Execution Measurement and Information Management

Presentation Transcript

Part 8 Performance Measurement and Information Management

Importance of Management by Fact If you don't quantify comes about, you can't tell accomplishment from disappointment If you can't see achievement, you can't compensate it – and in the event that you can't remunerate achievement, you are presumably remunerating disappointment If you can't perceive disappointment, you can't right it

Key Definitions Data are essentially portrayals of truths that originate from some sort of estimation process. Estimation is the demonstration of evaluating the execution measurements of items, administrations, forms, and different business exercises. Measures and pointers allude to the numerical outcomes acquired from estimation. Data is gotten from the investigation of information and estimations and communicated with regards to a business or association.

Reasons for Good Measures To lead the whole association in a specific course; that is, to drive systems and hierarchical change. To deal with the assets expected to go toward this path by assessing the viability of activity arrangements. To work the procedures that make the association work and consistently move forward.

Three Levels of Measurement Individual : ongoing data for criticism and process control Process : comprehend whether procedures are achieving their destinations, regardless of whether they are utilizing assets adequately, and where change may be important. Association : reason for key arranging and plan of items, administrations, and procedures.

Balanced Scorecard Financial point of view gainfulness, income development, rate of profitability, monetary esteem included (EVA), and shareholder esteem Internal viewpoint quality levels, efficiency, process duration, and cost. Client point of view administration levels, fulfillment evaluations, and rehash business Innovation and learning viewpoint scholarly resources, representative fulfillment, showcase advancement, and abilities improvement

Key Idea A decent adjusted scorecard contains both driving and slacking measures and markers. Slacking measures (results) tell what has happened; driving measures (execution drivers) anticipate what will happen.

Baldrige Classification of Performance Measures Product results Customer results Financial and market results Workforce results Process adequacy results Leadership results

Product Outcomes Internal quality estimations Field execution of items Defect levels Response times Data gathered from clients or outsiders on usability or different properties Customer overviews on item and administration execution

Customer Outcomes Customer fulfillment and disappointment Customer maintenance Gains and misfortunes of clients and client accounts Customer protestations and guarantee claims. Seen esteem, reliability, positive referral, and client relationship building

Financial and Market Outcomes Revenue Return on value Return on speculation Operating benefit Pretax net revenue Asset usage Earnings per share

Workforce Outcomes Employee fulfillment Training and advancement Work framework execution and adequacy Safety Absenteeism Turnover

Process Effectiveness Outcomes Cycle times Production adaptability Lead times and setup times Time to market Product/handle yields Delivery execution Cost proficiency Productivity

Leadership Outcomes Organizational responsibility Stakeholder trust Ethical conduct Regulatory/lawful/ecological consistence Financial and morals audit comes about Community benefit Management stock buy movement

Purposes of Performance Measurement Systems Providing bearing and support for consistent change Identifying patterns and advance Facilitating comprehension of circumstances and end results connections Allowing execution correlation with benchmarks Providing a point of view of the past, present, and future

Practical Guidelines for Measurement Fewer is better. Connection to the key business drivers. Incorporate a blend of past, present, and future Address the requirements of all partners. Begin at the top and stream down to all levels of workers Combine various lists into a solitary record Change as nature and procedure changes Have inquire about based targets or objectives

Process-Level Measurements Good process measures ought to be "Shrewd" S imple M easurable A ctionable R elated (to client necessities and to each other) T imely

Key Idea Good measures and markers are significant ; that is, they give the premise to choices at the level at which they are connected.

Six Sigma Measurements A unit of work is the yield of a procedure or an individual procedure step. A measure of yield quality is deformities per unit (DPU) = Number of imperfections found/Number of units delivered Defects per million open doors (dpmo) = (Number of deformities found)/open doors for mistake × 1,000,000

Example An aircraft wishes to gauge the adequacy of its stuff taking care of framework. A DPU measure may be lost sacks per client. Be that as it may, clients may have distinctive quantities of packs; subsequently the quantity of chances for blunder is the normal number of sacks per client. On the off chance that the normal number of packs per client is 1.6, and the carrier recorded 3 lost sacks for 8000 travelers in one month, then dpmo = 3/[(8,000)(1.6)] × 1,000,000 = 234.375

Other Types of Process Measures Defect characterization Critical Major Minor Weighted list E.g., FedEx benefit quality pointer Rolled throughput yield (RTY) the likelihood that a unit can go through a progression of process ventures without imperfections; comparably, the rate yield of good parts from a progression of process steps.

Analyzing and Using Data Analysis – an examination of truths and information to give a premise to powerful choices. Illustrations Examining patterns and changes in measures and pointers utilizing diagrams and charts Calculating an assortment of factual measures, for example, means, extents, and standard deviations Applying advanced factual instruments, for example, connection and relapse examination to help comprehend connections among various measures Comparing comes about in respect to different specialty units, contenders, or best-in-class benchmarks

The Cost of Quality (COQ) COQ – the cost of maintaining a strategic distance from low quality, or expenses acquired therefore of low quality Provides a reason for recognizing change openings and accomplishment of change projects

Quality Cost Classification Prevention Investments made to shield nonconforming items from happening and achieving the client Appraisal Associated with endeavors to guarantee conformance to prerequisites, for the most part through estimation and investigation of information to distinguish nonconformances Internal disappointment Costs of unacceptable quality found before the conveyance of an item to the client External disappointment Costs caused after low quality items achieve the client

Return on Quality (ROQ) ROQ – measure of income increases against expenses related with quality endeavors Principles Quality is a speculation Quality endeavors must be made fiscally responsible It is conceivable to spend excessively on quality Not every single quality use are similarly legitimate

Knowledge Management The way toward distinguishing, catching, sorting out, and utilizing learning resources for make and support upper hand Explicit learning incorporates data put away in archives or different types of media. Implied learning is data that is conformed to impalpable components coming about because of an individual's affair, and is close to home and substance particular.

Knowledge Transfer The exchange of learning inside associations and the ID and sharing of best practices regularly set high-performing associations apart from the rest. Interior benchmarking - the capacity to distinguish and exchange best practices inside the association Rapid information exchange includes the revelation, learning, creation, and reuse of information that in the end gets to be distinctly educated capital—information that can be changed over into esteem and benefits.

Measurement and Information Management in Six Sigma Six Sigma underlines reality based choices and furnishes associations with devices to create quantifiable outcomes from Six Sigma ventures. Six Sigma strategy requires measuring and revealing execution objectives, and utilizing execution markers to control and manage enhancements. Extend choice depends on comprehension the money related and also the nonfinancial advantages to the association, for example, cost investment funds, expanded deals, lessened process durations, or enhanced consumer loyalty.