balanced scorecard

C O N S U L T I N G

Balanced Score CardARTURO BO LAÑOS, L EAN COACH & S I X S I GMA BL ACK B ELT

Introduction to Balance Score CardWhat is a Balanced Score Card?

Why we are implementing Balanced Score Card?

Strategy Deployment & Balanced Score Card Development

Strategy Map – Balanced Score Card

What is a Balanced Score Perspective?

Current State of Metrics

Current State of Balanced Score Card

Future Key Performance Indicators

Balanced Scorecard – Strategic Focus Areas

Future State Balanced Score Card

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What is a Balanced Scorecard?

•The Balanced Score Card provides Managers with the instruments they need to navigate to future operational excellence.

•The Balanced Score Card translates Organization’s mission and strategy into a comprehensive set of key performance indictors to drive the business.

Key Success Factors are the Pillars that Support the Mission & Vision

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The Score Card measures performance management across six balanced

perspectives: Safety, People, Quality, Delivery, Finance, and LEAN/OPEx. .

Introduction to Balance Score Card

What is a Balanced Score Card?









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Clarify and translates vision and strategy

Communicates and links strategic objectives and goals.

Plan, set, target, and align with Strategic Initiatives

Strategic initiatives that follow "best practices" methodologies cascade through the entire organization

Usable Results - Transform strategy into action and desired behaviors.

A cross organizational team - More open channels of communications with engaged employees.

◦ Reduced Time-frames. ◦ Improved Decisions and Better Solutions. ◦ Improved Processes.

Introduction to Balanced Score Card











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Components of Balanced Score Card

Introduction to Balance Score Card










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Strategy maps are communication tools used to tell a story of how value is created for the organization. They show a logical, step-by-step connection between strategic objectives (shown as ovals on the map) in the form of a cause-and-effect chain.

Strategy Map alance Score CardQ

ualit

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nanc

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yLE

AN/

OPE

XPe

ople

Safe

ty

Phase

Lower # of Incidents

Increase Safety

Awareness

Improve Knowledge &

Skills

Improve High Performance

Teams

Increase LEAN Six Sigma Activities

Improve Operational

Results

Reduce Leadtime Improve OTD

Reduce Product Failure/Defects

Improve Customer

Satisfaction

IncreaseRevenues

Increase Profits Reduce Costs











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Perspective on Balanced Score Card

Safety PerspectiveThis perspective includes tracking safety indicators from inspections, training, and behavior based safety. “Do it safer”.

People PerspectiveThis perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. “Keep growing employees.”

Quality PerspectiveThis perspective comes from the customer’s point of view on the quality of our products and customer services. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. “Do it right.”

Delivery Perspective This perspective comes from the customer’s point of view on the delivery of our products and customer services. Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. “Do it on time.”

Finance Perspective This perspective measures how we look to our resources through tools such as profit/loss statements, balance sheets, and budget reports. “Do it on budget”.

LEAN / OPEX PerspectiveThis perspective includes the companies desire to a LEAN journey towards Operational Excellence.

“Keep getting better.”










Future State Balance Score Card

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Key Performance Indicators that drive the business have not been identified.

Service Quality

Safety incidents

Safety Observation Cards Issued (L)

Safety Observation Cards Closed (L)Safety Touches Per Employee

Training Matrix

Gilmore Trainng hours / Employee

Attendance

Direct department hours and head count

Non Conformance ReportsFirst Piece InspectionFirst Pass Yield Test

Scrap & rework rate of internal productionQuality index

Scrap and rework rate of internal production

Ontime Delivery

OSP Leadtimes

RMA Assess to quote

Machine Down Time

Mean Time To Repair

Machine Utilization

Dispatch DeviationOntime Delivery Vs orders shipped

Productivity indexOntime delivary Vs orders shipped

Ontime shipments ABC Trends

WIP- Assembly and MfgInventory by type Vs inventory turns

Inventory value by cost sourcelabor

Vendor past due Purchase orders

Supplier quality and ontime delivery

Machine Shop work orders ontime delivery

Monthly Revenues

Scrap and rework rate of internal production

Ontime delivary Vs orders shippedABC Value of inventory

Total transaction and inventory errors

Net operating contributionPast due dollarsPast due Line items

Month to date ShipmentsDaily Shipment

Bookings and Backlogs

BALANCED SCORE CARD D

ELIVER

QUALITY

FINANCE

PEOPLE

SAFETY

Introduction to Balance Score CardWhat is a Balanced Score Card?









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The Current State of Balance Score Card is not setup to track Key Performance Indicators. We have extra metrics that are important however not deemed Key Performance Indicators.



Why we are implementing Balance Score Card?








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Future Finance Key Performance Indicators

TV Monitors Balanced Score Card

FINANCE

Future Quality Key Performance Indicators


QUALITY

Future Delivery Key Performance Indicators


DELIVERY

Future LEAN/OPEX Key Performance Indicators


LEAN/OPEX

Future People Key Performance Indicators


PEOPLE

Future Safety Key Performance Indicators


SAFETY

VPP












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Basic Flow of a Strategic Focus Area across the Balanced Scorecard Dimensions

Strategic Focus Area: Increase Shareholder Value

Finance Increase Revenue & ProfitsReduce Costs

Quality Improve “Customer Satisfaction”Reduce Product defects/failures

DeliveryReduce Lead time

Improve On-time delivery

People Increase knowledge & skillsIncrease high performance team activities

Pers

pect

ives

Safety Reduce number of IncidentsIncrease safety touches

LEAN/OPEX Increase LEAN & Six Sigma activitiesIncrease operational results












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Future State Balanced Score CardPLAN: Designated departments shall have a list of objectives and goals ( “Finance, Delivery, Safety, Op/EX etc). Post the Operational Plans on the two acrylic sign holders.

DO: Though you have many objectives and goals for the year, select the two most important projects and post it on a wall. Those two projects shall be considered as “Key Performance Indicator” that drives the business and leads to the overall company goals.

The documentation of those projects may fall under the following categories.o A3 Reporto Kaizen Report

CHECK ◦ Post the metrics to analyze how we are

performing (during the project or after the project is done).Only Two Key Performance Indicators.

ACT◦ Come up with the an action plan, When you face

the road blocks to achieve the goals and objectives.

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A proven results oriented bilingual leader with manufacturing and transactional experience. Lead the development, implementation and performance of a process improvement system for companies in Oil & Gas, Power Generation, Automotive Electronics, Semiconductor, Medical Device, and Hot Spas.

Specialties: • Provide LEAN and Six Sigma Training to Senior Management and Supervisors.• Lead, executed, tracked and report high impact projects using, PDCA

methodologies.• Deliver formal training in Six Sigma, LEAN, and Continuous Improvement

methodologies.• Coordinate with Process Owners in development of Value Stream Maps and

Process Mapping.• Provide Project Management for LEAN and Six Sigma projects.• Deliver Kaizen Leader and LEAN Facilitator Training throughout US, UK, &

Switzerland.• Lead, coached and mentor in Lean & Kaizen Events within Manufacturing and

Service settings.

What I can do for your organization.

2/11/2013 – v6.0

Over 5.8 million dollars of cost savings in LEAN and Six Sigma Projects through out career.

Trained led, coached and mentored over 75 Kaizens from 5S to Relayed Lines.

Delivered projects with over 50% of lead-time reductions on LEAN Events.

Improved On-time Delivery from 45% to 90% at Proserv Facility.

Delivered projects with over 30% of transportation reductions on Kaizen Events.

Led two companies to successful QS-9000 certifications.

Managed cross-functional teams to 17 successful Production Part Approval Process (PPAP).

Accomplishments

2/11/2013 – v6.0

Thank you for viewing my presentation

If you enjoyed the presentation or have questions, please contact me at [email protected] or call me at 832-486-0159. I am available to consult with your company or open to new opportunities.

Best regards,

Art Bolanos

2/11/2013 – v6.0

mailto:[email protected]

balanced scorecard

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