老外的一份绩效管理讲义课件

Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Kasetsart University,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,Kasetsart University,*,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,*,*,老外的一份绩效管理讲义,老外的一份绩效管理讲义老外的一份绩效管理讲义,Overview,Management,Functions: planning, coordinating, and controlling,Processes: measurement, analysis/ evaluation, and improvement,Emphasis on the organizational and functional level,2,Kasetsart University,Overview,Measurement: understanding of the term KPI or performance measures, identification of the KPI, application of MFPMM, audit to improve KPI by linking with policies, objectives, database, etc., ratio networking, and target setting,Analysis: trend/ variation understanding with MCPMT, benchmarking process, and scorecard and root-cause analysis,Improvement: outsourcing, development of manufacturing strategies, integration of knowledge learned on logistics and supplier partnership,3,Kasetsart University,Overview,What reflects or represents the term,performance,?,Kaplan and Norton (1992): Financial, customer, internal business, and innovation/ learning,Sink and Tuttle (1989): Profitability, productivity, quality, quality of work life, innovation, effectiveness, and efficiency,Harper (1984): Productivity, unit cost, price, factor proportion, cost proportion, product mix, and input allocation,4,Kasetsart University,Introduction,Multi-national, national, and industrial levels,Organizational, functional, program, and project levels,Team and individual levels,Individual level,Management,Workforces,Knowledge and white-collar,Blue-collar,5,Kasetsart University,Introduction,Measuring productivity/ performance requires a system view of an organization or a unit of analysis.,Measuring productivity/ performance is common.,Understanding of impacts from low productivity is critical for management (competitiveness).,Understanding of unit dimensions and definitions are essential for measurement.,6,Kasetsart University,Introduction,Ongoing Issues for “Productivity” Management,Total-, multi-, and single-factor productivity consideration,Combination of various input factors (consideration into weight of each input, data collected such as intangible assets, unit dimensions, reporting and information format on tabular and/or graphical forms, etc.) as well as output factors,7,Kasetsart University,Introduction,System View of an Organization,Processes,Outputs,Inputs,Downstream,Upstream,8,Kasetsart University,Purposes of performance measurement,:,To identify whether we are meeting customer requirements,To help use understand our processes,To ensure decisions are based on facts, not on emotion,To show where improvements need to be made,To show if improvements actually happened,To identify whether our contractors or suppliers are meeting our requirements,(Department of Energy, USA),Introduction,9,Kasetsart University,Performance measurement should be used and integrated into a management system and process, based on the following reasons.,Control,: Performance measurement helps reduce process variation.,Continuous improvement,: Performance measurement helps identify defect resources, process trends, and defect prevention as well as opportunities for improvement.,Need to have feedback by management,: Performance measurement helps mangers and administrators realize what is to be done, what is being done, when to take corrective and preventive actions, and when to change the expectation.,(Department of Energy, USA),Introduction,10,Kasetsart University,Introduction,Downstream or outcomes: customers, users, consumers, buyers, and stakeholders (impacts, reaction, satisfaction, financial growth, sales, return, replacement, recall, survival, etc.),Upstream: providers, suppliers, contractors, and vendors (relationships, partnerships, contractual agreements, etc.),11,Kasetsart University,Introduction,Outputs,Intangible,Tangible,Outcomes,Satisfaction, Expectation, Desirable Impacts, etc.,12,Kasetsart University,Basics on Measurement,Deming “You cannot manage what you cannot measure.” “You cannot measure what you cannot define.” “You cannot define what you do not understand.”,13,Kasetsart University,Basics on Measurement,Mandated by,the Government Performance and Results Act (GPRA) of 1993,Federal agencies must be,accountable,and focus on improving service quality and customer satisfaction.,Coupled with,the Government Management Reform Act of 1994,which emphasizes performance improvement and openness for annual financial audit (i.e., PART, activity-based management, performance-based contract, adaptive process for planning and budgeting, ownership cost, etc.),14,Kasetsart University,Basics on Measurement,The 1993 Government Performance and Results Act (GPRA) requires the following:,(1) Establishing top-level agencys policies and objectives as well as annual program goals,(2) Defining how the agency,intends to,achieve these objectives and goals,(3) Demonstrate how the agency will,measure,its own performance, including the programs,15,Kasetsart University,Basics on Measurement,Bush Administration (2001): “Performance measurement is not an annual event; rather it is a continuous process requiring clear performance expectations, periodic feedback for review, and analysis for improvement.”,Bush Administration (2001): “Performance measurement is not an option; the only question is how well it is done.”,16,Kasetsart University,Basics on Measurement,Measurement: understanding on static/dynamic measure, and total-/ partial-/ single- factor measure, and surrogate measure,Static Ratio,: Revenue, Cost,Dynamic Ratio,:,Revenue,46,Revenue,45,Cost,46,Cost,45,17,Kasetsart University,Basics on Measurement,Single-factor measure,: Output, labor,Partial- or multi-factor measure,: Output (labor + material),Total-factor measure,: Output (labor + material + capital + machine + facility + utility + information),18,Kasetsart University,Basics on Measurement,Case study for single-factor measure (labor only): 5 employees producing 500 output units in one month by working 22 days per month and 8 hours per day. For the second month, 600 units were made with 5 employees but working 20 days with the same working hours in one day. 880 = 5, 22 8 and 800 =,5, 20 8,Static measures,(one month):,500 units, 880 labor hours = 0.57 units per labor hour,500 units 5 persons = 100 units per person,600 units, 800 labor hours = 0.75 units per labor hour,600 units 5 persons = 120 units per person,Dynamic measures (one month):,(600, 500) (800 880) = 1.20 0.909 = 1.32 or,0.75 0.57 = 1.32,(600, 500) (5 5) = 1.20 1.00 = 1.20 or,120 100 = 1.20, No unit dimension!,19,Kasetsart University,Basics on Measurement,Case study for multi- or partial- factor measure: 5 employees producing 500 output units in one month by working 22 days per month and 8 hours per day. For the second month, 600 units were made with 5 employees but working 20 days with the same working hours in one day. The amount of materials used are 1,000 and 1,250 units respectively. The price for the outputs for the first and second month is $1,000 per unit while the costs of labor over the two months is $15 per labor hour and $150 per material unit (m,2,) for material. 880 = 5, 22 8 and 800 =,5, 20 8,Multi- or partial- factor measures are as follows.,Month # 1: (500,1000) (880 15) + (1000 150) = 3.06,Month # 2:,(600,1000) (800 15) + (1250 150) = 3.01,Months 1 and 2:,(600,1000) ,(500,1000),= 0.98,(800 15) + (1250 150) (880 15) + (1000 150),Static Ratio,Static Ratio,Dynamic Ratio,20,Kasetsart University,Basics on Measurement,Surrogate measures represent the implication of outputs and inputs that are to be examined. Nowadays, they are used to reflect upstream and downstream as well.,“Transportation services” = total mileage traveled or total passenger mileage traveled such as total miles, buses or total miles employees, etc.,“Restaurant services” = level of satisfaction, revenue, and profit such as revenue, staffs, level of satisfaction electricity, etc., “quality students,” “innovation in product development,” “quality of work life for office workers,” and so on,21,Kasetsart University,Basics on Measurement,Performance Measures or KPIs,Quantitative KPIs,Descriptive KPIs,Ratio Format,Data Reliability and Accuracy,Questionnaire Format,Occurrence Format,Size, weight, scale, reliability, and comprehensive-ness,Weight, scale, accuracy, and comprehensive-ness,Definition of Terms,Non-ratio Format,Cross-ratio Format,Cross-ratio Format,22,Kasetsart University,Basics on Measurement,Ratio format,: useful for identifying KPI as well as enhancing the quality of information and of information analysis,Normalization for trend analysis, benchmarking, etc.,Consideration into changes in an organization (such as takeover, new product introduction, etc.),23,Kasetsart University,Past and Present Projects,:,Internal Benchmarking for Electricity Generating Authority of Thailand (EGAT) on Generation and Transmission,Counterpart on Behalf of Provincial Electricity Authority (PEA): PWC Report on Productivity and Efficiency Benchmarking with 5 Other Public Utilities (Prepared for the Ministry of Energy),Internal Benchmarking for PEA on Distribution,24,Kasetsart University,Basics on Measurement,Issues of Measurement “Robustness”,(financial and non-financial dimensions such as weight, distance, volume, time, utility consumption, and so on):,Labor: $, hours, and headcounts,Materials: $, kilograms, m,3, and m,2,Space: $ and m,2,Machines: $ and hours,25,Kasetsart University,Basics on Measurement,Revenues,New Customers,Repeated Customers,Target Group,Unexpected Group,Primary Group,Secondary Group,Robustness,26,Kasetsart University,System Availability,Reliability (Uptime),Maintainability (Downtime),Operating Time,Standby,Active Maintenance Time,Delay Time,Corrective Time,Preventive Time,Logistics,Administration,Basics on Measurement,Robustness,27,Kasetsart University,Business and Industries,1. Bad Debt as a % of Revenue,2. Unplanned Overtime as a % of Overtime,3. % Of Suppliers with 100% Lot Acceptance over One Year,4. % Of Shipments Requiring More Than One Attempt to Invoice,5. % Of Customers Using “Invoiceless” Processing,6.,Recycled Material Values as a % of Purchased Material Values,7. Total Time Lost Due to Injuries,1,000,000 Hours Worked,8. Total Time Lost Due to Strikes,1,000 Hours Worked,9. % Of Qualified Suppliers and Subcontractors Receiving 90% of Total Purchased Value,Examples,28,Kasetsart University,Business and Industries,% Of Requests for Engineering Actions Open for More Than Two Weeks,Spare Parts Cost after Warranty as a % of Total Cost Suggested by Design Teams,Standard Parts in New Releases as a % of Total Parts,% Of Parts with Two or More Suppliers,Suppliers with Quality and Productivity Improvement Programs as a % of Total Suppliers,% Of Employment Requested Filled on Schedule,Average Time to Process Health and Accident Insurance Claims,% Of Employees Who Have Not Been Trained in the Past 12 Months,Examples,29,Kasetsart University,Government (Function),Information Technology Expenditures as a % of Revenue (Government of New South Wales, Australia ),Recycled Material Values as a % of Purchased Material Values (Government of New South Wales, Australia ),% Of Late Reports (Department of Energy, USA),% Of Errors in Reports (Department of Energy, USA),Errors Reported by Outside Auditors as a % of Total Errors (Department of Energy, USA),Error in Time Estimates,Total Value of Estimates (Department of Energy, USA),Number of Hours Lost due to All Equipment Downtime as a % of Total Available Hours (Department of Energy, USA),% Deviation from Budget (Department of Energy, USA),% Variation to Cost Estimates (Department of Energy, USA),Examples,30,Kasetsart University,Government (Program/project) by,Department of Trade and Industry, United Kingdom,Time Predictability on Design = (Actual Duration at Commit to Construct - the Estimated Duration at Commit to Invest),the Estimated Duration at Commit to Invest,100.,Time Predictability on Construction = (Actual Duration at Available for Use - the Estimated Duration at Commit to Construct),the Estimated Duration at Commit to Construct,100.,Cost Predictability on Construction = (Actual Cost at Available for Use - the Estimated Cost at Commit to Construct),the Estimated Cost at Commit to Construct,100,Differences in the Planned Completion Duration and the Actual Contract (client-agreed) Completion Duration as a % of the Contract (client-agreed) Completion Duration,Total Number of Change Orders Issued by the Client,Project Duration Time,Value of work subcontracted to or supplied by other parties as a % of Total Project Cost,Examples,31,Kasetsart University,Education,% Of graduates who can find work within 6 months,% Of graduates who have received job offers from multi-national corporations,Publications in international journals, staffs,Publications in international journals, research projects,% Of laboratory equipment in use,% Of texts in elective courses that have been published in the past 10 years,% Of courses that have adapted the use of multi-media software,% Of incoming students from top-tier high schools,Examples,32,Kasetsart University,Dimensions (Conditions Reflecting Satisfaction),Weight,Right day, late service,1,Wrong day, late service,5,Complaints reopened by customers,5,Missing proof of delivery,1,Invoice adjustment requested,1,Missed pick-ups,10,Damaged packages,10,Lost packages,10,Over-goods (packages received in lost and found),5,Abandoned calls,1,Occurrence Format (Source: FedEx from Neely, 1998),Descriptive KPIs,#,Score,Points,33,Kasetsart University,Basics on Measurement,Data,Performance measurement,Information,Roles of measurement is to convert data to information for decision/actions.,Analysis of information for improvement (interventions and budgeting), and rating and ranking (external parties),HR consideration (to be referred to as appraisal not measurement, and to be related to functional job analysis) involves pay-scale, par hike, placement, skill development, promotion, etc.,This is not the focus of the material!,34,Kasetsart University,Basics on Measurement,Potential Problems,:,Lack of knowledge on inputs and outputs in terms of priority and impacts (What are the primary inputs? What constitutes the primary outputs? What represents the inputs and outputs? Current data being collected?),Multiple outputs in terms of products and services 1 truck + 1 car + 1 motorcycle + 1 repair work, 4 units 1 TV + 1 radio 2 units,35,Kasetsart University,Basics on Measurement,Potential Problems (cont.):,3. Multiple inputs,10 m,2,of Space + 30 m,2,of Materials, 40,m,2,4. Consideration must be made into a time-effect for using inputs to generate outputs.,Outputs (labor + materials),Outputs (labor + new investment capital),36,Kasetsart University,Basics on Measurement,Potential Problems (cont.):,5.,Integration with the database (Is the database robust enough?),6.,Rapid changes in prices (per unit of outputs) and costs (per unit of inputs). You must be able to differentiate the contributions to the profits whether they are from the productivity improvement or the changes in unit price/ cost.,37,Kasetsart University,0,2,3,4,5,1,Unit assume constant,Arbitrary,origin,Interval Scale (use of mean and standard deviation) such as temperature and position,2nd,3rd,4th,5th,1st,No unit between two points,Order,Ordinary Scale (use of median and percentiles) such as preference and street numbers,Basics on Measurement,38,Kasetsart University,0,2,3,4,5,1,Constant unit,Non-arbitrary,zero,Ratio Scale (use of mean and standard deviation) such as length and time,# 6,# 3,# 4,# 5,# 1,# 2,# 7,Nominal Scale (use of mode) such as assignment of numbers for queuing or sport teams,Basics on Measurement,39,Kasetsart University,%,Month,Scrap and Rework- to- Sales Ratio (in %),Definition,Sale: the value of goods and services sold during the period ($),Scrap and Rework: the value in terms of cost with respect to direct labor, material, and other indirect support ($),Starting points, variation, trends, and satisfaction?,Basics on Measurement,40,Kasetsart University,Linking with Analysis/ evaluation,Internal analysis/ evaluation (comparison with past performance in terms of trend and variation, and with the internally-established targets, expectation, and anticipation),External analysis/ evaluation (comparison with standards, benchmarks, industrial averages with respect to the industries/ clusters, benchmarking partners, and competitors),41,Kasetsart University,Linking with Improvement,Desirable impacts should be anticipated prior to improvement interventions. For example, to improve productivity, one may expect at least one of the following five desirable impacts.,Output,Input,Output,Input,Output,Input,Output,Input,Output,Input,42,Kasetsart University,More on Measurement,Department of Energy, USA on “Performance Framework”,Sink and Tuttles Seven Performance Criteria,Profitability/ budgetability,Productivity,Innovation,Efficiency,Quality of Work Life,Effectiveness,Quality,43,Kasetsart University,More on Measurement,Definitions,:,Efficiency,: Degree to which the system utilizes the “right” thing. This definition may be represented by the ratio of “Resources planned for consumption” to “Actual consumption of resources.”,Effectiveness,: Degree to which the system accomplishes the “right” thing. This definition may be represented by the ratio of “Actual outputs” to “Planned outputs.”,Profitability/budgetability,: Ability to generate profit/revenue based on resources consumed,Productivity,: Relationships between outputs generated and resources consumed for output generation,Quality,(,anywhere in the process model):,Degree to which the system conforms to requirements, specification, or expectations.,Innovation,: Ability to change over time within processes or operations, and products/services offered in the market.,Quality of Work Life,:,Reflecting on how people feel toward their workplace. Feeling in driven by factors such as pay, safety, culture, relationships with co-workers and supervisors, flexibility, autonomy, etc,44,Kasetsart University,Sink Performance Criteria Interrelationships,Virginia Quality and Productivity Center at Virginia Tech,45,Kasetsart University,More on Sinks,Quality checkpoint 1,Quality checkpoint 2,Quality checkpoint 3,Quality checkpoint 4,TQM = Management of Quality at 5 Checkpoints,Quality checkpoint 5,46,Kasetsart University,More on Sinks,47,Kasetsart University,More on Measurement,University of California Framework,Safety,Productivity,Timeliness,Quality,Effectiveness,Efficiency,Definitions,:,Effectiveness,:,A process characteristic indicating the degree to which the process output (work product) conforms to requirements (Are we doing the right things?),Efficiency,:,A process characteristic indicating the degree to which the process produces the required output at minimum resource cost. (Are we doing the things right?),Quality,:,Degree to which a product or service meets customer requirements and expectations.,Timeliness,:,Degree to which a unit of work was done correctly and on time. Criteria must be established to define what constitutes timeliness for a given unit of work. The criterion is usua