Procurement
Two ps in procurement?
For Rita’s purchasing team, deciding on what their DLA key performance indicators should be was quite a challenge. But once they had some ‘base settings’, refining and adapting the board proved relatively simple. Here’s Rita’s advice for ‘getting it done, rather than getting it perfect’.
1. Don’t get hung up on the five categories: safety, quality, delivery, inventory, productivity/cost.
Perhaps start by using only some of the letters. We had three at first. Now we have six. Our board features two Ps!
2. Don’t worry if your first KPIs don’t work very well.
Try something else. Enjoy experimenting with them. They will soon fall into place once you begin looking at them every morning.
3. Pick your KPI levels carefully and don’t be afraid to adjust them.
If you set your targets too aggressively you could end up with a sea of red flags which can be a bit demotivating, especially at the start.
4. Remember to choose or design KPIs that make the daily gathering of data quick and easy.
5. It can take time to get everybody thinking about what they do on a daily cycle, so be patient.
We were used to weekly and monthly working, so it took us two or three months to adjust. Persevere. It is worth it. You’ll be surprised the difference a daily drum beat makes.
6. Love your Living Pareto chart.
You will be so surprised at how it cuts through your assumptions and preconceptions about a process and shows you what’s really causing your problems. Then you can focus on your ‘Vital Few’. ■