Reports: Maximizing Metrics


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  • Good Morning. As Dan stated I am the Manager of BPO Operations for Skywire Software in Atlanta. In English that means I manage the data processing, printing, finishing (both Gunther and Manual finishing) and warehouse teams. For most of you, I do what you do. Most of you may know us as Docucorp International. We completed our merger with Skywire software in Feb. of this year. In an effort to move away from the stigma that a transactions or business communications item is a physical document we dropped the Docucorp name. Business communications are so much more then a printed transaction or mail piece. We are not going to talk about that this morning. I think enough has been said already about where we are going. I am here to help you today. Since over 90% of insurance customer’s today use Docucorp software, we are likely already software partners. So in the spirit of partnerships I am going to share with you today in an effort to help you and your team make effective business decisions based on data you should already have at your fingertips. Gunther first asked me to give a presentation on Reports: What you need and what you don’t. In preparing for my presentation I quickly realized that I don’t know enough about what is going on in your production facility to tell you what reports you do or do not need. Instead, I am going to help you Maximize your Metrics. If you don’t have any metrics available or do don’t know where to start we will also cover that this morning. <NEXT>
  • If you don’t know what metrics you need to be measuring we are going to start at the beginning. We will cover: why we generate metrics or reports How to design the best metrics for your organization’s needs Who do we generate reports for. What metrics we should report And when to report them. We will then go over how to get started. After all that I will share with you how to get more from your Gunther by showing you how to measure your Overall Equipment Effectiveness (OEE). And then finally we will get into what I think most of you were hoping for and that is examples of reports. I will also show you where to get the information from. If I am successful today, you will be able to go home and begin the process of identifying what you need to report on and have the tools to begin maximizing your own metrics. So let’s get started.
  • Who, What, When, Why, and How? Why do we generate reports? Reports are used to understand the current limitations of your organization. We tend to know at a high-level what our problems are such as our error rate is high, turn-around time is not meeting our customer or company needs, overtime is running at 10% or the Gunther is not running at 13,000 an hour. But we tend to not have enough information to understand the causes for the problems or how to achieve improvements. Sometimes we try and fix a problem but all we do is create new problems within our organizations. Metrics are the first and last word for running a top-notch organization. First you must measure your current performance to see where improvement is needed. Next you deploy improvement projects along with metrics to track progress. Last, but not least, use metrics to measure on-going performance to provide early warning of abnormalities.
  • How do you design the best metrics for your organization? Why recreate the wheel? Lets’ not measure something that is not important to the company. Begin by using the organization's strategic goals as the foundation. Review these goals carefully and choose metrics that will show whether you are meeting your goals and where any issues lie. It is important that all metrics be useful rather than a burden to those needing the information.
  • Let’s look at the following. These are characteristics of good metrics : - Support the achievement of the organization's strategic goals - Don't waste time on metrics that are not aligned with these goals. - Few in number - Too many metrics can dilute the impact of the important ones in addition to being a burden to produce. - Easy to use - No one wants to spend a lot of time trying to understand the information that has been gathered. Use visuals such as charts and graphs that quickly show successes and issues. - Provide quick feedback to those that need it - Delayed feedback often looses meaning because it severs the connection between cause and effect. Information should be distributed promptly to all who impact the results, including appropriate management personnel and customers. Be honest with your reports, even when it hurts.
  • Who do we generate reports for? Reports are needed for everyone that as an interest in the strategic goals and objectives Provide reports to all that can use the information But first we should be providing reports for ourselves. As employees of our company, we should want to know how we are performing or managing before someone tells us what our metrics would have told us. Beyond that, we provide reports for our customers, company, division, department, manager, and employees. External teams such as vendor service technicians. After all, they are just as much a key to your success as your employees. Again, reports should be generated for everyone that has a need for the desired information and who can use the information to make improvements.
  • What metrics to report? Let’s revisit our characteristics of good metrics. We should report metrics that support our Organization's strategic goals: Profitability Increase in customers annually Reduce customer turn-over rate Improve turn around time Reduce operating expenses: Overtime usage Rework Machine down time Workflow inefficiencies Such as setup and adjustment time Startup losses Idling and minor stoppage Waiting on material Few in numbers with simple metrics: Report overtime percentage by department & employee Report reprint requests & defect type by department & machine or employee Report average turn-around using mailing date vs production date Add additional information to Gunther’s Up Time Report Report meter piece reports by meter and employee Report your Gunther Error reports by machine and employee: Packs or pieces Sheets Average pack or piece size (average 3-4, need champion, software upgrade) Packs or pieces per error Number of stops, the cause and down time duration Metrics should be easy to use : Summarize reports when possible But post details of your summary information internally. You need your employees to understand where the data is coming from. This is important if you are measuring employee performance. They should have just as much access and understanding of the detail data so they can do the calculations themselves. Put your summary information in grid format to make it easy to analyze and identify trends in the information. (I’ll show you some examples later on.) Graph your information over each period of time. (Picture worth 1000 words) Use layman's terms such as mail pieces per machine error instead of packs/error
  • When do we report our metrics? Provide quick feedback to those that need it when they need it. What use is it reporting next month, an issue you had yesterday. We don’t sit there struggling through a mechanical issue saying I can’t wait for our PM next Friday. No we get it fixed now. So when do we report production or machine errors? Daily/Weekly/Monthly Post your reports within your department, hand them to your employees and your service techs. Summarize to management monthly. Continuously report to all who need to know any new trends as you accumulate data day over day, week over week, or month over month. If you have a development team at your disposal, find ways to put the raw data in a database and design the reports to be automated. This will allow anyone to generate a report on demand from a website. This could cut down on the reporting you would have to distribute, or the phone calls from people inquiring with the status of a job or a machine.
  • Let’s come back to HOW. How to get started with reporting! Discovery Phase Create process improvement Team. Start with one department or a cross section of many departments within your area. Align your strategic goals with your customers, employees, department, division, organization. Measure – Accurately define all limiting factors. What issues do you have? Have brainstorming sessions with your boss, piers and your employees. You will be surprised at what responses you get all along the different levels of the organization. Pareto Analysis – Chart your measurements (NEXT SLIDE DEFINITION)
  • Definition: A Pareto chart is a graphical representation that displays data in order of priority. Pareto Analysis is used to focus problem solving activities, so that areas creating most of the issues and difficulties are addressed first. Go online and Google Pareto Analysis and you will see many examples of how to accomplish this.
  • We are still in the Discovery Phase here so let’s continue: Review measurements and charts with all teams Focus on the areas providing greatest benefit to your organization. Dig Deeper until root causes to the issues are identified and quantified. Creative Stage: By this point your team should have an understanding of current conditions. Visualize the perfect solution Brainstorm! Generate as many ideas as possible. Generate ideas that are beyond the obvious. No criticism of ideas is allowed. Again, the objective is to generate and document large quantity of ideas. Use flip charts so you can save the ideas. I like the post-it note style so you can take one chart down and hang it up in the room to reference again. Plan & Act: This is where the work gets planned, executed, and followed up. Use brainstorming ideas to chart a course for process improvement. Track your performance with additional reports showing trend lines. Sustain your results: Ensure that the results the team has achieved will be maximized and the gains will not deteriorate over time. Track progress against goals to ensure continuing success. Frequently posting and reviewing meaningful results are vital to sustaining the gains you will achieve. Celebrate successes!
  • Now, let’s dive into to some specifics that you can take home today! After all, most of our bosses would love to see what THEY got out of our trip. So, do you need to increase your production capacity? Typical machine run at 30-50% of its capability You can create capacity by improving existing performance. But if you don’t know what your current capacity level is how can you improve it? To find out how any equipment is performing, calculate its Overall Equipment Effectiveness (OEE). OEE (%) = Availability (%) x Performance Factor x Quality Factor Availability % = Gunther Total Run Time/ shift time *100 Performance Factor = Pieces per shift / Rated Output (10K or 13K/HR) Your actual will depend on your work profile Quality Factor = Good Exits / Total Exits (The difference is obviously your reworks or reprints generated)
  • Now, let’s get to the good stuff and look at some examples of what reporting your metrics can do for you.
  • How useful is this? Not very useful. unless I didn’t know how many pieces of mail I produced within a month. <NEXT>
  • What if I reported it this way? Does this tell me anything more? Yes, of course it does. It tells me how many pieces are produced per machine. Now I have something to work with. Now I know I have a problem with s3019. That machine is just not measuring up! Clearly it should be able to easily produce another 200K transactions per month. Or does it?
  • What if I told you that S3019 has 8 feeders? The data makes since. Lower piece count can be explained now.
  • What if I take that same information and I present it by operator? I have a little more I can manage with now don’t I? If you have a single Gunther user ID for the entire facility then you may not have access to this level of information. You could have manual logs in place, or maybe meter logs to track postage usage by employee. But why do anything manual when Gunther already logs everything for you. Operator level information is easy to get. Go home and create unique user Ids and passwords for each employee that may touch the Gunther. Then create a separate user ID for yourself and your technicians. Then DELETE your global user ID and password. It should have no place in your facility. Now, can I manage with this information? Absolutly. Now I know that Tom on the UB008 isn’t making the cut.
  • What if I grouped this information by machine. Now I see how much each employee is performing against a pier on the same machine. Now I have 4 people I need to talk with about their performance. Or do I?
  • What if I take this same information and group it by shift? Can I mange with this level of information? Absolutely! Now I know all 4 people I need to talk with are on the same shift! And it’s my 3 rd shift! This is obviously exactly what I need to justify hiring that supervisor for 3 rd shift. They have got to be goofing off. Oh, you know what? I didn’t factor in my tech support. As we all know we are only successful if we have good techs and the techs are successful.
  • I have 2 techs on site and only on-call coverage at night. Our operators on 3 rd shift have to be more technically savvy then those on 1 st .
  • What if I also reported on overtime by employee and shift? Not only is overtime a significant expense to your operation but it can also skew your metrics and reporting. I don’t have a 2 nd shift. 3 rd shift ends just as 1 st shift begins. So 3 rd shift does not have as much opportunity for overtime as 1 st shift does. Maybe those 4 people on 3 rd shift are doing okay after all. Maybe I need to get an understanding as to why 1 st shift is spending so much overtime.
  • What if we shifted and didn’t look at piece volume but rather pieces per error. We report on this every day. It is so much more powerful a metric then pieces alone is. This might tell me that I have 3 people I need to talk with. They may be having some mechanical issues they are struggling with. Look at Nick here. Under 200 pieces per error. That is not acceptable. Jewel over here on the same machine is getting over 400 pieces per error on the same machine! Alright. Now I can manage with this information.
  • But what if I showed you how long each employee has been with Skywire? We had a new client come on board just this month. 9 Months ago we started looking for new machine operators. They have done pretty well in just 6 months. I can also tell you that 4 of these operators were not just operators but also acted as trainers. Consider the fact that they not only ran their own machine, but they had to also teach someone else how to run a different machine. I might have a good group of operators after all. And now knowing that we have been training 4 new people over the last 6-9 months might explain why we had so much overtime. We might have gotten behind in production as we were training. I should look into the overtime just to make sure. I hope these examples show you what you can do with your metrics you are capturing. Again, you can’t manage what you don’t measure.
  • Let’s step back for a moment and look at the machine level again. Since I have all this great information and we are tracking it daily. I can also summarize it monthly. Does this tell you anything? Maybe you know you had a software upgrade on UB008 in August. Maybe you had a meter down for some time. <NEXT>
  • Maybe this tells me some of what I already know. I have quarterly spikes. Is this useful? Absolutely. If I am doing some capacity planning because a new line of business is coming on board. Let’s say that line of business is estimated to create 1 million new transactions a month. Divided out by 4 machines that’s ¼ of a million. Can I handle that every month? I may want to look at my full capacity level in January and make sure I can handle an additional ¼ million on top of the quarterly spike we already experience. Without measuring it you can’t identify your own trends. Now let’s look at where we can get some of this information from.
  • Reports: Maximizing Metrics

    1. 1. Reports: Maximizing Metrics <ul><li>Scott Mulkey </li></ul><ul><li>June 2007 (Gunther TechForum) </li></ul>Quantré Group, LLC “ making excellence achievable”
    2. 2. Agenda <ul><li>5W's and an H to Reports </li></ul><ul><li>How to get started </li></ul><ul><li>How to get more from your Inserter </li></ul><ul><li>Report Examples & Gathering Metrics </li></ul>
    3. 3. 5 Ws and an H to Reports - Why <ul><li>Why do we use reports? </li></ul><ul><ul><li>Track performance information </li></ul></ul><ul><ul><li>Measure throughput </li></ul></ul><ul><ul><li>Monitor capacity levels </li></ul></ul><ul><ul><li>Measure production volumes </li></ul></ul><ul><ul><li>You can’t manage what you don’t measure </li></ul></ul><ul><ul><li>We use reports to improve what we do & how we do it </li></ul></ul>
    4. 4. 5 Ws and an H to Reports - How <ul><li>How do you design the best metrics for your Organization? </li></ul><ul><ul><li>Use organization’s strategic goals </li></ul></ul><ul><ul><li>Use metrics to show you are meeting your different organization’s strategic goals </li></ul></ul><ul><ul><li>Use metrics that report where issues lie within your organization </li></ul></ul><ul><ul><li>Metrics should be useful and not a burden </li></ul></ul>
    5. 5. How – Characteristics of good metrics: <ul><li>Support the achievement of the organization’s strategic goals </li></ul><ul><li>Few in numbers </li></ul><ul><li>Metrics should be easy to use </li></ul><ul><li>Provide quick feedback to those that need it </li></ul>From Thomas D. McBride, Partners for Creative Solutions, Inc., Business Metrics that Work, 2004,
    6. 6. 5 Ws and an H to Reports - Who <ul><li>Who do we generate reports for? </li></ul><ul><ul><li>Everyone what has an interest in what is being done in your area of ownership. </li></ul></ul><ul><ul><li>Resources who can use information to improve performance. </li></ul></ul>
    7. 7. 5 Ws and an H to Reports - What <ul><li>What metrics should we report? </li></ul><ul><li>Let’s revisit our characteristics of good metrics: </li></ul><ul><li>Those that support your Organization's strategic goals </li></ul><ul><li>Few in numbers with simple metrics </li></ul><ul><li>Metrics should be easy to use </li></ul>Gunther term: packs/error English: mail pieces per machine error
    8. 8. 5 Ws and an H to Reports - When <ul><li>When do we report our metrics? </li></ul><ul><li>End of shift </li></ul><ul><li>Daily </li></ul><ul><li>Weekly </li></ul><ul><li>Monthly </li></ul><ul><li>Annually </li></ul><ul><li>When requested </li></ul><ul><li>On demand on the web </li></ul>
    9. 9. How to get started and use reporting <ul><li>Discovery Phase </li></ul><ul><li>Creative Stage </li></ul><ul><li>Plan & Act </li></ul><ul><li>Sustain Results </li></ul><ul><li>Celebrate </li></ul>
    10. 10. How to get started and use reporting <ul><li>Definition: </li></ul><ul><li>A Pareto chart is a graphical representation that displays data in order of priority. Pareto Analysis is used to focus problem solving activities, so that areas creating most of the issues and difficulties are addressed first. </li></ul>
    11. 11. How to get started and use reporting <ul><li>Discovery Phase </li></ul><ul><li>Creative Stage </li></ul><ul><li>Plan & Act </li></ul><ul><li>Sustain Results </li></ul><ul><li>Celebrate </li></ul>
    12. 12. Get more from your Gunther <ul><li>Overall Equipment Effectiveness (OEE) </li></ul><ul><li>OEE (%) = Availability (A%) x Performance Factor (PF) x Quality Factor (QF) </li></ul><ul><li>A% = Gunther Total Run Time/ shift time *100 </li></ul><ul><li>PF = Pieces per shift / Rated Output (10K/HR) </li></ul><ul><li>QF = Good Exits / Total Exits </li></ul><ul><li>From Thomas D. McBride, Partners for Creative Solutions, Inc., </li></ul><ul><li>Need More From Your Equipment? </li></ul>
    13. 13. Report Examples and Gathering Metrics
    14. 14. Report Examples
    15. 15. Report Examples
    16. 16. Report Examples 3 Feeders 8 Feeders 5 Feeders Champion, 6 Feeders
    17. 17. Report Examples
    18. 18. Report Examples
    19. 19. Report Examples 1 st SHIFT 3 rd SHIFT
    20. 20. Report Examples 1 st SHIFT 3 rd SHIFT 2 Onsite Techs 1 On-call Techs
    21. 21. Report Examples 1 st SHIFT 3 rd SHIFT
    22. 22. Report Examples 1 st SHIFT 3 rd SHIFT
    23. 23. Report Examples 1 st SHIFT 3 rd SHIFT 5+ YRS 5+ YRS 5+ YRS 5+ YRS 9 Months 6 M 6 M 6 M
    24. 24. Report Examples
    25. 25. Report Examples Q1 Q2 Q3 Q4
    26. 26. Questions ?