This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here: http://flevy.com/browse/business-document/robust-production-management-rpm-module-8-performance-distribution-466 A performance distribution graph can depict amazing 'before and after' improvements in an organization - and best of all, they're easy to create. Cross reference them with performance framework bar graphs from corresponding "before and after" time periods (see RPM Module 2), and you'll have irrefutable evidence that your project has delivered "the goods" for your company or client. Robust Production Management (RPM) Module 8: "Performance Distribution" will show you what to do to prove to upper management that you - as a consultant or project manager - have, indeed, earned your salary for the year. "Performance Distribution" is the eighth module in the Metrilogics RPM management training series - more on the way.

1. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Robust Production Management
Metrilogics
Front-line controls for bottom-line savings.
TM
SM
Module 8:
Performance Distribution
By Lance Latham
Senior Managing Partner

2. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Definition of a Performance Distribution
v A Performance Distribution is a histogram that depicts the
performance of an operations team for a specific time period.
v A Performance Distribution groups team members into
performance “buckets”, with 1 bucket typically equal to 10, 20 or
25 percentage points of performance.
v A Performance Distribution enables managers to easily see how
their teams are (or aren’t) making progress toward achieving
objective performance improvement and cost reduction goals.
2
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3. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of “Before and After”Analysis
Building on the examples from the previous slides, assume a 73-
member production team has embarked on a process improvement
program to increase performance and reduce operating costs.
Process Quality, Productivity and Efficiency for the 1-year base
period and for the following 1-year post-improvement period are as
follows:
Process Quality 87.46% 98.46%
Productivity 49.25% 74.18%
Efficiency 34.86% 51.94%
Base Period Post Imp. Period
5
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4. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of a Performance Distribution Template
1
Enter team
member
names.
Enter individual team
member productivity
percentages.
2
3 Enter individual team
member efficiency
percentages.
Average of values in Step 2. 4 5
Average of values in Step 3.
8
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5. Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Module 8 Summary
v Performance Distributions allow managers to see where their
production team members fall within performance “buckets” of
Productivity and Efficiency, for a specified period of time.
v For a given production team, Productivity and Efficiency Distributions
will generally appear different from each other. This is due to the fact
that Productivity is calculated using paid Direct Hours, and Efficiency
is calculated using paid Total Hours (= paid Direct and Indirect Hours).
v When a production team genuinely begins operating in a more cost
effective manner, the average (mean) and range of a Performance
Distribution will shift to the right in the “After” scenario, and the
performance range narrows.
v When used together, Performance Distribution graphs and
Performance Framework graphs effectively “tell the story” of a
production team’s progress.
11
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