It’s the last quarter of the year, and no better time to analyze objective and target performance and plan for 2020.   Let’s use October for Performance Evaluation.  Why?  It’s near the end of the year and some part or all of the objectives planned needs to be achieved soon  Additionally, this information is needed for 4th quarter Management System Review as it is one key ingredient to leadership understanding performance and making decisions for continual improvement.   With this last performance evaluation, the verification of savings can be completed for all the finished projects.  Why verification?  The standards now all specify some evaluation of performance.

The evaluation should include these steps:

Review the savings calculation.  For example:  ABC Company has set an objective to Reduce Waste to Landfill.   The project is to reduce 50% of waste sent to landfill from a baseline year in 2018.  The goal to reduce 250 tons would be achieved  by September 30, 2019 through waste refusal and recycling.    The program included two activities:

    • Waste Refusal – Wooden Pallets are banned and suppliers are supplied with returnable pallets
    •  Improved segregation for recycling of plastics and cardboard, and identification of two new areas where plastics and cardboard could be recycled.

The program completed on September 30.   Let’s see how ABC Company did.   As the verifier, you are provided with the objective and target statement identified above and the worksheet showing the amount of waste refused or recycled.    You are now on the path of savings verification.

1.  The savings calculation claim:  ABC Company determined: waste refused totaled 150 Tons + waste recycled is 150 Tons = 300 tons of waste refused and recycled.

2.  Go and see the project to verify that it is functioning and is sustained.

    • The new waste segregation process is visible and employees know correct segregation.    A contractor is observed loading the recycling roll-off with the proper recyclable material.   The contractor taking recyclables is an approved vendor.    Records show plastic caps are recycled into school desks and chairs and cardboard is recycled to a nearby paper mill.
    • The Warehouse Manager is stacking wood pallets when you arrive.   She tells you, the returnable pallets are not performing as planned.   A return to wood pallets happened 2 months ago for the two largest suppliers. In the 2 months of the return to wood pallets 30 tons were shipped waste to landfill.

3.   Apply the savings calculation to the data and verify the savings.   Make sure your worksheet shows the savings calculation and the calculation is reviewed during management review.   For this project:

150 Tons Recycled + 120 Tons Refused (150 Tons claimed – 30 Tons sent to landfill) = 270 Tons.   To meet the goal 250 tons of waste needed to be recycled or refused.   Is the goal met?   The short term goal is met, but the problem with the returnable pallets must be solved in order to sustain the objective.  There is more work to do.

What if you find the project is not finished?  Whether it is due to insufficient planning, changing  business conditions, or some other unforeseen factor, the organization needs to take action.  This is time for action by re-planning the project to ensure you measurable continual improvement and the improvement is sustained.  Don’t forget to discuss this during 4th quarter Management Review.  There is certainly discussion on how to avoid for next year.

 

Posted in Management Systems