BE CAREFUL WHAT YOU MEASURE –

YOU MIGHT GET IT

A Case Study in Dashboards and Performance Measurement

Jerome R. Nowosatko, MBA, PMPNOVUS Professional Services, Inc.

BE CAREFUL WHAT YOU MEASURE –

YOU MIGHT GET IT

A Case Study in Dashboards and Performance Measurement

Jerome R. Nowosatko, MBA, PMPNOVUS Professional Services, Inc.

MY BACKGROUND Management and IT Consultant MBA, International Business and Finance MS, Software Engineering Clients in Mining and

Telecommunications

THE CLIENT Newmont Mining Corporation

Second-largest gold mining company in the world

International mining sites: US Mexico Canada

Peru Indonesia Ghana

THE PROGRAM Major process re-engineering program

Improve integration between Maintenance and Supply Chain functions

Reduce costs associated with producing gold Cross-functional team with subject matter

experts from both departments

Need to measure compliance with new processes and achievement of targets Proper maintenance planning Required Lead Times On-Time Delivery Schedule Compliance

BUILDING THE DASHBOARD Deciding what to measure

BUILDING THE DASHBOARD Deciding what to measure

Planned Work Orders (PWO) Percentage of work orders:

Created for maintenance Planned (not reactive)

Future dated Estimated duration and resources Elapsed time between creation and closure

BUILDING THE DASHBOARD Deciding what to measure

Required Lead Time (RLT) Percentage of requisitions

Associated with planned work ordersFor which the minimum required lead time was

provided Measured from requisition creation to the planned

maintenance date

BUILDING THE DASHBOARD Deciding what to measure

On Time Receipt Percentage of requisition line items

Associated with planned work ordersFor which the minimum required lead time was

providedWhich had all parts delivered by the planned

maintenance date

BUILDING THE DASHBOARD Deciding what to measure

Schedule Compliance Percentage of work orders

Completed within the week originally scheduled

BUILDING THE DASHBOARD Deciding what to measure

Top-level aggregate metric Single score to provide overview Calculated from individual scores Scaled to individual targets

The One Nevada Effectiveness (ONE) Metric

BUILDING THE DASHBOARD Gaining consensus

Team discussions & workshopsManagement reviewsStatewide communication sessions

BUILDING THE DASHBOARD Gathering data

Existing reportsDirect queries to the databaseReconciliation challenges

BUILDING THE DASHBOARD Rapid iterations

BUILDING THE DASHBOARD Educating users

User guideQuick reference cardCommunication sessions

PWO

R L T

OTR

SC

Work Orders

EDUCATION Pipes & Tanks

RLT

OTR

SC

Work Orders

PWOPWO

EDUCATION Pipes & Tanks

PWO

RLT

OTR

SC

Work Orders

PWO

EDUCATION Pipes & Tanks

RLT

SC

Work Orders

PWO

OTROTR

PWO

EDUCATION Pipes & Tanks

PWO

RLT

OTR

SC

80.0% 90.0% 90.0% 90.0%

80%Targets:

Dashboard Scores:

90% 90% 90%

÷ ÷ ÷ ÷

100%

100%

100%

100%

x x x

= The ONE Score – 100%

PWO

RLT

OTR

SC

EDUCATION Pipes & Tanks

THE RESULTS Five stages:

DenialAngerBargainingDepressionAcceptance

THE RESULTS Unintended consequences

GamingSystem vs business complianceEx post facto compliance

Intended consequences Improved maintenance planning Improved requisitioning Improved procurement Improved maintenance and supply chain

effectiveness

LESSONS LEARNED Careful definition of metrics

Executive support

Consistent and frequent education

Reinforcement and continuous improvement

QUESTIONS

NOVUSProfessional

ServicesInc.

Jerome R. Nowosatko, MBA, PMP

Copyright 2009, NOVUS Professional Services, Inc.