Measuring Performance: Bringing Quality to Business Procedures

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"Measuring Performance: Bringing Quality to Business Procedures"

STUDY OVERVIEW

A common business mantra is what you measure grows and that holds true in the realm of quality. The successful integration of an effective performance measurement system across an organization’s operations ensures growth. Performance metrics and/or scorecards serve as a focusing tool for employees, teams, functions, units and organizations. All kinds of companies can benefit from this study by learning the successful performance measurement tools utilized by dozens of quality leaders across a broad spectrum of industries.

KEY TOPICS

• Key Metrics and Tools
• Driving Quality Integration Through Data Management Systems
• Quality Methodologies

KEY METRICS

• Effectiveness of methods used to integrate quality into business operations
• Metrics improved through quality integration
• Benchmark companies rating of tools for quality integration
• Percentage of benchmarked companies that use a balanced scorecard for quality
• Key quality methodologies used by companies

SAMPLE BEST PRACTICES

• First pass efficiency or yield is the essential gauge for a lean organization
• Employ value stream mapping to identify value-add versus non-value-add steps in operational processes. One interviewed company official extolled his company’s successes in value stream mapping. Mapping what people actually do and asking the question -- “Why are you doing that?” -- has helped his company in identifying value add vs. non-value add steps in operational processes.
• Data management becomes a competitive advantage and driver of integrated quality systems. “We collect data everywhere. If we see the same part failing more than once, we will put that part on hold. We then create a ‘task team’ with our suppliers and internal people to assess what the problem is and what would be the containment strategy,” said one quality leader interviewed.

METHODOLOGY

This research was conducted by Best Practices, LLC through a large Research and Consulting project based on an in-depth survey of 38 companies across 15 different industries, and interviews and site visits with several of the participants.

Industries Profiled:
Biotech; Health Care; Banking; Financial Services; Manufacturing; Pharmaceutical; Energy; Retail; Internet; Chemical; Utilities; Insurance; Transportation; Consumer Products; Computer Hardware; Shipping; Telecommunications; Government; Computers


Companies Profiled:
Allergan; Wuxi Pharmatech; Wells Fargo; W.R. Grace; Wachovia; Vistakon; TXU Corp.; Staples; Sonoco; PSE&G; PolyOne Corporation; PG&E; Nationwide Insurance; MTR Corp. Ltd; MeadWestvaco Corp.; Marvin Windows and Doors; LifeScan; Kraft Foods; Johnson & Johnson Healthcare Systems; Janssen; GE Money; Fujitsu Computer Systems; Federal Express; Ethicon Endo-Surgery Inc.; EMC Corporation; Embarq; EchoStar Communications Corporation; DuPont Teijin Films; Dow Chemical; Dofasco; Deutsche Bank; DePuy Orthopaedics; Inc.; Department of Veterans' Affairs; Dell Computer

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