From a static to a dynamic bsc analysis – winston salem sanitation division
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This document discusses using system dynamics modeling to create a dynamic balanced scorecard for the Winston Salem Sanitation Division. It begins by identifying key variables like population, collection points, garbage accumulation and collection, workers, and service level indicators. Graphs show how these variables are related and influence each other. It also discusses using performance drivers and indexes to measure and influence variables like collection rates, productivity, customer satisfaction, and working hours. The purpose is to help analyze causal relationships between resources, activities and performance outcomes to improve decision making.
From a static to a dynamic bsc analysis – winston salem sanitation division
- 1. From a static to a dynamic BSC analysis – Winston Salem Sanitation Division Carmine Bianchi Full Professor in Business and Public Management University of Palermo - Department of Management bianchi@unipa.it - www.ced4.it CED4 -System Dynamics Group Armando Tauro Professor in Business and Operation Management University of Piura – Faculty og Engeneering info@armandotauro.com - www.armandotauro.com INNSA consultores- CED4 -System Dynamics Group FUENTE
- 2. Identifying key variables and reference behavior modes (1 of 6) Population and collection points (households)
- 3. Tons collected in a year Identifying key variables and reference behavior modes (2 of 6)
- 5. Modeling Collection points Population Accumulation rate Depletion rate Collection points Accumulation rate Depletion rate What kind of relationship links Population to Collection points (households)? Average household size
- 6. Modeling Collection points Population Accumulation rate Depletion rate Collection points Accumulation rate Depletion rate Average household size Pop. Accumulation rate = People/time Pop. Depletion rate = People/time Population = People Avg. Household Size = People/Household Coll. points Accumulation rate = (People/time) / (People/Household) = = Household/time Coll. points Depletion rate = (People/time) / (People/Household) = = Household/time Collection points = Households
- 8. Modeling Garbage accumulation and collection Collection points Accumulation rate Depletion rate Total Garbage to collect Accumulation rate Depletion rate What kind of relationship links Collection points to collected garbage ? New Garbage to collect per collection point per week
- 9. Modeling Garbage accumulation and collection Collection points Accumulation rate Depletion rate Total Garbage to collect Accumulation rate Depletion rate New Garbage to collect per collection point per week Coll. points Accumulation rate = (People/time) / (People/Household) = = Household/time Coll. points Depletion rate = (People/time) / (People/Household) = = Household/time Collection points = Households New Garbage to collect per coll. point = Tons/Households/week Garbage to collect Accumulation rate = Households * Tons/Household/week = Tons/week Garbage to collect Depletion rate = ????? Total Garbage to collect = Tons
- 10. Modeling Garbage accumulation and collection Collection points Accumulation rate Depletion rate Total Garbage to collect Accumulation rate New Garbage to collect per collection point per week Tons collected per time • How such end-results have been achieved? • Which resources are used? • What impact did they make?
- 11. Modeling Garbage accumulation and collection Collection points Accumulation rate Depletion rate Total Garbage to collect Accumulation rate New Garbage to collect per collection point per week Tons collected per time FTE Positions
- 12. Identifying key variables and reference behavior modes (3 of 6) FTE positions
- 13. Identifying key variables and reference behavior modes (4 of 6) Indentifying the number of workers
- 14. Modeling Workers Workers Accumulation rate Depletion rate How do workers affect collected garbage – other things being equal?
- 15. Identifying key variables and reference behavior modes (5 of 6) Indentifying workers’ productivity
- 16. Modeling Workers’ productivity Quality of Incentive & Manpower planning systems Change in quality of incentive & manpower planning systems Backyards collection ratio Tons collected / working hour Equipment automation Working hours / person / week Workers Accumulation rate Depletion rate STRATEGIC RESOURCES Relative quality of Incentive & Manpower planning systems PERFORMANCE DRIVERS Change in working hours / week Working hours / week Tons collected per weekEND-RESULTS Tons collected per week Garbage to collect from Backyards Total Garbage to collect Accumulation rate
- 17. Modeling service levels STRATEGIC RESOURCES PERFORMANCE DRIVERS Total Garbage to collect Accumulation rate Tons collected per week END-RESULTS Change in customer satisfaction Customer satisfaction Change in customer satisfaction Time to serve households Time to serve households ratio Perceived time to serve households Change in perceived time Change in perceived time
- 18. Identifying key variables and reference behavior modes (6 of 6) Indentifying Service levels
- 19. Performance indicators and Indexes Performance indicator --- measure gauging organization results: end-results (flows) drivers (auxiliaries – ratios). PERFORMANCE DRIVERS END-RESULTS
- 20. Performance indicators and Indexes A performance indicator always affects another variable: end-results -- may affect: a) strategic resources (last layer end-results) b) other end-results (intermediate layer end-results) drivers -- may affect: a) end-results b) other drivers
- 21. Performance indicators and Indexes Tons collected / working hour PERFORMANCE DRIVERS END-RESULTS STRATEGIC RESOURCES Change in customer satisfaction Customer satisfaction Change in customer satisfaction Liquidity Garbage Collection expenses Garbage Collection Backyards collection ratio Time to serve households ratio Time to serve households Perceived time to serve households Change in perceived time Change in perceived time Working hours / person / week Change in working hours / week Working hours / week Tons collected per week Total Garbage to collect Tons collected per week
- 22. Performance indicators and Indexes Performance drivers: Ratio between a current state (resource) and a benchmark, affecting performance usually through a normalized graph function Perceived time to serve households Change in perceived time PERFORMANCE DRIVERS STRATEGIC RESOURCES END-RESULTS Time to serve households ratio Normal time to serve households Effect of Time to serve households ratio on customer satisfaction Change in customer satisfaction Effect of Time to serve households ratio on customer satisfaction Time to serve households ratio 1 1.50.5 2 1 0.3
- 23. Performance indicators and Indexes Performance drivers: Ratio between a current state (resource) and a benchmark, affecting performance usually through a normalized graph function PERFORMANCE DRIVERS STRATEGIC RESOURCES END-RESULTS Effect of Backyards collection ratio on workers productivity Garbage to collect from Backyards Total Garbage to collect Backyards collection ratio Tons collected / working hour Tons collected per week Normal Tons collected per week Effect of backyards collection ration on workers productivity Backyards collection ratio 0.5 10 1.5 1 0.5
- 24. Performance indicators and Indexes Indexes: Synthetic measures of the quality or state of a system. They are usually expressed as ratios. They do not affect any specific performance measure. They rather gauge a synthetic expression of specific aspects regarding performance. PERFORMANCE DRIVERS STRATEGIC RESOURCES END-RESULTS Change in working hours / week Working hours / weekWorkers Accumulation rate Depletion rate Working hours / person / week Working time saturation index Max hours / worker /week Max working hours / week
- 25. Performance indicators and Indexes Indexes: Synthetic measures of the quality or state of a system. They are usually expressed as ratios. They do not affect any specific performance measure. They rather gauge a synthetic expression of specific aspects regarding performance. PERFORMANCE DRIVERS STRATEGIC RESOURCES END-RESULTS Tons collected per .000 population Total Garbage to collect Accumulation rate Tons collected per week Tons collected per week Population Total collected garbage
- 26. Modeling Performance starting from accounting reports data Collection points Accumulation rate Depletion rate Total Garbage to collect Accumulation rate New Garbage to collect per collection point per week Tons collected per time • How such end-results have been achieved? • Which resources are used? • What impact did they make?
- 27. Modeling Performance starting from accounting reports data The need of a causal analysis: Financial data are not enough (e.g. expenses) Data on non-financial end-results (e.g. collected garbage) and workload measures (e.g. total working hours) can be a good starting point to search for causes … but such data are actually the effect of performance … however, their causes (i.e., primarily strategic resources and performance drivers’ dynamics and linkages) are often hidden and must be searched Some of them must be inferred Structure & behavior analysis, together with modeling with decision makers’ participation, and matching SD with accounting models are substantial vehicles in this effort.
- 28. Time to fix billing complaints index Skill index Staff Capacity Time to respond an inquiry index Knowledge index Time to install a fixed line index Time to restore fixed line index Competency index (CI) Average training hours per staff