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Executive summaryAwareness: Understanding PROBE’s Analytical Framework

Baseline: Overview: Where are we up to, how do we compare?Our performance: what do we measure, what does it tell us?Our opportunities: improving our practices for enhanced performance and rewardsOur capability: actual and potential momentum for sustainable excellence

Compelling vision: What can we achieve and contribute?Down to action: Our next steps for Sustainable Excellence

Evaluation: Planning for success, maintaining focus and momentum

Appendix 1: Membership of the PROBE TeamAppendix 2: Agreed PROBE scores

PROBE for Manufacturing Excellence

ReportBusiness name: Xxxxxxx

Site name: Xxxxxxx

Date of Facilitated PROBE Workshop: XX Xxx 201x

Name ofPROBE Facilitator: Xxxxx Xxxxx

Lite version

Lite versionExecutive Summary

An Executive Summary should be written by the PROBE Facilitator to emphasise key points relevant to the business that has completed the PROBE assessment.

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Lite version

PROBE can help the business to:

strengthen its Awareness and understanding of the challenges and opportunities involved in the pursuit of sustainable excellence

establish a Baseline of today’s position develop a Compelling vision of its role in a sustainable future get Down to action on priority areas of opportunity and need and subsequently Evaluate progress to stimulate a cycle of continuous improvement.

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Awareness: Understanding PROBE’s Analytical Framework

Achieving and sustaining world-class status is based on the proposition that adoption of best practice leads to strong operational performance, and in turn to superior business performance. ‘Practice’ refers to the processes that an organisation has in place to design, manufacture, deliver and measure its products and services. ‘Performance’ refers to what is achieved, with emphasis on operational aspects including product/service quality, cost, delivery, innovation and sustainability.

Through the questionnaire, the PROBE team assesses many aspects of their organisation’s1 practices and performance. Their consensus scores are analysed and compared with a framework of world class sustainable excellence. These scores are also compared with those of others who have used PROBE.

PROBE has developed an analytical framework which illustrates the cause-and-effect relationship between:

o the processes at the heart of how the business functions

o performance across a range of perspectives, and the sustainability of that performance

1 PROBE can be applied either to an entire organisation, or to a part of an organisation such as a department, team, site or service. The PROBE team was encouraged from the outset to clearly define the scope of the ‘organisational unit’ upon which the benchmarking process was focused.

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o how the business’s activities contribute to sustainability in the broader societal/environmental sense

This framework can be applied to businesses/organisations of all types across all sectors, enabling PROBE to provide the broadest possible benchmarking and learning opportunities.

PROBE views ‘Performance’ through the lens of The Balanced Scorecard, a well–established framework for developing a holistic understanding of a business’s performance, from four key perspectives: Financial, Customer & Stakeholder, Internal Process Perspective, and Learning & Growth. This analysis of performance addresses the issue of what the business achieves.

Importantly, PROBE looks beyond the question of what is achieved, by also asking how the business operates. It does this by examining the processes through which the business functions. This provides insights into why the performance is as it is, and how it can be improved.

PROBE uses an adapted version of a widely-used and respected generic process framework2, examining a set of Operating Processes and Management and Support Processes which exist in some form in any organisation, and to provide a description of all of the key aspects of how the organisation functions.

2 PROBE uses its own nomenclature for ‘Operating Processes’ and ‘Management & Support Processes’, but it is broadly compatible with the internationally-recognised Process Classification Framework developed by the APQC

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Lite versionThe third ‘lens’ through which PROBE examines the business is the framework for Strategic Sustainable Development (FSSD). This powerful framework, developed by The Natural Step, provides a rigorous, science-based definition of sustainability. This lens enables PROBE to help businesses assess the extent to which various aspects of their practice and performance are contributing to society’s sustainability.

PROBE’s Analytical Framework drives the analysis presented in this report. The standard and Advanced versions of PROBE for Manufacturing Excellence also provide additional analysis using a manufacturing-specific model called the Manufacturing Insights Framework, but that additional analysis is not available at the ‘Lite’ level of PROBE.

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Lite version

Baseline Overview: where are we up to, how do we compare? This diagram shows indices of Overall Practice and Performance. The resultant position says much about the organisation:

Leaders – practice and performance exceed 70; these leading organisations are achieving World Class status En Route – practice and performance exceed 50; not there yet, but Contenders for world class status Promising – practice over 50, performance below 50; they have untapped potential for stronger performance Vulnerable – practice below 50, performance over 50; they look strong at first glance, but they won’t go the distance

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DELETE THIS HINT FROM CUSTOMER REPORTReplace this example chart with its equivalent “Scatter” chart from the PROBE Site Tool software.

In the Site Tool, selecting REPORT MODE produces images that are better suited for embedding into this report. The image will need to be cropped to size.

Lite version Aspiring – practice and performance approaching 50; progress is underway, need to focus and build momentum Unsustainable – low scores indicate risk and opportunity; urgent, focused action required

This result positions the organisation in the {name of zone of graph e.g. ‘Aspiring’} zone of the world class model, with a practice index of {practice score}% and a performance index of {performance score}%..Further comments may be added here regarding how the organisation’s score compares with the average for the Comparison Group and/or the Overall Sample. And/or comments about what this result might mean in the context of this organisation.

On the scatter diagram, the red square shows the position of this PROBE survey and the green triangle the position of the overall sample average – the average of all the green

crosses. The yellow squares identify other organisations that are in a particular comparison group (such as a sector: the comparison group is identified in the bottom row of the chart’s title), and the blue triangle is the average for the comparison group. In this case, the comparison group is ‘{name of Comparison Group e.g. Furniture and fixtures}’.

(If applicable) Since this is a repeat benchmark, the black square/squares identifies/identify the results of the previous PROBE benchmark(s).

The shaded area on the chart indicates the zone in which standards of practice and performance are beyond the upper limits described in the Lite version of PROBE for Sustainable Business. Businesses whose practices and performance may place them in this zone can benefit from the more stretching assessments provided by the standard and Advanced versions of PROBE

Bear in mind that the organisations in PROBE’s database are a self-selecting sample. Their average may well be higher than the true average of the business community as a whole. By definition, organisations that use PROBE have a somewhat positive attitude

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DELETE THIS HINT FROM CUSTOMER REPORTReplace this example chart with its equivalent “Scatter” chart from the PROBE Site Tool software.


Lite versiontowards techniques such as benchmarking that can help drive continuous improvement. They represent a tough standard of comparison.

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Baseline performance: what do we measure, what does it tell us?

This chart shows several indices, calculated to produce a gap analysis. Superimposed over the quartiles bars, the red square indicates the position of this survey and the blue square indicates the comparison group average and the green square the overall sample average.

The PROBE Team’s scores for all questions contributing to these 4 perspectives are shown in Appendix 2.

Financial Perspective:

In a world class business: Financial results meet or exceed the high expectations of key

stakeholders The flow of cash into the business consistently exceeds the cash

outflow The business has made and continues to make consistent and

substantial progress in terms of market penetration/share Inventory turns fast – achieving the difficult balance of minimising inventory levels without compromising flexibility &

responsiveness to market demand

Customer and Stakeholder Perspective:

Once the business has made a delivery promise, it keeps it Customers’ expectations often exceeded, resulting in very high satisfaction The business sets, and meets, tough standards for itself. It takes responsibility for indirect effects of its activities (e.g. sustainability

impact throughout whole life cycles of its own products and services 'in use' and of products, materials and services it buys) Customers never feel let down

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Gap Analysis – Performance Scorecard


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Internal Process Perspective:

Processes are more than capable of delivering the standards demanded, providing very high confidence in the quality of outputs Work proceeds smoothly through the various stages of processing The business relentlessly achieves substantial productivity gains, becoming and remaining a leader in its field for productivity The business is flexible and responsive to unpredictable customer demands

Learning and Growth Perspective:

The business has very strong ethical foundations and a clear sense of purpose, values and direction which is universally shared People like working in the business and are loyal and positive. Employee satisfaction is very strong with positive long-term trends The business is a leading innovator, with a large proportion of products and services that are new and fresh. Innovation in

processes embraces high levels of continuous improvement and radically new approaches New Product Development lead time (‘time to market’) is a source of advantage for the business.

Some comments may be added here regarding key points relating to the business’s performance.

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Baseline Opportunities: improving our practices for enhanced performance and rewards

Excellent practices deliver excellent performance. Performance can only be improved by strengthening the practices and processes through which the business operates.This chart examines the status of the business’s Operating Processes, the value chain at the heart of the business’s activities.

The PROBE Team’s scores for all questions relating to Operating Processes are shown in Appendix 2.

Develop Vision and Strategy:

In a world class business: Leaders at all levels deploy outstanding leadership skills and behaviours A sophisticated understanding of customers and their expectations is the

central focus of planning and development A compelling vision of sustainable excellence is firmly embedded and

shared throughout the business

Develop and Manage Markets, Products and Services:

A sophisticated understanding of needs and expectations underpins mutually beneficial relationships with customers The voice of the customer is a strong influence on development of products, services and processes The business consistently fulfils customer needs through outstanding products and services

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Gap Analysis – Operating Processes


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Deliver Products and Services:

Products and services are designed to meet customers’ needs and also to exploit the business’s operational strengths Process capabilities and performance are measured and managed as drivers for continuous improvement Processes are lean, and constantly reviewed to continue to drive out all forms of waste Equipment layout is a positive enabler of flexibility, responsiveness and the leanness of processes Flow is smooth and synchronised with demand. The business is highly flexible, promising and delivering short lead times All areas are clean, orderly and self-maintained. The premises are always ‘tour ready’ The business and suppliers are mutually-supportive partners

Manage Customer Service:

All customer interactions, even those that occur unconventionally, are delivered with excellence. The approach to service recovery delights customers, reinforcing loyalty and willingness to recommend

The business makes highly effective use of electronic means to deliver parts of its service, and to allow customers and others to interact online

Customer satisfaction measurement, and deployment of lessons learned, is sophisticated – a driver for product/service/process innovation.

Effective and efficient functioning of the Operating Processes is enabled by the organisation’s Management and Support Processes. Their status is analysed in this chart.

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Gap Analysis – Management & Support Processes

Lite versionThe PROBE Team’s scores for all questions relating to Management and Support Processes are shown in Appendix 2.

Develop and Manage People:

In a world class business: There is a culture for excellence throughout the business The business respects the people it employs, supporting them in their work and wellbeing, and others it affects The business fully understands and maximises the ‘return on investment’ that it achieves through people development

Manage Assets and Finance:

Advanced financial management is an enabler of the smooth running and development of the business The business invests strategically in assets and systems that enhance its ability to deliver sustainable excellence It is a sophisticated user of information and systems, exploiting ICT’s ability to support new ways of doing business Effective maintenance of equipment is an enabler of work flow, productivity, flexibility, product quality and customer service.

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Gap Analysis – Management & Support Processes

Lite versionDevelop Sustainability of the Business and Society:

The business does well by doing good, obtaining substantial business benefits through its focus on corporate responsibility and environmental, social and economic sustainability

It is very thorough in managing the whole life value and impact of its products, services and activities It plays a major part in activities that contribute to community-wide progress towards a sustainable society Energy and water usage are at exemplary low levels, with 100% drawn from sustainable sources. The business’s finances benefit

substantially from this low consumption The business produces minimal waste, all of which is recycled in natural systems

Manage Knowledge, Improvement and Change:

The business uses a focused, balanced scorecard of indicators to monitor key aspects of performance and to drive innovation It recognises and manages the value of explicit and tacit knowledge as components of its organisational capabilities Management of change is exemplary and highly effective.

Some comments may be added here regarding key points relating to the strengths and opportunities for improvement relating to the Operating Processes and Management and Support Processes

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Baseline Capability: our actual and potential momentum for sustainable excellence

As well as providing a snapshot of today’s status, PROBE analyses the capability and momentum for continuing improvement that are evident in the business’s current practices.

The arrow on the chart represents, on the horizontal scale, the capability and momentum for improvement that is demonstrated within today’s business practices. This is XX% of the maximum level represented by PROBE’s aspirational benchmarks.

For illustration purposes, the rate at which the business is improving its performance is assumed to be equivalent to the level of capability and momentum in practice improvement. This assumption may not be correct – the business may like to consider how much evidence it has regarding the true rate of improvement of its performance

related to excellence.

The PROBE Facilitator may add some comments to this section. For example, a comment such as this may sometimes be appropriate: “This chart suggests that Business Name, like many organisations in 2012, has work to do to establish the momentum that will enable it to make rapid progress towards sustainable business excellence.”

Optionally, the report may include an explanation of how the level of Capability and Momentum for Improvement has been estimated. This is based on a combination of the indices that represent the status of one of the business’s Operating Processes and one of its Management and Support Processes:

o Develop vision and strategyo Manage knowledge, improvement and change

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Replace the example chart in this section with its equivalent scatter chart from the PROBE Site Tool software.

Before doing so switch on “Rate of Improvement” (the red arrow) and ‘Improvement label’ via the Shortcuts menu.

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Compelling Vision: what can we achieve and contribute?

A critical component of the business’s ongoing progress is its ability to develop, share, pursue and renew a compelling vision of its own future and contribution. Only with such a vision in place can the business 'backcast' from the vision to better understand the gaps that it needs to bridge, and to identify, plan and implement actions that will move it forwards. Only with a clear vision in place can the business judge the contribution of current developments to its progress towards that future.

The facilitator should draw upon all of the information that the PROBE assessment has generated, including answers to the Contextual Questions, and including discussions with the PROBE Team Leader and Team, in order to add comment here about some or all of the following:

o the current context of the business and its activitieso the business’s perception of its core purposeo the time horizon on which senior management are focusingo senior management’s views regarding the sustainability of the business, and about its competitivenesso the extent to which the business has developed and shared a compelling vision (and if so, what the vision is)o the extent to which the work of developing, sharing, pursuing and refining a vision is yet to be doneo what prompts or pointers emerge from the PROBE assessment about what the content of the vision is/could be?o how the business could proceed to develop/refine its vision and to achieve and maintain sustainable excellence

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Down to Action: our next steps for Sustainable Excellence

The pursuit of sustainable excellence represents a substantial change agenda for most organisations. The intent of PROBE for Manufacturing Excellence is to assist the business to challenge itself and to make a realistic strategic assessment of its current position. The next challenge is to decide ‘what next?’

The PROBE facilitator should draw upon the analysis that PROBE has provided, their own judgement and insight, and the thoughts and ideas of the PROBE Team and their colleagues, in order to present here some suggestions/recommendations regarding the business’s next steps. If and as appropriate, this may include an offer/proposal of support that the facilitator can provide and/or referral to other sources of advice and support.

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Evaluation: planning for success, maintaining focus and momentum

PROBE for Manufacturing Excellence has been designed to support the business with an ‘A-B-C-D' methodology3, assisting the business to visualise itself and its continuing success in a more rewarding future, and to plan and implement actions which will achieve progress towards that vision.

PROBE also offers support with the vital ‘E’ step: Evaluation. A key to successful implementation of change in organisations is to build evaluation into improvement plans from the outset – What will success look like? How will we know when we have achieved our goals? What do we need to start measuring now to enable us to monitor and assess our progress?

An effective evaluation strategy will enable the business to monitor progress on an on-going basis, and periodically to take stock of achievements, focus on new opportunities, refine plans, and inject fresh energy into the pursuit of sustainable excellence. As the business has experienced, PROBE can be a valuable catalyst and guide for organisational improvement, generating momentum and enthusiasm for progress. The full benefits are realised when PROBE becomes part of a regular cycle of ‘plan-do-study-act’ – in other words, a cycle of continuous improvement, with PROBE being repeated regularly (typically annually) to review progress and provide direction and support for further improvement.

If appropriate, in future PROBE assessments you may wish to progress from the ‘Lite’ version to the more stretching assessments offered by the standard or ‘Advanced’ versions, which include an examination of your business’s performance and practices through the lens of PROBE’s ‘Manufacturing Insights Framework’. Your PROBE Facilitator can advise you about this.

The facilitator could add further comments in this section, specific to the business and its circumstances, if appropriate.

3 As developed by PROBE’s collaborator organisation The Natural Step

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Appendix 1: Membership of the PROBE Team

PROBE TEAM MEMBERSFIRST NAME LAST NAME ROLE

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Appendix 2: Agreed PROBE scores

Performance Scorecard:

FINANCIAL PERSPECTIVE PERFORMANCE

QUESTION QU # SCORE

Financial achievements 3

Inventory turns 4

CUSTOMER & STAKEHOLDER PERSPECTIVE PERFORMANCE

Results for customers & other external stakeholders 11

Product & service reliability 12

INTERNAL PROCESS PERSPECTIVE PERFORMANCE

Performance of key internal processes 16

Flexibility & responsiveness 17

LEARNING AND GROWTH PERSPECTIVE PERFORMANCE

Indicators of a bright future for the business 23

Time to market 24

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Operating Processes:

DEVELOP VISION AND STRATEGY FOR SUSTAINABLE EXCELLENCE PRACTICE

QUESTION QU # SCORE

Leading the way to sustainable excellence 1

DEVELOP AND MANAGE MARKETS, PRODUCTS AND SERVICES PRACTICE

Meeting market needs through outstanding products & services 2

DELIVER PRODUCTS AND SERVICES PRACTICE

Delivering excellence through lean operations 5

Equipment layout 6

Managing the work flow 7

Housekeeping 8

Effective procurement 9

MANAGE CUSTOMER SERVICE PRACTICE

Excellence at the customer interface 10

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Lite versionManagement and Support Processes:

DEVELOP AND MANAGE PEOPLE PRACTICE

QUESTION & NOTES QU # SCORE

Achieving excellence through our people 13

MANAGE ASSETS & FINANCE PRACTICE

Supporting excellence through assets, systems and finance 14

Maintenance 15

DEVELOP SUSTAINABILITY OF THE BUSINESS AND SOCIETY PRACTICE

Securing a better future for our business and society 18

Energy management and carbon footprint 19

Managing water usage 20

Managing material reuse, recycling and waste 21

MANAGE KNOWLEDGE, IMPROVEMENT AND CHANGE PRACTICE

Skilful management of knowledge and change 22

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The PROBE Network is a worldwide alliance of people and organisations who share a commitment to the promotion and support of Business Excellence. PROBE Network LLP and Comparison North America are Founder Members and the twin hubs of the worldwide PROBE Network, supporting activities respectively in Europe, Asia, Africa and Australia/New Zealand (PN LLP) and in North and South America (CNA).

PROBE for Manufacturing Excellence © PROBE Network LLP, 2012.The PROBE™ concept is based on the Made in Europe studies © Philip Hanson & Chris A Voss 1994, 1996, 1998. Permissions are gratefully acknowledged.

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