This document discusses selecting performance measures for process improvement. It explains that measures should link to critical customer requirements and business objectives. Input, process, and output indicators are identified by analyzing supplier inputs, internal processes, and delivered outputs. Relationships between indicators are mapped to understand how changing one affects others. The ideal measures are easy to collect, predict outputs, and drive appropriate actions. Teams should select a few key indicators at meaningful process points to monitor performance and identify improvement opportunities.
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2 1 Determine Measure Vsw Edits(Rev)
1. Measure Performance – 2.1 Presented by: Stephen Griffin, CEO Determine What to Measure
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3. Performance Measures: Achieving Customer Value Important decisions based on linking customer expectations to process performance Suppliers Process Inputs Business Processes Process Outputs Critical Customer Requirements Market Input Measures Process Measures Output Performance Measures Customer Value Good process decisions require comprehensive process data.
4. Process Elements and Indicator Relationships Suppliers : Inputs : Start Boundary ____________ Outputs : Customers : End Boundary ____________ Process
7. Process Output Indicators: CCRs and CBRs Output Indicators VOB ________ ________ CBRs ________ ________ Business Issues ________ ________ CCRs ________ ________ VOB - Voice of the Business CBR - Critical Business Requirements VOC - Voice of the Customer CCR - Critical Customer Requirements CCR’s ________ ________ ________ _________ ________ ________ ________ _________ VOC ________ ________ ________ _________ Customer Issues
8. EXAMPLES: CCR and C BR CCRs Output Indicators CBRs ________ ________ ________ ________ CCRs Price/Unit Delivery Time Dimensions Purity Reliability Color Service Level CBRs Cost/Unit Productivity Compliance with Regulations Changeover Time Safety Training Hours Critical to: The Business The Regulator The Employees Critical to: The Customer The Market
9. Success Derived from Project Focus Example: Medical Diagnostic Tube Life y 1 Oil Dielectric Quality GTD-3 y 2 Focal Spot Control GTD-7 y 3 Generators Spits GTD-17 y 4 Rotor Failures GD-14 y n Top level Y is big enough to be seen at OBU level – an operational business objective. Frequently the parent project does at least a verification of this top level Y with the customer. x 4,1 x 4,2 x 4,3 x 4,4 x 4,N After eight (8) projects From January ’05 to May ’06 the average tube life doubled. x 3,1 x 3,2 x 3,3 x 3,4 x 3,N x 1,1 x 1,2 x 1,3 x 1,4 x 1,N x 2,1 x 2,2 x 2,3 x 2,4 x 2,N
29. Link Output Performance to Process & Input Indicators Relationship of process & input measures Strong Relationship Medium Relationship Weak Relationship No Relationship Blank Output Performance Indicators Process & Input Indicators Call Abandon Rate Customer Satisfaction Answer Speed Employee Experience First Time Resolution The strength of the relationship is based on how likely changes in the input/process measure will cause changes in the output performance measure.