Escolar Documentos
Profissional Documentos
Cultura Documentos
Aims & Objectives : How to define & measure our given business goals
Why have KPIs How clarity of objectives improves motivation and delivers performance Standardised approaches to KPIs How to translate and cascade KPIs at all levels Explain links to Performance Management
ASSESS
THE PERFORMANCE
PROGRESS AND IMPACT OF A PROJECT, PROGRAM OR ORGANIZATION
IMPORTANT TO THE VIEWER VITAL - AFFECTS THE BUSINESS CUSTOMER FOCUSED DRIVES IMPROVEMENT
USEFUL
CURRENT - UP TO DATE EASY TO UNDERSTAND IMPORTANT AND RELEVANT VIEWER CAN CONTRIBUTE HAS A STAKE CAN HAVE AN EFFECT (good and bad)
IMMEDIATE
URGENCY / OWNERSHIP RESPONSIBILITIES DEFINED DYNAMIC IMPROVEMENT PLAN AUDIT PROCESS - ACTUAL Vs PLAN CLEAR OBJECTIVES
VISUAL
LOCATED WHERE EASY TO SEE CHANGES JUMP OUT AT VIEWER ENGAGING RELEVANT - CREATES TALKING POINT STANDARD FORMAT EASY FOR OUTSIDER TO UNDERSTAND FEEDBACK RECORDED AND ACTED UPON
Cost Performance
Delivery Performance People Performance
Examples
Actual Performance Plotted Against Target
Jul
Mar
Jan
Sept
May
Nov
Jul
Sep
Target Improvement
Machining Test
Assembly
Nov
100 0
Examples
RAG Colour Coding
RED
Outside of target with no improvement or deteriorating trend. AMBER Inside of target but with deteriorating trend. Outside of target but with improving trend. GREEN Inside of target with improving or level trend.
Examples
Scrap Cost 2004
16000
YTD Scrap Cost: 34.0k
80 70 60
14000 12000
10000
50
40 30
8000 6000
4000
2000 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Scrap Cost Scrapped Items Budget
20
10 0
No. Of Items
Examples
How are we doin gchedule S against the plan? Are we on target?
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Stage 1
Stage 2
Stage 3
Examples
External Supply Schedule Adherence
What are we aiming for?
100%
80%
60%
40%
20%
0% 23 24 25 26 27 28 29 30 31 32 33
Supplier 1 Supplier 2
Supplier 3
Supplier 4
Supplier 5
Examples
WIP
9000 8000 7000 3.5 3
2.5
'000 5000 4000 3000 2 1.5 Stock Turns 6000
1
2000 1000 0 Nov 99 Jun 00 Sep 00 Oct 00 Nov 00 36951 37043 0.5 0
Examples
% TAKT ADHERENCE
130
125
120
115
110
105
100
95
90
85
80
75
70
65
60
55
50
45
40
35
30
25
20
15
10
5
DAY
DATE
SHIF T
Examples
Minutes to
complete Op 2
Step 3 - Assembly Managers review Weekly Performance withManagers. Cost accountability introduced. Focus on shift by shift performance.
M a nhours (S hift B)
3, 200 3, 000 2, 800
2,600
2, 400
2, 200
2, 000
J an D ec
Feb
M ar
A pr
M ay
J un
&
J ul
A ug
Sep
Oc t
N ov
Jan
Feb
M ar
A pr
M ay
Jun
Jul
Sep
Oct
Nov
Dec
60
P e r i od
40
YT D 9
16
17
18
19
1120
21
13
W eek
Out OfWJe ie g k V a r i a n c e t o 3 2 . 1 R e f r e sT h r ai ni ng Week D i s r upt i on I nt er nal B ud get Cu m ula tiv e B udget 32. 1
22
23
15
24
17 25
26
19 27
28
21
23
25
27
29
Disrupti
Step 5 Senior Management Team reviews Monthly performance Production Volume Senior level escalation plans. Hours per Set
350 300 250 200 6, 500 6, 000
250
2 1. 5 1 0. 5 0
Cost P e r S e t
150
5, 500
200
5, 000 4, 500
-0 . 5
150
4, 000 3, 500
100
-1
50 0 J an Sep Feb M ar A pr M ay J un J ul A ug Oc t N ov D ec
- 1. 5 -2
100
3, 000 2, 500
50
&
0 J an Oc t
Fe b N ov
Period Variance (32.1) J an Feb M ar A pr M ay J un J ul A ug Sep ct N ov D ec Cumulative Actual O A c tual Dis ruption ge 2 Stage 1 Sta Budget ( 32.1) Stage F 3orec ast FA L
2, 000
M ar A pr M ay J un J ul A ug Se p D ec
Step 6 - Site Cost Performance consolidated. Manufacturing Director reviews Factory Manager Performance. Forecasts of cost performance compiled to ensure corrective actions taken to achieve Budget. Risks & Opportunities monitoring and control.
-1, 000,000
Cumulative actual
Flip Chart
Monitor Progress To Plan And Take Corrective Action Form Improvement Teams
ACT
Form Team
PLAN
Collect Data
Score & Prioritise KEY Performance Indicators Identify owners and users
Train Users
Form Team
Define Local Performance Indicators Score & Prioritise KEY Performance Indicators
Form Team
Define Local Performance Indicators Score & Prioritise KEY Performance Indicators Identify Owners and Users
Example
KPI : Key Performance Indicator
4
5
28
29
30
31
Week
Handling
A B C D E F
Supplier
G H I J K L M
2
Owner:
Form Team
Define Local Performance Indicators Score & Prioritise KEY Performance Indicators Identify Owners and Users
Train Users
Form Team
Define Local Performance Indicators Score & Prioritise KEY Performance Indicators Identify Owners and Users
Collect Data
Train Users
Monitor Progress To Plan And Take Corrective Action Form Improvement Teams
Form Team
Define Local Performance Indicators Score & Prioritise KEY Performance Indicators Identify Owners and users
Collect Data
Train Users
Typical KPIs
KPI - examples
Quality Defects
(Defects per unit)
Target
1 Defects per unit 2 errors per unit
Errors
(errors per unit)
Cycle Time
(Hours per Unit)
Cost Manning (man hours per set) (Cost per unit) People Skill Level Training Hours
270 hours per unit 5,000 per unit 75% people trained to Practitioner Level 40 hrs per man per year
KPIs
SUMMARY
Direct relationship to business plan
Communicates progress against plan Drives continuous improvement Visual - provokes a response Effective - simple and easy to understand Ownership - relates to everyone Up to date - dynamic management