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Proactive Performance Indicators: Taproot Summit Best Practices - 28 Oct 2010

The document discusses proactive and reactive performance indicators. It provides examples of common reactive safety metrics like lost time injury rates and examples of more proactive measures like hours spent on safety audits or improvements implemented. The document advocates selecting proactive measures that predict future performance rather than just reacting to past results. It also notes that both reactive and proactive measures are important to track over time to ensure goals are being achieved and measures remain effective.

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Guillermo Antonio Hernandez
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85 views35 pages

Proactive Performance Indicators: Taproot Summit Best Practices - 28 Oct 2010

The document discusses proactive and reactive performance indicators. It provides examples of common reactive safety metrics like lost time injury rates and examples of more proactive measures like hours spent on safety audits or improvements implemented. The document advocates selecting proactive measures that predict future performance rather than just reacting to past results. It also notes that both reactive and proactive measures are important to track over time to ensure goals are being achieved and measures remain effective.

Uploaded by

Guillermo Antonio Hernandez
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Proactive

Performance
Indicators
TapRoot Summit
Best Practices – 28 Oct 2010
What Do You Measure?

 Consider 2 or 3 Performance Indicators you


currently use
 Write down one Performance Indicator per
Sticky Note
 Indicate if Proactive or Reactive

 5 minutes
Proactive
• Future Goals Reactive
• Leading Indicators • Past Results
• Lagging Indicators
Performance Measures
Reactive vs. Proactive
Performance Indicators

REACTIVE PROACTIVE
Measure Results Measure Activity

After Activity Complete Prior to Goal Achieved

Not Predictive Predict Changes in Reactive


Measures

Lagging Indicators Leading Indicators


Performance Indicators
Examples
REACTIVE PROACTIVE
Lost Time Injury Rate # Hrs spent performing safety
audits per month

Workers’ Comp Costs # Safety improvements


implemented per month

Equipment Downtime % Preventive Maintenance


performed on time

Maintenance Costs Per Year Reliability Upgrade Budget


Performance Indicators
Examples

REACTIVE PROACTIVE
# Customer Complaints # CAPAs completed on time

# Rejected Lots or Batches # Mgmt Hrs spent on Quality


Improvement
# Product Recalls Quality Improvement Budget
Selecting a Contract Manufacturer

 Pharmaceutical Company needs to select


Contract Manufacturing Organization for
filling sterile vials
 Select Criteria that will predict future
performance
 Proactive or Reactive?
Evaluation Criteria

Quality Personnel

Corporate Cost Per


Culture Vial
Proactive or Reactive?
• Regulatory Audit Findings
Quality • Quality Improvement Budget
• # CAPA completed on time

• Adequate Staffing
Personnel • Hrs of Training per person per year

Corporate • Financial Stability


• Management Involvement
Culture • Team Players

• Appropriate Facility & Equipment


Cost per vial • Comparative Costs
• Operational Flexibility
F-14 TOMCAT
$45,000,000 EACH in Mid-80s
The Problem

 85-90…West Coast Squadrons were


“Losing” (Crashing/Destroying) Twice the
number of aircraft as East Coast Squadrons

Why?
“Study”/Findings/Action
1990
Predictive:
Proactive?
or
Reactive?
No…This is NOT me…Honest!!!
Learning's Proactive
vs
Reactive Measures
Mining Industry in the Hunter Valley -
Australia

17
Injury Stats over Time
1992
• Safety management
systems
• Risk management Served its purpose
• Guarding at the time – but
• Signage what was the
• Housekeeping PPE unintended
• Procedures etc consequence ?
(SMARTER – tool!)

Link reactive • # of Job


Mid to measures to Observations
Late 90’s Remuneration • # of Take 5’s
• # of Hazards
Reported

Around HUMAN BEHAVIOUR


2000
Proactive
Mid 2000’s measures
18
Injury Stats over Time
 ‘Teething’ problems with proactive measures
 Competency of persons conducting task
observations
 Implementation – lack of understanding of intent of
the proactive measure & link to improved safety
 Safety Culture not fully understood
 ‘punishment’ low score rather than reward for high
score
 Remember ‘soon certain & positive’!
 ‘Tick in the box’
 Still incentives for reactive measures
19
Injury Stats over Time
 Pro active measures – a measure of the
health of safety initiatives
 Need to review & evaluate measures on
a regular basis:
 Are they still effective?
 Have they past their used by date?
 Are others need to take safety to the
next level?
20
Delivering Safe Shutdown Outcomes
Measures for Safe Shutdown

 LTIs

 Compliance to schedule

 Compliance to budget

 Fatigue management

 D&A compliance
Delivering Safe Shutdown Outcomes
Incident Outcome

 SSAI RCA carried out

 Results - 14 Corrective Actions

 Recognition of business unit exposure to


significant structural incidents
 Implement Change Management Standard
and processes
Business Unit Structural Exposure

 Watch Video

http://www.youtube.com/watch?v=Xrn6ellbtpc
Proactive measure

 Role out Change Management Std


 Measures- number completed,
reinforced positively, internal monthly
reporting and external audits
Examples
Examples

What do YOU measure?


Sticky Note Exercise 2
 Write Down 1-2 Performance Indicators for
each Category:
 Safety
 Quality
 Cost
 Other

 Indicate if Proactive or Reactive

 Post your Stickies on the flip-charts


Safety – Class Input
REACTIVE PROACTIVE
# Incidents # Job Safety Analysis Performed
Total Recordable Incident Ratio # Management Visits
Days Away, Restricted, Transferred Rate # Loss Prevention Observations
(DART)
# Lost Time Incidents Executive Safety Leadership
Lost Time Incident Rate # and Type of Safety Interactions

# Days Away from Work % Safety Audits Completed


Total Recordable Case Rate # Safety Audit Action Items Completed
on Time *

* TapRoot Instructor Input


Safety – Class Input
REACTIVE PROACTIVE
# Hazard Observations or BBS # Safety Culture Maturity Assessments
observations performed
# Safe Behaviors Observed # Safe Behaviors Recognized or
Rewarded *
# At Risk Behaviors Observed # At Risk Behaviors Discussed or
Communicated *
Environmental Impact Reduction by 7% # Weekly Status Reviews Conducted
# Behavior Based Observations # Safety Climate Assessments Performed
# Overtime Hours Worked # Employees whose OT is reduced below
target *
Near Miss to All Injury Ratio

* TapRoot Instructor Input


Quality – Class Input
REACTIVE PROACTIVE
# Customer Complaints per Month #of Internal Quality System Audits
# Customer Complaints Progress of Standards Review Cycle

# of Audit Findings # Inspections done on pieces of material,


components

Aging of CAPAs Mentoring Programs


Regulatory Compliance Scheduled Preventive Maintenance

Resolution of Customer Complaints


within X days
Financial – Class Input
REACTIVE PROACTIVE
# Man Hr / Ton Sold # Cost Improvement Projects
Completed*
Workers’ Compensation Costs* Costs avoided by implementing
corrective actions from near miss
program*
Reduce maintenance costs Equipment and Maintenance Budget*

Budgeting annual department needs ROI in New Technologies*


$ per pound of produced product
Monthly Dollars Spent vs. Budget
Increase oil production by x %

* TapRoot Instructor Input


Others – Class Input

REACTIVE PROACTIVE
% Employee Engagement Five S Training

Measuring progress of recycling


Wrap Up
 Understanding of Reactive and
Proactive Performance Indicators
 Examples and Discussion
 Learnings
 Thank you for participating!

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