Improve Productivity by <br />Improving the Performance Chain<br />Sue Gillman<br />Partner,  Aveus <br />
How healthy is your performance chain?<br />
Definition<br />A performance chain is the things, people, and ideas that have to move from the moment you trigger demand ...
Four lenses to measure the health of any performance chain<br />Speed<br />Predictability<br />Flexibility<br />Leverage<b...
Why are these lenses so important?<br />
Performance chain lens: Speed<br />Increase the velocity of all core processes. <br />Examples: cycle time, time to market...
Performance chain lens: Predictability<br />Quality and repeatability of external and internal processes.  <br />Examples:...
Performance chain lens: Flexibility<br />Reduce the time to convert processes to meet dynamic customer demands. <br />Exam...
Performance chain lens: Leverage<br />Do more with existing resources and capital assets.<br />Examples: overall equipment...
Performance chain lenses<br />Applying these four lenses as a system improves productivity enterprise-wide. <br />Increase...
See the whole, then mine the meaningful.<br />
Performance chain leadershipis a systems-based approach.<br />
Global issues<br />Getting to market faster<br />Reducing costs<br />Increasing profit<br />
Financial results and operating problems are often connected.<br />
CASE STUDY: FY11 savings (Goal $100M)<br />$119M Total Savings Value Stream<br />Transformational work and benefits across...
Performance chain viewof project contributions<br />              Post-Sales<br />      Fulfill-to-Cash<br />       Source...
Examples in Asia<br />25% reduction in product lead-time and a 12% increase in output that strengthened the company’s abil...
Top performing                                     leaders…<br />will see and act on the <br />whole performance chain.<br />
Manage the whole performance chain by<br />starting with what customers ask of you<br />Speed<br />Run like a cheetah<br /...
THANK YOU <br />Can you see the whole and mine the meaningful?<br />
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Improving productivity by improving the Performance Chain - 2nd Singapore Productivity & Innovation Conference presentation

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Improving productivity by improving the Performance Chain - 2nd Singapore Productivity & Innovation Conference presentation

  1. 1. Improve Productivity by <br />Improving the Performance Chain<br />Sue Gillman<br />Partner, Aveus <br />
  2. 2. How healthy is your performance chain?<br />
  3. 3. Definition<br />A performance chain is the things, people, and ideas that have to move from the moment you trigger demand to the time you have cash in the bank.<br />
  4. 4. Four lenses to measure the health of any performance chain<br />Speed<br />Predictability<br />Flexibility<br />Leverage<br />
  5. 5. Why are these lenses so important?<br />
  6. 6. Performance chain lens: Speed<br />Increase the velocity of all core processes. <br />Examples: cycle time, time to market, days cash outstanding.<br />
  7. 7. Performance chain lens: Predictability<br />Quality and repeatability of external and internal processes. <br />Examples: records accuracy, process yield, customer satisfaction.<br />
  8. 8. Performance chain lens: Flexibility<br />Reduce the time to convert processes to meet dynamic customer demands. <br />Examples: changeover, segment customization.<br />
  9. 9. Performance chain lens: Leverage<br />Do more with existing resources and capital assets.<br />Examples: overall equipment effectiveness, inventory turns, utilization.<br />
  10. 10. Performance chain lenses<br />Applying these four lenses as a system improves productivity enterprise-wide. <br />Increase the velocity of all core processes. <br />Examples: cycle time, time to market, days cash outstanding.<br />Speed<br />Quality and repeatability of external and internal processes. Examples: records accuracy, process yield, customer satisfaction.<br />Predictability<br />Reduce the time to convert processes to meet dynamic customer demands. Examples: changeover, segment customization.<br />Flexibility<br />Do more with existing resources and capital assets.Examples: overall equipment effectiveness, inventory turns, utilization.<br />Leverage<br />
  11. 11. See the whole, then mine the meaningful.<br />
  12. 12. Performance chain leadershipis a systems-based approach.<br />
  13. 13. Global issues<br />Getting to market faster<br />Reducing costs<br />Increasing profit<br />
  14. 14. Financial results and operating problems are often connected.<br />
  15. 15. CASE STUDY: FY11 savings (Goal $100M)<br />$119M Total Savings Value Stream<br />Transformational work and benefits across the performance chain<br />Post-Sales<br />Lead-to-Quote<br />1<br />Quote-to-Source<br />2<br />Source-to-Fulfill<br />3<br />$119M Total Savings Category<br />Fulfill-to-Cash<br />4<br />Post-Sales <br />5<br />Other<br />6<br />
  16. 16. Performance chain viewof project contributions<br /> Post-Sales<br /> Fulfill-to-Cash<br /> Source-to-Fulfill<br /> Quote-to-Source<br /> Lead-to-Quote<br />7 Projects Contributing $38M in improvements<br />6 Projects Contributing $24M in improvements<br />4 Projects Contributing $5M in improvements<br />7 Projects Contributing $20M in improvements<br />9 Projects Contributing $31M in improvements<br />
  17. 17. Examples in Asia<br />25% reduction in product lead-time and a 12% increase in output that strengthened the company’s ability to meet - and exceed - dynamic customer needs. <br />31% increase in supply chain capacity allowed leaders to immediately avert $30 million dollars in capital investment.<br />Designed and led a customized education program to increase capital leverage.<br />Increased capacity to reduce capital expenditure. Savings of $7 million.<br />Reduced customer wait times by increasing capacity by 53%.<br />Increased predictability of daily shipments by increasing capacity on one tool by 48% and capacity on another by 28%. Shorter lead time provided flexibility to meet demand changes.<br />Improved leverage of all capital equipment with a 30% increase in throughput.<br />© 2011 Aveus, LLC. All rights reserved.<br />17<br />
  18. 18. Top performing leaders…<br />will see and act on the <br />whole performance chain.<br />
  19. 19. Manage the whole performance chain by<br />starting with what customers ask of you<br />Speed<br />Run like a cheetah<br />Predictability<br />Develop the memory of an elephant<br />Flexibility<br />Be like a monkey<br />Leverage<br />Move that rubber tree<br />
  20. 20. THANK YOU <br />Can you see the whole and mine the meaningful?<br />

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