Starting performance measurement system

[catjack76]

Hello

I work on a medical supply company me department process claims.

There is no type of performance measurement in the department.

I am in charge of creating some kind of performance measurement.

I think timing each activity , creating an average of time expended per activity would be the best way to approach.

My objectives are:

- To find out the capacity of the department as a whole and every sub-department.
- To create a management tool that would assist the department manager when assessing the need for a new hire.
- Create data that will help us in the future to identify bottle necks and fix them.

I have no experience in engineering and I would like to know if this is the best approach , please note that I am not interested in improving performance yet.


Thanks

Carlos

[kpeacock]

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.

[abhijit]

i agree with kpeacock. in addition to that please find out the contingencies and unavoidable non value added times. i dont have any experience medical supply but can give you an example of manufacturing sector like sharpening tool, feeding oil, start up/ warm up time etc. so that you will get net available time for operation.

i will suggest you to gor for work sampling or stopwatch study. though this is cumbersome but it will give you a grip of TIME & MOTION STUDY.

later on you can go for PMTS for improvement in process.

also please keep in mind the nature & skill level of the person.

[Puneeta]

You seem to be on the right track, Sir !

[Puneeta]

I shall try my best to stick by your suggestions, Sir.

[Puneeta]

Thankyou. For now I could not follow much from your response though I do find it valuable some way. Shall be happy to keep on receiving any more posts from you on that note.

[Puneeta]

....Sir. (sorry for the misgiving),

[Puneeta]

hey this looks pretty , wow !!!

[Puneeta]

........ :cool :

[Puneeta]

Thanks for ur company.Sir.