AAOM Handbook

• sustainability (the material and social requirements for continuing effectiveness), • efficiency (the resources consumed per unit of output).

The historical data must, as far as possible; • represent stable performance

• be conditioned to remove dependent variation. Note that when there is significant storage between elements of the business structure there may be little dependent variation in the data.

Historical performance distributions shall be defined for operating ranges across the performance/effort curve.

The size of the data set used to define the probability distribution shall be specified.

The probability distribution for a performance parameter shall, as a minimum, be defined by; • the values of the minimum, maximum, mean and mode of the distribution, • the 'shape factor' (i.e. spread of the distribution – e.g. standard deviation),

Time

The design performance shall be specified on the flowcharts at the time of establishing a process.

The historical performance distributions shall be updated whenever a significant process change is made.

Resources

Specification of Performance Targets is the accountability of the role identified in the configured flowchart.

© McAlear Management Consultants 2006

Operational Planning: Set Performance Targets

Updated: August 2018

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