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Robust Production Management (RPM) Module 1: Performance Culture
 

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This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:

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-1-performance-culture-459


Culture - it means something COMPLETELY DIFFERENT in the business world vs. "the arts." In Robust Production Management Module 1 "Performance Culture," you'll learn more about the foundational elements of a strong "top-down / bottom-up" performance culture - and how it can drive profitability at any company, of any size, in any business sector, in any economic climate. "Performance Culture" is the first module in the Metrilogics RPM management training series - more on the way.

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Robust Production Management (RPM) Module 1: Performance Culture Presentation Transcript

  • 1. Copyright © 2005 Metrilogics, LLC. All rights reserved. Robust Production Management Metrilogics Front-line controls for bottom-line savings. TM SM Module 1: Performance Culture By Lance Latham Senior Managing Partner
  • 2. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Two Definitions of Culture v Traditional definition: “The ideas, customs, skills, arts, etc. of a given people in a given civilization; socially refined ways of thinking, talking and acting.” v Organizational behavioral model definition: “The combination of desirable behaviors that an organization cultivates and rewards, and the undesirable behaviors that are deemed detrimental to the organization’s success, and are discouraged.” For the purposes of this module, we will focus on the organizational behavioral model definition of Culture (the second bullet, above). 2 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-1-performance-culture-459
  • 3. Performance Culture Element #2: Includes the effective coordination of both direct and indirect time. Direct Time: Paid time dedicated to performing primary or core customer work. Indirect Time: Paid time not dedicated to performing core customer work. Indirect time can include: v Project time v Meetings v System downtime v Classroom training v Sick time v Vacation v Holidaysv Equipment changeovers v Paid breaks v PTO (if paid) v STD (if paid) v LTD (if paid) Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM 5 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-1-performance-culture-459
  • 4. Func. a Func. b Func. c Func. d Func. e Func. f Func. g Func. h Func. i Func. j Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Dept. A Dept. B C Dept. D E CC I. CC II. CC III. Team Leader / Supervisor Manager / Sr. Manager Director / Sr. Director VP / Sr. VP KEY = Metrics are accurate, complete, fully-defined = Some metrics available, but others are missing or incomplete, categories are mixed, etc. = Metrics completely missing, not tracked Roll-Up Gap Corp. LOB C-Level Officers / Board • Data Is DESCRIBED INTERCHANGEABLY Using Line of Business vs. Product vs. Co. vs. System Names Across Functions and Management Levels • Data Is Assigned • Differing Reporting FREQUENCIES (some data is reported daily, some weekly, some monthly, some quarterly) • Differing Reporting FORMATS (graphs vs. reports) • The Automated Reporting and Graphing Tools (and Corresponding User Skill Sets) That Do Exist Reside In Areas EXTERNAL to Operations and Sr. Management Poor Bottom-Up Operations Data and The “Roll-Up Gap” Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Weak and/or incomplete operational data = ineffective top management that’s out of touch with the organization. • Operational Definitions Differ Across Functions As To WHAT To Count and Report • Operational Definitions Differ Across Functions As To HOW To Count and Report • Operational Definitions Differ Across Management Levels As To HOW To Count and Report • Metrics Data Resides In MULTIPLE LOCATIONS, Across Depts. • Erroneous, Incomplete Data • Under VARIOUS COMPANY NAMES (e.g., pre- acquisition vs. post-acquisition) 8 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-1-performance-culture-459
  • 5. Real-World Examples of “Before and After” Benefits of a Strong Corporate Performance Culture (cont.) Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Before After In terms of team payroll $’s spent by category in the “After” scenario… vStraight time costs vOvertime costs virtually disappear vTotal payroll costs 11 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-1-performance-culture-459
  • 6. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Real-World Examples of “Before and After” Benefits of a Strong Corporate Performance Culture (cont.) AfterUnit Cost Dollars Before …Unit Costs As Quality, Productivity, and Efficiency ... 14 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-1-performance-culture-459
  • 7. Copyright © 2005 Metrilogics, LLC. All rights reserved. Metrilogics TM Preview of Module 2: Performance Framework In the next module we will look at an effective framework that enables managers to accurately assess their organization’s true performance, and identify and quantify cost-saving operational improvement opportunities. Module 2 will examine: v Direct vs. Indirect time v The concept of Earned Work Credit Hours (sometimes referred to as Standardized Hours) and how to calculate them v How to calculate performance, including the difference between: o Productivity o Efficiency 17 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-1-performance-culture-459
  • 8. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com