The document discusses improving productivity by analyzing and improving a company's "performance chain", which refers to the interconnected processes involved in triggering customer demand and receiving payment. It identifies four key lenses - speed, predictability, flexibility, and leverage - for measuring a performance chain's health. Applying these lenses enterprise-wide can increase velocity, quality, responsiveness to change, and efficient use of resources. The document provides examples of Asian companies that achieved significant savings and benefits by analyzing their performance chains through these lenses.

1. Improve Productivity by Improving the Performance Chain Sue Gillman Partner, Aveus

2. How healthy is your performance chain?

3. Definition A performance chain is the things, people, and ideas that have to move from the moment you trigger demand to the time you have cash in the bank.

4. Four lenses to measure the health of any performance chain Speed Predictability Flexibility Leverage

5. Why are these lenses so important?

6. Performance chain lens: Speed Increase the velocity of all core processes. Examples: cycle time, time to market, days cash outstanding.

7. Performance chain lens: Predictability Quality and repeatability of external and internal processes. Examples: records accuracy, process yield, customer satisfaction.

8. Performance chain lens: Flexibility Reduce the time to convert processes to meet dynamic customer demands. Examples: changeover, segment customization.

9. Performance chain lens: Leverage Do more with existing resources and capital assets. Examples: overall equipment effectiveness, inventory turns, utilization.

10. Performance chain lenses Applying these four lenses as a system improves productivity enterprise-wide. Increase the velocity of all core processes. Examples: cycle time, time to market, days cash outstanding. Speed Quality and repeatability of external and internal processes. Examples: records accuracy, process yield, customer satisfaction. Predictability Reduce the time to convert processes to meet dynamic customer demands. Examples: changeover, segment customization. Flexibility Do more with existing resources and capital assets.Examples: overall equipment effectiveness, inventory turns, utilization. Leverage

11. See the whole, then mine the meaningful.

12. Performance chain leadershipis a systems-based approach.

13. Global issues Getting to market faster Reducing costs Increasing profit

14. Financial results and operating problems are often connected.

15. CASE STUDY: FY11 savings (Goal $100M) $119M Total Savings Value Stream Transformational work and benefits across the performance chain Post-Sales Lead-to-Quote 1 Quote-to-Source 2 Source-to-Fulfill 3 $119M Total Savings Category Fulfill-to-Cash 4 Post-Sales 5 Other 6

16. Performance chain viewof project contributions Post-Sales Fulfill-to-Cash Source-to-Fulfill Quote-to-Source Lead-to-Quote 7 Projects Contributing $38M in improvements 6 Projects Contributing $24M in improvements 4 Projects Contributing $5M in improvements 7 Projects Contributing $20M in improvements 9 Projects Contributing $31M in improvements

17. Examples in Asia 25% reduction in product lead-time and a 12% increase in output that strengthened the company’s ability to meet - and exceed - dynamic customer needs. 31% increase in supply chain capacity allowed leaders to immediately avert $30 million dollars in capital investment. Designed and led a customized education program to increase capital leverage. Increased capacity to reduce capital expenditure. Savings of $7 million. Reduced customer wait times by increasing capacity by 53%. Increased predictability of daily shipments by increasing capacity on one tool by 48% and capacity on another by 28%. Shorter lead time provided flexibility to meet demand changes. Improved leverage of all capital equipment with a 30% increase in throughput. © 2011 Aveus, LLC. All rights reserved. 17

18. Top performing leaders… will see and act on the whole performance chain.

19. Manage the whole performance chain by starting with what customers ask of you Speed Run like a cheetah Predictability Develop the memory of an elephant Flexibility Be like a monkey Leverage Move that rubber tree

20. THANK YOU Can you see the whole and mine the meaningful?