Performance Measurements

Organizations often use a performance metrics system that only provides point to point comparisons. For example, the currently monthly profitability of a business might be compared to last month. Any movement that is not desirable often leads to a search for what happened.

This what-happened investigation can result in the treatment of common cause variability as though it were special cause. Wasteful firefighting often is a result of traditional metric report-outs and nothing positive happens relative to making a metric improve over time.

A 30,000-foot-level predictive reporting methodology addresses this traditional metric reporting format shortcoming. With 30,000-foot-level metric reporting, a predictive statement assessment is made. If a process output performance is stable and the futuristic response is undesirable, this metric desirable shortcoming pulls for the creation of a process improvement effort that enhances the measurement’s response.

Enterprise Performance Reporting System (EPRS) software provides a means to easily create 30,000-foot-level report outs. A statistical shift in the time-series portion of a 30,000-foot-level metric is an indicator that the process output changed, either to the betterment or degradation. When this happens a new predictive process statement can then be made using this software.

Enhanced Key Performance Indicators In Business Reports

Key Performance Indicators, Performance Measurements /

Key Performance Indicators (KPI’s) are being used as financial and non-financial measures or metrics that are to help organizations define and evaluate their progress towards long-term goals. However, metrics that focus on performance to goals are subject to being changed over time as objectives/leaders change and are also dependent upon management opinions or intuition at some point in time. A system that resolves this issue applies at the enterprise level such statistical analytical and non-statistical tools as Lean, Six Sigma, and Theory of Constraints (TOC) with a blending of innovation. This system centers on first creating an effective long-lasting, value-chain, non-siloed measurement system that has predictive metrics. This system, when integrated with strategic planning and business improvement efforts, can help organizations move toward achievement of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time.

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Enhancement of Performance Measurement Tools

30000-foot-level Predictive Metrics, Performance Measurements /

Many organizations struggle to get their efforts completed on time because of routine “Firefights” keep coming up and taking all the free time away if not delaying currently planned work. No matter how it is addressed, the problems continue to return. In this book excerpt, there is a discussion of the reasons they come back that is related to the methods used to monitor performance to specification. This is an excerpt from his first book in the Integrated Enterprise Excellence four book series.

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Enhancing Balanced Scorecard Key Performance Indicators

Enhanced Balanced Scorecard Reporting, Performance Measurements /

The Balanced scorecard, was presented in a 1992 Harvard Business Review article by Kaplan and Norton. Many organizations has adopted this idea into their business practices with a wide range of success levels. In the Integrated Enterprise Excellence (IEE) system book, Forrest Breyfogle examines the benefits and true problems with the Balanced Scorecard as currently documented and provides ideas how to use the concept without any of the clear issues. This is an excerpt from his first book in the Integrated Enterprise Excellence four book series.

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Enhancing Balanced Scorecard Metrics

Enhanced Balanced Scorecard Reporting, Performance Measurements /

The balanced scorecard, was presented in a 1992 Harvard Business Review article by Kaplan and Norton. The balanced scorecard tracks the business in the areas of financial, customer, internal processes, and learning and growth. It is important to have scorecard balance because if you don’t have balance you could be giving one metric more focus than another, which can lead to problems. For example, when focus is given in a scorecard to only on-time delivery, product quality could suffer dramatically to meet ship dates. However it is important that care be given in how this balance in scorecards is achieved. A natural balance is much more powerful than forcing balance through the organizational chart using a scorecard structure of financial, customer, internal business process, and learning and growth, which may not be directly appropriate to all business areas. In addition, we need to keep in mind that a scorecard structure that is closely tied to the organization chart has an additional disadvantage in that it will need to be changed whenever significant reorganization occurs.Integrated Enterprise Excellence (IEE) is a sustainable business management governance system, which integrates business scorecards, strategies, and process improvement so that organizations move toward the three Rs of business (everyone is doing the Right things and doing them Right at the Right time). IEE is a system that goes beyond Lean Six Sigma and the Balanced Scorecard.

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Enhancing Process Capability Indices Cp and Cpk Reporting

Performance Measurements, Process Metrics /

Measurement issues can be prevalent at all levels of an organization. To add to this dilemma, the basic calculation and presentation of metrics can sometimes be deceiving. Organizations often state that suppliers must meet process capability objectives, typically measured in Cp, Cpk, Pp and Ppk. The requesters of these objectives often do not realize, however, that these reported numbers can be highly dependent upon how data is collected and interpreted. Also, these process capability metrics typically are utilized only at a component part level. To resolve these issues, practitioners need a common, easy-to-use fundamental measurement for making process stability and capability assessments at all levels of a business, independent of who is making the assessment – something beyond Cp, Cpk, Pp and Ppk.

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Understanding and Enhancing Process Capability Cpk Reporting

Performance Measurements, Process Metrics /

Cpk is one of many capability metrics that are available. When capability metrics are used, organizations typically provide a Cp and a Cpk. In this paper we will discuss the mechanics of these two capability metrics, along with the pros and cons. In summary, the Cpk can provide insight on performance to a requirement if the process data used in the calculation comes from a normal distribution. If the process data is non-normal or it is the result of a combination of processes (a mixture of processes) then it provides an underestimation of the true non-conformance capability.

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Process Capability Analysis Cpk: Understanding and a Better Way

Performance Measurements, Process Metrics /

Have you always liked capability metrics, such as Cp and Cpk, and wondered what they really said? Well maybe you are not loosing sleep over this issue, but like many statistics, capability metrics are used without a full understanding of their message. View this webinar and continue your process improvement knowledge as we discuss each of these three questions. We will focus on the application rather than the theory of these capability metrics. Yes, there will be equations and such, but only in regards to explaining the concepts.

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