Performance Measurements

The first publication of the 5 Balanced Performance Measures (5BPM) was accomplished in a manual mode, using a Macintosh PC and spreadsheet software to produce the graphs. Data for the spreadsheet was collected by interrogating sources that ranged from paper files to mainframe databases, but all of it was transmitted in a paper medium. The sequencing and synchroniza­tion of this input data has proved to be the most problematic feature. After the graphs were outputted on a laser printer, collated copies were made and distributed via the office mail. The entire procedure typically took two weeks or more.

The obvious labor intensity of this process per­mitted only level A and a select few level B reports to be regularly produced. The prolifera­tion of graphs at the next two levels clearly signaled the necessity for greater automation, which is still underway. It requires that each of the measurement processes prepare software that accesses databases and executes charting routines per a coordinated, prearranged schedule. Cus­tomer requirements have caused this schedule to be more frequent at the lower levels because of the greater quantity of transactions that occur there. Then, a master program gathers each of the five graph types and electronically pastes them onto a single sheet of paper. In this way, the automated mode continues to display the charts in their now familiar balanced format. Aside from the capability to generate charts at all levels, the chief advantages of the automated mode are: more timely reporting, far less recurring labor expenditures and fewer omissions of data.

As the measures become available for more of the lower levels and the associated user community grows geometrically, the team has forecasted several upcoming conditions and is currently preparing to address them.

The demand for education regarding the 5BPM is expected to increase in volume, and at the same time, the area of questions will shift away from why and more toward the mechanics of what and how. Anticipating this need, a packet of graphic examples is designed to explain the Rules and to suggest how to improve each measure. It is explained and distributed with the first publication of the lower measures.

Although the lower measurement levels can suggest "where" to commit the limited resources for maximum benefit, they cannot hope to answer the question of "what" needs to be changed. Therefore, the team is promoting the development of meaningful diagnostics (by the functional support organizations) and the subsequent standardization of those that have the potential for broad application. The only stipulation imposed on diagnostics is that they utilize the same data sources as the 5BPM to ensure continuity for the analysis.

The rules must remain consistent, yet flexible to change when improved data/methods present themselves, or when changing business needs require. In response to this, a systematic means of Configuration Control has been adopted to solicit, review and reply to any submitted recommendations. If accepted, the team incorporates the suggestion at the next version release.

The need to expand the scope of the 5BPM into Fabrication as well as Assembly is recognized. Responding to this condition, a selected portion of the team members are proceeding with the development of Fabrication rules and definition of levels, while others on the team continue with their support to automate the measures in Assembly.

Lean Six Sigma Consulting   World Class Manufacturing   
Balanced Scorecards  Strategic Tactical Planning  
Supply Chain Inventory Management  Principles of Total Quality Management
  Manufacturing Process Improvement