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Operations Improvement Performance Measurement

Why Performance Measurement?When performance is measured, performance improves.When performance is measured and reported back, the rate of improvement accelerates (Thomas S. Monson).

Data based performance measurement aids communication of whats important to the business, focusing efforts & producing results more quickly.

Labor and Machine StandardsIdentify ProcessesIdentify Cost DriversSet-UpsItem TypeLines of Text# Locations etcIdentify Driver CostsLabor per OrderLabor per UnitMachine TimeMaterial UsageStructure Orders to link to Cost DriversComplete sales orders properly

Labor PlanningMachine Capacity PlanningTransparency for Reward/AccountabilityIncreased Labor SharingFosters Namify-PaceIdentify and Measure Process ImprovementAccount for CostsData to Guide DecisionsMargin AnalysisDynamic PricingAutomated real-time costingProduct Portfolio ManagementLabor and Machine Standards System

How Made

How UsedKey Drivers by Area

Seven Pillars of Namify OperationsSafety: We work safely. We each have responsibility for personal safety and safe work behaviors. We also ensure company assets are protected.Quality: We fulfill client needs with accurate, consistent, and appealing products. We confirm quality before preceding.Service: We pride ourselves in same-day service, delighting our internal and external customers and exceeding personal expectations.Order, Function, and Efficiency: Everything has its place and is maintained fully functional. Simplify and systemize process flows to reduce complexity and improve productivity. Transparent process drives efficiency. Back/Next principle: If ready, then process. If not, send back.We respect the process and do not short-cut; approving changes before implementing.Accountability: Each is 100% responsible and accountable for results.Teamwork: The power of "we is greater than the power of "me. We find the way.Communication: Use system tools to process orders and send professional emails when appropriate. We listen and have open frank dialogue in weekly meetings. Make clear commitments and keep them.

Why Process Documentation?Communication/ImprovementAll can be on same pageQuality: standard for consistent executionAnalysis

Scale: Enables growth

Knowledge Management

Current Performance IndicatorsCurrent Performance IndicatorsCorrected OrdersOn-Time ShippingWaste TrackingOvertime

New Performance IndicatorLabor Efficiency Definition: Task Completed X Standard Hrs / Hrs Worked**Salary = 8 hrs worked

Why Labor Standards and Labor Efficiency?Labor Standards Used as reference to Marketing set pricing.Guides labor and machine planning (how long will it take to finish this order?)Measure labor performance.

Labor Efficiency performance indicator will help give feedback.IndividualHow am I doing? One number will say a lotLine LeaderCredit/recognition for their results.Tool for performance feedback.Management How well are we using our overall labor? Part of overall performance feedback.Results will be part of qualification for employment and pay raises.Incentive to quickly finish up base orders then work on stock assembly required or go home.

How to use it on the lineReview daily report showing daily and week-to-date productivity by person and by line.Make note of trends and address as appropriate.Meet officially with each person weekly and give general feedback. Purpose is not to dwell on the numbers or distract. Send them home or go to Assembly Required to work on stock items such as 5/8 Lanyards and Badge Holders.

Report Discussion PointsLead Vacation: hrs still count against performanceSubstitute on auto line doesnt get credit hrs from line.Labor standard calculations: Observed vs Expectation Based# of lines doesnt determine machine time:FC not at allLaser: # of lines, size of lines, presence and size of logoTracking and accountabilityCorrected OrdersValidation of self reported dataNeed to add lbr and machine hrs to Lanyard/Textile Press, Banners, Embroidery to automate labor and processing time feedback.