerning Information Technology will be transitioning at greater speeds than what the populace knew a decade ago, and even today.  Once the issues regarding the Year 2000 have been gotten under control, the “bottleneck” for resource allocation will be a thing in the past.  Allocation of resources where they are originally destined for will accelerate the bleeding edge of information and Information Technology.

We want to thank both Mr. Sam Ginn and Mr. John Maitland for spending precious amounts of their time in order for us to fully understand the CEO’s perspective of Information Technology Trend into the year 2005.

Appendix – A

Interview Questions

1)   In the area of Business Information

a)   What kinds of information do you need?

b)   What information is most important to you?

c)   What type of information do you expect IT to provide you?

d)   How do you see your requirement for information changing between now and the year 2005?

2)   In the area of communications

a)   What types of communication are you using?

b)   How do you utilize it?

c)   What types of communication tools do you expect from IT?

d)   How can IT make communications better for you and your company?

3)   The Decision Making Environment

a)   Describe your decision-making environment

b)   Will it change and if so how in the year 2005?

4)   Describe the gap between what you need and what IT Provides?

5)   How can you navigate a 5-year planning environment given the rapidly changing technology?

6)   Do you view IT as a strategic/competitive advantage or disadvantage?

7)   In your interaction with other CEO’s:

a)   How does your IT department compare?

b)   Do you share some of the same requirements for information?

c)                  Do you share some of the same gaps?

d)                 Do you discuss future trends in IT? Please expound.

8)   Do you have a CIO?

a)   How often do you communicate directly with the CIO?

9)   Have you developed a business plan out to and including the year 2005?

a)   How will IT help your ability to meet those goals?

10) What is your vision of the economy in the year 2005?

a)   What will the impact be on IT?

b)   What will the resulting impact on your organization be?

Works Cited

Internet: available online at http://www.app.airtouch.com/about/index.html.

Internet: available online at http://www.bit.com.

Rolf-Dieter, Kempis, and Jurgen Ringbeck, “Manufacturing’s Use and Abuse of IT.”  The McKinsey Quarterly, Winter 1998 nl, p138 (13).

Blake, Pat. “A New Marketing Tool.”  Communications News June 1997, v34 n6, p15(2).

Internet: available online at http://www.microsoft.com/billgates/news/ceosummit2.htm.

Laudon, Kenneth C., and Jane P. Laudon.  Management Information Systems, New Approaches to Organization & Technology.  5^th ed.  New Jersey: Prentice Hall, 1998.

Internet: available online at http://www.prenhall.com/laudon.

Internet: available online at http://www.informationweek.com

Ginn, Sam.  Personnel Interview.  27 August 1998.

Maitland, John.  Personnel Interview.  01 September 1998.

I thought it would be fun to post some papers from my past. This one was written 12 years ago for a technology systems management class by Alan Abilla, Larry Bell, Steve Hamilton, Sara Whitaker, and I.

Background History

Sweet goods manufacturing continues to be a fast growing and dynamic industry in the US market place today.  In 1997, over $650 billion dollars was attributed to sweet goods sales in the US alone.  Furthermore, International Resource Inc. (IRI) conducted surveys on the sweet goods industry in the month of April 1998 that noted there was a 6% increase in sweet good sales.  This progressive upward trend in sales within the domestic marketplace has contributed to the saturation of these types of manufacturers.  The tendency has made the industry highly competitive and difficult to sustain.  Today, companies are forced to struggle with each other over market share and battle an ever-growing front of diverse snack options, including salty foods and dairy products.

Despite these challenges, Otis Spunkmeyer, Inc. continues to be a key player in the sweet goods industry.  Founded 20 years ago in San Leandro, California, Otis has managed to extend its sweet influences in manufacturing cookies, muffins, danish and coffee to the entire US, Canada and into the international realm as well.  Product lines include nine different flavors of cookies and muffins both in the regular and non-fat variety.  Otis had not realized then that he had discovered a recipe that would later generate an annual gross income of $170 million dollars in sales by 1997, and would continue to capture a major portion of the market share in the manufacturing of sweet goods.

Now that the company is penetrating the market not only locally but also worldwide, the manual methodology of business, manufacturing and distribution has become a crippling handicap to their growth expectations.  In order to increase productivity efficiently, decrease cycle time and increase profitability in product manufacturing, automating processes have become key to the survival of the company.

Otis increased to twenty-two stores, and by 1983, moved its core competency from retail to wholesale sales.  In 1990, the company expanded its product line into manufacturing muffins.  And, in just six years, muffin sales alone for the company generated $60 million dollars.  Otis Spunkmeyer, Inc. employs more than 1,500 personnel worldwide and has three main manufacturing centers located in the headquarters in San Leandro, California, in Export, Pennsylvania, and in Cayce, South Carolina.  With more than sixty sales / call centers in the entire US and Canada, the company continues to grow as the distributor of cookies, muffins, danish and coffee to hospitals, schools and institutional centers such as Wal-Mart, Costco, Sam’s and Target.

As Otis’s customer base and service areas continue to grow, the need to employ Information Technology becomes more and more obvious.  If they are to continue to penetrate and grow a large portion of the market share and be top in the industry, advanced measures need to come into fruition.  The areas that need to be addressed are within the tracking systems, inventory and ordering systems, and the customer support services.  It has become paramount to the company to become automated.  The rising cost in maintaining existing manual processes and procedures, along with their inability to meet customers needs quickly and efficiently, needs serious attention.  They have been critically challenged by management and pose some exciting possibilities for technology solutions.

To address these issues, Otis has allocated millions of dollars to be invested within three main projects:

1. Developing call centers to improve customer services issues
2. Automating customer databases and inventory control systems to accurately forecast product demands based upon customer’s needs while maintaining adequate inventories.  Apply routing capability to maximize the efficiency of deliveries to Direct Store Delivery (DSD) customers.
3. Developing a hand held Point Of Sale (POS) System to automate the order entry, sales and inventory processes.

Our intention has been in examining how management can best utilize the application of information technology to harness its benefits in manufacturing industries such as Otis Spunkmeyer, Inc.

It is envisioned by applying processes to these areas, improvements in the overall functioning of the company will be derived by the increased ability to provide bakery products to customers at the time of need.  Manufacturing capacities will be smartly utilized to provide products at the lowest cost.  Delivery times will be shortened while delivery equipment cycle times can be maximized using both internal and external delivery options.

We have examined the use of technology being contemplated in the following areas:

Specific Business Function

• Telephone Based Calling
• Order Entry
• Order Route Processing
• Inventory Control & Planning

Innovation

• Telephony Call Center Automation
• Hand Held Systems
• Routing & Delivery Planning

Processes

• Post Ship Billing
• Weekly, Monthly, & Yearly Functionality
• Inventory Requirements
• Forecasting

Strategic Planning

• Management Review
• Financial Cost Savings
• Strategic & Tactical Operations
• People Requirements

Product Development Cycles

• Software Modification
• Software Testing
• Software Implementation
• Hardware Components
• Training
• Education (Business Process)
• Documentation

Technology Implementation

• Multiple AS400’s
• Windows NT Servers
• Client Server Network Methods
• Hand Held or Open-Based Systems
• Communications - Truck Position
• Communications - Order Placement

The outcome from all this information has enabled us to understand the various IT methods that need to be applied to business problems in a rapidly changing business environment.  Many business units confront and experience similar opportunities that are real, complex, and strategic to all of the interested parties.  Not managing these initiatives properly will have disastrous results.  The rewards can be tremendous, but the risks can be perilous.

The historical accounting of gross sales for Otis is quite impressive.  Looking at an overview of activity from 1983 through 1997, the Gross Sales jumped from approximately $7 million dollars in 1983 to three times that amount within five years ($24 million dollars in 1988).  Gross Sales more than doubled over the following two years to $56 million in 1990.  The next seven years demonstrated overwhelming growth, reaching a remarkable value of approximately $183 million dollars by close of fiscal 1997.

When evaluating this extraordinary growth pattern, it amazes outsiders (especially us) how a manual paper-based Sales and Inventory Control company could achieve such exceptional results.  Currently, Otis faces the challenge of evolution going from a manual process and guessing-based sales forecasting method into an automated environment.

Problem Statement

 To fully appreciate the problems faced by Otis, a description of how the processes are currently employed within the company must be illustrated.  Since its inception, Otis Spunkmeyer, Inc. has always relied on the traditional (Mom & Pop) methods in manufacturing and how to conduct business.  Originally, there was no need for automation.  Unfortunately, the manual methods that are still used are taking a toll in most departments within the company: Manufacturing, Transportation / Distribution, Sales & Customer Service, and Inventory Control.  The manual application of inventory and ordering systems is preventing upper management within the Manufacturing arena to accurately predict / forecast the need for raw materials and supplies for production.  This practice permits a high degree of error in the areas of ordering materials and raw goods to make the final products.

Furthermore, the lack of accurate inventory in the Distribution areas and Service Centers prevents management from accurately forecasting products ready for distribution.  This then effects the quantity of products in stock and within what Service Centers these goods are located.  Not having accurate accounting of inventory and stock information in real time, therefore, becomes the primary contributor to the rising operational cost.  As it currently stands, management in Manufacturing forecasts its inventory from past quotas and sales from a given month or year.  This is one area that management must correct.

Conversely, the Sales Department is also negatively affected.  When consumers request orders from any of the sixty sales / call centers, the centers are unable to accurately relay to consumers when the goods can be delivered for sale.  Cycle Time is truly money for both Otis and its customer base.  The problems are beginning to have tremendous implications to the company since the customer base has doubled.  Otis’ ability to maintain and retain its customer base is potentially in a compromise mode.  Having inventory and ordering systems in real time can resolve some of these issues from the Manufacturing arena, Production, Distribution and Sales. 

 Ordering Process:

1. Customers call a customer service representative (CSR) located in one of (B) sixty call centers and service areas.
2. Call centers then inform manufacturing that orders have been placed and manufacturing produces the goods.  When completed, it is shipped to the service areas.
3. The service areas send goods to distribution where it will be routed and sent to customers.

Risk And Management Analysis

The risks involve multiple facets: automating the sales forecast system; cultural change / possible resistance to automation; socioeconomic impact as a result of automation; training the end users; implementation of new products; and productivity / learning curve.

The methodologies and business practices of management and its employees will change with technology improvements.  How products and where products are developed from the three different manufacturing centers will also change.  The distribution of product lines will be severely transformed.  This warrants the management teams to closely examine the processes and how these elements impact organizations.

Five key areas expected to be impacted the most by these changes:

Otis’s present routing system has been a major contributor to increased overhead cost.  When products are ready to be delivered to customers, routing is designated manually.  This has become increasingly problematic for managers to efficiently assign routes to truck drivers for delivery. Transportation, once seen to be the least affected by technology, is now the bridge between the company and the customer.  Facing issues of the bottom-line, it is no longer reasonable to unscientifically chart routes one truck at a time; rather a dynamic approach is essential.  In addition, the costs involved in shipping are as critical as manufacturing to determine per unit cost.  In many occasions it was found that two or three different trucks were in the same vicinity while delivering products to three different customers.

If tracking systems were generated electronically, these issues could have been identified.  The quickest route, personnel time and quicker deliveries to the consumer could have been obtained.  The issues of overtime pay to drivers because of inaccurate directions to delivery sites, the elimination of the redundancy of assignments, and the efficient delivery system could be obtained by automation.  It is also important to note that the Otis products have a limited shelf life.  Any extended delays in the delivery process of these goods can have disastrous effects and severe financial loss to both the manufacturer and the customer.

The office of the Chief Financial Officer (CFO) is extremely concerned by the current lack of Management Information Systems at Otis.  There is a tremendous amount of work associated with accounting for all the financials associated with any business, especially Otis’ size.  In addition to the many internal processes, there is the need to accurately report income and tax liabilities to the Internal Revenue Service (IRS).  As a result the CFO is a key member of the project team in terms of developing user requirements for the new system.

Implementing a computerized system in a fully manual-driven manufacturing industry is a challenging endeavor.  Management has to plan ahead: the training of each end user; the consolidation of departments; and, dealing with the prospect of downsizing certain departments and personnel due to infrastructure re-engineering and automation practices.  There will be cost issues within maintenance and there will be software upgrades in order to automate the process.  To assist management in dealing with these issues, managers from the departments of Manufacturing, Sales and Customer Service, Information Systems, Delivery and Routing and lastly, Finance and Inventory need to be represented.  The ultimate result would be to have complete buy-in from these departments prior to presenting the issues, concerns and the solutions to upper management.  Then, upper management must buy-into the processes, otherwise, the risk of failure becomes paramount.

The largest risk associated with the Transportation Department is if the proposed changes do not take place.  The current fleet of trucks at Otis is experiencing extensive mileage due to the lack of routing control.  This means that Otis must be much more rigid with a larger time gap given for delivery - last minute orders are impossible.  Customer time windows are often missed resulting in lowered customer service perception and quality of service.

This is not to say that there are no risks in the proposed change.  If the change takes place as planned, the drivers will require training to use the handheld Point Of Sale (POS) devices.  The managers of the fleet will need to be trained on the new software that is associated with routing.  If the systems are too bulky, then the drivers and managers might opt to return to the old way of doing their job.  If they were to return to the original / familiar way, they would put the entire project in jeopardy.

The most significant risk to the CFO is the inability to accurately track and report out on Expense spending, Capital use and Revenue generation.  Incorrectly reporting any one of these components of the financials can have catastrophic effects on the business and the shareholders and sponsors of the company.  Not only is there a potential problem tracking performance in a current period, it becomes very difficult to develop the following year’s business plan.  If Otis were a public company, and the potential is there for that to happen in the future, shareholder confidence is extremely important and that cannot be achieved by incorrectly reporting out on the financials.

Other areas of concern include the inability to accurately forecast inventories.  The problem could be not enough inventories available; or it could be too much inventory available.  Either way, inaccurate forecasting is very costly given the amounts of raw materials that are required for manufacturing.  The manufacturing department and its personnel will be affected.  In the past, the manufacturing of products was dependent on location and which manufacturing center had products ready for distribution.   With accurate forecasting and information on products and inventory made available in real time, this information will significantly impact personnel within the three manufacturing centers.  Risks can be anticipated in the consolidation of manufacturing centers; downsizing the production lines of certain centers; or the closure of certain manufacturing centers.  Without question, processes and time cycles are significantly improved with the implementation of information technology.  However, management has to consider the trade off of the benefits of technology versus its potential impact to its employees.

There is risk associated with the new system as it relates to the socioeconomic change that will take place in the Call Centers.  The reduction in force that is forecasted as a result of consolidating centers will have a significant impact on the employee base.

This issue is a significant factor that needs consideration within Otis.  Most of its employees invested a considerable number of years with the company.  Management found that at least 38 percent of its workforce have been with Otis eight or more years.  This drastic change within the company may negatively impact employees.  This situation is an ethical issue that haunts management in the corporate world everyday.  Identifying management’s obligations to its employees as well as its responsibilities to keep the business sustainable is a difficult balance to achieve.  Plans to achieve a balance must be methodically identified and explicitly communicated to its employees.

In a broader context, the efforts in the MIS Department have a tremendous effect upon the entire company.  In order to meet the aggressive business plans, focus must be emphasized at the management level across all the departments.  Project Oversight is another management tool: management participation and enhanced feed back, with checks and balances, need to be established in order to adequately communicate the effectiveness of all these various business avenues which are underway.

Product Development Plan

Several significant tasks within MIS are underway.  These efforts are in the areas of: application implementation; software selection; Y2K compliant project and application support.

The Y2K project was started the first quarter of 1998.  Consultants are manning this effort with limited direction.  The project team is charged with making all software compliant by year’s end.  This involves bringing all SSA/BPCS application codes to a updated version for all integrated applications.  The depth of this task is huge as there is over 5000 programs using a mixture of 200 tables from a common database.  It will ultimately require inputs from all departments as testing nears completion.  The project is not expected to meet the scheduled completion time line date.

Many departments do not utilize the integrated applications as a part of the daily business.  This is a result of past lack of focus.  The applications are being implemented in a manner in which has caused great concern.  How and why are the methods and procedures being conducted?  Another concern is the lack of acceptable cycle times to accomplish this work coupled with lack of specific understanding in many areas.

Some applications, regarding the integrated software, are deemed by some as not meeting the demands of the sponsoring department.  The software applications are selected by MIS and typically without input from the sponsoring department.  To overcome this, supplemental interfaces are being sought to fill the gaps.

Daily demands require support for all production activities while paralleling with current project implementations.  This causes projects to be interrupted and lose focus.  The demands are severe and usually need to be satisfied “immediately” rather then becoming a scheduled activity.  Some staff attempt to support the efforts, but they lack the appropriate skill levels by which to complete some of these tasks.

The MIS organization developed a systematic plan and methodology for implementing information technology.  This plan is known as the “Flight 440 Project Plan”.  The project’s major highlights are:

• Rapid Installation
• Basic Prototype Live
• Business Fit Analysis
• Project Plan Development and Delivery
• Expectation Setting
• Iterative Development with End User Input
• Testing/Acceptance
• Deployment of Live Application

It is in these specific areas that Otis is in the process of implementing information technology to maintain and gain a competitive edge.  With these processes, Otis’ ability to manufacture products efficiently, combined with its premium products, will assure the company’s success well into the 21^st century.

The MIS Department at Otis is charged with providing and maintaining the telephone and computer information systems.  This department has numerous demands and tasks requested by various departments which far exceed its’ ability to adequately meet these requests.  The MIS staff has been narrow in manpower.  This situation continues to be a serious dilemma for this department.

MIS is leading a mission critical task of implementing an integrated computer application that affects all departments of the company.  For the most part, normal processes by which to guide this task are not being utilized.  Mainly this occurs as a result of:

• Very short time lines connected with the functionality being implemented
• Lack of application software functionality and comprehension
• Departmental sponsors which have little extra time to participate effectively in such activities
• Not having the ‘right’ individual to champion the specific effort
• Utilization of consultants without in-depth application specific backgrounds

The manufacturing department of Otis has historically been considered by many internals as the heart of the organization.  Not because it’s products originate in this department.  It is because all forms of communications and transactions within the different departments in Otis end in the manufacturing department.  Everyday, the sixty service centers located throughout the US and Canada are in constant contact with manufacturing.  The manufacturing of cookies and muffins are continuously distributed or re-distributed to the three manufacturing centers.

It is anticipated by management that with the implementation of information technology, inventory and the volume of product information will be made available in real-time.  Although this is a significant advantage to the organization and its customers, it presents unique problems to Otis.

The cost of implementing the new system is quite staggering.  With approximate costs being nearly $2,000,000 dollars for first year capital outlays, it is clear that serious attempts are being made to automate many functions through out the present business environment.  There will be a significant Capital investment in both hardware and software ($1.5 million estimated), and implementation ($500,000 estimated).  The corporate network will need to be upgraded to be able to support the new systems and the requirements for high availability.  In addition, since all processes are basically manual today, there will be a labor-intensive effort performing the initial system loading.  The expected long-term effects are different however.  Due to automation, the amount of staff and overtime is expected to shrink.  Redundancy is expected to be minimal.

Training represents a large item in the area of operating expenses ($250,000 estimated).  It is conceivable that many of the current employee-base will not be capable of meeting the minimum requirements for operating the systems even with training.

Business Measures For Success

To see what these impacts are, and to see whether they are having a positive affect, a device must be in place to analyze the business process.  The position of the CFO’s Office is to put in place meaningful performance metrics that can measure the success of the project as well as the performance of individual departments going forward.  In addition to the standard finance metrics (i.e., ROI, Operating Cash Flow, etc), the following departmental metrics will be utilized:

Despite the need for investment in the new Information System technology, Otis is faced with the issue of continued rising overhead cost.  If Otis is to remain competitive and capture a significant piece of the market share, cropping down cost is a must.  The inventory and forecasting systems are based on past sales accrued over years of experience.  Although this system has allowed the company to be functional, management recognizes that it is not the most efficient way of utilizing its resources.  To illustrate this point, consider one situation that took place in one of the manufacturing centers.

An order was place by one of Otis’ regular customers.  Unfortunately, the plant that usually handled these types of orders was experiencing an unusual high influx of orders from new clients.  Because of inadequate inventory systems, manufacturing was not able to anticipate this need.  Hence, not enough raw materials were available to meet the customers’ order.  To meet its contractual obligations, Otis had to re-direct orders to another manufacturing center which meant delays in production, deliverables, and increase production cost.

Events like these are frequent when there is not proper I/S technology in place, and each occurrence takes its toll of Otis' profit margin.

Otis faces costs within the Sales and Customer Service Departments that have not been experienced in the past with the move toward automation and the 21^st Century.  These costs will be created from the Business Plan.  In order to achieve $440 million dollars, investment in the tools (Automation, Call Centers, and Personnel) will be experienced.

Other areas affecting the bottom line involve the training of Sales and Customer Service personnel.  The relocation and/or increase/decrease of Sales force will add to the overall bottom line.  New product development, which is on the agenda for over the next three years, will affect the cost ratio.  The marketing endeavors of the new products – and existing products – will have an influence.  The promotion of Flight 440 -–the Otis trademark – will contribute to the overall value and cost effectiveness for the expected automated environment.  And lastly, but not necessarily finally, the costs which will be incurred when the Customer Service Centers are reduce to only four across the nation.

Recognizing the problems stated above and the potential consequences resulting from the proposed solutions management intends to implement, leads us to the final issue of management analysis.  It can have a variety of meanings to professionals dealing in different domains.  To reduce this ambiguity, we will utilize this definition for management analysis: Management’s efforts to examine and study organizations holistically in terms of the parts composing it.  It is a systems perspective on organizations with the inherent belief that any pressure exerted on one unit of a system affects everything else within that system.  Therefore, any attempts to implement changes in Otis will have significant impact to all departments.

Implementation

The MIS Department presently is under staffed.  Some of the positions have remained unfilled from the prior year leaving serious gaps in its ability to solve I/S problems.

With serious resource constraints management needs to recognize and understand the causes for these deficiencies.  This effects their initiatives in all the usual ways of when, why, and how.  An outcome might be that business might not perform to the anticipated projections.  Management decisions will be crucial.  It impacts all the business’ projected time lines.

Managing the Information Technology aspects of converting from a manual / paper-based environment to an automated environment will be one of the true challenges for the upper management.  Management will need to develop a Contingency Plan in order to escape from disaster if the implementation of the automation devices fail.  They will need to be in agreement by all on the Contingency Plan; all departments must “buy into it”.

With the implementation of the new four Call Centers (Sales & Customer Service Centers), metrics for the time clients wait (average wait time, average call duration, etc.,) will need to be monitored closely.  This will be a clue to management how well training has been accomplished, and whether-or-not the new Centers are functioning appropriately.  In conjunction with this, metrics of increase sales versus decline in sales will need to be monitored closely, too.

Management must be trained.  The “On the Front Line” Sales and Customer Service force must be trained.  And training should be completed on the automation devices well in advance of implementation in order to understand the nuances of the up-to-date / real time sales and sales forecasting.  In addition, it is noteworthy for management to be sensitive to the needs and issues faced by peers inter-departmentally.  The lack of foresight by management in implementing changes in organizations is the hallmark of poor leadership.  This is a vital sign leading to failure.  The departments of customer services, routing, information systems and finance are all affected by any implementation of change.  Therefore, solutions identified by management should have benefits that have extensive coverage and outweigh calculated risks.  Accurate inventory and processing tools in place in the department of manufacturing can increase productivity and decrease cycle times.  This will lower cost that benefits the finance department.  Additionally, products can be made available to customers in a timely fashion.  One positive move can have multiple positive effects to the entire organization

Otis has developed methodologies for implementing information systems to improve its processes while assuring project success.  The project Flight 440, Otis’s sales goal of $440 million by the year 2000, combines two diverse implementation methodologies.  First, Traditional Application Development Lifecycle, which is the planning and designing of intensive programs.  And Second, Rapid Application Development, which utilizes iterative processes in order to achieve deployment.  It is management’s belief that the realities of implementing and customizing the important systems rest somewhere between these two methodologies.

The phases of Flight 440 are as follows:

• Rapid installation
• Basic Prototype Live
• Business Fit Analysis
• Project Plan Development and Delivery
• Expectation Setting
• Iterative Development with end user input
• Testing/Acceptance
• Deployment of live application

Rapid Installation A rapid install of out-of-the-box software. It allows the process to minimize the degree of analysis and design performed up front.  It saves both time and money for Otis as well as focusing all analysis and design on the live environment.  As a result, the effort expended directly impacts the attainment of the desired end result.  Effective time management and project planning adherence are the byproducts of this approach.

Basic Prototype Live A basic prototype can be created using the installed software with live production data converted and loaded into the new environment.  This allows the users the opportunity to ‘play’ with actual data in a "sandbox" environment.  It gives them a greater familiarity with the new software and allows the users to gain a better grasp of what the software capabilities are (what it does and does not do).

Business Fit Analysis Business fit analysis allows for the identification of all of the necessary features that are required in a business environment, but are not included as part of the vendor software.  After all, no off-the-shelf software package is going to meet all of the company’s needs.  By capitalizing on the user’s knowledge and understanding of the capabilities of the application software and the knowledge of the business requirements, this process can assist the company in understanding the options available in creating workable solutions.

Project Plan Development and Delivery The project plan for an application implementation is, in reality, a living document.  It must be pliable and flexible to accommodate changes that are discovered and encountered by Otis’s users.  As this document grows, it must be updated and redistributed prior to each weekly status meeting.  In the interest of saving time and money, Otis utilizes administrative personnel to manage such processes.  By clearly addressing and managing expectations from all members of the project team, the project plan becomes an imperative resource to the overall success of the engagement.  This step is often overlooked by many approaches to application delivery.  Yet, if it is incorporated well, it allows all phases of the project to proceed in a positive tone.  This is why Otis’s project plans encompass the definitions of goals and the setting of expectations.  As development adjustments are made to the project plan throughout its lifecycle; expectations are updated and repositioned accordingly.

Expectation Setting and Iterative Development Gap analysis and the iterative development process may now occur simultaneously with the end-users of the new applications.  This ensures that the development efforts will not be out paced by the business cycles in the Otis environment.  Once again, this approach saves time and money as well as ensuring accuracy.  It also offers an example of how management will be able to maintain tight control on the project plan while also remaining pliable as new business needs are discovered.  Corporate cultures also impact the effectiveness of large implementation projects.  This joint and iterative process allows Otis to remain agile as cultural effects play upon the current project.

Testing and Acceptance Testing of modifications is viewed as the cornerstone of acceptance.  The aim is to meet Otis’s end users needs and business goals.  The definitions and parameters of testing must be clear and must be conducted by the client.  Testing is the final validation that the delivered product is what the client asked for and wanted.

Deployment of Live Application Deployment of the final product requires additional testing.  Tuning and monitoring of the overall system is also addressed in this phase.  Taking a step back from the detail, the opportunity now exists to view the overall project and identify any final adjustments that may be desired.  Documentation of these processes is now finalized.  Knowledge transfer and/or education and training, a process that occurred throughout the project, now is addressed in a more formalized fashion.  A daily and period end support plan is now updated and transferred.  The ability to anticipate problems before they arise, the ability to approach the project from a detailed or micro level and manage the project at the macro level are all components to a successful implementation of Flight 440.

As the Flight 440 Project Plan moves forward, there are a number of applications and technological interfaces which affect every aspect of the company.  It is the intention of management to implement these plans in a two-year timeline.  In the interim, there are a number of internal issues within the organization requiring management intervention that need to be addressed before these plans can be implemented.  These areas are:

(A)  Telecommunications Infrastructure.  The present telecommunication network infrastructure that supports the wide area networks and the local area networks (WAN/LAN) are currently in place.  Furthermore, it is expected that all service and call centers in the US and Canada will have electronic commerce completed by the end of the year.  Electronic commerce in place will allow inter-departmental personnel from corporate, manufacturing facilities, sales centers, and inventory centers to utilize its flagship application the Business, Planning, Control Systems (BPCS).  BPCS is an application that allows an organization to synchronize its manufacturing, inventory, forecasting and distribution processes, and in turn, provides available information in real-time.  Currently, there is only one server available from which its users can access all critical data.  To address this issue, it is planned that the network infrastructure will be re-configured to reduce points of failure such as “down servers”.  This means a frame relay TCP/IP protocol communications network will replace the current point-to point configuration.  This will allow an expansion of the current network architecture while enabling the deployment of various device components.  In addition, redundancy between various points will be imposed limiting exposure to networking and computer failure.

(B)  Application.  Since the purchase of BPCS three years ago, only the financial components for Accounts Receivable, Accounts Payable, and General Ledger have been utilized.  Through the use of spreadsheets and other poorly conceptualized interfaces, a magnitude of information is being managed but at a high cost.  Meanwhile, it has been providing minimal data knowledge contrasted with the fact this information is inaccurate.  BPCS, an integrated suite of business software, has the capability and capacity to turn this situation around.  It requires the implementation of the applications in the areas of Inventory Control, Order Entry, Manufacturing, Cost and Accounting, and Sales Forecasting.

• Inventory Management components for purchasing, manufacturing, planning, shipping & receiving, accounts payable and cost accounting will provide the necessary tools to manage these assets.  Purchasing provides for documenting what is being ordered for raw material and gives an indication of what the standard costs are for these items.  Receiving provides the source for what was received along with the storage location for later use.
• Order Entry timeliness has been lacking and when it does occur, it happens after the fact.  By revamping the entire process and implementing on-line order entry at the call centers, information about who wants what, when, and how much will be improved.  Recording this information will document the demand from which raw materials produce finished goods products for the sale to which customer.
• Manufacturing Planning through the use of bills-of-material (BOM) provides information about what ingredients are needed to produce what product.  Shop floor control provides information about when to produce which product along with how much product is needed.  Production reporting provides information about how much finished goods were produced and if any and what raw materials were damaged or wasted during the production cycle.
• Cost and Accounts payable processing records what was received and paid for during a period into sub ledgers which can be reviewed monthly to provide analysis of the entire process.  It has the capability of determining the efficiencies and at what cost finished goods were produced profitably or not.
• Sales Forecasting provides a view into the future needs of all products.  Documenting this information provides a planning control tool to the manufacturing process and allows them to better determine how to manage manufacturing facilities at high output capacity and low cost.

(C)  Cultural.  Changes throughout the present business organization will need to be considered and factored into the strategic business process plan.  Many employees lack the required tool sets to comprehend and adequately manage present business processes.  People and their knowledge will need to be enhanced in parallel to these initiatives.  If it is not done, it may cause plan deficiencies that will reflect in long implementation times, or in the worse case scenario, produce a business failure.

To manage these business processes, changes are required by incorporating appropriate project management tools.  Timelines, to guide and drive the projects, will enhance anticipated project outcomes.  The project tool set needs to provide the information about a process and at what point its relevance is viewed against the timeline.  Most projects that are currently active don’t follow a good project management philosophy.  By implementing appropriate project management tools, the approach should help to identify problem areas and permit strategic planning.

Enhancements in all the above mentioned areas will aid in the success of the Flight 440 Plan.  It is a plan that is a centrifugal component to the overall framework for Otis’ planned objectives.  Following and orchestrating the activities to closure can aid upper management in accomplishing the goals set forth for the entire company to achieve.

Epilogue

Otis Spunkmeyer, Inc. has embarked on a very large and complex project that will prove to be extremely challenging.  In order to obtain maximum output with minimum risk, coordination, communication, and acceptance of the processes must be agreed upon and executed.  The strategic objectives of Flight 440 will be challenging in itself with the goal of more than doubling sales within a two-year timeframe.  Attempting to implement massive Information Technology Systems, reengineering processes and consolidating Call Centers will be a monumental and difficult task.

The MIS team at Otis is facing the challenge and stepping up to the plate with limited resources.  The ability to be able to achieve the goals set forth in the Business Plan while addressing the issues that will challenge the success of the transformation (such as training the employees, maintain morale and retain and increase the customer base) will prove the icing on the danish.  The stamina of the dedicated employees is paramount to the success of the company.  This is the ultimate paradigm for Otis and other firms that face similar issues.

Overview

            Lawrence Berkeley National Laboratory (LBNL) was founded in 1931 by Earnest Orlando Lawrence, and was the first national laboratory in the country. Since that time, LBNL has grown to become a multi-program research facility of the Department of Energy. Through the years, the focus of the lab has grown from particle physics to encompass material, biological, chemical, and geological sciences. The main target of the lab is projects requiring scale - particle accelerators, computing, environmental science and mapping the human genome.

            Being a national laboratory means that technology lies at the heart of what we do. For the sake of discussion, I will use Lowell Steele's definition of technology: "…one short and arguably valid definition of technology is 'knowledge of how to do things.' A somewhat more extended definition, and one that will underlie all of this discussion, is that technology is 'the system by which a society satisfies its needs and desires.'[1]What we do is research the areas that society needs and desires products and solutions. Since primarily the Department of Energy funds LBNL, it is fiscally responsible to the taxpayers and the society that supports it.

            I work for two different departments, which I will focus on. As each has different problems, each approaches technical management differently.

Macromolecular Crystallography Facility

             It is an awfully long title for a group with two goals - the Macromolecular Crystallography Facility (MCF) was created to solve the structures of proteins, and to develop an efficient mechanization to do such. Using the brightest synchrotron light source, MCF solves the structures of proteins that play pivotal roles in biology, medicine, and pharmaceuticals.

The biggest problem faced today is data management. In the process of collecting the data required, we have 20 megabyte files (or larger) coming through every ten seconds (with each pulse of the light source). With this mass of data, fast analysis and data compression is crucial. The future of this science will require even larger data sets and faster pulse times; therefore we are responsible for creating solutions to achieve a high throughput environment for our users.

            One response is to eliminate some of the non-useful data. To grossly summarize the processing, all the data goes through a set of equations. Fortunately, not all data, in fact much of it, is not tremendously useful and each image has a quantity of 'noise'. By compressing the file which comes from the detector to the computers which process, it is theoretically possible to shrink the size of each file by as much as 80%. The compression process is much like that which is utilized by computer programs such as WinZip or ExpandIt. Experimentalilization is still in the works on this, and it is unclear whether it will ever be accepted as most scientist shudder at the sound of 'compress the data' for fear of losing something which may be relevant later on..

            Another response, one that is being undertaken, is increasing the bandwidth from the detector system to the processing system. Currently, several 100BaseT twisted pair cables are handling it, but this is being phased out. We are in the process of installing FiberChannel lines capable of a great deal more data. A 100BaseT is capable of pumping about 100 megabytes per second, but the new FiberChannel, which relies of fiber optic technology can put through over 100 gigabytes per second (probably quite a bit more). This would obviously open up the bottleneck from detector and processor.

            A new creation has just been developed by Dr. Jaques Millard (inventor of the original CCD) here which changes the actual design of the CCD detector. Without getting into to much detail, it greatly reduces the size per pixel (to about 25% of its current size) and be about twice as sensitive. What this means for us is the advance of a more stable and accurate detector which is also capable of shorter pulse times.

            Fortunately Silicon Valley handles most of the last hurdle - computing speed. While we are always looking at ways to network processing faster, Silicon Valley always seems to be giving us processors capable of handling the data.

Chemical Dynamics Group

            My other department is the Chemical Dynamics Group. Chemical Dynamics studies the fundamental chemical processes. We use an undulator beamline combining the world's most intense source of tunable VUV radiation with dedicated state-of-the-art molecular beam-based endstations and laser resources. This combination provides researchers with a new window into the dynamics of the basic chemical reactions critical to a fundamental understanding of combustion, atmospheric and interstellar chemistry. For example, of critical relevance today is the breaking down of ozone (O3) into oxygen (O2).  By knowing not only what the reactants in the formula are, but also exactly how this breakdown occurs on the subatomic scale, it might be possible to turn the tides of ozone depletion.

            Surprisingly, the problem in this field (at least at present) has little to do with computing power. Of critical relevance are laser intensity, optics, and plasma generation. Currently there are few, if any, technical issues with this group other then the occasional upgrade in viewport, laser tube, etc.

Conclusion

            The scientific community is very apt at generating technological issues. As science continues to progress it appears that the demands of technology will increase. The solutions required to solve many of the largest scientific issues are only going to be possible by getting the right tools, in the right place, at the right time.

Introduction

This paper looks at the theoretical model for Information Systems (IS) project management developed by Zhang and Xu (2008). The model builds on a model with Total Quality Management (TQM) principles set forth by Ravichandran and Rai (2000), by applying more modern Six Sigma principles. 

Over the years, significant improvements in IS project success rates have been made; the rate of successful IS projects grew from 16% in 1994 to 34% in 2004 (Zhang & Xu, 2008). Additionally, IS project management methodologies and theories are discussed in management literature. The most useful IS project management theories for practical application, demonstrate a relationship between project management activities and project successes (id.). 

There are three different types of theories the literature holds for these kinds of theories: technical, organizational, and integrated. (id.). The technical view "…suggests that the key to IS project success is the careful selection and management of technical factors" (id., p. 60). Hsieh, Lin and Manduca (2007) hold such a view by postulating that by focusing on the strategic implementation of IS technology, the professional will be able to incorporate Six Sigma benefits into their work. While IS tools might benefit the application of principles, the organizational view correctly holds that IS project success is more often caused by the management of social and organizational factors. (Zhang & Xu, 2008). The integrated view is a holistic view that manages both technical and organizational factors. The theory of the Zhang and Xu (2008) paper takes predominantly an organizational view, as discussed below.

Background

Both Ravichandran and Rai (2000) and Zhang and Xu (2008) have quality approaches at their heart. "[A] quality-oriented organizational systems approach [can] significantly benefit IS project management" (id., p. 61). The former was built with a framework of TQM, the latter Six Sigma.

Total Quality Management

"During the 1990s TQM was the dominant theoretical and empirical paradigm for quality management and included many of the elements advocated by leading quality thinkers such as Deming, Juran, and Crosby" (Schroeder, Linderman, Liedtke and Choo, 2007, p. 545). The main theory of TQM is that continuous improvements to quality leads to a competitive advantage and financial performance (Zhang & Xu, 2008). Five TQM factors have a significant positive impact on IS functional performance: top management support, design, quality information reporting, process control and process efficiency (id.). TQM began to lose favor in the mid-nineties because of excessive bureaucracy, avoidance of genuine reform, and lack of innovation (Green, 2006). While most likely the failure of TQM stems from incorrect utilization, because it is somewhat ethereal, it was often believed to be an oversold magic pill (id.).  However, TQM is not dead and organizations continue to adopt its models (Subramanian, Jiang, and Klein, 2007).

Six Sigma

Six Sigma emerged as new paradigm that builds on TQM ideals and adds a metric-driven twist (id.). While TQM relies on a Plan-Do-Study-Act cycle, Six Sigma relies on a Define-Measure-Analyze-Improve-Control cycle which emphasizes the application of metrics to learn how any process is improved in a non-theoretical way (Schroeder et al., 2007). It began as a process to improve quality such that  no more than 3.4 defects per million occurred (Green, 2006). It continued to evolve and became a framework for quality that emphasized a strong customer focus, elevated employee involvement, continuous improvement, enlightened leadership, and fact based decision making (id.).

Six Sigma and Information Systems

Six Sigma implementation occurs across all business units (Schroeder et al., 2007). Because metrics are at the heart of Six Sigma, there is a necessary close relationship between it and IS (Zhang & Xu, 2008).Additionally, because "[t]he implementation of Six Sigma is project-based… project management is of critical importance to Six Sigma… [S]tudying Six Sigma has promising potential to advance both theory development and practices of IS project management" (id., p. 62). 

R&R Model

Ravichandran and Rai (2000) proposes a model for quality management for software development and IS projects. At its base are top management leadership, a sophisticated management infrastructure, process management efficacy, and stakeholder participation (id.). Zhang and Xu (2008) believed that the Ravichandran and Rai (2000) model could be updated in light of current quality management practices and principles.

The Zhang and Xu Revised Model

Zhang and Xu (2008) revised the theoretical model of Ravichandran and Rai (2000) by applying Six Sigma quality principles in order to create a more updated and measurement driven model. One clear advantage to the revision is that by using Six Sigma's heavy reliance on metrics, it can easily measure IS project success (Zhang & Xu, 2008). The Ravichandran and Rai (2000) model was limited to quality performance only, whereas Zhang and Xu (2008) expanded the model to consider the impact on a wider set of metrics to determine IS success rates.

The goal of both models is IS project success, but this measurement of a project's success is difficult, and often subjective (id.). Measuring performance from a purely technical view would just answer the question of whether or not the solution delivered the required information (id.). At another level, success could be measured on whether the information from the solution is understandable (id.). An yet another level, success could be measured by whether or not the information actionable (id.). Zhang and Xu (2008) state that there are six such measurements of project success, but the most important is whether or not the project had a meaningful impact on organizational performance (ROI). At the outset of a project undertaken with this revised model, a customer-focused set of values are given for the purpose of the project (id.). While projects are often undertaken based on an educated guess as to impact, "…Six Sigma addresses the issue by emphasizing the importance of setting quantifiable goals for the projects. The project goals are usually specified as the impact to the organization's bottom line" (id., 65). By linking the project success criteria to organizational performance, success or failure can be measured - this is the main point of the revision. 

Strong customer-oriented top management leadership

Both the Ravichandran and Rai (2000) model and the Zhang and Xu (2008) model recognized that senior IS management was required for any quality program. "Strong leadership can change an unfavorable organizational culture and guide resource allocation decisions to realize the organization's missions" (id., p. 66). The problem is that the idea of leadership is abstract. Six Sigma includes customer-orientation as a "cornerstone principle" to leadership (Schroeder et al., 2007). By making the customer-value the focus, leadership can be tracked by using the value metrics discussed above and projects can be aligned based on them. The most critical metrics in any Six Sigma project are centered around customer satisfaction and the related critical-to-quality characteristics (id.). (The 'customer' for IS projects includes both internal and external users (Zhang & Xu, 2008).) Strong customer-oriented management can then lead the organization as whole to be customer-oriented (id.). Its culture, goals, and mission is focused on delivering to the customer, which helps prevent the resistance to change. It is only strong leadership that can both choose the right path and help to motivate the people who must follow (Brickley, Smith, Zimmerman and Willett, 2009).

Project selection becomes streamlined as each new initiatives must demonstrate value to the customer, rather than choosing projects based on politics or 'it would be nice to have's. Measuring a project's success is then measured against the value proposed by the imitative at inception (Zhang & Xu, 2008). 

Dedicated management infrastructure

The Ravichandran and Rai (2000) model had three properties in its construct of organization infrastructure: a quality policy with goals, a commitment to skill development, and a quality orientation to rewards. Zhang and Xu (2008) added two more: a dedicated management infrastructure and dedicated project management roles.

Zhang and Xu (2008) define the dedicated management infrastructure as a "… parallel structure within the business unit for project selection and management. The essence of the idea is somewhat similar to the "focused factory" approach advocated by Skinner (1974)" (Zhang & Xu, 2008, p. 67). A "focused factory approach" would be to align the organization units to common goals by integrating IS into each unit rather than a separately aligned units. Skinner (1974). For example rather than having a finance department and an IS department, the two units would be merged and managed to a common goal. This parallel structure exists in the Six Sigma definition too, where Six Sigma initiatives work outside of normal operations, but along it to improve operations (Schroeder et al., 2007).

Tennant and Roberts (2000) suggest a similar solution. Their paper advocates for a quality management program from Japan called Hoshin Kanri. That program recognizes that improvements to processes require a company-wide approach, rather than segmenting into departments. "Groups should be aligned with decisions taken by people who have the necessary information" (id., p. 85). It is for this reason, that Zhang and Xu (2008) suggest that the organizational structure be such that the business drives IS functions, as the value for any project is given by the people who have the necessary information - the business unit.

In a similar manner, the revised model of Zhang and Xu (2008) also calls for project management to be done out of the business, rather than a separate IS function. This shifts the knowledge of the project manager from an emphasis on technical knowledge to functional knowledge. Additionally, the project manager can then be responsible more for the outcomes of the project. 

Disciplined process management

The Ravichandran and Rai (2000) model had four properties in its construct of process management: formalization of analysis and design, formalization of reusability in systems development, process control, and fact-based management. To this Zhang and Xu (2008) added: project benefits tracking and extensive sharing of knowledge.

Project benefits tracking is the process of tracking the customer value put forward at project initiation. Once the project is completed, the organizational operation  is audited to that value, thus bridging the gap between IS projects and organizational process improvements. Additionally, this high visibility process helps project selection and employee motivation (id.).

Extensive knowledge sharing helps reduce the complexity of IS projects  by identifying common processes and sharing best practices throughout the organization (id.). 

Stakeholder participation

Ravichandran and Rai (2000) did not find a significant relationship between stakeholder participation and project performance (id., p. 402). Zhang and Xu (2008) posit that this was because they did not include external users as stakeholders. Harrison and Freeman (2004) agree - they argue that giving these external stakeholders gives an organization an advantage if it allows for stakeholder input at all. While there was a good body of research on the qualitative importance of customer-involvement, most of it defined customers as users, and then further relied solely on internal users. For Zhang and Xu (2008), this was grossly insufficient and they believe that this left any IS project at the discretion of whether the internal user correctly understood the external users' requirements. It is for this reason, that they specifically included external users in their revised model.

Conclusion

While the above discussion includes sections on the changes the revised model brings (strong customer-oriented top management leadership, dedicated management infrastructure, disciplined process management, and stakeholder involvement), the most important addition is using the customer-oriented metrics for determining project success. This idea is also the most important aspect to Six Sigma generally (Schroeder et al., 2007). Leadership for such a model to work across an organization and for an IS unit, would require strong leadership (Harrison & Freeman, 2004; Kwak and Anbari, 2006). This is a change from a focus on the individual project and the internal users, to the customer and the external users.

References

Brickley, J., Smith, C., Zimmerman, J., & Willett, J. (2009). Using organizational architecture to lead change. Journal of Applied Corporate Finance, 21(2), 58-66. Retrieved July 1, 2010 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428129.

Green, F. (2006). Six-Sigma and the revival of TQM. Total Quality Management, 17(10) 1281-1286. doi: 10.1080/14783360600753711.

Harrison, J. S. & Freeman, R. E. (2004). Is organizational democracy worth the effort? Academy of Management Executive, 18(3), 49-53.

Hsieh, C.T., Lin, B. & Manduca, B. (2007). Information technology and Six Sigma implementation. Journal of Computer Information Systems, 47(4), 1-10. Retrieved June 20, 2010 from http://www.iacis.org/jcis/archives/vol47_iss4.html.

Kwak, Y. H. & Anbari, F. T. (2006). Benefits, obstacles, and future of six sigma approach. Technovation, 26, 708-715. doi: 10.1016/j.technovation.2004.10.003.

Ravichandran, T. & Rai, A. (2000). Quality management in systems development: An organizational system perspective. MIS Quarterly, 24(3), 381-415. Retrieved July 1, 2010 from http://www.jstor.org/pss/3250967.

Schroeder, R. G., Linderman, K., Liedtke, C., & Choo, A. S. (2008). Six Sigma: Definition and underlying theory. Journal of Operations Management, 26, 536-554. doi: 10.1016/j.jom. 2007.06.007.

Skinner, W. (1974). The focused factory. Harvard Business Review, 52(3), 113-121. Retrieved July 1, 2010 from https://www.uzh.ch/cmsssl/isu/som/stu/Teaching/FS10/MA/som/ Skinner_1974 _tradeoff_strategy.pdf

Subramanian, G. H., Jiang, J. J. & Klein, G. (2007). Software quality and IS project performance improvements from software development process maturity and IS implementation strategies. Journal of Systems and Software, 80, 616-627. doi: 10.1016/j.jss.2006.06.014.

Tennant, C. & Roberts, P. A. B. (2000). Hoshin Kanri: A technique for strategic quality management. Quality Assurance, 8, 77-90. Retrieved July 1, 2010 from http://www. ingentaconnect.com/content/tandf/uqua/2000/00000008/00000002/art00003.

Zhang, W. & Xu, X. (2008). Six Sigma and information systems project management: A revised theoretical model. Project Management Journal, 39(3), 59-34. doi: 10.1002/pmj.20066. 

Lets talk about something basic. Requirements. The PMBOK defines a requirement as just: “A condition or capability that must be met or possessed by a system, product, service, result, or component to satisfy a contract, standard, specification, or other formally imposed document. Requirements include the qualified and documented needs, wants, and expectations of the sponsor, customer, and other stakeholders.” Sigh. By that definite the following can be qualified as a requirement:

• The site presumably should be able to have some of the widgets available.

We need to bridge the gap. As project managers, we do this by being involved in requirements writing. As business owners, we let the PM help us to write those requirements. As developers, when we see ambiguity, we ask for clarification.

Here are four requirements for, um, requirements:

1. Every requirement must be unitary. What this means is that each requirement defines one, and only one thing. _Good_: The Silly Putty must be pink. _Bad_: The Silly Putty must copy comics from the newspaper or colored pencil.
2. Every requirement must be consistent with its relative requirements. In any given project, the requirements must not contradict each other. _Good_: The coffee must contain 108 mg of caffeine. _Bad_: The coffee must contain 108 mg of caffeine. The coffee must be available in decaf.
3. Every requirement must be unambiguous. Any reasonable person should be able to figure out whether or not the requirement has been met. _Good_: The Toy Pony must be exactly 5” tall from bast to tip of the ear. _Bad_: The Toy Pony should be pretty.
4. Every requirement must be verifiable. The implementation of the requirement must be able to be verified by some means such as testing, analysis, or measurement. _Good_: The doughnut must be rated as “tasty” by a majority of a panel of taste testers. _Bad_: Everyone must love our doughnuts. 

One of the biggest problems caused by Project Managers is believing that one methodology is the solution to every project. Unless there is a PMO, then flexibility is critical to a successful project. 

I call out PMOs here, which on the whole are a very good thing, because the role of a PMO is to establish certain practices for the organization. While there are cases when these practices may not be the ideal for a given situation, there is an advantage for the business as a whole to be use these practices as standard. Deviances are fine, but make sure the stakeholders and the PMO know what they are and the rationale of them. 

In the big picture, there is the ongoing battle between waterfall and agile. While, yes, in general fast software projects tend to be agile, there will be times for waterfall and there will be times for a hybrid. For example, if the project has easily identifiable and stable requirements, a very formal process, and extensive documentation.  

Zooming down to agile methodologies, the various choices are numerous: agile unified process, feature driven development, extreme programming, and, of course, scrum. 

Before I hear any scrum-lover backlash, let me say that I think scrum is great, I have used it on a good amount of projects, and wouldn't hesitate to using it again. But scrum is also a buzzword and not a solution to every situation. You wouldn't build a dam using scrum. What I love most about it it, are the way that keeping track of the project and making sure that nothing falls through the tracks is built into the system.

I was recently asked for a sample Requirements Document. I wrote this and thought it was amusing enough to post here. Hope you like it.

1. Statement of the problem

Eating with one's hands is often a messy proposition and is disdained by society for specific types of foods (e.g. lasagna, mashed potatoes, etc)

2. Proposed solution summary

While it may be possible to create the appropriate functionality into one tool (i.e. a 'spork'), market research as shown that two separate tools are more favored. Herein, we propose the solution to the problem as a 'fork' and 'spoon'. These two tools will benefit the user by allowing their hands to remain clean while using and not portray a disreputable image to those who may see them eat.

3. Assumptions, constraints, and dependencies

 A. Assumptions

• The user will be able to ascertain that it would be more difficult to eat soup with a fork and steak with a spoon.
• The user has at least one hand with an opposable thumb and more than one finger.
• Material science has developed to such a degree to allow the manufacture of these tools.

 B. Constraints

• The fork and spoon should be able to be manufactured at a price that is cheap enough to be purchased by all or even, in some specific cases, to be given away by a food vendor.

 C. Dependencies

• Gravity is a dependency as without it, piercing with a fork would be extremely difficult for lack of leverage and ladled liquids within the spoon would not stay put.
• To take advantage of the economies of scale for marketing and user education, both the fork and the spoon should be introduced at the same time.
• Users have the kinesthetic sense by which to be able to place the food delivery end into their mouths without seeing that end.

4. Functional requirements

• The fork should have between 2 and 4 tangs with which to skewer food prior to placing in the users mouth. 
• The tangs should be of sufficient thinness to cut softer foods when the side of the fork, along the tang, is placed upon the food and firmly pressed down by the user.
• The spoon should have a concave surface at the food delivery end, for which to ladle liquids or semi-viscous foods.
• The fork or spoon should be able to be used without the use of the other, but this is not to be exclusive as their combined use may be useful (e.g. spinning spaghetti noodles upon a folk while holding in place with a spoon).

5. Performance requirements

• Both fork and spoon should be durable enough to withstand the execution of their function and be cleaned without breaking or wear.

6. Usability requirements

• Both fork and spoon should be light enough to allow the user to lift with ease.
• The fork and spoon shall be long enough to allow the user to hold by the non-food delivery end. 
• Both fork and spoon should be small enough to easily place the food delivery end into the users mouth comfortably.

As both a lawyer and a project manager, I have found that managing client expectations is often the greatest challenge. But, if done well, the payoff is huge. Not only is there a great opportunity for repeat business and word-of-mouth marketing, the entire process of the product is much, much easier.

The one big difference between doing legal work and project management (and I believe the two are extremely similar) is that outcomes are much more difficult to predict and plan for. For example, a litigated contract dispute can be perfectly presented by the litigator, but in the end it is given to a jury or Judge to decide. This is the risk that is there in every legal issue and the grey areas of expected outcome are, in my experience, greater than those in other projects. This is not to say that there are no risks in non-legal projects. 

Non-legal projects use Project Charters as the first salvo for client expectations. They get everyone on the same page and the document becomes the template for the actions of the project. Legal work can be somewhat similar. One of the first things I want to know as an attorney is: what does the client want? What is it that at the end of the day is their best case scenario, worst case, and what will they be content with. Once I know this, I can start managing their expectations. 

First, is there any likelihood at achieving their best case scenario? If so, how likely? The client needs to know in no uncertain terms. That is what they need to hear from you.

Second, how likely is their worst case scenario and how disastrous will that be? Is there another scenario that is even worse? This too, the client needs to know.

Lastly, how likely is the scenario that the client will be contented with? Often is this is much more likely than the best case scenario, it is better to use this as the goal, especially if the contented with scenario will be less likely with the best case set as the goal.

There are also non-outcome expectations that need to be managed. Communications is probably the biggest. Emails are often expected to receive instant replies. Phone calls instantly returned. While in a perfect world this can be done, this is not a perfect world.

First off, let’s talk about what Six Sigma is. Essentially it is business process improvement using statistical methods. Its goal is to get the error rate in business processes below 99.9996%. Born out of Motorola in 1986, it has been given credit for tremendous benefit to the bottom line at many of the top companies.

But this post is about Lean Six Sigma. Lean Six Sigma is the coupling of Six Sigma and Lean Manufacturing. Lean Manufacturing can be thought of in two ways: 1) the elimination of waste through continuous improvement and 2) making even the entire manufacturing process which includes production leveling.

But just because ‘manufacturing’ is in the name that it doesn’t apply to service businesses – it does. The goal for services is to achieve the maximum process velocity. It does this by targeting non-value-added processes (overproduction, waiting time, defects, etc). 

When combined into Lean Six Sigma, the benefits combine superior quality (Six Sigma) with speed (Lean Manufacturing).