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Robust Production Management (RPM) Module 9: Measuring "Before and After" Savings (PDF)
PDF document 15 Pages
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So you've completed a process or performance improvement project at work, and now management wants to gauge the financial benefit of the project's "after" state. This was once the challenging, and often daunting, phase of a project – but no more! There are a variety of ways to demonstrate hard-dollar benefits of almost any project, and Robust Production Management (RPM) Module 9: "Measuring 'Before and After' Savings' will show you how. Module 9 is full of examples and templates featuring definite ways to show how your project has "moved the needle" for the organization in a positive direction. "Measuring 'Before and After' Savings" is the ninth module in the Metrilogics RPM management training series – more on the way.
Quantifying the "before" and "after" states is crucial for any operational performance improvement initiative. This module provides a structured approach to generate initial support for projects through a robust cost/benefit analysis. It solidifies participation and engagement among stakeholders by clearly demonstrating the financial benefits achieved post-implementation.
The module includes practical examples of time studies and performance distributions, illustrating how removing controllable waste can significantly boost productivity. For instance, the "after" scenario shows a 32% increase in hourly output volume and a 24% reduction in process durations. Such tangible metrics are essential for answering the critical question: is the project on track to deliver the promised bottom-line results?
The PDF also highlights the importance of providing a solid foundation for determining cash bonus payouts to project participants. With a consolidated team showing a productivity rate jump from 49.25% to 74.18%, the module underscores the value of precise measurement in driving performance improvements. This ensures that all stakeholders remain committed and engaged in ongoing performance enhancement efforts.
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Source: Robust Production Management (RPM) Module 9: Measuring "Before and After" Savings PDF (PDF) Document, Lance Latham
