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Evaluate progress, track daily production cost, identify losses and contributions, compare real data, make informed decisions. Collect data, analyze and benchmark, improve performance, measure improvements.
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What you can do with Cigar Box 3 • Operational monitoring Evaluate progress. • Daily production cost for each product. • Know your daily losses and contribution Compare with real daily data. • Make decisions for progress with real data.
1. Collecting data • You can only have real data, if you collect them daily, this is necessary for CB3 • To collect data you need to have daily data collection forms • You need to train people how to fill daily forms and make them responsible to do it. • Organize and Systematize data collection process
2. Analyzing Data • You are going to use data from forms to simple system; • Choose the produced product for that day; • Choose the expenses for that product; • Enter data for each product; • In the end you have analyzed data automatically! • Colored margins show you the deviation from your planned margin
3. Benchmarking • For benchmarking data you need to use daily database of production cost (which you have already from daily analysis); • To see what is the position of our production cost, you need to compare it with similar production from other companies; • It is possible to question: Why? • But with CB3 you have an answer for your Why? • To make decisions on progress is your responsibility, and your privilege!
Your successes will come from well organizing activities and responsibilities of personnel
Find your KPI’s • If you have data • You can make analyzes • You will find your KPI’s • Then do benchmarking of your KPI’s • For different production there are different KPI’s
Measurement a. How much steam did we use on Thursday? b. How many cutting losses did we have in the evening shift? • Focus on critical ingredient (milk: fat + density; fruit: sugar + moisture) • Instruments of measurement • Operational routines (frequency, reporting, responsibilities)
Knowledge a. What is going right? b. What is going wrong? • Archive documents • Input in CB3 database • Analysis • Output formats and report on KPI’s
Causes of problems • List causes of red lights
Solutions • Try to formulate solutions for the key problems • Inside the company • Outside the company from expert consultants • Implement solutions Improvement • Measure improvements New cycle
Exercise • List products and production processes for each client • List likely KPI’s per production process • Global Facts can provide internationally acceptable benchmarks (green, orange, red)
You are in the right way! • When you know your weak points, when you see from what they are coming and when: • You can plan and organize your production better • See if you have products which are not profitable • You can plan your resources … • Market, Raw Materials, Production, • Personnel, Equipment, … • You can plan your finance … • To see when you will have financial crises • Organize investment in time