APPENDIX
G
Nonmanufacturing Typical Processes Measurements
Nonmanufacturing measurements, which are sometimes difficult to establish, might include the following:
1. ACCOUNTING
• Percentage of late reports.
• Computer input incorrect.
• Errors in specific reports as audited.
• Percentage of significant errors in reports; total number of reports.
• Percentage of late reports; total number of reports. Average reduction in time spans associated with important reports.
• Pinpointing high-cost manufacturing elements for correction.
• Pinpointing jobs yielding low or no profit for correction.
• Providing various departments with the specific cost tools they need to manage their operations for lowest cost.
2. ADMINISTRATIVE
• Success in maximizing discount opportunities through consolidated ordering.
• Success in eliminating security violations.
• Success in effecting pricing actions so as to preclude subsequent upward revisions.
• Success in estimating inventory requirements.
• Success in responses to customer inquiries so as to maximize customer satisfaction.
3. CLERICAL
• Accurate typing, spelling, hyphenation.
• Decimal points correctly placed.
• Correct calculations in bills, purchase orders, journal entries, payrolls, bills of lading, etc.
• Time spent in locating filed material.
• Percentage of correct punches.
• Paper used during a given period versus actual output in finished pages.
4. DATA PROCESSING
• Data input error rate.
• Computer downtime due to error.
• Rerun time.
• Promptness in output delivery.
• Effectiveness of scheduling.
• Depth of investigations of programmers.
• Program debugging time.
• KP efficiency.
5. ENGINEERING: DESIGN
• Adequacy of systems specifications.
• Accuracy of system block diagrams.
• Thoroughness of system concepts.
• Simulation results compared with original design or prediction.
• Success in creating engineering designs that do not require change in order to make them perform as intended.
• Success in developing engineering cost estimates versus actual accruals.
• Success in meeting self-imposed schedules.
• Success in reducing drafting errors.
• Success in maximizing capture rates on RFPs for which the company was a contender.
• Success in meeting engineering test objectives.
• Number of error-free designs.
• Correct readings of gauges and test devices.
• Accurate specifications and standards.
• Proper reporting and control of time schedules.
• Reduction of engineering design changes.
• Changes in tests or in illustrations of reports.
• Rework resulting from errors in computer program input.
• Advance material list accuracy.
• Design compliance to specifications.
• Customer acceptance of proposals.
• Meeting schedules.
• Thoroughness of systems concepts.
• Accuracy and thoroughness of reports.
• Adequacy of design reviews.
• Compliance to specifications.
• Accuracy of computations.
• Accuracy of drawings.
• Reduction in number of ECNs to correct errors.
6. ENGINEERING: MANUFACTURING
• Accuracy of manufacturing processes.
• Timely delivery of manufacturing processes to the shop.
• Accuracy of time study data.
• Accuracy of time estimates.
• Timely response to bid requests.
• Asset utilization.
• Accuracy and thoroughness of test processes.
• Adequacy and promptness of program facilitation.
• Application of work simplification criteria.
• Minimum tool and fixture authorization.
• Labor utilization index.
• Methods improvement (in hours or dollars).
• Contract cost.
• Lost business due to price.
• Process change notices due to error.
• Tool rework to correct design.
• Methods improvement.
• Effectiveness of preventive maintenance program.
• Accuracy of estimates (dollars and details).
• Accuracy of layouts.
• Cost of building services.
• Completeness of plant engineering drawings.
• Adequacy of scheduling.
• Fixed versus variable portions of overhead.
• Maintenance cost versus floor space, manpower, etc.
• Lost time due to equipment failures.
• Janitorial service.
• Success in meeting or beating budgets.
• Instrument calibration errors.
• Fire equipment found defective.
• Lost time due to equipment failures.
• Purchase requisition errors.
• Schedule compliance.
• Timely response to bid requests.
• Adherence to contract specifications.
• Effectiveness of customer liaison.
• Effectiveness of cost negotiations.
• Status “ship not bill.”
• Change orders due to errors.
• Drafting errors found by checkers.
• Late releases.
• Time lost due to equipment failure.
• Callbacks on repairs.
8. FINANCE
• Billing errors (check accounts receivable overdues).
• Accounts payable deductions missed.
• Vouchers prepared with no defects.
• Clock card or payroll transcription errors.
• Keypunch errors.
• Computer downtime.
• Timeliness of financial reports.
• Effectiveness of scheduling program “debugging” time.
• Rerun time.
• Accuracy of predicted budgets.
• Clerical errors on entries.
• Inventory objectives met.
• Payroll errors.
• Discounts missed.
• Amounts payable records.
• Billing errors.
9. FORECASTING
• Can departments function with maximum effectiveness with budgets set for them?
• Can the company buy needed capital equipment, keep inventories supplied, pay its bills?
• Do projects meet time schedules?
• Assistance to line organizations (scheduling, planning, and control functions).
• Methods for finance and cost control.
• Timeliness of financial reports.
• Assets control.
• Minimizing capital expenditures.
• Realistic budgets.
• Clear and concise operating policies.
• Timely submission of realistic cost proposals.
• Completeness of financial reports.
• Effectiveness of disposition of government property.
• Effectiveness of cost negotiations.
10. HOTEL FRONT DESK
• Guests taken to unmade rooms.
• Reservations not honored.
11. LEGAL
• Amount of paper used versus finished pages produced.
• Misdelivered mail.
• Misfiled documents.
• Delays in execution of documents.
• Response time on request for legal opinion.
12. MANAGEMENT
• Management can be gauged by the output of staff elements, overall defects rates, budgets and schedule controls, and other factors that reflect on managerial effectiveness. In other words, the accomplishments of a manager are the sum total of those working under him or her.
• Success in developing estimates of costs versus actual accruals.
• Success in meeting schedules.
• Performance records of employees under the manager’s supervision.
• Success in developing realistic estimates on a PERT or PERT/cost chart
• Success in minimizing use of overtime operations.
• All nonproduction departments can be measured.
• Each department should be measured against itself, using time comparisons, and preferably by itself.
• The best primary goals are those that measure cost performance, delivery performance, and quality performance of the department. Secondary goals can be derived from these primary goals.
• There should be a base against which quality, cost, or delivery performance can be measured as a percentage of improvement. Examples of such a base would be direct labor, the sales dollar, the materials dollar, or the budget dollar. A dollar base is more meaningful to management than a physical quantity of output.
• Pages of data compiled with no defects.
• Clarity and conciseness of operating procedures.
• Evaluations of capital investment.
• Errors in applying standards on process sheets.
• Accuracy of estimates; actual costs versus estimated costs.
• Effectiveness of work measurement programs.
13. MARKETING
• Success in reduction of defects through suggestion submittals.
• Success in capturing new business versus quotations.
• Responsiveness to customer inquiries.
• Accuracy of marketing forecasts.
• Response from news releases and advertisements.
• Effectiveness of cost and price negotiations.
• Success in response to customer inquiries (customer identification).
• Customer liaison.
• Effectiveness of market intelligence.
• Attainment of new order targets.
• Operation within budgets.
• Effectiveness of proposals.
• Exercise of selectivity.
• Control of cost of sales.
• Meeting proposal submittal dates.
• Timely preparation of priced spare parts lists.
• Aggressiveness.
• Effectiveness of G-2
• Utilization of field marketing services.
• Dissemination of customer information.
• Bookings budget met.
• Accuracy of predictions, planning, and selections.
• Accurate and well-managed contracts.
• Exploitation of business potential.
• Effectiveness of proposals.
• Control of printing costs.
• Application of standard proposal material.
• Standardization of proposals.
• Reduction of reproduction expense.
• Contract errors.
• Order description errors.
• Sales order errors.
14. MATERIALS
• Saving made.
• Late deliveries.
• Purchase order (PO) errors.
• Material received against no PO.
• Status of unplaced requisitions.
• Orders open to government agency for approval.
• Delays in processing material received.
• Damage or loss items received.
• Claims for products damaged after shipment from our plant.
• Delays in outbound shipments.
• Complaints about or improper packing in our shipments.
• Errors in travel arrangements.
• Accuracy of route and rate information on shipments.
• Success in meeting schedules, material shortages in production.
• Success in estimating inventory requirements.
• Clock card errors by employees.
• Damaged shipments.
• Stock shelf life exceeded.
• Items in surplus.
• Purchase requisition errors.
• Effectiveness of material order follow-up.
• Adequacy and effectiveness of planning and scheduling.
• Application of residual inventories to current needs.
• Inventory turnover.
• Manufacturing jobs without schedules.
• Timeliness of incorporating ECNs.
• Timely replacement of rejected parts.
• Adequacy of reject control plan.
• Effectiveness of packing operations.
• Floor shortages.
• Labor utilization index.
• Data processing rerun time on material programs.
• Bad requisitions.
• Value of termination stores and residual inventory.
• Manpower fluctuations around mean.
• Percentage of supplier materials (dollars) rejected and returned; total materials (dollars) purchased.
• Number of defective vendors (repetitive); total number of vendors.
• Number of single-source vendors; total number of vendors.
• Percentage of supplier materials (dollars) holding up production; total material (dollars).
• Number of late lots received (actually holding up production); total lots received.
• Percentage of purchased materials (actual); total materials bid or budgeted.
• Percentage of reductions in B/M effected through purchasing effort; total materials bid or budgeted.
• Correct quotations or rates.
• Customers called back as promised.
• Installation of exact equipment requested by customers.
• Appointments kept at the time promised to customers.
• Prompt handling of complaints.
• Accurate meter readings.
• Courteous treatment of customers.
• Right packages of goods ordered shipped.
• Number of telephone numbers correctly dialed.
• PMI rejects.
• Savings made.
• Material handling budget met.
• Travel expense against open shop orders.
• Orders to government disapproved, resubmitted, and open, not approved.
15. PERSONNEL
• Success in eliminating security violations.
• Hiring effectiveness.
• Thoroughness and speed of responding to suggestions.
• Employee participation in company-sponsored activities.
• Administration of insurance programs.
• Accident prevention record.
• Processing insurance claims.
• Provision of adequate food services.
• Personnel security clearance errors.
• External classified visit authorization errors.
• Speedy processing of visitors through lobbies records accuracy.
• Adequacy of training programs.
• Thoroughness and speed of investigating suggestions and grievances.
• Employment requisitions filled.
• Administration of insurance program.
• Acceptance of organization’s development recommendations.
• Effectiveness of administration of merit increases.
• Overhead budget performance.
16. PRODUCT ASSURANCE
• Participation in design reviews.
• Customer liaison.
• Technical society participation.
• Accuracy of proposals and contracts.
• Application of program policies.
• Prevention of filed complaints.
• Effectiveness of reporting and recording.
• Customer rejects.
• Rejected material on the floor.
• Adequacy of vendor ratings.
• Effectiveness of field quality control.
• Rejects.
• Screening efficiency.
• Inspection documentation.
• Quality assurance audits.
17. PRODUCT CONTROL
• Success in developing realistic schedules.
• Success in developing realistic estimates.
• Success in identifying defective specifications.
• Process sheets written with no error.
• Transportation hours without damage to product.
• Parts shortages in production.
• Downtime due to shortages.
18. PRODUCTION
• Success in reducing the scrap, rework, and “use-as-is” categories.
• Success in maintaining perfect attendance records.
• Success in identifying defective manufacturing specifications.
• Success in meeting production schedules.
• Success in cost reduction through suggestion submittals.
• Success in improving first article acceptance.
• Performance against standard.
• Success in reducing required MRB action.
• Utilities improperly left running at close of shift.
• Application of higher learning curves.
• Floor parts shortages.
• Delays due to rework, material shortage, etc.
• Control of overtime (nonscheduled).
• Prevention of damage to work in process.
• Cleanliness of assigned areas.
• Conformance to estimates.
• Suggestions submitted.
• Labor utilization index.
• Defects.
• Asset utilization.
• Scrap.
• Utilization of correct materials, drawings, and procedures.
• Prevention of damage.
• Safety records.
• Inches of weld with no defects.
• Log book entries with no defects.
• Security violations.
• Compliance to schedules
• Accuracy of estimates.
19. PROGRAM MANAGEMENT
• Liaison with customers.
• Financial.
• Quality of proposals (technical approach, cost, time).
• Soundness of project plans.
• Coordination of support activities.
• Satisfactory field sell-off.
• Backlog.
• New business volume versus budgeted.
• Compliance to specifications.
• Errors corrected.
• Thoroughness of coverage.
• Usefulness of materials.
• Quality of production.
21. PURCHASING
• Purchase order changed due to error.
• Late receipt of materials.
• Rejections due to incomplete descriptions.
22. QUALITY CONTROL
• Inspection errors.
• Sampling program errors.
• Timeliness of inspection reports.
• Adequacy of vendor quality ratings.
• Returned goods and field rework due to inspection oversight; customer rejects.
• Quality assurance audits.
• Inspection documentation.
• Customer liaison.
23. RESEARCH AND DEVELOPMENT
• Can it be applied?
• Can it be developed?
• Can it be manufactured?
• Can it be marketed?
24. SECURITY
• Personnel security clearance errors.
• Timely and accurate processing.
• External classified visit authorization errors.
• Accurate processing of visitor identification.
• Effectiveness of security program.
• Guards, security checks, badges, passes.
• Records accuracy.
• Fire watch.
• Promptness in reply to requests.
• Quality of services rendered.
• Blueprint and drawing control, reproduction, distribution.
• Test equipment maintenance and calibration
• TRW communication.
• Reproduction facilities.
26. SUPERVISION
A supervisor’s performance is measured by the overall effectiveness of his or her department; in other words, the supervisor is judged by the sum total of accomplishments of the people working for him or her. The worth of individual or group achievements should be evaluated against the following criteria:
• Impact of potential error (abort of mission, cost effect on schedules, etc.).
• Contributions of the individual or group to the prevention of error.
• Difficulty of the job and level of skill required.
• Work schedules and load impact on error potential.
• Ability of individuals to correct their own errors.
• Attitude of the individual toward work, project, or command mission.