Corporate management review on performance indicators and targets

1. EAP’S MANAGEMENT REVIEW-JULY 15-31, 2020
 SALES & SERVICE
 DESIGN (MECH & ELECT)
 PURCHASE & INVENTORY
 PRODUCTION & OUT-SOURCE
 IT, CAPITAL & MAINTENANCE
 FINANCE & ADMIN

2. ORGANISATION: KEY RESULT AREAS & TARGETS
Business perspective
 Turnover 20-21: Rs.25Cr
 Overseas business: 30%
 US Exports Business: 20%
 Profit margin: >60%
 Warranty cost: <2.5% of Sales revenue
 Customer Satisfaction: >95%
 Spares Sales & Service revenue: Rs. 2.5Cr
Operations perspective
 ISO 9001:2015 Certification: within Dec 25, 2020
 Operational efficiency: > 75%
 Statutory compliance: 100%
 Quality Assurance: Near Zero defect (Target
<1%)
 Environmental & Safety compliance: 100%
 Employee Skill level: >75%
 Employee Satisfaction >75%

3. SALES & MARKETING (CT & ICS)
1. ENQUIRY GENERATION, QUOTE SUBMITTED
2. ORDERS RECEIVED, ORDERS LOST ANALYSIS
3. NEW APPLICATION/CUSTOMER/GEO AREA/
4. REPEAT CUSTOMER ORDERS / LOST ORDERS
5. CUSTOMER SATISFACTION RATING
6. EMPLOYEE MEETING ATTENDANCE & RANKING

4. COMMISSIONING & SERVICE SUPPORT (CT & ICS)
1. PENDING FOR COMMISSIONING/SITE CLOSURE
2. PENDING SERVICE TICKETS/SITE CLOSURE
3. SPARES QUOTES SUBMITTED, ORDERS RECEIVED
4. SPARES STOCK INVENTORY WITH BRANCHES
5. AFTER SALES CUSTOMER SATISFACTION
6. EMPLOYEE MEETING ATTENDANCE & RANKING

5. DEPARTMENTAL: KEY RESULT AREAS & TARGETS
Sales & Marketing
 Enquiry generation: CS-25Cr,CT-30Cr,Export-10Cr
 Turnover 20-21: Rs.25Cr (CS-10Cr,CT-10Cr,Exp-
5Cr)
 Cost ratio: CS <50%; CT <40%
 New market share & repeat order ratio: 30:70
 Enquiry to order conversion hit ratio: 70%
 Customer satisfaction (Sales): >90%
 Sales & Marketing skills: >90% respective area
Customer support - Service
 Commissioning response: within 3 days
 Service response: within 2 days
 Warranty cost: within 2.5% of Sales revenue
 Service & Spares revenue: (25 Lakhs / month)
 Cust. Support Videos & Procedures (All std
support)
 Customer satisfaction (Service): > 80%
 Products I&C, Servicing skills >90% respective
areas

6. COMM, PLAN, PACKING, DESPATCH & LOGISTICS
1. WO PLAN WITH RUNNING STATUS UPDATE
2. PLAN MILESTONE UPDATE PERFORMANCE
3. F.G AWAITING DESPATCH CLEARANCES
4. U.S EXPORT PLAN AND CURRENT STATUS UPDATE
5. ORDERS DELIVERY & COMMISSIONING STATUS
6. IMPORTS/EXPORTS CUSTOMS – STATUTORY

7. DESIGN (MECHANICAL) & DEVELOPMENTS
1. WO DESIGN-MAN HOUR-PLAN - ACTUALS
2. PROJECT DESIGN-MAN HOUR-PLAN - ACTUALS
3. WO PLAN MILESTONE UPDATE PERFORMANCE
4. DESIGN MISTAKES & CORRECTIVE ACTIONS
5. DOCUMENT CONTROL-ISSUANCE DETAILS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

8. DESIGN (ELECTRICAL/ELECTRONICS/AUTOMATION)
1. WO DESIGN-MAN HOUR-PLAN - ACTUALS
2. PROJECT DESIGN-MAN HOUR-PLAN - ACTUALS
3. WO PLAN MILESTONE UPDATE PERFORMANCE
4. DESIGN MISTAKES & CORRECTIVE ACTIONS
5. DOCUMENT CONTROL-ISSUANCE DETAILS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

9. DEPARTMENTAL: KEY RESULT AREAS & TARGETS
Planning & Despatch
 Order Acceptance response: < 3days
 Schedule updates MIS: > 95%
 Ontime dispatch performance: > 90%
 FG value not despatched: <10% of scheduled
plan
 Packing/Transit damages: <1.5% of monthly
shipped
 Transit insurance claimed: >90% cases
 Ontime delivery performance: >80%
 Export enquires vs orders hit ratio: >80%
 Enercon Exports target 20-21: Rs 5.0 Cr
Design & Development
 Design drawing release for approval: >1day
 Design reviews on-time performance: >98%
 Design Part-2 release on-time performance:
>95%
 Design manpower utilisation efficiency: >85%
 Design service cost per Project/WO: >5%
 Design mistakes (minor corrections): <5 per
project
 Design mistakes (major rework): 0 per
project/WO
 Design Savings due to optimisation: Rs 1.0L /
person

10. MATERIAL PROCUREMENT (RM & CONSUMABLES)
1. APPROVED INDENTS FOR P.O GENERATION
2. P.O DELIVERY STATUS/VENDOR COMMITMENTS
3. WO PENDING MATERIAL STATUS
4. EMERGENCY/ZERO STOCK PENDING STATUS
5. SINGLE VENDOR/IMPORT SUBSTITUTE/BULK ITEMS
6. VENDOR PERFORMANCE RATING

11. STORES, KANBAN STOCK, OUT SOURCING
1. GATE ENTRY/PHOTO/G.R.N/BILL PASSING STATUS
2. WO/SET ISSUE MTRL ISSUANCE PERFORMANCE
3. DAILY STOCK CHECKING PERFORMANCE
4. MFR ITEMS KANBAN STOCK STATUS
5. SUB-CONTRACT P.O STATUS, STOCK RECONCILE
6. CUST. MATERIALS PENDING D.C STATUS

12. DEPARTMENTAL: KEY RESULT AREAS & TARGETS
Material procurement
 Approved indents for PO: <3 Days
 PO delivery vendor commitments: >80%
 PO delivery performance: >75%
 Emergency / Zero stock : <10 items (running
report)
 WO overdue purchase : < 10 items (running
report)
 Purchase savings: Rs 10L / month including
alternates
 Current Vendor rating: > 80%; <49% will be
blocked
 Procurement skill level: >75%
Inventory & Out Sourcing
 Material issuance performance: <2 days
 Expired materials: 0% (exceptional items
approved)
 Gate entry/GRN/Bill passing: <7 days
 Rejection material return to vendor: <2 days
 Rejection return / PO closure & debit: <7 days
 Manufacturing parts KANBAN replenish: <5
items
 Out-Sourced vendor P.O overdue: <7 days
 Out-Sourced RM stock reconcile: Weekly
 Customer supplied material overdue: <7 days

13. IN-HOUSE MANUFACTURING (PARTS)
1. RESOURCE (3M) PLAN-ACTUAL PERFORMANCE
2. PROCESS TIME-STUDY PLAN/ACTUAL-EFFICIENCY
3. SAFETY, 5S, PREVENTIVE MAINTENANCE STATUS
4. QUALITY PERFORMANCE-REJECTION ANALYSIS
5. PRODUCTIVITY, W.I.P, KANBAN, IMPROVEMENTS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

14. H.V TRANSFORMER & ELECTRODE ASSY. & TESTING
1. RESOURCE (3M) PLAN-ACTUAL PERFORMANCE
2. PROCESS TIME-STUDY PLAN/ACTUAL-EFFICIENCY
3. SAFETY, 5S, PREVENTIVE MAINTENANCE STATUS
4. QUALITY PERFORMANCE-REJECTION ANALYSIS
5. PRODUCTIVITY, W.I.P, KANBAN, IMPROVEMENTS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

15. CT, BLOWER, POWER SUPPLY-ASSY. & TESTING
1. RESOURCE MACRO PLAN-ACTUAL PERFORMANCE
2. PROCESS TIME-STUDY PLAN/ACTUAL-EFFICIENCY
3. SAFETY, 5S, PREVENTIVE MAINTENANCE STATUS
4. QUALITY PERFORMANCE-REJECTION ANALYSIS
5. PRODUCTIVITY, W.I.P, KANBAN, IMPROVEMENTS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

16. CAP SEALER, CONVEYOR-ASSY. & TESTING
1. RESOURCE (3M) PLAN-ACTUAL PERFORMANCE
2. PROCESS TIME-STUDY PLAN/ACTUAL-EFFICIENCY
3. SAFETY, 5S, PREVENTIVE MAINTENANCE STATUS
4. QUALITY PERFORMANCE-REJECTION ANALYSIS
5. PRODUCTIVITY, W.I.P, KANBAN, IMPROVEMENTS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

17. OUT-SOURCE/SAMBHAVI-PARTS & PACKING
1. RESOURCE (3M) PLAN-ACTUAL PERFORMANCE
2. PROCESS TIME-STUDY PLAN/ACTUAL-EFFICIENCY
3. SAFETY, 5S, PREVENTIVE MAINTENANCE STATUS
4. QUALITY PERFORMANCE-REJECTION ANALYSIS
5. PRODUCTIVITY, W.I.P, KANBAN, IMPROVEMENTS
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

18. DEPARTMENTAL: KEY RESULT AREAS & TARGETS
Production-In-house Manufacturing
 Resource 3M utilisation efficiency: >80%
 Process activities plan/actual efficiency: >90%
 Productivity:- WIP/Production value: 6 Turns /
month
 First/Last part inspections/Batch process: 100%
 Quality performance – Rejections: <1%
 Safety & 5S compliance: 100% (No accidents)
 Machine preventive maintenance: 100%
 Process improvements: min 5 per month
 Respective process skill level: >85% Overall:
>60%
Production-Assembly and Testing
 Resource 3M utilisation efficiency: >80%
 Process activities plan/actual efficiency: >90%
 Productivity:- WIP/Production value: 6 Turns /
month
 Quality Plan Compliance: Q.C Reports: 100%
 Quality performance – Rejections: <1%
 Safety & 5S compliance: 100% (No accidents)
 Machine preventive maintenance: 100%
 Process improvements: min 5 per month
 Respective process skill level: >85% Overall:
>60%

19. QUALITY ASSURANCE–INSPECTION & CALIBRATION
1. G.R.N/INWARD INSPECTION PERFORMANCE
2. REJECTION/RETURN/REPLACEMENT STATUS
3. QUALITY PLAN COMPLIANCE-W.O WISE
4. FINAL INSPECTION QUALITY PERFORMANCE
5. FIRST & LAST PART INSPECTION (BULK MFR)
6. CALIBRATION OF INSTRUMENTS/JIGS & FIXTURES

20. MAINTENANCE, FACTORY SAFETY, 5S SCORE
1. FACTORY SAFETY SCORE-ACCIDENT FREE DAYS
2. MTBF (MEAN TIME BETWEEN FAILURE) SCORE
3. MACHINE-WISE SPARES AVAILABILITY
4. PERIODIC DRILL ON FIRE & SAFETY
5. VEHICLE MAINTENANCE & FUEL CONSUMPTION
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

21. DEPARTMENTAL: KEY RESULT AREAS & TARGETS
Quality Assurance
 Inward inspection performance: <2 days
(new<4days)
 Rejection items replacement clearance/debit: <7
days
 W.O wise Quality Plan compliance: 100% verified
 Final inspection verification: 100%
verified/reported
 Calibration of instruments validity: No dues
 Daily instrument audit: 100% Before use
 Dies, Jigs & Fixture validity: 100% verified (Last
part)
Machine maintenance & Factory safety
 Preventive maintenance implementation: 100%
 Mean time between failure (MTBF): >60 days
 Critical spares availability: 100% (all machines)
 Machine/Operator safety compliance: 100%
 Factory safety accident score: Zero accidents
 Fire & Safety drill: Monthly once for all
employees
 Maintenance & fuel consumption cost: <Rs. 1L /
mon
 Respective process skill level: >85% Overall:
>60%

22. IT(H/W, S/W), SERVER/UPS MAINTENANCE, CAPITAL
1. S/W & H/W ISSUES-SOLVING RESPONSE
2. MTBF (MEAN TIME BETWEEN FAILURE) SCORE
3. SERVER & UPS BACK-UP AND DOWN TIME LOG
4. CAPITAL BUDGET, PURCHASE, DEPRECIATION
5. SOFTWARE LICENCE RENEWAL/UPGRADES
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

23. ADMIN & FIN-(RECEIVABLE, PAYABLE, STATUTORY)
1. CUST RECEIVABLES, L.C, ADVANCES, RETAINING
2. VEND PAYABLES, PAID ADVANCES, PROVISIONAL
3. STATUTORY COMPLIANCE & LICENCE RENEWALS
4. DEPT. WISE EMPLOYEE ATTENDANCE & O.T HOURS
5. MAINTENANCE & FUEL CONSUMPTION COST
6. SKILL DEVELOPMENT-TRAINING REQUIREMENTS

24. DEPARTMENTAL: KEY RESULT AREAS & TARGETS
IT & Capital goods
 SW/HW problem solving response: <2 days
 Preventive maintenance implementation: 100%
 Mean time between failure (MTBF): >60 days
 Critical spares availability: 100% (all machines)
 Capital equipment Budget/Spends: Just reporting
 Capital equipment depreciation value: Just report
 Licence renewals & upgrades: Zero over dues
 Printers usage/maintenance expense: Just
reporting
 Respective process skill level: >85% Overall:
>60%
Finance & Administration
 Receivables(Advance, LC, Retention) Wkly
reporting
 Payables(Advance, Provisional) Weekly reporting
 Statutory compliances & licences renewals:
100%
 Department-wise attendance & OT cost
reporting
 Vehicle maintenance/Fuel consumption cost
report
 Penalty payments (EB/Tax/late fee, etc) reporting
 Inventory reconciliation with purchase/despatch
 Stock reconciliation with vendors: Weekly