Creating a flexiable and fast acting Operation
- 1. Example: Draft copy When the Brain makes a decision, the body reacts Goal set $1,500,000,000 Sales Report: Quarterly sales vs. Forecasted sales Report: Quarterly sales vs. Operating cost What needs to happen to achieve goal? Monthly 2,500,000 units to be sold Report: Actual sales vs. Budgeted sales Consumptions should be? 15,625,000 eaches in raw material Report: Purchased vs. Forecast requirements Intake Capacity 75,000 palletized eaches Intake utilization 62,500 palletized eaches Report: Actual Inventory vs. Budgeted Report: Average Days on hand vs. Planned The most that can be digested 100% 5,250,000 Boxes of finished goods Average amount digested 85% 4,462,500 Boxes of finished goods Amount needed to be digested 3,125,000 Boxes of finished goods Report: Planned vs. Actual Production Report: Anticipated vs. Actual shrinkage The most Product to dispose 63,000 pallets max per month Product to dispose 148,750 pallets needed per month Report: Open Orders vs. Ord. Filled Movement capacity 1,050 Max pallets Movement needed 148,750 pallets Report: Requested date vs. Actual ship date Note: The KPI's agreed on should target the company's expected results broken-out by individual employees and departments heads. The generated reports are used to monitor actual perfomance compared to expected results. When decisions are made by the Executive Team, the objective is to quickly adjust operations to achieve them. To ensure changes can be achieved, and how quickly depends on the operations capacity vs. utilization. Use KPI's to quickly diagnose if and how the goals can be accomplished. (* Problem area based on need. Add more order Pickers **(Problem area based on need. Add another person and schedule more pick-ups) MONTHLY REQUIREMENTS TO ACHIEVE YEARLY GOAL Self check diagnostics Prepared by James Thomas Page 1