1. Tool: Benchmarking Purpose: provide realistic goals and direction; monitor performance; improve processes to match the best in Higher Education. Benchmarking is the technique of comparing practices and processes to the best in the industry. Remember: Some processes should be compared to norms outside of Higher Education! D Benchmarking

2. Establishing benchmarks Call similar departments at other universities or businesses. Consult other departments within Clemson University. Contact individuals who have experience with or ties to other organizations. D Benchmarking

3. What is a metric? A measured variable that can be tracked and used to detect errors, inefficiency, or improvement. It can be a process metric or and organizational metric. Process metrics apply to specific processes or programs like time, cost, or quality. Organizational metrics address organization-wide issues like employee satisfaction and turnover. D Project Charter Choose one or more to describe accurately your process’ efficiency.

4. Kinds of Metrics Time Metrics –Value-added time –Non-value- added time –Processing time –Cycle time Cost Metrics –Cost savings –Opportunity cost –Decreased waste Quality Metrics –Customer satisfaction –Percent complete and accurate Output Metrics –Backlog –Work in process D Project Charter

5. D You must have a baseline to measure improvement. The Lean Office will help establish your baseline metrics.

6. M Objective Data To improve your process, you need to define what category you want to improve: quality, cost, time, or output. Output: Backlog Work in process Output: Backlog Work in process Time: Cycle time Waiting Time: Cycle time Waiting Cost: Savings Waste avoidance Cost: Savings Waste avoidance Quality: Satisfaction Accuracy Quality: Satisfaction Accuracy

7. M Objective Data For every problem, there are usually many causes. Identify the main contributors. Lean calls these the “vital few.” They are more important than the “trivial many.” Rule of Thumb: 80% of a problem is the result of 20% of the causes

8. M Objective Data Ways to Quantify Count: How many vendors were paid on time? How many vendors were paid late? Measure: How many days early were vendors paid? How many days late were vendors paid? How long did it take for a bill to move through the process? Good Best Better

9. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Check sheets gather data on various effects and how often they occur. This helps you separate the significant from the trivial.

10. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Example: Causes of late payment X XX XXX XXXX Lost billWaiting for approval Late arrival Waiting for check to be cut

11. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Example: Timeliness of vendor payment X XX XXX XXXX Paid 4- 5 days early Paid 2- 3 days early Paid 1- 0 days early Paid 1- 2 days late Paid 3- 4 days late

12. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Histograms are bar charts that show the frequency of an event. They are easily created from check sheets. They help formulate hypotheses regarding root causes of problems.

13. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Example: Causes of late payment Lost billWaiting for approval Late arrival Waiting for check to be cut

14. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Example: Timeliness of vendor payment Paid 4-5 days early Paid 2-3 days early Paid 1-0 days early Paid 1-2 days late

15. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Run Charts are line graphs that show variation in the process over time. They help identify when problems are happening and allow us to focus on the particular circumstances in which the problem occurs.

16. M Objective Data Tool Options Choices: Check sheet Histogram Run chart Example: Bills paid late MonTueWedThuFri

17. Now that you understand your process thoroughly, identify which elements and indicators are key to process success? These are your Key Performance Indicators. Gather new information as necessary to compare your indicators with best practices. Which of these is the biggest problem for your process? M Benchmarking Do you have the right benchmarks?

18. By now you have: measured your current status; identified industry norm; identified performance gaps, and gathered the information necessary to establish meaningful goals and targets in the next phase. M Benchmarking Progress Check

19. M Target Goals Lean Rule of Thumb

20. Improve Verify Correct Course M Target Goals