What is Performance Management?
Performance management is a process of making sure that a set of activities meet a company’s goals effectively and efficiently. Performance management can apply to an entire company, a department, an employee, or even a process. Essentially, it’s making sure that your company or employees meet their goals in the most efficient way possible. In manufacturing, your goals may be increasing the number of orders sent on time or machine uptime.
How does Performance Management Help Job Shops?
When manufacturers use performance management, they can make and track goals that will make their shops better. For example, if they increase their machines’ uptime, they increase the amount of time those machines are making money. Alternatively, maybe they lower the percentage of parts that need rework. There are many ways a manufacturer could choose to improve their shop, and with performance management, they can track those improvements and see how their shop is doing over time. If manufacturers aren’t tracking these things, they don’t know what makes processes better or what to improve in their shop.
How can Job Shops Use Performance Management?
To use performance management in your shop, you must be able to track and compare the things you want to improve. Doing all this on paper or in spreadsheets is cumbersome and can take too much time. This is where a good ERP system comes in. An ERP system is the hub of information in your shop, so it already has all the information you need. In addition, it will have reporting abilities that let you make a slew of reports with a few clicks. If you want to see how many hours your employees have worked over the past month, you can pull that up. If you want to see what percentage of jobs have passed quality inspection the first time, you can see that.
Once you have all of that information, you’re able to act on it. Are there certain people or jobs that are more efficient than others? If some people are more efficient, see if you can find out what they do differently and teach it to everyone else. If your shop does some jobs more efficiently than others, see if you can get more jobs like those. It’s all about seeing what works for your shop and doing more of it. Once you know what those things are, the rest is easy.