Operational Measurement

As organizations we must be the most fit, the most adaptable, flexible, responsive, intelligent, effective, reliable, trustworthy suppliers. Company performance must be measured on long term factors that ensure that we can stay ahead of the competition. An obsession with quality and a total commitment to continuous improvement are necessary.

This is the exact opposite of traditional performance measures such as performance to budget, the focus on short term results, efficiency and utilization.

As individuals, we can also only survive by being the best that there is. There are fewer jobs today as companies are doing better with fewer people. Just as organizations must be globally competitive, so must we as individuals, in order to remain employed. We must be the most fit, the most adaptable, flexible, responsive, intelligent, effective, reliable, trustworthy employees. Today we are in competition to keep our jobs, and the global competition is getting tougher each day. Our educational system needs to be globally competitive if we are to keep good jobs.

There are two fundamental aspects to any business, planning and control. Good leadership provides for both. In a manufacturing company the elements of good planning include good market information, realistic scheduling, accurate product information, and clearly defined performance measurement targets. The elements of Control in a manufacturing company include effective teamwork, a total commitment to quality, processes that are consistent and controlled, and quick response to customer needs. In North America, companies have traditionally concentrated on the planning aspects. In Japan, companies have focused on the control aspects. In the new global marketplace the winners will be those companies that manage to do a good job of both areas, planning and control.

Key measures of organizations include personnel, strategy and culture. Personnel oriented measurements include the characteristics of personnel and management practices relating to personnel. Measurements of strategy include the deployment of the organizational vision and mission, customer focus, and planning. Measurements of the culture of an organization include morale, equality, policies, and practices. Each of those areas must have key measures defined and then must be measured.

Checklists to measure these key areas have been developed, and are available to session participants as tools that they can take back with them to assess worker skills, organization's potential for continued success, and the culture within the organization. These checklists are independent and can be used for self assessment and measure improvement. They can be used to diagnose areas of weakness and can be used for benchmarking.

Winning, in war or business, requires a winning attitude that is reflected in the organization, the people and the technology. Overall a realistic understanding of the capabilities of our own organization plus the best possible knowledge of the capabilities of our competitors is necessary to achieve success. We believe that to be world class, you must continue to strive for increases in your own, and your organization's capabilities, and measure those abilities on a continuing basis. These checklists provide a simple and effective means to do this.

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