AAOM Handbook

and the opportunity to move the process performance towards the required targets quantified.

A scenario will be a set of altered, but realistic, operating parameters (either reductions in variation, shifts in operating points, or both) that reflect the potential process performance when a set of constraints have been relaxed. These scenarios can be tested via the Business Structure Performance model to determine if they are likely to move the process performance to the targets necessary to meet Business Expectations. If testing of a scenario appears indicates that it is likely to be able to achieve the performance target confidence levels it needs to be further investigated through the Set production and Service Strategy, Set Operating Master Schedule and Set Expenditure Budget elements of the Operating Model.

Purpose

To specify operating scenarios that are likely to deliver the performance targets for a process.

Quantity

• One set of operating parameters to be tested via the Business Structure performance model.

Quality

• Scenarios dealing with excessive variation should typically be dealt with before scenarios related to capacity changes. • Scenarios for reducing the impact of variation include reducing the variation itself and buffering the variation via storage. • Scenarios may developed for changes to; o effectiveness (units output per time period), o sustainability (the material and social requirements for continuing effectiveness), o efficiency (the resources consumed per unit of output). • The development and testing of scenarios to validate and quantify opportunities should be conducted in a systematic way. The objective should be to define the simplest of scenarios that can produce a significant shift towards the required performance targets.

Time

Scenarios shall be specified as required by the Analyse and Improve Process, and at each forecasting (budgeting) cycle.

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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