key success factors of kpi’s in operational excellencemistake proofing six sigma 5s (sort...
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Confidentiel. © 2012 BearingPoint
Key success factors of KPI’s
in Operational ExcellenceWebinar: BearingPoint & KPI Library
October 9th 2012
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To improve you have to measure results….
…but will measurements and
targets automatically stimulate the
required behavior?
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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 toachieve
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Success factors for KPI’s in Operational Excellence
Use the correct KPI’s
Establish the right behavior
Create a recognizable structure
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Success Factor I:Use the correct KPI’s
Customer Satisfaction
“Delivery”On Time in Full
Primary driver
External KPI
Internal KPI
Enablers
Market Share
Price Quality Service level …
Strategic objective
Planning Capacity Efficiency …
Piecesper manhour
Performance indicator
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Success Factor I:Use the correct KPI’s
KPI’s need to:
� Be SMART
� Be measured in the right frequencies
� Show trends
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Success Factor II: Create a recognizable structure….
Pull system
SPEED
Flow
Smoothing workload
QUALITY
Early warning
Mistake proofing
Six Sigma
5S (Sort – Straighten – Shine – Standardize – Sustain)
STABLE FOUNDATION
Elimination of WasteVisual Management
Total Productive Management
Standardized work
Realizing Strategy
Quick response
Low costHigh
quality
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Success Factor II: Create a recognizable KPI-structure
Production Throughput
Time
5 Days
SPEED
Days Sales Outstanding
42 Days
QUALITY
Customer complaints
0
First Time Pass Rate
98,3%
Illness
4,3%
Training plancompliance
66%
5S audit compliance 45%
STABLE FOUNDATION
Overall Equipment Effectiveness 76%
Business Unit ABC
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As daily used by our clients …
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… with a Drilldown to every detail!
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Key success Factor III:Establish the right behavior
� Share performance
� Show involvement (Gemba)
� Create involvement
� Focus on the positive
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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
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How to start?
If Then Why
1. You have Excel based KPI’s
Use KPI Library and train usage
To ensure involvement by easy access and direct feedback
2. You have an incomplete set of KPI’s
Check and develop missing KPI’s
To ensure a good and useful dashboard
3. You have no good structure behindyour KPI’s
Set-up a KPI structure linked to corporate objectives
To ensure reachingcorporate objectives in a structured way
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Questions
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Your contact
Hubrecht de Pree
Operational Excellence Lead
BeNeLux
ITO TowerGustav Mahlerplein 62 (8th floor)NL – 1082 MA Amsterdamwww.bearingpoint.nl
Mobile: +31 6 5254 [email protected]
For more Operational Excellence information followhttp://www.bearingpoint.com/en-nl/download/Operational_Excellence_Program.pdf
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Confidentiel. © 2012 BearingPoint KPI Library - Operational Excellence 16