Performance Measurement in Health Care Health care organizations should be able to quickly improve their performance measurement systems by following some simple rules.
Monday, March 16, Support Continuous Improvement with Value Stream Management and Operational Intelligence Executive Summary Companies, organizations and government agencies are all seeking to improve their customer value, efficiency and effectiveness.
While there are many approaches to improving performance, it is the combination of management perspective, an appropriate improvement methodology and visibility into and the ability to analyze relevant measures of performance that will yield best results. This paper outlines the use of Key Performance Indicators KPI metrics together with associated Key Performance Drivers KPD metrics within the context of value stream management to support continuous operational performance improvement.
Of course, any improvement must start with behavioral change and alignment of management and operational decision makers. Rather than managing the business in functional silos, value stream management looks at the value created across functional areas to support a particular business outcome.
This is fundamental to ensuring the entire business process is optimized. This is the first of a multi-step process as outlined below: Identify and map the customer value stream and identify the major segments.
Ensure that the KPI objectives are aligned across functions and individual roles. Share knowledge as it is gained in the course of analyzing operational performance. Review and refine the value stream map, the KPI and KPD metrics and the alignment of these metrics across functions and roles.
The remainder of this paper outlines a performance improvement model and uses a sample value stream to demonstrate the process of breaking it into segments and identifying appropriate performance metrics.
It goes on to illustrate how an interactive dashboard can be used to visualize and understand operational performance and to analyze the root cause of a performance issue. However, these objectives are, more often than not, disparate goals that are not aligned across departments, plants or enterprise boundaries.
Information is often available only after the fact and lacks contextual knowledge, which leads to poor decision making. This paper examines an approach to improving operational performance by delivering timely, relevant performance information within the context of the value being created and delivered to customers.
It is a framework for organizing, automating and analyzing business methodologies, metrics, processes and systems that drive business performance. Value Stream Management utilizes lean process methodology to link the metrics and reporting required by managers with the people and tools needed to achieve desired results.
With consistent data in the context of a value stream, organizations can deliver optimized performance and efficiency, predictable customer value and accurate cost and profitability management.
Operational Intelligence provides near-real-time or right-time metric information on business processes, activities and outcomes to support operational decision making. Key Performance Indicators KPI provide the most relevant financial and non-financial measurements used to help an organization define and measure progress toward organizational goals.
These tend to be outcome oriented and to be most useful, there should be a small number of KPIs less than 10 associated with any one aspect of business performance.
A Performance Improvement Model As illustrated above, there are three primary aspects to any improvement model: Traditional approaches have used outcome measures — revenue, profitability, production quantity, etc typically represented as Key Performance Indicators KPIs.Performance measurement is the process of collecting, Performance measurement is not a new concept, but rather an old concept of renewed importance today.
In , the International City Management Association published an article on measuring the performance of municipal activities.
Hutton, C.R.; Performance Measures Briefing . When Operational Performance and Financial Performance Measurement Collide. Fri, 02/06/ Today, there are five different approaches to costing that are most commonly found amongst U.S.
manufacturers. While this may seem like an appropriate accommodation when the ratio of that direct cost is limited relative to the overall combination.
Chapter 10 - Standard Costing, Operational Performance Measures, and the Balanced Scorecard Which of the following is a criticism of standard costing, Easy Learning Objective: Describe the operational performance measures appropriate for today's manufacturing environment.
This preview has intentionally blurred sections%(54).
Specific measures related to costs, times, and rates of service would define operational efficiency, whereas various clinical performance measures would indicate operational effectiveness. Risk-management costs and benefits would also fall under the organization's need .
Similar disparities exist for non-financial measures related to employee performance, operational results, quality, alliances, supplier relations, innovation, community and the environment. Data driven decision making is key in today’s fire service.
Given the potential impact and the need Need for Operational Performance Measures in Fire Departments.
Performance measures are necessary to (1) allow departments to determine a baseline performance using appropriate indicators is expected to (1) provide continuous.