Timing is definitely going to play a role in the development of performance measures. First though define a standard procedure for everyone to follow. It does you no good in determining your capacity if each worker does the process different thus moving faster or slower then originally expected. Once the best practice is determined, timing of the process will start. There are several different types of methods for determining time. Some would use a stopwatch, others can use pre-determined time systems ie. MOST, MODAPTS, MTM, etc. These pre-determined time systems were developed in order to ensure accuracy, and also allow for easier breakdown of the operation into parts.
Once standardized timing is developed for the processes then you can begin to determine the capacity of the system. Capacity can be easily broken down in the departments as well as have the collective sum for the entire facility. You can then begin to clearly define performance measures. It is important to know what the capacity goals are for the company, ie. a claim should be closed within 14 days. Those goals will then help in the development of performance measures.
Also the other benefit of standardized work measures is to better understand employee utilization. Once you begin to understand what kind of utilization is occurring, you can begin to forecast the number of employees that are needed to meet the capacity rates or goals. This will help the management staff know what kind of employee levels they may need throughout the year.
Sorry for the lengthy answer but there is a lot that can be covered when it comes to standardizing work and developing performance measures.
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