Business
Operational Performance Analysis
Operational Performance Analysis is the process of evaluating the efficiency and effectiveness of a company's operations. It involves measuring key performance indicators (KPIs) such as productivity, quality, and customer satisfaction to identify areas for improvement and optimize business processes. The goal is to increase profitability and competitiveness by streamlining operations and reducing costs.
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4 Key excerpts on "Operational Performance Analysis"
eBook - PDFBusiness Sustainability
Going Beyond ISO 9004:2018
- Alka Jarvis, Paul C. Palmes(Authors)
- 2018(Publication Date)
- ASQ Quality Press(Publisher)
139 8 Organizational Performance Evaluation and Analysis 8.1 GENERAL Organizations are continually trying to sustain, perform efficiently, and adapt. In order to better understand the areas of opportunity or the gaps in their operations, they have to collect, and analyze, the current performance results. The analysis is a diagnostic method to highlight process and product failures and inefficiencies, obtain a deeper knowledge about the root causes of organizational weaknesses, and identify areas requiring improvements. Over a number of years of their existence, different organizations have faced different challenges. Matured organizations who have been in busi- ness for several years have systems, tools, procedures, and the entire infra- structure of various interconnected processes; however, they may lack the tenacity and energy or ability to adapt to constant changes in the market, while new start-up companies have a lot of energy and funding to oper- ate and address the activities that are value-added, innovative, and result oriented. Conducting regular operational analysis allows leaders to assess strengths and external business challenges, which assists in strategic plan- ning of short-term as well as long-term objectives. Leaders are able to gain foresight of the frequently changing landscape of customers, markets, com- petition, and products. The analysis assists with expansions to enable what is needed, and will help with transitions and mergers. At the same time, evaluation also high- lights the areas that are excelling, doing well, and helps in deciding on actions to undertake to improve the organization’s long-term sustainability. The most notable achievement of conducting detailed analysis is the iden- tification of organizational capacity and the existence of any best practices within the company. Once you are aware of best practices, you can leverage
eBook - PDFImproving the Economy, Efficiency, and Effectiveness of Not-for-Profits
Conducting Operational Reviews
- Rob Reider(Author)
- 2004(Publication Date)
- Wiley(Publisher)
tion with which to judge the quality of service delivery operations and results and make operational improvements. That is why operational review techniques are needed to evaluate the effectiveness and efficiency of operations. Not-for-profit management, with the assistance of others, both internal and external, are being asked more frequently to evaluate the organization’s opera- tions. Although this is not a new service for internal management to provide, re- quests by top management for such specific operational reviews have increased due to the greater emphasis on the economy, efficiency, and effectiveness of oper- ations and related results. Many times, operations management does not possess the specific skills necessary for an objective evaluation of those activities report- ing to them—they may be too close to the operations or they may be part of the problem. The technical skills internal and external consultants possess, particu- larly those of analysis, fact finding, and reporting, make them excellent choices for performing such operational reviews. An operational review involves a systematic review of an organization’s ac- tivities in relation to specified objectives. The general purposes of the operational review could be expressed as follows. Assess Performance To assess performance is to compare the way an organization conducts its activi- ties with: (1) objectives established by management, such as organizational poli- cies, standards, goals, objectives and detail plans; (2) comparisons to other, similar functions or individuals within the organization (internal benchmarking); and (3) comparisons to other organizations (external benchmarking). Identify Opportunities for Improvement Increased economy, efficiency, and effectiveness are the broad categories under which most improvements are classified.
- Adedeji B. Badiru(Author)
- 2013(Publication Date)
- CRC Press(Publisher)
88 5.7 Performance measurement pitfalls ................................................................................... 91 5.8 Integrity audits ..................................................................................................................... 92 5.9 Organizational assessments: strategic snapshots of performance ............................... 95 References ....................................................................................................................................... 96 72 Handbook of industrial and systems engineering © 2010 Taylor & Francis Group, LLC • Strategic performance measurement applies to the organizational level, whether of a corporation, a business unit, a plant, or a department. Operational performance mea-surement applies to small groups or individuals, such as a work group, an assembly line, or a single employee. • Strategic performance measurement is primarily concerned with performance that has medium- to long-term consequences; thus, performance is measured and reported on a weekly, monthly, quarterly, or annual basis. More frequent, even daily, measurement and reporting may also be included, but only for the most important performance measures. Data may also be collected daily or perhaps continually, but should be aggregated and reported weekly or monthly. Operational performance measurement focuses on immediate performance, with reporting on a continual, hourly, shift, or daily basis. Strategic performance measurement tends to measure performance on a periodic basis, while operational performance measurement tends to measure on a continual or even continuous basis. • Strategic performance measurement is concerned with measuring the mission- or strategy-critical activities and results of an organization. These activities and results are keys to the organization’s success, and their measurements are referred to as stra-tegic performance measures, key performance indicators, or mission-driven metrics.
eBook - PDF- Steve Katzman(Author)
- 2016(Publication Date)
- Auerbach Publications(Publisher)
• Please note that even though the acronym IT intimates that we handle information, the data entrusted to the IT team become information only when presented to the 66 OPERATIONAL ASSESSMENT OF IT person who can interpret the data as information to help provide a service or product to their customer. • To IT the data are merely a bunch of digits. Operational Process Now that you understand the KPI, you can understand how the KPI may influence the process. Your assessment of the process should have been designed to provide the customer with the quality product or service while focusing on the KPI and/or the corporate scorecard rat-ing. As mentioned earlier in this book, operational assessments are based on three Es: • Effectiveness • Effectiveness is a measure of how well the process pro-vides the quality that the customer wants or is expecting. • The VOC denotes the expectations to be met. • Effectiveness is what the customer is prepared to fund. • Efficiency • The process efficiencies focus on throughput providing the product or service to the customer. • It is the best use of organizational assets. • And it is the cost of inventory and resources to provide that product or service. • Economy • The economics of the process include resources and inventory. • The resources are the people, the equipment, the building, transportation, etc. • The inventory includes the following: – Raw material inventory used for the process, which includes any resource or input that is needed to pro-duce the product or service, such as the following: – The customer request forms – The information and data to provide the results (cookbook, procedures, etc.) – Storage requirements prior to the process start 67 OPERATIONAL ASSESSMENT PLANNING – Work-in-progress (WIP) inventory includes all par-tially completed products or services. – Finished goods inventory if the product or service is ready to be delivered to the customer.
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