Copyright © 2005 Metrilogics, LLC. All rights reserved.
Robust Production Management
Metrilogics
Front-line controls for b...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Definition of a Performance Distribution
v A Perfor...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of “Before and After”Analysis
Building on t...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Example of a Performance Distribution Template
1
En...
Copyright © 2005 Metrilogics, LLC. All rights reserved.
Metrilogics
TM
Module 8 Summary
v Performance Distributions allow ...
1
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Robust Production Management (RPM) Module 8: Performance Distribution

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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.

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Robust Production Management (RPM) Module 8: Performance Distribution

  1. 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. 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 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-8-performance-distribution-466
  3. 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 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-8-performance-distribution-466
  4. 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 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-8-performance-distribution-466
  5. 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 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/robust-production-management-rpm-module-8-performance-distribution-466
  6. 6. 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

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