AAOM Handbook

INTERNAL

 Sustainability (process resourcing, asset condition and licence to operate) The process theory resulting from the Production and Service Strategy shall, depending on the linearity and time lag of the process, be measured using the following parameters  Use of Time (Utilisation),  Rate (may be input or output when reported in conjunction with process efficiency),  Input Quality,  Reliability,  Process Efficiency (recovery),  Fixed Cost,  Variable Cost. The technical theory measures for a process shall be defined based on the researched and validated theory description or formula for the process. The following shall be delivered for each of the above specified measures:  One specification for the boundary conditions to be applied to the measure.  One specification for the conditioning filter to be applied to the measure.  One specification for the measurement accuracy at which data is to be collected.  One specification for the sampling interval at which data is to be collected.  One Control Chart of the performance.  One Capability Histogram of the performance. Quality 1. Measurements of Purpose characteristics shall be reported to the following definitions or, where a direct measure is not available, the most effective proxy(s) for the intended measure;  Effectiveness o On Spec Output Units per Time Period  Efficiency o Process Efficiency = Units Out / Units Input o Unit Cost = Total Dollars Spent / Total Units of Product o ROI = Net Earnings / Total Investment

© McAlear Management Consultants 2007

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