AAOM Handbook

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

The most promising opportunities coming out of this analysis can be examined to identify production or service strategy changes, operating master schedule changes, or resourcing changes that will deliver the opportunity.

Purpose

To define the opportunities most likely to shift a process towards its required performance targets.

Quantity

• One set of constraints and opportunities.

Quality

• Opportunities arising from excessive variation should typically be dealt with before opportunities related to capacity constraints. • Opportunities to reduce the impact of variation include reducing the variation itself and buffering the variation via storage. • Opportunities may relate 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

Constraints and opportunities shall be specified as required by the Analyse and Improve Process, and at each Business Planning 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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