X

Reference Class Forecasting

Taking the 'outside view' in project planning has been proven crucial in avoiding overconfident projections and unrealistic future cash flow patterns. Using a reference class of similar past projects and their performance can assist in performing quality control and due diligence for the project in hand. Reference Class Forecasting can help your organisation deal with:

  • Over-Optimism (delusion)
  • Strategic Misrepresentation (deception)
  • Survive 'one-off' projects
  • Dramatically reduce cost and time overruns

Over-Optimistic Forecasts

Over-Optimistic Forecasts

Over-Optimism is a human trait. When it infests project planning it results in the best-looking projects with positivistic thinking taking over, instead of looking how other similar projects have performed in the past.

Usually, the projects that get the green light are the ones which look the best from a planning perspective, resulting in cost and time overruns over and over again.

Strategic Misrepresentation

Strategic Misrepresentation

When dealing with a complex project that involves a multitude of stakeholders, each one with their own 'secret agenda', strategic misrepresentation may occur.

Deception is often one of the reasons for a major programme to fail in meeting its predefined targets and practically get derailed.

One-off Projects

One-off Projects

Often, organisations embark onto new, large projects that are 'one-off' and the performance of which have the power to affect the organisation's own existence.

Looking into similar projects' historical performance can assist an organisation in dealing with the challeges of project planning.

Cost & Time Overruns

Cost & Time Overruns

Most large projects are expected to run over budget and over time. Often, a distress fund is set up to help with unforeseen difficulties along the way. Such funds are seen as 'red meat' by subcontractors and are usually consumed very quickly, leaving the rest of the project unprotected to other mishaps.

Looking at a reference class can help project planning better assess the probabilities of cost and time overruns and perform quality control and due diligence.

For more information contact us

Lean & Six Sigma Technologies

A Lean business produces just what is needed - when it is needed and with no additional labour, cost and time.

 
 

Lean is a philosophy, methodology and science rooted in the best manufacturing know-how and can-do spirit of postwar Japan. As a holistic system, Lean is also widely known as the Toyota Production System (TPS) and proper implementation of this system has benefits both in factory operations as well as in service environments.​

The Six Sigma approach generates quick, demonstrable results linked to a no-nonsense, ambitious goal : To reduce defects ( and the cost they entail) to near zero by a target date. Six Sigma also:

  • Has built-in mechanisms for holding the gains.
  • Sets performance goals for everyone.
  • Enhances value to the customer by exposing “defects” caused by functional bureaucracy and by encouraging managers and employees alike to focus their improvement efforts on the needs of external customers.
  • Speeds up the rate of improvement by promoting learning across functions.
  • Improves your ability to execute strategic changes.

 

Average and Variability

Most of the issues are not addressed only by averages. Trouble is, averages can hide lots of problems. With the way that most processes operate today, if we promise customers to deliver packages within two working days of getting their order, and your average delivery time is two days, many of the packages will be delivered in more than two days. If you want all packages to be delivered in two days or less, you will have to dramatically eliminate problems and variations in your process.

A Six Sigma approach first improves the mean, then the variability. This pattern repeats as a process of continuous improvement.

For more information.contact us

Lean4Lab

Challenges in the Laboratory Today

Challenges in the Laboratory Today

What are the challenges in your laboratory environment today? Does it need a more streamlined end-to-end flow of material, expectations and communications?

Identify batching, waiting, inventory gathering, review and testing in the process. Reduce wait times, create flow in process, with everyone involved knowing the process end-to-end.

Recognise how customer expectations are aligned to the internal work process. Does everyone in the production line understand the requirements? Clear customer expectations that are understood by all will eliminate "silo" mentalities and promote cooperation - leading to faster throughput and a reduction in defects.

Advantages of Lean4Lab Technology

Advantages of Lean4Lab Technology
  1. Achieve a more secure supply : never miss an order.
  2. Reduced or elimination of batch release and testing lead times.
  3. All production will be at the Pace of Customer Demand, and all batch release and lab testing will be at the Pace of Production.
  4. Visual Factory:  No hidden processes, parts, inventory, people.
  5. Elimination of errors and re-work leading to a reduction in wastage.
  6. Reduction in process variation resulting in all output meeting customer expectations the first time.
  7. Establishment of a proper method capability which is understood and accepted by everyone in the process.
  8. Full use of instrumentation, storage capabilities and inventory.
For more information contact us

Tacit Knowledge Retention

 

 
 

Tacit Knowledge

Knowledge Management Systems have existed in organisations for a long time. They successfully capture organisational knowledge and help the organisation expand as well as evolve as new ideas flow in and get adopted. However, there is a kind of knowledge that is tacit, i.e. that is not written down and is carried by the most experienced people. Tapping into that knowledge and getting it transferred to new employees is crucial in having new ideas implemented, using the wisdom gained through experience. To do this, the following are important:

  • Right Type of Leadership
  • Employee Discretion
  • Organisational Culture away from 'Projectification' and 'Fine Tuning'
  • Quality Control

Leadership

Leadership

Leadership in the organisation and succession are important in making sure that the right leader profile is emerging based on the needs of project delivery.

The correct mix between task-oriented and relationship-oriented behaviours need to be set and preserved.

Employee Discretion

Employee Discretion

Across organisations, employee engagement is crucial, especially when critical projects are to be delivered within budget and on time. Learning from company champions within a complex organisation is an important part of making sure organisational knowledge is preserved.

Employee discretion brings learning to a new level where tacit skills are passed from one generation of employees to the next.

Organizational Culture

Organizational Culture

The increasing adherence of organisations to regulations and best practices give rise to 'fine tuning'. Past successes and acclimatization alter decision-makers' beliefs about probabilities of future success. Engineers and managers pursue partially inconsistent goals, while trying to learn from their experiences.

An Organisational Culture within the Reflective Practitioner framework where continous learning is combined with a critical view of processes and practices is what is required for the organisation to survive a rapidly changing environment.

Quality Control

Quality Control

Performing Benchmarking and Quality Control across silos, business units and projects of strong interdependence is often addressed by ad hoc metrics that have been developed in circumstances other than the current state of the organisation.

Relevant statistical metrics are often taken out of context and within completely different classes of industry. There is cost to achieving quality, effective, synchronised teamwork, and continuous improvement. However, there is an unforeseably high cost not to have quality control in place.

For more information contact us

Industries

At IOV we implement Reference Class Forecasting, Lean & Six Sigma Technologies as well as Knowledge Management Programmes across a wide range of industries including:

  • Pharmaceutical Discovery and Development
  • Extractive Industries (Oil & Gas, Mining)
  • Manufacturing
  • IT and Infrastructure

Supply Chain

Supply Chain

Chemicals

Chemicals

Process Education

Process Education

Pharma

Pharma

InfoTech

InfoTech

Shipping

Shipping

Healthcare

Healthcare

Oil & Gas

Oil & Gas

Manufacturing

Manufacturing

Contact Us

Use the Contact Form below to send us an email

Let's Talk

18 Boon Lay Way
Trade Hub 21
Unit #10-140F
Singapore 609966
Tel. +65 9675 5382

The Oxford Science Park
The Magdalen Centre
Robert Robinson Avenue
Oxford OX4 4GA
United Kingdom
Tel. +44 (0) 1865 600 610

info@iotaomega.com