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Process Metrics

Vicente Aceituno (c) 2013vac@zenobia.es

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Simplified Model of a Process

Resources

Process

Inputs Outputs

Waste

Resources: Hours, Money, People

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Introduction

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p1 p2 p3 p4 p5 p6

Inputs

Outputs

Resources

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Activity Metrics

Activity Metrics are the number of: Inputs (I) Outputs (O) Resources (R) (Where R can be hours,

persons or monetary units)

In a period of time (p).

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Load / Scope / Headroom Metrics

The Load/Scope/Headroom Metrics when the process has limits in terms of Inputs, Outputs and Resources are:

Outputs in comparison with maximum or minimum Outputs: Output Load = (O/Omax), Output Headroom = (Omax-O).

Inputs in comparison with maximum or minimum Inputs: Input Scope = (I/Imax), Input Headroom = (Imax-I).

Resources in comparison with maximum or minimum Resources: Resources Load = (R/Rmax), Resources Headroom = (Rmax-R)

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Efficacy Metric

The Efficacy Metric, when every Input produces one Output is:

Outputs in comparison with Inputs: Efficacy = (O/I)

The Evaluation of Efficacy in a period is: In comparison with a threshold: Available or

Unavailable.

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Efficiency Metrics

The Efficiency Metrics are:

Outputs in comparison with Resources: (O/R) Inputs in comparison with Resources: (I/R)

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Quality Metrics

The Quality Metrics, when Input, Outputs and Resources have variable Value are:

Output Value in comparison with Maximum Output Value: Output Quality = (Ov/Ovmax)

Input Value in comparison with Maximum Input Value: Input Quality = (Iv/Ivmax)

Resource Value in comparison with Maximum Resource Value: Quality = (Rv/Rvmax)

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Evaluation

The Evaluation of any Metric can be:

In comparison with past values: Normal or Abnormal.

In comparison with past values: Increase or Decrease.

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Evaluation

The Evaluation of any Metric, when there is a correlation between Metric and Value can be:

In comparison with a threshold: Satisfactory or Insatisfactory.

In comparison with past values: Better or Worse.

In comparison with third parties (Benchmark): Better or Worse.

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Investigation

The following Evaluations results will lead to Investigation of root causes, internal or environmental:

Abnormal Insatisfactory Worse (Benchmark) Worse (Time) Unavailable

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Investigation

Certification: Whether the process Inputs, process documentation, activities and Outputs comply with a pre-defined standard, law or regulation.

Audit: Whether the process Inputs, activities and Outputs match their documentation.

Improvement: Finding bottlenecks, finding points of disminishind returns.

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Conclusions

Metrics gain meaning from comparison of measurements.

There are around 18 different metrics that can be significant for process management, in five big groups: Activity, Load/Scope/Headroom, Efficacy, Efficiency, Quality.

Evaluation of metrics lead to the identification of anomalies that deserve investigation.

Investigation of the operation of a process leads to continuous improvement of the process.

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