OE21 7.1 Product Service and Process Results

Set and achieve excellent results in Products, Services and Processes 

Strategic Objective:

Strategic Objective:

Select and measure Products, Services and Processes results

Quality Objective:

Strategic Objective:

Approved by: (Name) Chair, Leadership Focus Team (LFT)​

Approved: MM-DDD-YY

Quality Objective:

Responsibility:

Lead: Operations Focus Team (OFT)  Support: Other focus teams

VALUE ADDED

 

  1. Provides Trend Chart results for Baldrige 7.1 Product and Process Results

  2. Supports Organization Performance Reviews and Action Plans

  3. Supports continuous improvement toward excellence of Results

  4. Ensures that the organization is focused on results

  5. Aligns results targets (goals) with all organization needs

  6. Facilitates Performance Reviews of Key Process Indicators (KPIs)

  7. Facilitates Continuous Improvements throughout the organization

  8. Improves decision making based on facts and trends

  9. Creates opportunities for Innovation to solve problems or improve performance in all areas of the organization

 

POLICY          7.1 COMMENTARY

7.1a Customer-Focused Product and Service Results - The organization selects, measures and improves results for products, services, and customer service processes; including current levels and trends in key measures or indicators of the performance of products and services that are important to and directly serve the customers. The organization compares results with the performance of competitors and other organizations with similar offerings, including how these results differ by product offerings, customer groups, and market segments, as appropriate.

 

7.1b(1) Work Process Effectiveness Results - The organization selects, measures and improves results for process effectiveness and efficiency; including current levels and trends in key measures or indicators of the operational performance of your key work and support processes, including productivity, cycle time, and other appropriate measures of process effectiveness, efficiency, and innovation. The organization compares these results with the performance of competitors and other organizations with similar processes, including how these results differ by process types, as appropriate.

 

7.1b(2) Emergency Preparedness - The organization selects, measures and improves results for emergency preparedness, including current levels and trends in key measures or indicators of the effectiveness of the organization’s readiness for disasters or emergencies, and how these results differ by location or process, as appropriate.

 

7.1c Supply-Chain Management Results - The organization selects, measures and improves Supply-Chain Management results, including key measures or indicators of the performance of the supply chain, and its contribution to enhancing the organization's performance.

PROCESS

Process Flow Diagram for 7.1

Process Chart for 7.1, 7.2, 7.3, 7.4 and 7.5 Results

Performance Management System (PMS) Requirements

 

Performance Measurement System (PMS) - The Leadership Focus Team (LFT) acquires or licenses the Performance Measurement System (PMS) from a vendor unless the organization has its own PMS. The LFT ensures that the PMS has the following minimum capabilities:

  • The number of Key Performance Indicators (KPIs) for each PMS Workbook is twenty (20) KPIs

  • Each of the four OE21 Focus Teams has their own PMS Workbook

  • Each OE21 Focus Team can create one or more copies of their PMS Workbook to increase the number of KPIs 

  • Trend Charts that track  up to 12 months of measures , targets, and two benchmark KPIs

  • Tracks measures input by week or month (measures by week are summarized by month)

  • Allow input of narrative Action Plans alongside each KPI trend chart

 

PMS Trend Charts - The OE21 PMS Trend Charts have the following characteristics:

 

  • A measure is color-coded (blue) with measure values overlaid

  • Measure trend is projected from measure forward (dotted line)

  • Target (black) is the goal that the measure should reach or exceed

  • Alpha (green) is a benchmark comparison of another organization

  • Bravo (red) is another benchmark comparison of another organization

  • Analysis Narrative is written by the owner of the measure (or assignee)

  • Action Plan Narrative is written by the owner of the measure (or assignee)

  • Name of person responsible for measure collection and validity is provided

OE21 PMS Files - There are four (4) OE21 PMS spreadsheet workbooks that may be used unless the organization has its own internal Performance Measurement System: 

 

  • LFT_7.4_7.5_PMS_Leadership_Excellence_Metrics (.xlsx) 

  • CFT_7.2_PMS_Customer_Excellence_Metrics (.xlsx)

  • OFT_7.1_PMS_Operations_Excellence_Metrics (.xlsx)

  • WFT_7.3_PMS_Workforce_Excellence_Metrics (.xlsx)

Inputs to 7.1 Product Service and Process Results

  • List of Key Competitors or Comparative Organizations for selecting Trend Chart Benchmarks

Measurement and Analysis Tools and Techniques

Outputs from 7.1 Product Service and Process Results

  • OFT_7.1_PMS_Operations_Excellence_Metrics with up to 20 Trend Charts, each with a measure and trend line, a target (goal), two benchmark measures and a brief narrative action plan for who will do what and when to drive the measure to or beyond the target.

Case Study (not applicable)

7.1 Implementation Instructions

Key Decision: The OE21 focus team responsible for this standard should begin by deciding whether or not the OE21 standard adds value (on is non-value added) when compared to any existing standard, SOP, or process the organization uses now. The decision process is:

 

1. The focus team studies all Tasks and tools used in the OE21 standard.

2. The focus team answers the questions:

  • NON-VALUE ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If YES, then the focus team should document that this standard is deemed as NVA, and then the focus team should proceed ahead to the next OE21 standard.

  • VALUE-ADDED? Does the organization currently use a standard, SOP process that is deemed as better or essentially as good as the OE21 standard? If NO, then the focus team should proceed ahead to complete the following OE21 Implementation instructions.

 

Note: The NVA finding will be used later in the OE21 Certification Audit process.

START IMPLEMENTATION

Task 7.1.1 Select Performance Measures - The Operations Focus Team (OFT) selects performance measures for this category. Measures are selected based upon contribution to, review, and improvement of performance, in each of these results:

 

  • 7.1a Customer-Focused Product and Service Results

  • 7.1b(1) Work Process Efficiency and Effectiveness Results

  • 7.1b(2) Emergency Preparedness

  • 7.1c Supply-Chain Management Results

 

The LFT uses the PMS Metrics Selection Tables in Figure 7.1-1 as a reference to help select measures and targets (goals) for the results items listed above.

 

NOTE 1: The PMS Metrics Selection Tables reference many of the Oe21 spreadsheet and survey models, which are a primary source of the performance measures selected for input into the Performance Measurement System (PMS). 

 

NOTE 2: As organizations mature and grow, they should consider licensing a good platform for their PMS needs, including Business Intelligence (BI) capability. The BI capability enables many additional analysis capabilities including the correlation of one data measure with others. The new BI systems (e.g. Microsoft Power BI) also enable data connectivity and advanced charting and analysis of multiple types of performance measures.  

Figure 7.1-1 Metrics Tables for Product and Process Results

Task 7.1.2 Select Performance Measures from Oe21 Spreadsheets & Surveys - The Leadership Focus Team (LFT) assigns the person(s) responsible for the collection of performance measures that originate from outputs of the Oe21 spreadsheets and surveys. Some of these outputs may have to be conditioned in Table formats that are required for input to PMS or Business Intelligence (BI) systems other than the PMS model provided with Oe21.

 

Task 7.1.3 - Collect and analyze Comparative Data (competitor benchmarks) The Focus Teams select competitive or comparative organizations that are sources of benchmark comparative data and information. The benchmark data may have to be conditioned in Table formats that are required for input to PMS or Business Intelligence (BI) systems other than the PMS model provided with Oe21. 

 

Task 7.1.4 Collect and Input Performance Measures into PMS (or BI system) - The Focus Team chairpersons determine who in each focus team are responsible for collecting and input of performance measures and comparative data into the PMS or BI systems used for performance measurement and review. Before each performance review, these responsible persons shall collect, verify and input all data and information into the PMS or BI system.

 

Task 7.1.5 Analyze measures and benchmarks, including correlation where appropriate - The Focus Team chairpersons determine who in each focus team are responsible for analysis of measures and benchmarks, including comparative data used for performance measurement and review. Before each performance review, these responsible persons shall perform analysis and where appropriate, correlation of measures and benchmarks. Example, use the Scatter Diagram tool to compare customer loss to service defect rates. 

 

Task 7.1.6 Create action plans to drive measured to or beyond target values - The Focus Team chairpersons determine who in each focus team are responsible for the creation of action plans used to explain how measures will be driven toward or beyond target values. Before each performance review, the action plans will be input and verified as accurate, timely and appropriate actions, including who will do what to achieve the desired target value. The action plan analysis narrative should explain the direction of the trend (upward, no change, or downward) and add useful statements regarding what happened to date and where the trend is projected to go in the future. 

 

Task 7.1.7 Use PMS or BI to review Performance Measures and Action Plans - The Leadership Focus Team (LFT) attends regular (monthly) reviews of the performance measures current values, trends, and projections of measures for selected performance measures in the PMS or BI platform systems. ​

OE21 PMS Files - There are four (4) OE21 PMS spreadsheet workbooks that may be used before a more capable Performance Measurement System is acquired or licensed.  Download and preview each of these workbooks: 

  • OFT_7.1_PMS_Operations_Excellence_Metrics (.xlsx)

  • CFT_7.2_PMS_Customer_Excellence_Metrics (.xlsx)

  • WFT_7.3_PMS_Workforce_Excellence_Metrics (.xlsx)

  • LFT_7.4_7.5_PMS_Leadership_Excellence_Metrics (.xlsx)

 

Each of these PMS workbooks contains up to twenty (20) PMS Trend Charts with input data logs.

 

Figure 7.1-2 is an example of a Trend Chart with Analysis and Action Plan input. 

 

The Action Plan review the Analysis and Action Plan narratives that help define what is going on with the trends, and what steps must be implemented to drive the measure to or beyond its Target value.

 

7.1 OUTPUTS

 

  • Performance Measures (Trend Charts)

  • Performance Measures Analysis Narrative

  • Performance Measures Action Plan Narrative

Figure 7.1-2 Trend Chart and Action Plan for Product and Process Results (example)