Scoreboarding: Planning to Win! Part 2 (Includes Video)
However, in some cases, the “game” being played is at the owner's expense. This is due to the fact that, most companies have NO system for measuring and observing true productivity scores, or know WHAT their employees are actually working on at any given time. Like a sports event with no rules or boundaries!
Again, there are two parts that make up Total Productivity.
- Estimated versus Actual time
- Un-chargeable Hours versus Payable Hours
Estimated time versus the Actual time is simply the time you’ve estimated for a process to be completed; versus the actual time it took someone to complete the process.
Un-chargeables versus Payable Hours
- Un-chargeables are simply, those things we do in a business, not directly charged to the customer, i.e. our own equipment maintenance, repairs, cleaning up around the shop, training of our employees etc. They greatly affect overall productivity, and with too many you won’t make a profit.
- Payable Hours are simply the hours you pay someone for a given period.
So, how do you measure Total Productivity?
OTHER THINGS OBSERVED, since installing our Productivity Scoreboards?
- Estimated versus Actual times for everyone has improved
- Our Estimates are more precise...thereby, improving profits
- Our Workload Schedules are much more accurate
- Un-Chargeable hours have decreased
Productivity Scoreboards are much better than having a manager walk up and down, hovering over people in the production area, just to keep the team moving.
As I wrote in my book, "System Busters: How to Stop Them in Your Business."
People DON’T want to be MANAGED!
With a great system, people CAN and will manage themselves—while owners and managers just MANAGE the System.
If, at some point, you decided to give awards or bonuses for great productivity, SCOREBOARDS are great tools for measuring fairly.
Can you imagine having a scoreboard like this in your business?
Philip Beyer, founder/president of Ebiz Products LLC and founder of Beyer Printing Inc. in Nashville Tenn., is a chronic entrepreneur, business systems analyst and consultant. Author of "System Busters: How to Stop Them in Your Business" and recipient of an InterTech Technology Award for the design and development of System100 business process management software. Beyer speaks to business owners across the country on how to bring lean, sustainable order to their businesses. Contact him at (615) 425-2652.