Performance Measurement Tools

Transcription

1 Performance Measurement Tools Quality Management Systems Ph ext.2009

2 4.1a Establish Company Goals and Key Requirements Customer Satisfaction Key Requirements Company Goal: Customer Satisfaction Stakeholder: Customers Employee Satisfaction Key Requirements Company Goal: Employee Satisfaction Stakeholder: Employees Vendor Satisfaction Key Requirements Company Goal: Vendor Satisfaction Stakeholder: Vendors Shareholder Satisfaction Key Requirements Company Goal: Shareholder Satisfaction Stakeholder: Shareholders Modern Management Practices Key Requirements Company Goal Key Requirements 1. Competitive pricing 2. Product availability 3. Accurate, intact shipments 4. Friendly, courteous, respectful, ethical service 5. Product selection 6. Easy to do business with 7. Fast delivery 8. Knowledge 9. Timely, relevant, quality, marketing communication 10. Industry support Company 1. Good salary and benefits 2. Job Security 3. The right tools and support to do my job 4. Advancement opportunities 5. Opportunities to utilize my knowledge, skills and abilities in my job 6. Clear communication of goals, expectations, and direction by management 7. Meaningful, satisfying job assignment(s) 8. Decision making authority in my job 9. Friendly, courteous, respectful, ethical environment 10. Honest, constructive feedback on my work 1. Friendly, courteous, respectful, ethical relationship 2. Easy to do business with 3. Timely payment 4. Candid two way communication 1. Financial performance 2. Support the NRA and Second Amendment 3. Industry support 1. Receive Malcolm Baldrige National Quality Award 2. Receive Missouri Quality Award 3. ISO Registration 4. Six Sigma Green Belt Certification

3 4.1b - Link Goals and Requirements to Department and Individual Scorecards Company Goals Company Requirements Department Scorecard Individual Scorecard Product Availability In-stock Rate In-stock rate by product line Customer Satisfaction Accurate, Intact Shipments Shipping package quality Fast Delivery Package quality rate Picking error rate Easy to do business with Abandoned Calls Ship QC invoices per hour

4 4.1b - Review Key Company Scorecard Measures Company Key Measures 2009 YTD Actual 2009 YTD Goal December /Q4 December/ Q4 Goal Customer Satisfaction - Overall % 92.0% 93.0% 93.0% Employee Satisfaction and Engagement 79.5% 82% N/A N/A na na na na na na na na na na na Vendor Satisfaction 91.5% 90% 94.1% 90% Gross Sales - Overall $xxxxxx $xxxxxx $xxxxxx $xxxxxx Net Income % of Net Sales 12.5% 10.0% 4.3% 11.7% Earnings Distribution 100.0% 100% 100.0% 100% A Timely Payment of Earnings 42.0% 100% 100% 100% na na na na Inventory Turns (Paid) A Baldrige Score 100% 100% 100% 100% Strategic Plan Execution 92.0% 95% N/A NA na na % of Customer Orders with NRA Round-Up 59.8% 62.5% 58.5% 62.5%

5 4.1b Department Scorecards Measure Key Processes based on ISO Process Maps Logistics Process Scorecard Area Process Section Process Measures YTD January/Q1 Actual Goal Actual Goal Stocking Cost per Invoice - Stocking $X.XX $X.XX $X.XX $X.XX $X.XX Cost per Line - Stocking $X.XX $X.XX $X.XX $X.XX $X.XX Receiving Cost per Invoice - Receiving $X.XX $X.XX $X.XX $X.XX $X.XX Receiving Same Day 99.4% 98.4% 95.0% 98.4% 95.0% Shipping Same Day Shipping 98.9% 99.6% 99.0% 99.6% 99.0% Shipping Package Quality 99.7% 99.9% 99.8% 99.9% 99.8% Shipping Accuracy 97.3% 97.7% 97.0% 97.7% 97.0% Cost per Invoice - Shipping $X.XX $X.XX $X.XX $X.XX $X.XX Warehouse Cost per Invoice - Warehouse $X.XX $X.XX $X.XX $X.XX $X.XX Cost per Line - Warehouse $X.XX $X.XX $X.XX $X.XX $X.XX Process Management ISO Corrective Action 100.0% 100% 100% 100% 100%

6 4.1b Measure Strategic Objectives which support and align with Company Goals Strategic Objectives Year End Results 1. Grow the business Goal: Grow sales by 20% 26.5% 2. Improve website performance, Customer interface and overall value Goal: Improve CS Survey Question "Ease of finding what you are looking for" to 85% 89% 3. Improve Customer satisfaction and loyalty Goal: Improve Overall Customer Satisfaction Survey Results to 93% 93% 4. Improve efficiency in key areas Goal: Reduce Operations Cost per Order from $X.XX to $Y.YY Y.YY 5. Improve availability of data and information Goal: Expand Deployment of Vendor Satisfaction Survey and Achieve Vendor 91% Satisfaction of 90% 6. Improve quality in key areas Goal: Receive Baldrige Award Received

7 4.1a3 and 4.1c Align and Integrate Company Goals, Processes and Action Plans for Sustainability Key Process Area Process Measure Fig # Value Key Requirement Stakeholder Logistics Shipping Same day shipping Customer Value Fast delivery (7) Customer Shipping accuracy Customer Value Accurate, intact shipments (3) Customer Package quality Customer Value Accurate, intact shipments (3) Customer Total Cost per invoice AOS Profitability Financial Performance Shareholder Marketing Publications Response rate-flyer Customer Value Timely, relevant, quality, marketing communication (10) Customer Response rate-m catalog Customer Value Timely, relevant, quality, marketing communication (10) Customer Merchandising Product Selection Management Number of new products Customer Value Product selection (6) Customer Inventory Management In-stock rate Customer Value Product availability (2) Customer Pricing Management Competitive pricing Customer Value Competitive pricing (1) Customer Product Selection Management Gross Sales Growth Sustainability Financial Performance Shareholder Pricing Management Net Income Percent of Net Sales Financial return Financial Performance Shareholder Inventory Management Inventory turns Profitability Financial Performance Shareholder Earnings Distribution Financial return Financial Performance Shareholder Order Taking Floor Operations Time Service Factor Customer Value Easy to do business with (4) Customer Floor Operations Abandoned Calls AOS Customer Value Easy to do business with (4) Customer Results Management Total cost per call AOS Profitability Financial Performance Shareholder Results Management Total cost per order Profitability Financial Performance Shareholder

8 4.1a(3), 4.1b Deploy Measurement Tools through integrated organizational review Detailed Area Performance Measure Area Key Process Measures Supervisor Daily Review Monthly DLT Review Department Scorecard Monthly Review with President Company Scorecard Monthly SLT Review

9 Process Input Documents Description Output Participants Tollgates Results Survey results for Stakeholder key Key requirements' performance, Key Results gathering and requirements and related process measure and key process performance analysis (as appropriate) results update Results Presentation DLT and others DBM Results Results review with High level review of under Process scorecards Review Department's performance President performing processes President and VP Monthly meeting Results Review Results Presentation Company Goal Performance High level review of under performing processes (Process owner notified) Process owner to analyze with DLT SLT DLT, Supervisors Monthly Results Review DBM Results Process Management Process analysis Key measures Process performance Process balanced scorecard DLT, others DBM PM Process Management Process Balanced Scorecard Key and Support Process performance Processes that are Monthly Process underperforming, Root cause DLT, SLT Management identification Corrective Action (Kaizen, DAP, DLT CAP) DBM PM Strategic Planning Strategic Objectives Strategic Planning Strategic Plan Review MS, Company Goals, SWOT, Core Input from Board Strategic Objectives competencies enc es CEO, President MS, Company Goals, SWOT, Core Analysis to validate Strategic Objectives competencies, Capacity and Capability, Senior leaders with and their alignment with SOs and DAPs and CAPs Training needs analysis, Customer DLTs Company Goals listening posts, CAPs Company Strategic Plan Review the plan to balance stakeholder needs and identify blind spots Strategic Objectives and Approved APs SLT DBM SP Monthly Strategic Planning meeting Customer Focus Customer Focus Customer Focus Knowledge Management Knowledge Management Workforce Focus Workforce Focus Customer Groups, Customer key communication mechanisms, Market segments, C sat results, Loyalty & Retention measures Customer Groups, Customer key communication mechanisms, Market segments, C sat results, Loyalty & Retention measures Review Knowledge transfer, CKMs, Performance measurement system EKRs, HR scorecard, 3yr Capacity plan from SPP, E sat results, Succession plan Analyze data and information to improve market place success Review the information evaluate the organizational performance measurement system Analyze to EKR performance Results and other Documentation for QCF Needed improvements Recruitment initiatives and other actions (APs, Kaizens) to achieve SP and satisfy EKRs Workforce Focus Workforce plan Review workforce plan Approved workforce plan SLT QWF DLT SLT SLT DLT DBM CF (ME,MK) QCF QKM DBM

10 Customer Key Requirements - Employee Key Requirements - Vendor Key Requirements - Shareholder Key Requirements - Sustainability - Leadership System Diagram Focus on Results and Creating Value Systems Perspective Societal Responsibility Set Direction CEO and Board of Directors provide vision and direction: Performance Measurement System Key Link in Leadership System Mission Statement Company Goals Code of Conduct Stakeholders Shareholder Requirements Company Culture Visionary Leadership Create Plan to Achieve Management By Fact Measure Results How do we gauge performance and improvement? Company Key Measures Key Process Balanced Scorecard Company Goals Results Presentation Department Scorecards Individual Performance Measures Stakeholders Company Goals Customer Satisfaction Employee Satisfaction Vendor Satisfaction Shareholder Satisfaction Senior Leaders create a strategic plan to achieve the vision and direction: Strategic Objectives (CEO/President) Company Strategic Plan (Senior Leadership Team) Department Strategic Plans (Department Leadership Team) Master Planning Calendar Meetings Capacity Planning Succession Planning Customer Driven Excellence Modern Management Practices Managing for Innovation Learning & Growth Communicate/Deploy How will we maintain a focus on continuous improvement? Senior Leaders deploy the vision and direction: Focus on the Future Process Management and Improvement (ISO, Lean, Six Sigma) Modern Management Practices (Baldrige) Innovation Knowledge Sharing Leadership Development University of Midway Examiner Participation State of the Business Meeting Department Knowledge Sharing Meetings Department Baldrige Meetings Intranet Mentoring Strategic Planning Bulletin Boards Guests to Master Planning Calender Meetings Company Trips Organizational and Personal Learning Valuing Workforce Members and Partners Agility