Episode B.029 Benchmark Analytics

19/6/2020

Introduction
This week we are continuing our series on Plan - Budget - Action. Regardless of your global location, the world's economy is coming out of the forced shutdown and will experience a V Shaped (quick contraction followed by a quick expansion) Recovery during the 3RD Quarter (July - August). The goal of IBGR's Programming is to get you ready to claw back as much of your lost revenue as possible.

Show Objectives
Given the theme of the month and week, this show seems out of place. However since we are trying to get the business ready to reemerge from the pandemic hard and fast, it is a topic not to be avoided.

We covered this topic generally earlier in the month we thought dusting it off and summarizing was more than appropriate.

What You Need to Know
All internal processes: accounts receivable, accounts payable, purchasing, marketing, sales, service, payroll, etc.

Production (Service Delivery) Process

Level 1: Productivity
Level 2: Flexibility
Level 3: Leanness
Level 4: Horizontal Alignment

What You Need to Do
Level 1 Productivity: given a specific process's total capacity (100%), where is current performance? Current Performance / Total Capacity = X%

Mapped Processes with nonvalue activities eliminated - Processes Under Control

Level 2 Flexibility: the ability to respond to outside or unpredictable demands that changes production requirements. Number of units, type of units, change over speed - ability to shift from one demand to another while maintaining quality standards.

Standard Operating Procedures (SOP) in place
Position Descriptions based on SOP's
Training Manuals (or programs)

Level 3 Leanness: achievement of the position of Lowest Cost Producer (LCP) in their niche or market. All nonvalue added activities have been eliminated and quality standards meet customer expectations.