The Metric U explained - Unipart Logistics

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Quadrant 1 shows actual performance against target.Quadrant 2 shows a pareto of the reasons for missing targetQuadrant 3 shows the Concern, Cause and Countermeasures relating to the biggest reasons formissing target.Quadrant 4 tracks the results to monitor the effectiveness of the countermeasuresThe following section describes each quadrant in more detail.1 st QuadrantPerformance Vs Target graphThe first step is to choose the area of the business that you want to measure, analyse and act upon.For example it could be discrepancies, defects or delivery performance. In most cases you will knowroughly what your current performance levels are and may even know your target level as it mayhave been set by your customer, what you know as best practice, or simply a target you have setyourselves.The first quadrant in the Metric U is where your normal performance against target graph goes. Themeasurement units are whatever you need them to be - percentages or numbers - and should showyour actual performance and your target.The graph shows a red target line and the actual is shown as a green bar for each day, week ormonth dependent on the frequency of data collection.This gives us a top line indicator of our performance. However, it doesn’t tell us where we havefailed or why, simply that we have.© UGC Limited 2009 Version 1.1
ExampleIn the example above, the target line is the value of electronic return requests that the customer hasraised in the month. This is the value that the customer expects Unipart to raise a credit for.The actual bar is the value that was actually credited to the customer. The gap between target andactual is the value of return requests that were rejected by Unipart branches.We now need to know why we had rejected returns and where we need to focus - this takes us tothe second quadrant in the bottom left.2 nd QuadrantReasons missing targetThe second quadrant is used to break down the reasons for the ‘gap’ between target and actualperformance so that you can identify what is the largest reason for failure against your performancetarget, or if you are outperforming your target, you can identify how to improve even more. This isdisplayed as a Pareto chart - it is important that you use the same units of measurement thatyou use in the first quadrant, so if the first quadrant is measured in £s, then this needs to bein £s.NB: If percentages are used the second quadrant should always add up to 100 as you are focusingon 100% of the failures or defectsThis chart only shows the last reporting period for your performance target, so that way you caninstantly see what is affecting your latest performance and keep problem solving activity focussedon the biggest issues.© UGC Limited 2009 Version 1.1
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The Metric U explained - Unipart Logistics

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