By Cruz at June 27 2019 19:08:17
Business Plan Analytics Through Key Performance Indicators (KPI's): Identifying key performance indicators for your business to use as benchmarks throughout the year is perhaps the most critical step you can make with regard to business analytics. Not only will KPI's help identify key shortfalls in the plan, but will help narrow your focus in addressing the shortfalls. For instance, recognizing that you have an issue in labor isn't merely enough when you consider the following possibilities: a) labor rates may be too high; b) overtime has exceeded its budget; c) the issue is regionally_based, not across the board; d) man hours may have exceeded its allocated budget, etc. It could be a myriad of triggers that caused labor to exceed its budget and KPI's enable you to drill down to the cause. KPI management requires a disciplined review process established monthly that fosters a blended analysis throughout the year that compares actual results against both budgets and forecasts.
38 of my 41 years were in management and leadership roles. Some of my disciplines were manufacturing operations and processes, quality systems including ISO, materials, supply chain logistics, engineering, purchasing, HR functions including union and nonunion operations, concurrent engineering from product design to the customer, and upper management, and supervision training. Experiences also included a number of special projects such as managing plant shutdowns, project director of facility relocations including feasibility studies, designing of lean manufacturing concepts for new operations, development and startup of new facilities, plant and process moves to new locations, and hiring and training of staffs and workforces for new locations.