Revised performance measurements and the standards
Performance measurement and standards involve the continuous collection of information from specific functional departments. It is concerned with continuous monitoring and reporting of business progress in relation to the set goal. The collected data help improve the accuracy and relevance of decision as well as offer quality services to the customers.
Useful ways to establish performance needs when measurements/data are not available
Performance indicators in case measurements/ data are not available can be classified as either primary or secondary. The main primary performance indicator is the level of customer satisfaction and client retention. Other indicators include Support Cost Per Call, waiting time, transfers, and service time.
Advantages and disadvantages of segmenting the performance data
The advantages segmenting the performance data include; increased transparency for one is able to measure the profitability of business operating in different segments. It also allows the stakeholder to get a better understanding of any fluctuation that may affect business profitability. It is therefore easy to identify the businesses that are more sustainable. On the other hand, segment reporting focus on short-term profitability and hence may not be applied in making long-term decisions.
What benefits are provided by developing a SIPOC or a Process Map, or similar output in the Measure Phase?
Process Map help in the identification of the process output as well as consumers of those output in order to capture the voice of customers. It also promotes teamwork in the production process. SIPOC communicate the process and define the area that needs improvement in the organization. Finally, it identifies the gap in the process.
. How does the Cause and Effect Matrix (C&E Matrix) enable focus for the project?
The cause and effect matrix help in the computation of the relationship between the production process and the output.
- Was the measurement system analysis satisfactory? Support your answer with evidence.
Based on the analysis the measurement system analysis was satisfactory. This can be proved by the stability, precision, and accuracy of MSA. The measurement system analysis does not only focus on the quantitative data but also give more focus on qualitative data and hence is much recommended.
- An additional process to satisfy the Measure phase
To satisfy the measurement phase one should consider collecting data from reliable sources including databases that are relevant to the current trends in the market. The right sample size should be used so as to ensure that there is no much valuation between the forecasted data and the actual data.
Part 4
Briefly describe the Xs (KIVs, KPIs) for this project.
Xs variables include the variable that impacts the projects. This includes waiting for time volume/staff ratio and support cost. Higher number of staff will increase the production volume while this may increase the support cost. In addition, the waiting time by customers determines how many customers will be served on a specific day.
- Do you think the decision to keep the original project targets is a good one? Why or why not.
The decision to keep the original project target is recommended as it reduces the incremental waiting time and as a result, many customers are served. In long-run the company profitability is increased by $345,870. Though hiring more staff will increase the support cost the net profit for the business will increase due to an increase in the production level.
3… What might this imply about the Best-in-class practices of competitors?
The type of support call determines the level of performance derived by the process. The main objective of any company is to increase its competitiveness in the market. In terms of the best class practice, the support call cost has a positive correlation with the process improvement. The higher the cost of support calls the higher the quality of the processes.
- What root causes for cost and customer satisfaction were verified
The cost and customer satisfactions verified include Support Costs, transfers, and waiting time. Customer satisfaction could also be influenced by planning the data collection strategy as well as collecting feedback from the customers. This would allow improvement of the areas which were not correctly done.