Operations Performance Measurement
Operational Performance Measurements are the key metrics which are used to measure the operational performance of a company.
Operational Performance Measurements are the key metrics which are used to measure the operational performance of a company. Different companies have different metrics to measure their own performance but few of the metrics are common across the entire business environment. Few of these metrics include:
Customer Satisfaction Index
Employee Satisfaction Index
We will develop and implement your new performance measurement system
Designed to meet real business needs and expectations
Driven by customer requirements
Success factors that drive results and improvement are defined
Expressed in numbers that enable performance to be tracked and the right action taken
Fast feedback so action is quick and meaningful
Specific quantification of performance factors that are not open to multiple interpretations
Proper balance and emphasis are clear
Understandable to the people who have to use the measurement system or be evaluated by it
Promotes company-wide involvement in continuous improvement
Clear linkage to cause and effect up, down and across the company
Operations Performance Measurement
Our approach to implementing Operations Performance Measurement embraces the following eight elements:
Create an Inspiring Vision - If you wish to create a high-performance organisation, then it is essential that all members of the organisation are focused on achieving the same goal and the simpler, more focused, and more inspirational the goal, then the greater the chance that it will be achieved.
Use a Small Number of Easily-Understood Performance Measures - When it comes to Performance Measures, less is definitely more!
A balanced set of measures is essential - We apply a Balanced Scorecard approach to ensure that appropriate behaviours are motivated
Performance Measures are most powerful in the hands of those who can influence the outcomes - This leads us to the realisation that the performance measures that should be reported will be different at different levels within the organisation
What you measure is less important than how you decide what to measure - Only if a high level of ownership of the selected measures is obtained will meaningful performance improvement take place.
A measure without a target is meaningless - Only when targets are in place, can everyone understand the gap between current and desired performance.
Be aware of the natural variability of any process - Understanding the natural variability of performance is important in allowing us to focus on the things that deserve our attention
Make sure you Close the loop - The final vital step in establishing an effective performance management system is to ensure that the control loop is effectively closed.
- Reducing Variability in Operations Through Six Sigma
- Reduce operating costs
- Improve product quality simply by reducing operational variability
- Increase Production by Applying the Theory of Constraints
- Eliminate Waste through the Application of Lean Concepts
Our approach to Operations Strategy Development
- Holistic - incorporate all aspects of Operations, and its relationship with the remainder of the organisation
- Motivational - it must build high levels of commitment and momentum towards achieving the desired outcomes
- Focused - it must ensure that efforts are focused on progressing those activities with the biggest returns for effort expended
- Measurable - it must permit the identification, measurement, and capture of benefits accruing from implementation of the operational improvement activities
- Directive - it should clearly outline the activities, roles, and responsibilities of all involved in the Operational Improvement effort.