Lecture 10: Performance management COPY

Question 1

What four perspectives does the balanced scorecard focus on?

Answer 1

• Financial
• Customer
• Internal Business Processes
• Learning and Growth

Question 2

Reasons why manages should focus on Performance-Measurement-System!

Answer 2

• F acilitates Corrective Actions, Improvement, and Organizational Change
• A ligns the Organization in Achieving Goals
• G ains Insights About Current Performance
• S upports Communication of Goals

Question 3

What should a KPI do? (2)

Answer 3

• Measure performance areas that are most critical for organizational success.
• Capture essential information to control and manage an organization effectively.

Question 4

Name 5 examples of KPIs!

Answer 4

• Inventory turnover
• Productivity
• Product defects
• Customer complaints
• Overall Equipment Efficiency (OEE)

Question 5

Name four typical challengers for companies regarding KPIs!

Answer 5

• Creating Systems for Acting on Them
• Measuring Them Properly
• Picking the Right KPIs
• Prioritizing Them

Question 6

A KPI should be SMART. What does SMART mean?

Answer 6

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

Question 7

Describe Lead and Lag indicator! (4)

Answer 7

Lead Indicator

• are “performance drivers”.
• They measure activity.

Lag Indicator

• are “outcome measures”.
• They measure results.

Question 8

Name 3 benefits of performance measurements for employees!

Answer 8

• Clarification of success criteria in their jobs
• Increasing motivation to perform
• Providing a benchmark for improvement

Question 9

Name 6 challenges regarding performing measurements!

Answer 9

1. You risk getting what you measure, not what you want.
2. Risk: Missing out on customer needs.
3. Risk: Creates extrinsic motivation but hurts intrinsic motivation.
4. What is easy to measure is usually not what is right to measure.
5. Risk: Less cooperation due to internal competition.
6. Psychological consequences when measures are not always met.

Question 10

What is the Hoshin Kanri process? (3)

Answer 10

A “catchball” - Annual policy deployment process,

• that starts with toplevel strategies
• breaks them down into goals for different departments

Question 11

What is lean shop floor management? (3)

Answer 11

Management system that facilitates

• daily communication,
• control of performance,
• team building

on the shop floor

Question 12

Name 6 characteristics of shop floor management!

Answer 12

● Short daily meetings
● Hierarchically layered
__
● Use of visualization
● Fosters the presence of management in the shop floor
__
● Empowers all employees
● Helps to focus on kaizen

Question 13

Name 4 aspects the shop floor management meetings usually consist of!

Answer 13

● Daily for 15 mins
● A place for communication and collaboration between supervisors and their subordinates
● In front of a shop floor board
● Topics: Status quo on quality