Performance Measures & Continuous Improvement

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Road Operations Division

• A Key Performance Indicator is a measurable value that demonstrates how

effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets.

• Performance Measurement is the ongoing monitoring and reporting of program

accomplishments (data driven), particularly progress towards pre-established goals.

• Intermediate Outcomes or impacts are the critical middle layer of any measurement

framework. Impacts are described as: "the contribution made to an outcome by a specified mix of interventions. It normally describes results that are directly attributable to the interventions of a particular agency.

What do we mean when we say, “Performance Measure?”

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The “Role” of a Key Performance Indicator

The “Role” of a Key Performance Indicator

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Key Performance Measure Examples

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Description: Keeping vehicles and equipment job-ready and available for use is essential to the safety and productivity of Pierce County employees. The availability of equipment is expressed as a percentage of the total number of hours equipment is maintained job-ready by the Equipment Services Section compared to the amount of down time incurred due to shop maintenance and repair activities during scheduled business hours.

Our goal is 95% or more of the time fleet vehicles and equipment managed by Equipment Services will be available.

Percentage of fleet availability

Key Performance Measure Examples

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Percentage of Pavement Segments in Good – Fair – Poor Condition

3.70% 4.68% 5.79%

40.37%43.30% 44.72%

55.93% 52.02% 49.49%

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2013 2014 2015

Pierce County's Yearly PavementRating Distribution

Percentage of Lane Miles By Pavement ConditionAll County Roads

Poor Fair Good

Key Performance Measure Examples

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2.47% 2.65% 2.76%

30.90% 34.44% 32.76%

66.63% 62.91% 64.48%

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2013 2014 2015

Pierce County's Yearly PavementRating Distribution

Percentage of Lane Miles By Pavement ConditionArterials/Collectors

Poor Fair Good

6.59% 8.50% 8.77%

54.04% 53.60% 50.96%

39.38% 37.90% 40.27%

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2013 2014 2015

Pierce County's Yearly PavementRating Distribution

Percentage of Lane Miles By Pavement ConditionLocal Access

Poor Fair Good

Percentage of Pavement Segments in Good – Fair – Poor Condition

Basic Cost and Labor, Equip & Materials Performance Measures

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General Performance Measure Examples

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• Total HA chip seal production (LM)• HA chip seal unit cost

• Total HA chip seal expenditures YTD• Total YTD costs Labor• Total YTD costs Equipment• Total YTD costs Materials

• Resources utilized by category and type (Labor, Equipment, Materials)

• Resources utilized per unit of work

Performance Measure Examples

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• Plan vs. actual production YTD• Plan vs. actual production by month

• Plan vs. actual Labor $ by month• Plan vs. actual Equip $ by month• Plan vs. actual Materials $ by month

• Plan vs. actual Labor $ YTD• Plan vs. actual Equip $ YTD• Plan vs. actual Materials $ YTD

Performance Measure Examples

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• Total LM planned chip seal & fog seal• Total LM completed chip & fog seal

• Total gallons of hot AC planned• Total gallons of hot AC applied

• Total gallons fog emulsion planned• Total gallons fog emulsion applied

• Total tons of cover stone planned• Total tons of cover stone applied

Derived PMs from this data:• Cover stone application rate• Hot AC application rate• Emulsion application rate

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Daily Production: 4.9 LMTotal LEM Costs: $15,482Unit Cost: $3,160 per LM

What is optimal?

Positive Intermediate Outcome

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Daily Production: 5.91 LMTotal LEM Costs: $17,797Unit Cost: $3,011 per LM

Improved Unit Cost: ($149 LM)

Decreased Program Cost:($23,095 year)

Cut 5+ Days Off Program

Add ~70 person Days!

Pierce County Road Operations Work Flow Chart

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Cost Accounting Data & Reporting Supports: DOLFIN; DCIS; City Billing; FASTER

Houses Asset Data Including:- Asset Definitions - Asset LOS goals- Asset service history - Asset cost history- Asset inventories - Asset condition

Houses Labor, Equip & Material Data Including:- LEM Inventories - LEM unit costs- Task Standards - Production Standards- Planned Production - Actual Production- Planned Costs - Actual Costs- Employee Time - Employee Data

Delivery OfEssential Services

Performance Reporting

Supply InfoEmployee Info

Level-Of-Service Goals Planned vs. Actual

All LEM & Production Data

CMMSComputerized Maintenance

Management System

RMSRoad MaintenanceManagement System

Asset Condition Inspection Data

WorkThrough-putWork Executed

In-Field

ConditionInspections Executed

In-Field

SchedulingSystem

Weekly/Daily WorkSchedules

LeaveRequest System

EmployeeResources

SupplyInventory System

Tool & MaterialResources

EquipmentPM System

EquipmentResources

Request ForAction System

Customer Service and/or Urgent Needs

KPI’sKey Performance

Indicators

Core System

Core Process

Support System

Core Output

Support Activity

Legend

Continuous Improvement – It’s all about the data…

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“It is not enough to do your best; you must know what to do, and then do your best.”W. Edwards Deming

Continuous Improvement Methodologies

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• Objective is to install a permanent climate in which an organization continuously improves its ability to delivery high quality products for customers. Plan, Do, Check, Act

• Seeks to improve the quality of process outputs by identifying and removing the causes of defects or errors and minimizing variability in processes. Define, Measure, Analyze, Improve, Control

• Considers the expenditure of resources for any goal other than the creation of value for the customer to be wasteful. Value is defined as any action/process/product the customer would be willing to pay for.

• Works from the “weakest link” idiom in that improvement is limited only by the organizations internal and external constraints; e.g. - bottlenecks, weaknesses in equipment, policy, staff expertise, etc.

Total Quality Management

Six Sigma

Lean Thinking

Theory of Constraints

Establishes a permanent corrective action based on statistical analysis of the problem (when appropriate) and focuses on the origin of the problem by determining its root causes.

8 Disciplines

Pierce Counties Continuous Improvement Method of choice

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Lean Six Sigma (LSS)Lean Six Sigma provides a hands-on experiential approach to continuous improvement. Fast, simple, practical methods are highlighted.

Lean•Waste reduction•Improved velocity

Six Sigma•Problem solving methodology – DMAIC•Data Driven•Reduce process variation (defects/errors)

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Lean Six-Sigma

The relentless pursuit of eliminating of waste:

T = TransportationI = InventoryM = MotionW = WaitingO = OverproductionO = Over-processingD = Defects

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Lean Six-Sigma Continuous Improvement

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Lean Six-Sigma

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Lean Six-Sigma

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Lean Six-Sigma

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Lean Six-Sigma

Measurement

• Measuring the Right Thing

– What is measurable?

– Which measurements have value?

• Data Visualization

– How might we chart our data?

– What additional insight could this provide?

– Does this have value?

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Lean Six-Sigma

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Roadside Brush Cutting (mechanical)

Production in Shoulder MilesThe widget is shoulder

miles cut

Average bi-weekly production

Run ChartA run chart, also known as a run-sequence plot is a graph that displays observed data in a time sequence. Often, the data displayed represent some aspect of the output or performance of a manufacturing or other business process.

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Lean Six-Sigma

Roadside Brush Cutting (mechanical)Daily production thresholds:

•Dispatch / EOB = 30 min•Mobilization time = 40 min•Traffic control set = 40 min•Lunch & breaks = 50 min

Total non-prod time = 160 min OR 2.7hrs

Total available production time = 348 min OR 5.8hrs

Prod speed (mph) ÷minimum # cut passes X # of units in field x 5.8hrs = upper threshold

Prod speed (mph)÷maximum # cut passes X # of units in field x 5.8hrs = lower threshold

Control ChartWhat are the upper and lower limits of expected performance?

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Lean Six-Sigma

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Roadside Brush Cutting (mechanical)

Production in Shoulder Miles

Lower production threshold

Upper production threshold

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Control ChartControl charts, also known as process-behavior charts, in statistical process control are tools used to

determine if a manufacturing or business process is in a state of statistical control.

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Applied Six-Sigma

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Lean Six-Sigma

Run the Process Again

• Plan (strategy to improve process)

• Do (run new multiple times)

• Check (Review performance)

• Act (Identify new improvements)

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Lean Six-Sigma

Standardize Success

Results!

Continuous Improvement

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Lean Six-Sigma

Celebrate the Team

•Let people know that they hit the target

•Let others know, especially upper management, that the team performed well

•Let them know you appreciate it

•Reward them when appropriate

Punchline:

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(Efficiency + Credibility) X Need = Success

Questions?

Bruce WagnerPierce County Public Works Road Operations Managerbwagner@co.pierce.wa.us 253-798-6051 32

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