Key success factors of KPI s in Operational Excellence
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1 Key success factors of KPI s in Operational Excellence Webinar: BearingPoint & KPI Library October 9th 2012 Confidentiel BearingPoint
2 To improve you have to measure results. but will measurements and targets automatically stimulate the required behavior? Confidentiel BearingPoint KPI Library - Operational Excellence 2
3 What happens in real life. Not the right Measurements Too high level Not the right frequency No trending Targets not SMART No People involvement No Interaction No Gemba No Positive focus No recognizable Structure No link between what we measure and what we want to achieve Confidentiel BearingPoint KPI Library - Operational Excellence 3
4 Success factors for KPI s in Operational Excellence Use the correct KPI s Create a recognizable structure Establish the right behavior Confidentiel BearingPoint KPI Library - Operational Excellence 4
5 Success Factor I: Use the correct KPI s Market Share Strategic objective Customer Satisfaction Primary driver Price Quality Service level External KPI Delivery On Time in Full Internal KPI Planning Capacity Efficiency Enablers Pieces per manhour Performance indicator Confidentiel BearingPoint KPI Library - Operational Excellence 5
6 Success Factor I: Use the correct KPI s KPI s need to: Be SMART Be measured in the right frequencies Show trends Confidentiel BearingPoint KPI Library - Operational Excellence 6
7 Success Factor II: Create a recognizable structure. Realizing Strategy Quick response Low cost High quality SPEED QUALITY Smoothing workload Six Sigma Flow Mistake proofing Pull system Early warning STABLE FOUNDATION Total Productive Management Elimination of Waste Visual Management Standardized work 5S (Sort Straighten Shine Standardize Sustain) Confidentiel BearingPoint KPI Library - Operational Excellence 7
8 Success Factor II: Create a recognizable KPI-structure Business Unit ABC SPEED Days Sales Outstanding 42 Days Production Throughput Time 5 Days Training plan compliance 66% Illness 4,3% STABLE FOUNDATION QUALITY First Time Pass Rate 98,3% Customer complaints 0 Overall Equipment Effectiveness 76% 5S audit compliance 45% Confidentiel BearingPoint KPI Library - Operational Excellence 8
9 As daily used by our clients Confidentiel BearingPoint KPI Library - Operational Excellence 9
10 with a Drilldown to every detail! Confidentiel BearingPoint KPI Library - Operational Excellence 10
11 Key success Factor III: Establish the right behavior Share performance Show involvement (Gemba) Create involvement Focus on the positive Confidentiel BearingPoint KPI Library - Operational Excellence 11
12 Key Conclusions It s important to measure the right KPI s It s important to create a recognizable KPI-structure It s important to create involvement by establishing the right behavior Confidentiel BearingPoint KPI Library - Operational Excellence 12
13 How to start? If Then Why 1. You have Excel based KPI s 2. You have an incomplete set of KPI s 3. You have no good structure behind your KPI s Use KPI Library and train usage Check and develop missing KPI s Set-up a KPI structure linked to corporate objectives To ensure involvement by easy access and direct feedback To ensure a good and useful dashboard To ensure reaching corporate objectives in a structured way Confidentiel BearingPoint KPI Library - Operational Excellence 13
14 Questions Confidentiel BearingPoint KPI Library - Operational Excellence 14
15 Your contact Hubrecht de Pree Operational Excellence Lead BeNeLux ITO Tower Gustav Mahlerplein 62 (8 th floor) NL 1082 MA Amsterdam Mobile: hubrecht.depree@bearingpoint.com For more Operational Excellence information follow Confidentiel BearingPoint KPI Library - Operational Excellence 15
16 Confidentiel BearingPoint KPI Library - Operational Excellence 16
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