Just wondering what types of indicators others are using to determine efficiency and effectiveness of the COP Processes?

For instance Delivery - Efectiveness measure - Premium frieght costs
- Efficeincy - On time Delivery %.

Some of the measures we use do not always seem to be the most suitable.

Thanks,
Jason.

Welcome to The Cove Jason! :bigwave:

What is your industry?

What are the measurables you don't believe are appropriate?

As a minimum, I used three questions to design metrics:

1. Does the metric clearly and easily communicate status to people without using terms that require special knowledge?

2. Does the metric supply information that can be acted on (actionable)? If it doesn't provide directly actionable measures, is it easy to get an idea of what to do that would impact the measure?

3. Does the metric provide information that communicates how the performance supports the business goals (one goal or more than one)?

It's not easy to design metrics that drive value. It's tempting to give a whitewashed, simple measure like profits or scrap rate, that do not give any solid clue about what caused the numbers to be what they are.

Thanks for the input.

There are various measurable that I would like to review as there is little value to us in them.

Ex. Number of RFQ's received? To me this has little to do with Market Analysis as you cannot control when a Customer will be looking to get Quotes. You may have been diligent and performed the sales calls and analysis, there just may not be any work avaialbe to quote on. The reverse is also true, you may do nothing and get alot of RFQ's.

Industry is steel blanking for automotive.

The three questions are helpful, I just wanted to get a feel for what others may be using to see if they would be a better fit to some of the existing ones we have.


Thanks,
Jason

There has been much discussion on the area of measureables and how the process is performing from a 30,000 foot view. Using the same measurable for both effectiveness and efficiency may not be a good idea. Remember that effectiveness is measured by the customer, and efficiency is measured by time and dollars.

Number of RFQ's received? To me this has little to do with Market Analysis as you cannot control when a Customer will be looking to get Quotes. You may have been diligent and performed the sales calls and analysis, there just may not be any work avaialbe to quote on. The reverse is also true, you may do nothing and get alot of RFQ's.If you used a combination of area/bar chart to simultaneously count the number of RFQs and actual contracts, you may get a decent idea of marketing, effectiveness of sales team, and perhaps repeat sales and/or referrals if you also care to track those.

It can be hard to measure things like marketing effectiveness, so if you can correlate your results to internal efforts to improve quality and customer satisfaction, then the metric might be useful.