【正文】 Driving to Entitlement Using Measurements and Cycles of Learning PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 2 ? Measurements that reflect meaningful benefits to customers, shareholders and employees ?Responsiveness to customer needs ?Results acceleration ?Resource effectiveness ? Measurements with clear linkage between: ? Shortterm performance and strategic objectives ? Drivers and results ? Functions / customers / suppliers / processes ? Specific actions required and desired results 3 R’s ? Which Measurements Are Really Needed? continued... PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 3 Which Measurements Are Really Needed? ? Measurements that are: ? Limited in number ? Timely ? Difficult to manipulate ? Reflect the time state of the processes ? Understood by everyone ? Used to drive change PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 4 Linkage: Company Objectives to Measurements 1 in Market, Best ValueProvider High Product Quality OnTime Delivery Excellent Service Remove Variability from Fulfillment Process Perform Process Improvement using Process Driver Measurements Customer Orientated Work Force Efficient Service Delivery Process Improve Fulfillment Process to Deliver Quality Product Cycle Time First Pass Yield Productivity Cycle Time First Pass Yield Productivity Cycle Time First Pass Yield Productivity Increase Shareholder Value ROI EBIT PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 5 Businesses with long cycle times often manipulate ontime delivery measurements Measurement Manipulation ? Real customer need is usually met 20% to 40% of the time, yet we often find data reported in several ways: ?Percent line items to customer’s initial request ?Percent line items to supplier’s initial schedule ?Percent line items to supplier’s latest schedule PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 6 Measurement Manipulation Example OnTime Delivery Reported Measurement Criteria Performance Percent of line items ontime to latest weekly schedule, within a sixday window 94% Ontime to oneday window 88% Ontime to latest monthly schedule 82% Ontime to latest customer schedule 58% Ontime for three product kit 20% Ontime without spec waivers 14% PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 7 Process Drivers ? All business processes have ―Drivers‖ that link to ―Results‖ ? Driver measurements are leading indicators of Results ? Improving a Driver accelerates improvement of Results continued... PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 8 Process Drivers ? There are generally three Driver measurements used in TCT ?Cycle Time ?First Pass Yield (product or process quality) ?Cost (leading to improved productivity) PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 9 Developing ―New‖ Metrics A sixstep change needs to occur 1. Set up top level measurements。 may be different from those used today 2. Make these measurements hierarchical, nonconflicting and aligned to the strategic direction 3. Separate measurements into Drivers and Results continued... PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 10 Developing ―New‖ Metrics 4. Link all measurements to the critical processes and strategies of the business 5. Determine the key measures of the critical business processes and use them to drive improvement 6. Eliminate the old measurements PROPRIETARY 169。 1988 Thomas Group, Inc. All Rights Reserved. 11 Example of Key Measurements ANNUALIZED SALES ($M) NUMBER EMPLOYEES (000) O D F A J A O D $ employees $ annualized (000) E B N J M M J S N J OP PROFIT % OF SALES Results ONTIME DELIVERY B E N J M M J S N J 100 85 90 95 % E 0 30 60 90 120 150 N J M M J S N J 0 30 60 90 120 Cycle Time AIP Weeks AIP39。s B D/D CYCLE TIME B E B 0 10 20 30 40 N J M M J S N J M/M 50 % D/D M/M and D/D FPY Days E 100 150 200 250 300 350 400 N J M M J S N J B M/M CYCLE TIME Drivers *Sales Material + Profit Total People Costs PRODUCTIVITY INDEX* E N J M M J S N J B A/R % OF SALES B E N J M M J S N J E N J M M J S N J % B INVENTORY % OF SALES PROPRIETARY 169。 1988 Thomas