Process scorecards

Process scorecard Predicts the overall quality level of key processes that produce the product or deliver the service. Once implemented, this summarizes the extent to which key processes and subprocesses meet overall performance targets. 

At a glance, the process scorecard uncovers weak processes and improvement opportunities. 

Process efficiency = Mass of products formed/Mass of raw materials used which can be used as an indicator of the P2 success scorecard. The goal is to improve the process efficiency, and any changes can be benchmarked against the level of existing efficiency. 

There are three basic elements to entrepreneurship in chemical production (Fig. 12.6). The first - estabhshing entrepreneurial focus - means that performance targets have to be set which are driven by the capital markets in a participative process starting from the top - that is, at the business unit or divisional level -and which follow through a transparent value-driver tree in order to determine targets for the front line (see Section 12.2.1). The desired end product is a balanced scorecard for each operational unit with a clear Hnk to the overall profitability of the business unit... 

Performance expectations are the Key Performance Indicators (KPIs) on which you ll focus your design and optimization efforts, and which you will track over time with your Design Scorecards (Technique 39) and/or Process Behavior Charts (Technique 52). 

While the purpose of Design Scorecards is to prevent problems, defects, and errors through superior design, they also enable better problem detection after a new solution (design) is implemented. If you are in detect-and-fix mode, any number of process-optimization techniques may help, such as Process Behavior Charts (Technique 52), Cause Effect Matrix (Technique 54), Mistake Proofing (Technique 49), and Design of Experiments (Technique 50). 

In our example braking system, we use a number of descriptive statistics at the performance, component, and process levels. For example, at the performance-scorecard level (Exhibit 39.1), to gauge the performance of our new braking system, we measure the following variables, or performance indicators ... 

Build a scorecard for each critical process using data from capability studies (see Process Capability, Technique 37), past experience, manufacturing data, and estimates from similar processes. You can then use this data to predict the overall performance of each of the critical processes and subprocesses. 

We will need to develop scorecards and measures for suppliers because the quality standards require it. For example, the standard ISO 9001 2000 states the following in Section 7.4.1, Purchasing Process ... 

As each order is handled in the process, this scorecard can be used to compile the results for each supplier. As an order is completed the following questions are answered ... 

One way to begin the process is to build a scorecard for each supplier, or it can evenbe used as a measure for your own compaity s performance as well. The scorecard could be set up and updated monthly. 

The scorecard should be filled out by both the company s customers and their suppliers. These results need to be analyzed and compared. This can give an indication of how an organization is performing at both the customer and supplier levels. When this is accomplished, customer needs that are not clear will be able to be clarified and improvements can be made. Cross-functional teams can be used between the two organizations to help improve both companies processes. The frequency of the meetings should be determined by business volume and the needs of the customer organization. 

The Balanced Scorecard (BSC) was originally proposed to improve a company s performance measurement. Traditionally, the measurement had been focused only on financial measures. The target of the BSC is to expand the measurement information by adding non-financial, long-term and immaterial factors into the measurement system. Originally the BSC consisted of four measurement perspectives financial perspective, external relations such as customers or partners, internal processes, and learning and growth. (Andersen, Cobbold Lawrie 2001). 

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