AAOM Handbook

SET PERFORMANCE TARGETS Purpose: To specify the confidence of meeting Business Expectations. Updated: 05/2019

Set Expenditure Schedule ES.09 Create Expenditure Schedule (costed OMS working revision)

LOCK IN TARGETS

EXPLORE BUSINESS OPTIONS

Set Expenditure Schedule ES.07 Calculate Cost Distribution & Confidence Levels

Set Operating Master Schedule MS.14 Create Routine Operating Schedule

ST.10 Lock in Targets, Strategies, OMS & Expenditures

Yes

ST.06 Are Perf Target Confidence Levels Met?

Output : Confidence level on:

- Effectiveness - Sustainability - Efficiency

Set Operating Master Schedule MS.13 Calculate Output Distribution & Confidence Levels

No

Acquire / Replace / Modify / Remove Process

ST.07 Have Options been Exhausted?

Set Business Expectations

Analyse & Improve

Yes

UNDERSTAND HISTORIAL PERFORMANCE

DEVELOP STATISTICAL MODEL

No

ST.03 Obtain Historical Performance

ST.04 Calibrate Performance Model

ST.05 Define Performance Targets

Measure Output Performance

ST.08 Develop Scenarios

DEFINE BUSINESS STRUCTURE AND THEORY

Business Structure Performance Model

ST.01 Specify Business Structure

ST.02 Define Business Structure Measures

Set Production Strategy PS.01 Analyse Target Production Distributions

ST.09 Define Constraints/ Opportunities Variation/Capacity

Set Service Strategy SS.01 Extract Performance Targets

Process and Productive Unit List

Copyright; McAlear Management Consultants 2004.