four performance measures(on the quality, delivery, cycle time, and waste criterions) in each department.
Any effective control system must be based on a tightly defined linkage between measurements at the operational level(the base of the pyramid) and the objectives and priorities of the core process. The elements of this linkage are found in four principal, local operating performance criteria: quality, delivery, cycle time, and waste. The objective of any function or department in the core process is to increase performance in quality and delivery and to decrease cycle time and waste. These four dimensions of performance are briefly explained below.
Quality means meeting customer products expectations 100 percent of the time through the delivery of defect-free services. Poor quality when has been delivered a service that does not meet their expectations(e.g. it failed to solve the problem or it was not delivered in a friendly and reliable way). High-quality services or products will ultimately affect the customer satisfaction dimension in a positive way. Delivery Delivery involves the quantity of products or services being delivered on time includes incorrect shipments, to the customer. Poor delivery performance shipments to the wrong location, and incomplete as well as late shipments. Regular on-time and correct deliveries will increase customer satisfaction and flexibility.
Cycle Time Cycle time refers to the total elapsed time from when a unit of work enters a process until it exits the process. As such it is the sum of process time, move time, inspect time, queue time and storage time. Typically, only five percent of the total cycle time is devoted to any hands-on processing activity. Hence, the product or service is waiting to be worked on 95 percent of the time. There are often great opportunities for improvement to be found by focusing on cycle Unnecessarily long cycle times contribute directly to poor time reduction. strategic performance regarding productivity and flexibility Waste Waste is the non-value added activities and resources incurred in meeting the requirements of the customer. Waste include all the effort and costs associated with failures appraisals and surpluses. It means that effort expended in repairing defects or in producing 110 units to get out 100 good ones is not poor quality performance, it is poor cost performance(i.e. waste). At the core process level, the main objective is to improve productivity by reducing overall costs. At the department level, the objective becomes more specific: measure and eliminate waste