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Legend Work Scheduled Work Completed Target Completion Date Actual Completion Date
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Legend On Time: Work is on schedule as of current date Ahead: Work ahead of schedule as of current date Late: Active project behind schedule as of current date Complete: Project complete Unscheduled: No activity originally scheduled during period Delay: Activity postponed as of current date Delete: Project has been cancelled
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Manager s Guide to Business Planning
business reviews outlined in this chapter It s also useful to have individuals prepare a short monthly progress report, noting exceptions with respect to falling behind or moving ahead of expectations, schedules, or measurements
Influencing the Essentials
An industrial products company recently established customer response as a key company objective for the business year Several different departments were involved with this objective, and it was established as a priority in the functional plans The company objective was for 95% on-time deliveries In one of the subplant units, a manager reviewed the VOC feedback and set up a tracking and control process to ensure that this objective was met After converting the VOC requirements into measurements, the target was that the delivery was received on the date specified and within two hours of a specific delivery time The next step was to set a baseline performance, which was the actual on-time delivery performance to date In using this scenario, the manager was able to set up the following tracking system:
Corrective Action (As required)
Objective Meet on-time delivery schedule at 95%
Baseline Current performance at 92%
Measurement 97% Exceed 95% Target <95% Below
Control Weekly delivery report % (actual vs target)
If the control report indicated the actual performance was below the target of 95%, an immediate investigation was begun This is the first step in the corrective action The complete corrective action process includes the following steps: 1 Investigate the situation Identify the issues causing the deficiency Create a problem statement 2 Select and define improvement opportunities 3 Analyze root causes of the problem 4 Select the best solution 5 Test the solution trial implementation
Tracking, Controlling, and Reviewing the Plans
World-class organization There are any number of metrics that can define a world-class organization, one that is among the best in the world in terms of its products, services, and KEY TERM industry standingThe best-in-class organizations achieve their positions by going beyond best practices when setting objectives and targets The goal of these world-class organizations is to go beyond industry standards and to be recognized as a leader to their customersThis is accomplished by setting breakthrough objectives and targets that go beyond the incremental improvements such as 5 to 10% 6 Implement the solution 7 Track the effectiveness with the controls identified In carrying out these steps, use the appropriate problem-solving tools (see Appendix), such as brainstorming, cause and effect diagrams, action plans, etc A detailed guide to corrective action is also included in the Appendix to this book
The Review Process
Business reviews should be conducted with the timeline presented in 1 and repeated here Quarterly reviews are most common unless some major unplanned events are having negative impacts on the company performance The quarterly reviews will focus on the business performance related to the income statement, or profit and loss statement Balance sheets and cash flow data are also reviewed at the highest level for consistency with the overall strategic and business plan objectives The goal of these reviews is to study the numbers, explain the situation, and tell a story about the business performance thus far One important comparison point is how the company is tracking against the market trends This will help to validate the forecast for the remaining portion of the business year In some situations, it may mean a re-forecasting process is indicated Exhibit 6-4 shows the timeline for this process
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