Data, Performance, Reporting, Quality, Measure

Developing quality performance metrics

11 Nov 2003 | (News)

This article considers the development of quality performance measures by posing some simple key questions, looks at issues for consideration when embarking on improving quality performance measures, and shares some of our learning experiences at Goodyear/Dunlop UK SSC.

The topic poses three questions.

Firstly: -

1. Why measure?
2. What do you measure?
3. How to construct your measures?
Now will explore these questions in more detail

1. Why Measure?

The first question sounds silly: WHY MEASURE? Surely it's obvious!
- Meet customer demand (SLA requirement, KPIs and charging)
- Measure productivity
- Maintain control
- Ensure visibility of processes
- Demonstrate improvements
- Meet statutory reporting requirements

This list is just a snapshot of some of the reasons why you may need or want to measure. You also need to consider: Who are you measuring for? Is it yourself or the customer you support? Only you can answer these questions.

Issues for consideration

- Data gathering and reporting generally evolve rather than be clearly defined, a reaction to the next reporting requirement rather than pro-actively defining your requirements

- Lack of staff support (Providing data rather than information even though that information is used to measure or monitor their own processes, or areas they control)

- Resource availability; Ensure your staff involvement matches your reporting needs
Experiences at Goodyear/Dunlop has shown us that staff do not always see the value of data gathering sufficiently to provide meaningful information to support the data gathered. Staff who are involved in the data compilation must see the value of measuring in order to add any value to the performance monitoring. It is important to ensure the data gathering mechanisms must be applicable to the persons compiling the data.

2. What do you measure?

Again as stated, measure only the key areas of importance and be prepared to change your measures as your priorities change. Certain regulatory or procedural monitoring must be maintained and these must be part of a standard routine reporting. There will always be a balance between standard reporting requirements, performance monitoring and the need to show positive improvements. The ultimate answer must be to measure and control the activities that have the maximum impact open your processes, both to maintain standards and drive improvements.

Issues for consideration

- Data requirements - discuss with the process staff what is it they want to show, is it quantitative data required daily, weekly or monthly or qualitative opinions, action items or reflections on trends of activities.

Without answers to these questions you cannot define the right measures or determine the appropriate mechanisms to gather that data.

At Goodyear/Dunlop we have tried to address the difficulty in providing good qualitative information to support measures by producing a monthly reporting pack. We review this as a management team, writing a descriptive text to both explain the data shown and challenge the information displayed. This has allowed us to question the validity of the data, improve on presentation format and more importantly provided a mechanism for performance monitoring. Over a period of time the process does provide a means to allow all involved a vehicle to improve their skills in reporting, as well as reviewing their process measures and identify areas to focus activity. We share this information with our external auditors to show controls on key processes as well as potential impact of business/system changes on statutory requirements.

This process has provided more visibility, supported the development of a control culture and provided some pre-emptive questions (which is always useful on impending audits). It should be noted that the proportion of reporting in the last months review pack was approximately 45% control/statutory reporting, 42% performance monitoring, and 12% improvement reporting. The changes over the previous months data presented were approximately 30%. This clearly shows how by reviewing the completed information you will refine both the data presentation format and establish new topics for future reporting. It should be recognised that the work content behind this process although high is balanced by the outlined benefits.

3. How to construct your measures?

The answer to the above will be based on the previous two questions, but there are clear rules to be applied: -

1. Consider - Why are we doing it? What are we trying to show?
2. Consider your data gathering methods (manual or automatic)
3. Consider the reporting presentation (written report or display slides)
4. Consider all of the data tools at your disposal (ERP systems etc.)
5. Consider the data format quantitative (numbers) or qualitative (opinions)
6. Consider the personnel involvement
7. Consider frequency of reporting
8. Balance your reporting against statutory, performance monitoring and improvement displays
9. Educate as go along
10. Last and most important - KEEP IT SIMPLE

Issues for consideration

Work content
- Is the data centrally held within your ERP systems
- Can it be extracted easily in a user friendly format
- How much data manipulation is involved to produce the required reporting format
- How much of your required data is gathered manually and does the effort involved in the collation of the data stack up against the required output

I would suggest that if the required measures are part of your standard reporting, then the staff would have to be educated on the need to produce that data and you will have to set deadlines on when key information is required.

At Goodyear/Dunlop UK SSC we have a dedicated person to monitor and analyse performance. We have centralised spreadsheets held on shared folders on our intranet site where process and team leaders input there performance data at the end of each week or month. This data is then extracted and weekly performance monitoring charts are produced and displayed in each process area. System data is collated from our ERP system (SAP) and used to support routine monitoring and reporting. The obvious answer to speed up data gathering and reporting once you have established your needs, is to apply automation wherever possible to allow more time to analyse the data investigate changes and provide good quality comments to support the data collected.

Typical Goodyear/Dunlop measures and reports:
- Performance
- Backlogs
- Productivity (Number of invoices processed)
- Cycle time (in the process of developing)
- Data integrity (ageing analysis of past dues)
- Process improvements
- Reporting
- Monthly monitoring pack
- Monthly customer packs
- Weekly performance reports displayed in each process area
- Monthly customer display wall


Summary
The topic heading is: developing quality metrics, but you first need to define your actual requirements. This will in part be based on statutory, internal and customer requirements. The question of why and what do you measure will provide a good indicator to how you go about measuring. Staff involvement in producing the required information must also be consideration to ensure continuous effective reporting, and clear recognition of the work content in producing that information.

Look at all your systems to support data gathering and apply maximum automation wherever possible. Review your reporting requirements frequently and aim to provide quality of information as well as quality data, and lastly this is an ongoing process with a high work content therefore treat it with respective.

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