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NDTMA 2015 Annual Conference Quality Management & Strategic Planning Key Performance Indicators John Cristman Director of Corporate Quality XRay Industries, Inc. Troy, Michigan Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

QualityManagement&StrategicPlanning … · NDTMA 2015 Annual Conference ! QualityManagement&StrategicPlanning KeyPerformanceIndicators!! JohnCristman DirectorofCorporateQuality XRayIndustries,Inc

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NDTMA 2015 Annual Conference

 Quality  Management  &  Strategic  Planning  

Key  Performance  Indicators      John  Cristman  Director  of  Corporate  Quality  X-­‐Ray  Industries,  Inc.  Troy,  Michigan      

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

NDTMA 2015 Annual Conference

Why  it’s  important  to  choose  the  right  KPI’s    

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Ø  There are several reasons why measurement of performance is necessary and why there should be an organized approach to it.

v  Performance measures indicate the degree of accomplishment of objectives and, therefore, quantify progress toward the accomplishment of goals.

v  Performance measures are needed to monitor the continuous improvement process, which is central to the changes required to become competitive.

v  Measures of individual, team, and business unit performance are required for periodic performance reviews by management.

NDTMA 2015 Annual Conference

Why  it’s  important  to  choose  the  right  KPI’s    

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Ø  Once goals have been set and broken down into sub goals, key measures (performance indicators) need to be established. A measurement system that clearly monitors performance against plans has the following properties: v  Indicators that link strongly to strategic goals and to the vision and

mission of the organization

v  Indicators that include customer concerns; that is, the measures focus on the needs and requirements of internal and external customers

v  A small number of key measures of key processes that can be easily obtained on a timely basis for executive decision-making

v  The identification of chronic waste or cost of poor quality

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

1. PURPOSE:    This  documented  procedure  defines  the  formal  method  of  identifying  and  defining  the  Key  Performance  Indicators  (KPI’s)  that  monitor  and  measure  X-­‐Ray  Industries  Quality  Management  System,  Strategic  Balanced  Scorecard,  Cost  of  Quality,  and  Key  Processes  /  Procedures.  

2. SCOPE:  The  Director  of  Quality  and  the  President  of  X-­‐Ray  Industries  own  this  procedure  and  are  responsible  for  its  compliance  and  implementation.  This  process  applies  to  all  divisions  and  employees  that  fall  under  the  documented  Quality  Management  System  of  X-­‐Ray  Industries  as  defined  in  section  1.2  of  the  Quality  Manual.  

3. DEFINITIONS:  3.1   X-­‐RAY  INDUSTRIES,  INC.  KEY  PERFORMANCE  INDICATORS:  3.1.1   Strategic  Balanced  Scorecard  (BSC)  –  Approach  used  to  measure  Business  Performance;  it  

includes  not  only  financial  performance  but  other  aspects  such  as  the  voice  of  the  customer  and  customer  engagement,  internal  business  process,  innovation,  and  employee  performance.  There  are  four  levels  of  the  BSC,  built  from  the  top  down,  measured  from  the  bottom  up.  

QMS Document #1018 Key Performance Indicators

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

QMS Document #1018 Key Performance Indicators Balanced Scorecard KPI’s

Description # KPI Measures Target

1. Financial

1 F1 Revenue Plan Versus Actual Meet / Exceed Plan

2 F2 Operating Income Plan Versus Actual Meet / Exceed Plan

3 F3 Conversion to Sales Plan Versus Actual Meet / Exceed Plan

4 F4 Receivables Only 13.3% Of Total Receivables – including the Ten Day Grace Period – can be past due at month end

6.0%

2. Customer

5 C1 On Time Delivery 98% Meet / Exceed Plan

6 C2 Escapes Incidents Of Lot YOY Improvement

7 C3 Strategic Growth 5% Over YR2014 5% Over Previous Year

3. Process

8 P1 Safety Performance Attendance at Monthly Safety Meetings 94%

9 P2 Strategic Initiatives Plan Versus Actual Meet / Exceed Plan

10 P3 QMS Training % of Workforce Trained % Forecasted by each Location will determine the overall Organizational Target

4. Learning & Growth (Human Resource)

11 HR1 Personnel Certifications Plan Versus Actual Meet / Exceed Plan

12 HR2 Multi-Cert L3 Plan Versus Actual Meet / Exceed Plan

13 HR3 Recognition YOY Improvement Meet / Exceed Plan

14 HR4 Retention Voluntary % YOY Pareto <10% Annually

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

3.1.2  Cost  of  Poor  Quality  (COPQ)  –  For  the  purpose  of  this  controlled  procedure  the  COPQ  is  defined  as  the  costs  from  services  not  conforming  to  customer  requirements,  internal  and  external  process  failures  resulting  in  waste  rework,  travel  costs,  and  corrective  actions.  Corrective  /  Preventive  actions  such  as  first,  second  or  third  party  audits  are  not  included  in  these  costs.  Failure  costs  are  broke  down  into  the  following  categories.  

KPI Description # Description Of Failure Cost Collection

Certification Errors 15 A nonconformance to a certification resulting in a re-print of that particular certification. Location Burden Rate x ¼ HR

Scrap Film 16 A nonconformance to a film shot resulting in a re-shot. (Excludes Tests Shots) Price of Film + $2.38

Escapes 17 Product that reaches customer that has not been inspected to customer written requirements

Material Costs, Burden Rate, Travel Expenses any other costs that may be accrued due to the Escape

Corrective Actions 18 Steps that are taken to eliminate the causes of existing nonconformities in order to prevent recurrence

Material Costs, Burden Rate, Travel Expenses any other costs that may be accrued due to the CA

Deficiency Reports 19 A nonconformance to a Customer P.O. in regards to flow-down requirements Location Burden Rate x ¼ HR

18 Month Nadcap Merit 20 As Defined In PRI’s NOP 008 Procedure As Defined In PRI’s NOP 008 Procedure

24 Month Nadcap Merit 21 As Defined In PRI’s NOP 008 Procedure As Defined In PRI’s NOP 008 Procedure

QMS Document #1018 Key Performance Indicators

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

4.   LOCATION  SPECIFIC  PERFORMANCE  INDICATORS:  Each  Location  /  Division  that  falls  under  the  X-­‐Ray  Industries,  Inc.  Quality  Management  System  umbrella  must  provide  data  to  support  KPI’s  numbers  one  thru  twelve.  KPI’s  fourteen  thru  twenty-­‐one  are  determined  by  applicability.  All  Data  is  due  the  5th  day  of  the  following  month.  

4.1   All  BSC  and  KPI’s  are  reviewed  once  a  month  with  the  following  X-­‐Ray  Industries,  Inc.  employees  at  a  designated  frequency  determine  by  this  identified  team,  and  are  recorded  on  the  1018A  meeting  record  form.    1.   President  2.   Director  Of  Quality  3.   Director  Of  Operations  4.   Director  Of  Human  Resources  5.   Director  Of  Information  Technology  6.   Controller  7.   Safety  Manager  

4.2   All  locations  under  the  X-­‐Ray  Industries  review  the  BSC  &  the  KPI’s  on  a  monthly  frequency  and  are  documented  using  the  1018A  form.  

QMS Document #1018 Key Performance Indicators Key Performance Indicators

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Location Specific KPI’s Division Location

Escapes Cert Errors Scrap Film Un-

Allocated Film

CAR’s 1005A VOC COPQ OTD

Count Costs Internal External Count Costs Costs Count Costs Count Costs Survey % Costs Customer Req.

X-R-I Testing Cleveland, OH √ √ NA NA √ √ NA √ √ NA NA √ √ √ NA

X-R-I Testing Cleveland, OH √ √ √ √ √ √ √ √ √ √ √ √ √ √ √

Food Holland, MI TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD TBD √ NA NA TBD

X-R-I Testing Romulus, MI √ √ √ √ NA NA NA √ √ √ √ √ √ √ NA

X-R-I Testing Greenville, SC √ √ √ √ √ √ TBD √ √ √ √ √ √ √ NA

X-R-I Testing Duncan #1 Duncan #2 Greer, SC

√ √ √ √ √ √ NA √ √ √ √ √ √ √ √

X-R-I Testing Hampton, VA √ √ √ √ √ √ √ √ √ √ √ √ √ √ √

MobileX Saginaw, MI √ √ TBD TBD √ √ NA √ √ TBD TBD √ √ √ TBD

X-R-I Testing Niles, IL √ √ NA NA NA NA NA √ √ √ √ √ √ √ NA

X-R-I Testing Sterling Hts, MI √ √ √ √ NA NA NA √ √ √ √ √ √ √ NA

Thermologix TLX Ferndale, MI

TBD TBD TBD TBD TBD TBD NA TBD TBD TBD TBD TBD NA NA TBD

X-R-I Testing Troy, MI √ √ √ √ √ √ NA √ √ √ √ √ √ √ √

X-R-I Testing Zeeland, MI √ √ √ √ √ √ NA √ √ √ √ √ √ √ NA

TCSG Troy, MI √ √ NA NA NA NA √ √ √ √ √ √ √ √ NA

NDTMA 2015 Annual Conference

Quality  Management  &  Strategic  Planning  Key  Performance  Indicators  

 

Ø  Balanced  Scorecard  (BSC)  The concept behind a Balanced Scorecard is to translate Strategic Planning into an actionable model to monitor and measure an organizations performance as it relates to their strategic business planning.

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Financial  Metrics Forecast Actual B/(W) Status Financial  Metrics Forecast Actual B/(W) Status Financial  Metrics Forecast Actual B/(W) Status Financial  Metrics Forecast Actual B/(W) Status Financial  Metrics Forecast Actual B/(W) Status

F1  -­‐  Revenue F1  -­‐  Revenue F1  -­‐  Revenue F1  -­‐  Revenue F1  -­‐  Revenue

F2  -­‐  Op  Income F2  -­‐  Op  Income F2  -­‐  O  Income F2  -­‐  Op  Income F2  -­‐  Op  Income

F3  -­‐  Conversion F3  -­‐  Conversion F3  -­‐  Conversion F3  -­‐  Conversion F3  -­‐  Conversion

F4  -­‐  Receivables F4  -­‐  Receivables F4  -­‐  Receivables F4  -­‐  Receivables F4  -­‐  Receivables

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Champion:   Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Descripton: Descripton:

Champion: Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date: Target  Date:

Descripton: Descripton:

Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date:

Descripton: Descripton:

Champion: Champion: Champion: Champion:

Target  Date: Target  Date: Target  Date: Target  Date:

Date  Printed: 02/04/15

B.  Broaddus  (PE  /  CI) B.  Broaddus  (Financia l  /  Cash  Mgmt)

03/31/15 12/31/15

Rock  #10  Q1:  Provide  additional  support  to  assist  BU  Leaders  (Engineer  resources)

Rock  #10  Q2 Rock  #10  Q3Rock  #10  Q4:  Achieve  AOP  revenue  projections

B.  Broaddus  (Strategic  Growth) J.  Cris tman  (PE  /  CI)

03/30/15 12/15/15

Rock  #9  Q1:  Work  closely  with  the  Primes  and  Tier  1  suppliers  to  gain  additional  revenue  at  various  locations

Rock  #9  Q2 Rock  #9  Q3 Rock  #9  Q4:  Create  a  better  understanding  of  the  PE  criteria  and  offer  training  at  Troy  and  or  conduct  during  site  visits.  

R.  Clubb  (Financia l  Performance) B.  Henchar  /  D.  Dardzinski  (People  /  HR) A.  Ca ldwel l  (System  Requirements)

03/30/15 12/31/15 12/31/15

Rock  #8  Q1:  Improve  Cash  Flow  by  10%  year-­‐over-­‐yearRock  #8  Q2 Rock  #8  Q3

Rock  #8  Q4:  Pathway  for  L3  (Defined  by  CL3) Rock  #18  Q4:  Upgrade  Hampton  Server  and  move  equipment  to  new  room.

B.  Broaddus  /  R.  Clubb  (Cash  Mgmt.) B.  Broaddus  (Strategic  Growth) B.  Henchar  /  D.  Barra  (QMS) A.  Ca ldwel l  (System  Requirements)

03/30/15 09/30/15 12/31/15 12/31/15

03/30/15 06/30/15 09/30/15 12/31/15 12/31/15

Rock  #7  Q1:  Conduct  training  class  for  Cleveland,  Troy  &  Greer  on  P&L  development  on  new  jobs  and/or  new  opportunities   Rock  #7  Q2:  

Rock  #7  Q3:  Work  closely  with  the  Primes  and  Tier  1  suppliers  to  gain  additional  revenue  at  various  locations Rock  #7  Q4:  D.  Barra  PTL2  and  Digital  L3 Rock  #17  Q4:  Upgrade  Exchange  server  from  2007  to  2013

Rock  #6  Q1:  Redesign  current  RCCA  and  auditing  class  and  offer  training  (8  Hours)  on  site  and/or  at  the  Troy  Training  center.  

Rock  #6  Q2:  Work  closely  with  the  Primes  and  Tier  1  suppliers  to  gain  additional  revenue  at  various  locations

Rock  #6  Q3:  Upgrade  Hampton  Server  and  move  equipment  to  new  room.

Rock  #6  Q4:  Leadership  &  Employment  Training  for  Managers  &  Supervisors

Rock  #16  Q4:  Continue  testing  the  market  place  with  Thermography  solutions

R.  Kl ine  /  T.  Rose  /  J.  Cris tman  (QMS) B.  Broaddus  (Strategic  Growth) A.  Ca ldwel l  /  B.  Peck  (System  Requirements) HR  Team  (People  /  HR) B.  Broaddus  /  K.  Thams  (Strategic  Growth)

R.  Kl ine  /  T.  Rose  /  J.  Cris tman  (QMS) B.  Broaddus  (Strategic  Growth) A.  Ca ldwel l  /  B.  Peck  (System  Requirements) D.  Dardzinski  /  B.  Broaddus  (People  /  HR) B.  Broaddus  (Strategic  Growth)

03/30/15 04/30/15 08/30/15 12/31/15 12/31/15

03/30/15 05/30/15 08/30/15 12/31/15 12/31/15

Rock  #5  Q1:  Redefine  the  definition  of  Customer  satisfaction  (l istening)  outside  the  current  1003  procedure

Rock  #5  Q2:  Launch  two  additional  co-­‐locations  and/or  stand  alone  facil ities Rock  #5  Q3:  Upgrade  all  firewalls Rock  #5  Q4:  Succession  Planning

Rock  #15  Q4:  Work  closely  with  the  Primes  and  Tier  1  suppliers  to  gain  additional  revenue  at  various  locations

Rock  #4  Q1:  Increase  minimum  activity  in  method  certification  from  once  every  six  months  to  one  day  per  calendar  month. Rock  #4  Q2:  Host  two  CI  Learning  events

Rock  #4  Q3:  Investigate  options  for  upgrading  remote  locations  internet  circuits Rock  #4  Q4:  Review  IPP  process,  forms  and  revamp  as  determined

Rock  #14  Q4:  Launch  two  additional  co-­‐locations  and/or  stand  alone  facil ities

D.  Barra  (QMS) J.  Cris tman  /  B.  Broaddus  (PE  /  CI) A.  Ca ldwel l  /  B.  Peck  (System  Requirements) HR  Team  (People  /  HR) B.  Broaddus  (Strategic  Growth)

T.  Rose  (QMS) A.  Ca ldwel l  (System  Requirements) B.  Broaddus  /  R.  Clubb  (Cash  Mgmt.) P.  Kurz  /  M.  Kay  (Safety  Mgmt.  System) B.  Broaddus  (Strategic  Growth)

03/30/15 04/30/15 08/30/15 12/15/15 12/31/15

03/30/15 04/30/15 09/30/15 12/15/15 12/31/15

Rock  #3  Q1:  Implement  schedule  for  Quality  Management  System  controlled  document  review  /  training  via  WebEx  and/or  site  visit.   Rock  #3  Q2:  Complete  Windows  7  upgrades/replacements

Rock  #3  Q3:  Enhance  Capital  Planning  and  monitoring  of  investments

Rock  #3  Q4:  Align  and  integrate  new  operations  into  SMS  (XRI,  Arcadia,  etc.). Rock  #13  Q4:  Achieve  Revenue  growth  of  23%  above  FY  2014  projections  

Rock  #2  Q1:  Implement  best  practice  from  Troy  facil ity  mini  audits  at  each  location  to  help  identify  QMS  compliance. Rock  #2  Q2:  Standardize  budget  tracking  across  the  division Rock  #2  Q3:  Host  two  CI  learning  events

Rock  #2  Q4:  Promote  safety  mgmt.  leadership  through  attendance  at  Affinity  Risk  Control  Workshop  or  other  safety  conference Rock  #12  Q4:  Improve  Cash  Flow  by  10%  year-­‐over-­‐year

R.  Kl ine  (QMS) B.  Broaddus  ($$  Performance  /  Cash  Mgmt.) J.  Cris tman  /  B.  Broaddus  (PE  /  CI) P.  Kurz  /  B.  Broaddus  (Safety  Mgmt.  System) R.  Clubb  (Financia l  Performance)

T.  Rose  (QMS) P.  Kurz  /  M.  Kay  (Safety  Mgmt.  System) T.  Rose  /  R.  Kl ine  /  D.  Dardzinski  (QMS) P.  Kurz  (Safety  Mgmt.  System) B.  Broaddus  (Financia l  Performance)

03/30/15 06/30/15 09/30/15 12/15/15 12/31/15

Quarter  One  Rocks Quarter  Two  Rocks Quarter  Three  Rocks Quarter  Four  Rocks Year  to  Date  Results

Rock  #1  Q1:  Continue  the  integration  of  TCG  to  include  training  plans,  training  PowerPoint,  into  their  Quality  Management  System.

Rock  #1  Q2:  Establish  on-­‐line  training  modules  or  vendor  resource  for  structured  Supervisor  training.

Rock  #1  Q3:  Define  and  implement  a  succession  plan  for  Quality  Engineer  (JD  &  Current  Employee  that  is  not  a  Quality  Professional).

Rock  #1  Q4:  Fully  Implement  phased-­‐in  regulatory  changes  to  the  Hazard  Communication/Globally  Harmonized  System

Rock  #11  Q4:  Meet  and/or  exceed  conversion  expectations  established  by  the  BOD

2015  Strategic  Rocks

01/30/2015

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Strategic Initiatives (Rocks)

Financial  Metrics Forecast Actual B/(W) Status Financial  Metrics Forecast Actual B/(W) Status

F1  -­‐  Revenue F1  -­‐  Revenue

F2  -­‐  Op  Income F2  -­‐  Op  Income

F3  -­‐  Conversion F3  -­‐  Conversion

F4  -­‐  Receivables F4  -­‐  Receivables

Champion: Champion:

Target  Date: Target  Date:

Champion: Champion:

Target  Date: Target  Date:

Champion: Champion:

Target  Date: Target  Date:

T.  Rose  (QMS) A.  Ca ldwel l  (System  Requirements)

03/30/15 04/30/15

03/30/15 04/30/15

Rock  #3  Q1:  Implement  schedule  for  Quality  Management  System  controlled  document  review  /  training  via  WebEx  and/or  site  visit.   Rock  #3  Q2:  Complete  Windows  7  upgrades/replacements

Rock  #2  Q1:  Implement  best  practice  from  Troy  facil ity  mini  audits  at  each  location  to  help  identify  QMS  compliance. Rock  #2  Q2:  Standardize  budget  tracking  across  the  division

R.  Kl ine  (QMS) B.  Broaddus  ($$  Performance  /  Cash  Mgmt.)

T.  Rose  (QMS) P.  Kurz  /  M.  Kay  (Safety  Mgmt.  System)

03/30/15 06/30/15

Quarter  One  Rocks Quarter  Two  Rocks

Rock  #1  Q1:  Continue  the  integration  of  TCG  to  include  training  plans,  training  PowerPoint,  into  their  Quality  Management  System.

Rock  #1  Q2:  Establish  on-­‐line  training  modules  or  vendor  resource  for  structured  Supervisor  training.

2015  Strategic  Rocks

01/30/2015

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Forecast Forecast Forecast ForecastActual Actual Actual ActualB/(W) B/(W) B/(W) B/(W)

Target Overall Target TargetActual Actual Actual $0  

B/(W) B/(W) B/(W)

Target Overall Target TargetActual Actual ActualB/(W) B/(W) B/(W)

Target Target Target TargetActual Actual Actual ActualB/(W) B/(W) B/(W) B/(W)

F1  Revenue F2  Operating  Income F3  Conversion F4  Receivables

C1  -­‐  On  Time  Delivery C2  -­‐  Escapes C3  -­‐  Strategic  Growth

P1  -­‐  Safety  Performance P2  -­‐  Strategic  Initiatives P3  -­‐  Engagement  Of  QMS

Yellow  =  Close  To  TargetRed=  ≤  To  Target

HR1  -­‐  Personnel  Certifications HR2  -­‐  Multi-­‐Cert  L3 HR3  -­‐  Recognition HR4  -­‐  Retention

Dash  Board  KeyGreen  =  ≥  To  Target

1.  Leadership2.  Strategic  Planning

2. Strategic  Planning3.  Customer  Focus

2.  Strategic  Planning5.  Workforce  Focus

4.  Measurement                                  Analysis  &  Knowledge  Management6. Operations  Focus

7.  Results7.1 Service  and  Process  Results,  7.2  Customer  Results, 7.3  Workforce  Results,  

7.4  Leadership  &  Governance  Results,  7.5  Financial  &  Market  Results

Performance  ExcellenceCriteria

There  are  Four  Levels  of  the  Balanced  Scorecard

Financial

Process

Customer

Learning  &

Growth

2

3

4

Leading  IndicatorTo  Process

Leading  IndicatorTo  Customer

Leading  IndicatorTo  Financial

1

The  Balanced Scorecard   is  implemented  by  translating   the  vision  and  strategy   into  a  comprehensive  set  of  objectives  and  performance  measures   in  fourcategories,   financial,   customer,   process,   and  Learning  &  Growth.    Each  year  at  the  conclusion   of  the  July  Strategic  brainstorming   the  Key  Performance  Indicators   are  defined  and  targets  are  set.  

Performance Excellence  Criteria   focuses  on  results   in  the  key  areas  of  product  and    processes,   customers,  workforce,   leadership  &  governance,   finance  and  markets.  This  composite   of  measures  ensures   that  our    strategies  are  balanced  and  that   they  do  not  inappropriately   trade  off  among   important   stakeholders  or  short  and  long  term  goals  /  objectives.

Balanced Scorecard

Performance  Excellence

Definitions of  the  Balanced  Scorecard  and  Performance  Excellence  Criteria's

Plan

Act

Check

DoContinuousImprovement

Cycle

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

The  Strategic  Balanced  Scorecard

7  -­‐  Results

Performance  Excellence    Criteria

1  –  Leadership2  –  Strategic  Planning

3  –  Customer  Focus

4-­‐  Measurement  Analysis  &  Knowledge  Management6  –  Operations  Focus

5  –  Workforce  Focus

Financial

Process

Customer

Learning  &

Growth

2

3

4

Leading  IndicatorTo  Process

Leading  IndicatorTo  Customer

Leading  IndicatorTo  Financial

1

F3  Conversion

2014  Dashboard,  Final  ResultsThere  are  four  levels  of  the  BSC

There  are  four  levels  of  the  BSC

Mea

sured  from

 bottom  up

There  are  four  levels  of  the  BSC,  built  from  the  top  down,  measured  from  the  bottom  up.There  are  four  levels  of  the  BSC,  built  from  the  top  down,  measured  from  the  bottom  up.

Built  From  The

 Top

[  Dow

n

Date  Created:   9/30/2013Date  Revised: 12/8/2014Date  Printed: 1/16/2015

F2  Operating  Income

Green  =  ≥  To  TargetYellow  =  Close  To  TargetRed  =    ≤  To  Target

Dash  Board  Key:

Confidential Confid

ential

TargetActualB/(W)

HR2  Top  Talent

Under  

Development

TargetActualB/(W)

F4  Receivables13.30%10.12%-­‐3.18%

TargetActualB/(W)

 C2  Customer  ComplaintsTBD  $                                  8,609  

TargetActualB/(W)

P1  Safety  Performance80.00%94.05%14.05%

TargetActualB/(W)

P2  Strategic  Initiatives34  34  0  

TargetActualB/(W)

HR1  Certifications24  24  0  

TargetActualB/(W)

C1  On  Time  Delivery97.25%97.65%0.40%

TargetActualB/(W)

84  99  15  

P3  Continuous  Improvement

TargetActualB/(W)

HR3  RecognitionTBD39  NA

YR2013YRActualB/(W)

P4  3rd  Party  Audits8  4  (4)

F1  Revenue

Confidential

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

KPI Description # Description Of Failure Cost Collection

Certification Errors 15 A nonconformance to a certification resulting in a re-print of that particular certification. Location Burden Rate x ¼ HR

Cost Of Poor Quality, Key Performance Indicators

Final  Results   Cost   Actual   Target  

YR2012   $134,366   0.76  %   2.0%  

YR2013   $207,237   0.95%   1.5%  

YR2014   $193,449   0.93%   1.0%  

This KPI measures what we ultimately sell, Certifications. We measure how many times they must be reprinted due to error, cost collection is defined in the procedure. Failures are tracked in a Pareto format at the location level.

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Cost Of Poor Quality, Key Performance Indicators KPI Description # Description Of Failure Cost Collection

Scrap Film 16 A nonconformance to a film shot resulting in a re-shot. (Excludes Tests Shots) Price of Film + $2.38

Final  Results   Costs   PCT   Goal   YOY  B/W  

YR2012   $117,745   2.37%   2.0%   Costs   PCT  

YR2013   $81,592   2.22%   2.0%   -­‐$36,153   -­‐.15%  

YR2014   $92,749   2.44%   2.0%   +$11,157   +.22%  

YR2012   YR2013   YR2014  

Film  Used   931,299   1,026,349   917,795  

Film  Scrapped   22,187   22,693   22,100  

This KPI measures the amount of scrap film we produce, as X-Ray Industries grows adding additional locations we focus on the percentage. Failures are tracked in a Pareto format at the location level.

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Cost Of Poor Quality, Key Performance Indicators

This KPI measures the amount of Escapes we produce, as X-Ray Industries grows adding additional locations we focus on the percentage. All Escapes are addressed with formal CA’s. Failures are tracked in a Pareto format at the location level.

KPI Description # Description Of Failure Cost Collection

Escapes 17 Product that reaches customer that has not been inspected to customer written requirements

Material Costs, Burden Rate, Travel Expenses any other costs that may be accrued due to the Escape

Final  Results  

Parts  Shipped   Parts   Incidents   Costs  

YR2012   6,041,310   250   14   $10,325  

YR2013   6,313,707   422   15   $18,601  

YR2014   5,215,255   206   19   $5,192  

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Cost Of Poor Quality, Key Performance Indicators

This KPI measures the amount of CA’s we produce, CA’s can increase or decrease due to 2nd and 3rd Party audits. This KPI is a leading indicator to our Nadcap Merit status.

KPI Description # Description Of Failure Cost Collection

Corrective Actions 18 Steps that are taken to eliminate the causes of existing nonconformities in order to prevent recurrence

Material Costs, Burden Rate, Travel Expenses any other costs that may be accrued due to the CA

Final  Results   Costs   CAR  Count  

YR2012   $16,530   114  

YR2013   $38,745   186  

YR2014   $42,554   121  

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Cost Of Poor Quality, Key Performance Indicators KPI Description # Description Of Failure Cost Collection

Deficiency Reports 19 A nonconformance to a Customer P.O. in regards to flow-down requirements Location Burden Rate x ¼ HR

Final  Results   Costs   No.   YOY  B/W  

YR2012   $15,580   2,332   Costs   No.  

YR2013   $24,363   2,743   +$,8,783   +411  

YR2014   $27,884   3,437   +$3,521   +694  

Division     Costs   1005A  Count  

Cleveland,  OH   $10,996   1,443  

Greenville,  SC   $588   80  

Greer,  SC   $168   23  

Troy,  MI   $14,875   1,724  

Zeeland,  MI   $1,109   167  

Note: This KPI is a flow-down during contract review. Here we measure correct customer requirements as it relates to the product we are to inspect.

Deficiency reporting is addressed in 1001 Contract review procedure.

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Cost Of Poor Quality, Key Performance Indicators KPI Description # Description Of Failure Cost Collection

Nadcap Merit Status 20 As Defined In PRI’s NOP 008 Procedure As Defined In PRI’s NOP 008 Procedure

Note: 3rd Party Audits for YR2014 have concluded. There are fifteen 3rd Party audits scheduled for YR2015. These audits total approximately $82,860 in costs and 40 Man-days of auditing.

Location Method 12  Month

18  Month

24  Month

2014  Cost  Savings

Cleveland,  OH PT,  MTRT

√ -­‐ -­‐ $0

Greer,  SC PT,  MTRT

-­‐ √ -­‐ $4,150

Hampton,  VA RT -­‐ -­‐ √ $4,150

Niles,  Ill PT,  RT -­‐ √ -­‐ $0

Norbert,  MI PT -­‐ -­‐ √ $4,875

Troy,  MI CP -­‐ √ -­‐ $0

Troy,  MI PT,  MTRT,  UT

-­‐ -­‐ √ $6,580

Troy,  MI Weld √ -­‐ -­‐ $0

Zeeland RT,  PT -­‐ -­‐ √ $0

Totals NA 2 3 4 $19,755

NDTMA 2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015

Questions?

NDTMA 2015 Annual Conference

Thank you for your participation in the NDTMA

2015 Annual Conference

Golden Nugget Hotel, Las Vegas, NV February 10-13, 2015