OpportunityAssessmentChecklistToolDetailofOperationalPerformanceChecklistTransactionsProcessingAreasofFocusCollectInformation/EstablishBaselinePerformAnalysesCost·Performcostanalysisoftransaction-heavyprocessesinthecompany·DetermineifcostreductionopportunitiesexistintransactionsprocessingQuality·Determineifinformationcollected/receivedthroughouttransactionsprocessesisvalid/correct·Determinewaystoimprovevalidity/accuracyofinformationthroughouttransactionprocessesTime·Mapprocessesthataretransaction-heavy(SeeProcessMappingtool)·Determineresources(human,informationsystem,etc.)requiredtoprocesstransactionsineachOperationalPerformancearea·Determineiftimereductionopportunitiesexistbycalculatingtimeassociatedwithtransactionsprocessing1OpportunityAssessmentChecklistToolDetailofOperationalPerformanceChecklistReportingandControlsAreasofFocusCollectInformation/EstablishBaselinePerformAnalysesCost·NotdirectlyapplicabletothisareaQuality·Identifyhighlevelcapabilityofmanagementreporting/informationsystems·Determineabilityofmanagementreporting/informationsystemstomeetneedsoforganizationQuality,Time·Maphigh-levelreportingrelationshipsthroughoutorganization·Askintervieweesorselectgroupofemployeesfromthroughoutcompanytofindoutifinformation/reportstheyreceiveareadequate/timely·Determinemanagementreportingimprovementareas(e.g.,accesstoinformation,timeliness,adequacy/usefulnessofinformation,etc.)2OpportunityAssessmentChecklistToolDetailofOperationalPerformanceChecklistPlanningAreasofFocusCollectInformation/EstablishBaselinePerformAnalysesCost·DaysofsalesoffinishedgoodsinventorybySKUandassociatedstockingrules(reorderpoints,EOQs,safetystock,forecastingerrorrate,etc.)·Identifyfrequencyandmethodforforecasting,payingspecialattentiontolongerterm“forecasting,”versusshortertermproduction“scheduling”·Determineopportunitiestoreduceinventorylevelsduetomismatchesinmathematicalrelationshipsbetweenforecastingerror,safetystock,EOQsandreorderpointsversusactualinventoryandproductionresults·ProductionorderslaunchedbySKUbymonth·ProductionoutputbySKUbymonth(e.g.,FGstostockinglocationsorcustomers)·FinishedgoodsinventorylistbySKUwithassociatedsalesandquantityvolumes(profitabilitybySKUisalsodesirable,butdifficulttoobtain)·ReturnsandwarrantyhistorybySKU·ConductABCanalysisofFGinventorylistings(performedbasedonsalesdollar,quantityandprofitabilitytoseeifsignificantdifferencesexistusingdifferentanalysisparameters)·Determineiflowestperformingfinishedgoodsproductsareworthretaining(i.e.,the‘Ds’orlowest‘Cs’maynotbeeconomicallyviable,orcausetoomuchcomplexity)·Customerlistbysalesvolumebymonth·CustomerordersbySKUbymonth·CustomershipmentsbySKUbymonth·CustomerbackordersbySKUbymonth·Customerorderchanges(withinandoutsidetheproductionleadtimewindow)·Returnsandwarrantyhistorybycustomer·ConductABCanalysisofcustomers(performedbasedonsalesdollar,quantityandprofitabilitytoseeifsignificantdifferencesexistusingdifferentanalysisparameters)·Determineiflowestperformingcustomersareworthretaining(i.e.,the‘Ds’orlowest‘Cs’maynotbeeconomicallyviable,orcausetoomuchcomplexity)3OpportunityAssessmentChecklistToolDetailofOperationalPerformanceChecklistPlanning(continued)AreasofFocusCollectInformation/EstablishBaselinePerformAnalysesQuality·Identifyinformationtechnologyand/orcurrentprocessesusedfordemandanalys...
