Category: Productivity

Freedom of KPI

KPI is a measurable value of relevant parameter what shows current status on the road towards target. For example we spend 6,6 People Worked Hour (PWH) to produce one chair => KPI1 = 6,6.

Usually we use a set of KPI-s, to describe a process (we need 0,05m3 wood for the chair =>KPI2 = 0,05; we put 0,15 kg paint on the chair =>KPI3 = 0,15; and so on).

Let’s   review  top  4 ones,  from many of benefits to have KPI’s!

  1. KPI’s gives me a possibility to know: if I continue the same way as I did today, I will arrive to the target or not!

For example: If I planned to spend 0,16 kg paint / chair, as KPI3 = 0,15 => I do O.K., I will make profit.

2. If I make a change in production process, will show me does this change help me to achieve target, or not?

For example: I found a cheaper wood supplier, I received the shipment, and now I spend 0,06m3 wood per chair. Not sure, it is a good business!

3. KPI has their value, and I can compare direct values or calculated values.

a. New KPI2 = 0,06 I spend 1% more wood from new supplier, than earlier.

b. Wood of new supplier is cheaper for 3% /m3. It seems, it’s still profitable for me to buy from the new one!

4. Possibility to compare (bench mark) values.

a. Example: In shift A they spend 6,6 PWH /chair (KPI1=6,6), however in shift B KPI1 = 7,2 (What is happening there?!?)

b. Example: In factory in Arad average value of KPI1 = 6,7; in Sibiu factory KPI1= 6,5. (It seems, factory in Sibiu is better organized!)

Myths about KPI’s:

  1. My business does need KPI’s.

Not true! Each business needs them!

Why: You do not do profit & loss calculation each day, but once (twice) per year. You should know the way how your organization performs will lead to profit, or loss!

2. I know what I’m doing and my people as well. We do not need KPI’s.

Not true!

Why: You know your good intention, and intention of colleagues. You should know the result as well!

3. I do not have time to spend for reviewing KPI’s

Hmm…

The primary task of a manager is to use certain amount of resources to achieve specific target. If you do not measure how much you used, if you don’t know how far is the target…?  

4. My business does not have KPI’s

It has. Every business has.

Can happen, it’s not visible what values should be measured, or the relevant ones it’s hard to measure (Example: customer satisfaction). An experienced Productivity specialist will guide you to establish the right measurement for relevant values of your processes.

Why people avoid to use KPI’s?

  1. Fear from the transparency

What will happen, if John discovers he has better results than Jim, but Jim is the favorite?

People on the workplace should be evaluated based on their work results, not based on sympathy or friendship. Giving appropriate feedback based on measured results will encourage the team to go after performance improvement!

2. Procrastination

As I see KPI1 =7,2 week by week and I know, it should be below 7, in my thoughts I know: I should intervene in process and I do not do, I rather avoid to watch KPI. This strategy certainly leads to loss… In this case better to employ a Productivity Consultant, to found a right solution!

After all … What to do regarding KPI’s?

  1. Have implemented set of KPI’s
  2. Check, do they represent all relevant parameters! (If not sure, ask for an audit. It is better to invest in an audit, than to have a less than optimal KPI’s!)
  3. Learn your organization to evaluate values!
  4. Encourage managers to make adjustment in process to arrive values of KPI’s to desired ones!
  5. Keep process running and enjoy your coffee!

To establish co-operation, click on CONTACT, send a WhatsApp message on +40 753 057 303 or a mail to robertburu@gmail.com !

3 Figures for measuring productivity of on-line work

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Keep level of productivity working on distance

Apperiance of koronavirus generated new conditions in life of companies. Some of them entered in temporary stop, others decereased the volume of production and some companies organised part of their activity to be done from home office.

Keeping in focus group 3, can happen that:

  • The Manager is working from home office
  • The Manager is working either from home, either from company office and is coordinating subordinates who are accomplishing tasks in home office.

This articel proposes a way of control over productivity of employee who is working in home office in absence of phisical proximity. In this case „passing next to & observe” is impossible and asking/providing additional information requires extra time for communication what othervise could be used for task accomplishment.

1-st figure:

List the tasks to be accomplished. (Larger tasks split it in smaller steps (logical units)). Assign a number to each of them (the number become the code). We got number of tasks.

2-nd figure:

To each numbered task assign an amount of time for accomplishment. Summarize the amount of time needed.

3-rd figure:

Calculate the Load as a ratio of Sum of estimated time from 2 and Amount of Time employee is supposed to spend working for company in home office.

Load = (Sum of Estimated Time) / (Amount of Available Time)

Above described 3 Figures System gives the best result if tailor made for a specific company and specific tasks. At tailoring (fine tuning) of 3 figures system, a productivity coach can provide handy on line assistance. For benefits working with a coach:

  1.  Activities in the list has different importance and priority. Applying prooven methods (Eisenhower Matrix) the coach will help you to make right prioritization.
  2. Assigning time necessary for accomplishment is easy, when deal with known, repetative activities, but to correctly assign time to suddenly emerged task seems „mission impossible”. Here again help of Productivity Coach can save you from lot of disagreements.
  3. Construct a Blueprint of To Do List where beside of Three Figures priorities, tasks and due dates are easy to follow.
  4. Proposal for a way and frequency of communication between Manager and Employee (to Follow Up given tasks and assign new ones). You will receive proposal to give a motivating feedback in order to maintain (or increase) motivation level of employee who works far from company office and its conditions.

The writer of article is working for 20 years with similar task at international companies (IKEA, Caterpillar Suppliers, Velux, Friesland and others) who has in common to maintain their productivity and customer satisfaction on high level.

Benefit my expertise in your specific case contacting me at  CONTACT, or WhatsApp number +40 753 057 303 or e-mail address robertburu@gmail.com

To see more info, please visit http://noponlogistics.com/