The document discusses the importance of business performance management specifically for small and medium-sized enterprises (SMEs), highlighting challenges brought by globalization and the need for effective measurement of business performance through key performance indicators (KPIs). It emphasizes the necessity for continuous improvement in business practices, resource management, and strategic decision-making to enhance productivity and competitiveness. Various case studies illustrate significant improvements in efficiency, gross profits, and overall business outcomes through systematic monitoring and adjustments in operations.

1. BUSINESS PERFORMANCE
MANAGEMENT

2. Focus on Small and Medium-sized enterprises (SME)
Category Number of employees
Middle 50 - 250
Small 10 - 50
Micro < 10

3. You
Globalization brings new challenges as well as
export opportunities to your manufacturing
enterprises
THE ENTERPRISE’S EXISTING INFRASTRUCTURE
THE ENTERPRISE’S GROWTH PROSPECTS

4. BUSINESS PERFORMANCE MANAGEMENT
Competitiveness
Delivery &
Safety
PriceQuality

5. BUSINESS PERFORMANCE
MANAGEMENT
Capability
Technical
Material
& Process

6. BUSINESS PERFORMANCE
MANAGEMENT
Stability
Long term
enterprise vision
and financial
security

7. BUSINESS PERFORMANCE
MANAGEMENT
Resourcefulness
1-Management
2-Human resources
3- Staff training

8. BUSINESS PERFORMANCE
MANAGEMENT
How Do You Find Out Whether
Your Business Is Under-
performing or Over-performing
Its Capacity Towards Realizing
Your Visions, Missions And
Targets?

9. BUSINESS PERFORMANCE
MANAGEMENT
BUSINESS
PERFORMANCE
MANAGEMENT
• A Manufacturing Company set a target/budget
for exports and profits for 1st Q 2010 but it did
not achieve it.
• Why did the management over-estimate their
performance and what are the possible reasons?
BUSINESS
PERFORMANCE
MANAGEMENT
• A Manufacturing Company set a target/budget
for exports and profits for 1st Q 2010 and it
achieved 25% more.
• Why did the management under-estimate their
performance and what are the possible reasons?

10. BUSINESS PERFORMANCE
MANAGEMENT
Several reasons
could cause these
results.
The need to
identify the key
performance
indicators of the
business (KPI’s)
and monitor them
is key issue to
address.

11. BUSINESS PERFORMANCE
MANAGEMENT
The need
to measure
& monitor
Where is
your
business ship
sailing to?

12. BUSINESS PERFORMANCE
MANAGEMENT
Accuracy Efficiency
Cost-
effective

13. BUSINESS PERFORMANCE
MANAGEMENT
1-Accurate (for the minimized data
collected)
2-Scientific (developed methodology)
Efficient (improves actual business
results)
Cost-effective (investment Vs results)
Frequent (revised figures on daily bases)
Easy-To-Use (see Crown Pavilions)

14. BUSINESS PERFORMANCE
MANAGEMENT
Environmental impact
Sustainability
Financing and Taxation
Innovations and
Technology
Needs for effective
Training and Support

15. BUSINESS PERFORMANCE
MANAGEMENT
What are the practical
actions to achieve
positive change in
controllable way ?

16. BUSINESS PERFORMANCE
MANAGEMENT
Culture in business
planning,
monitoring and
measurement
Understanding and
using Total Quality
Management
principles
Structured practical
management in
Continuous
Improvement

17. BUSINESS PERFORMANCE
MANAGEMENT
Resources and knowledge
to introduce and
effectively use IT tools
for business monitoring,
measurement and
decision preparation

18. Challenges facing entrepreneurs:
• High losses, Inefficiencies and little knowledge of
actual figures!-where it is going wrong?
• Major decisions demand quality preparation and
evaluation in necessary detail, be compared by
consequences, optimized and monitored in
implementation
• The potential is underutilized, developments are
risky, results may be unpredictable and unexpected!

19. The price of ignorance
(UK case studies):
Estimations of lost gross profit (GP) due to
various inefficiencies, per annum
Enterprise Group 1 (GP £ 400,000): 54,900
Enterprise Group 2 (GP £3,000,000): 215,500

20. Average enterprise improvement results
benchmarked after the Programme
implementations
• Overall Productivity Increase (or value
Added/person) + 9%
• Improved Efficiency + 18%
• Improved Gross Profit + 25%
• Reduction in Labour cost - 15%
• Overall Effective Efficiency increase + 5%
• Acceleration of business development - 6 years

21. Basic principles of continuous
improvement in business
Formulating optional solutions which can
potentially solve problems and bring
improvements (new machine, production profile,
production team change & control, etc)
Measuring business results
Identifying problematic areas having
measurements data

22. Basic principles of continuous
improvement in business
Evaluating the options including
impact of uncertainties and risks by
simulating the major outcomes
(scenarios)
Selecting the best (most effective) option
Implementing the best option in practice
Returning to Step 1

23. BUSINESS PERFORMANCE
MANAGEMENT
Pre & Post Programme enterprise
benchmarking
Diagnostics
performance measuring
production efficiency analysis is
made for each participating
enterprise (suppliers, non-
conformances, planning, production
resources' utilization, etc.)

24. PRODUCT
LABOUR
ENERGY
&
RAW MATERIAL
Capital Equipment, &
Infrastructure
LOSSES
&
WASTE
RESOURCESENTERPRISE

25. BUSINESS PERFORMANCE
MANAGEMENT
COST
STRUCTURES
OF
ENTERPRISES
SUSTAINABILITY
-ANALYZE BUSINESSES
-DEVELOP STRATEGY
-PLAN AND IMPLEMENT
STRATEGY
-MONITOR AND REVIEW
PROGRESS

26. BUSINESS PERFORMANCE
MANAGEMENT
RESOURCE AUDIT (FINANCE &
TECHNICAL)
AVAILABILITY, CONSTRAINTS,
CAPABILITIES, IMPROVEMENT
& MANPOWER ASSESSMENT
STUDIES

27. BUSINESS PERFORMANCE
MANAGEMENT
ENERGY CONSERVATION
STUDIES &
IMPLEMENTATION
ENVIRONMENTAL
CONSERVATION STUDIES
& IMPLEMENTATION

28. BUSINESS PERFORMANCE
MANAGEMENT
1-Shop-floor space utilization and management
2-Time utilization
KPI’s
Eight critical areas

29. BUSINESS PERFORMANCE
MANAGEMENT
5-Communication flow
3-Product quality
4-Worker skills and formation of multiple
skills

30. BUSINESS PERFORMANCE
MANAGEMENT
8-Market knowledge
6-Changes in technology and processes
7-Factory environment and safety

31. Impact Measured by Performance Indicators
BUSINESS
PERFORMANCE
MANAGEMENT
• Increase In Turnover
• By approximately 10% during the six-
month period of technical assistance.
BUSINESS
PERFORMANCE
MANAGEMENT
• A summary of technical improvements
at shop-floor level must be presented
as below

32. BUSINESS PERFORMANCE
MANAGEMENT
BUSINESS
PERFORMANCE
MANAGEMENT
• Faster and More Efficient
Production
• The average lead time required for
production and completion of goods has
to be reduced by b%.
• Machine setup time must be dropped by
10%
• Preventive maintenance has to be
introduced and expanded
• Reaction in defects must be improved
98%.

33. BUSINESS PERFORMANCE
MANAGEMENT
BUSINESS
PERFORMANCE
MANAGEMENT
• The average time required to
complete a single product must be
reduced from …… ..to………….days.
• This productivity improvement is the
reflection of following measures :
• To upgrade the condition of
existing equipment
• Improvements in the interaction
between workers and their
equipment.

34. BUSINESS PERFORMANCE MANAGEMENT

35. BUSINESS PERFORMANCE
MANAGEMENT

36. BUSINESS PERFORMANCE
MANAGEMENT

37. BUSINESS PERFORMANCE
MANAGEMENT

38. BUSINESS PERFORMANCE
MANAGEMENT

39. Business Bench-marking Report

40. BUSINESS PERFORMANCE
MANAGEMENT

41. Improvements by KBI summary graph at a glance