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Monitoring and Evaluation

Improvement planning systematics have a dynamic and continuous character. During the improvement planning process, feedback is provided using the information obtained as a result of control (monitoring and evaluation) activities. Monitoring is the regular follow-up and reporting of progress toward goals specified in the improvement projects. Evaluation is the measurement of implementation results against goals and analysis of the consistency and relevance of these goals.

Review of improvement projects involves comparison of the results targeted and attained. Project realizations are reviewed in terms of timing and relevance for goals. As a result of this review and evaluation, every selected project (improvement idea) is confirmed and implementation continues if

  • • Implementation plans and actions are implemented as planned.
  • • Progress toward achievement of goals is in line with expectations.

On the other hand, if changes are observed in terms of the aforementioned considerations, unexpected or undesired results occur, or existing goals are not realistic, then the project is revised, reevaluated, and continues to be implemented with its updated version.

Effective implementation of monitoring and evaluation actions requires linking the goals established in the improvement projects to objective and measurable performances before proceeding into implementation, which is illustrated in Figure 8.2.

Monitoring action consists of the regular reporting of progress toward achievement of goals and its submission to related parties. Reports focus mainly on actions, resources, and outputs. The contents of reports, the frequency with which they will be prepared, the units by which they will be prepared, and the authorities to whom they will be presented have to be identified. A monitoring report must contain the following elements:

  • • Projects
  • • Actions and goals (time, potential, cost, quality)
  • • Explanations and comments about realizations
  • • Information about the current status
Leveraged problem, project, output, and performance relationships

Figure 8.2 Leveraged problem, project, output, and performance relationships.

Besides enabling management to evaluate goals, the monitoring report would help the business take measures rapidly and effectively against unexpected cases. In addition to areas where progress has been achieved, the issues on which progress could not be achieved must also be reported.

Evaluation is a comparative analysis of implementation results and predefined goals. This process essentially involves performance measurement and evaluation. Performance measurement and evaluation involves determining the extent by which the actualized results overlap with the predefined goals of the projects.

The actions required for the realization of goals must be implemented through mobilization of resources and following a disciplined and organized approach, and a close coordination must be ensured among all responsible persons to achieve success.

Performances are meaningful if they are measurable and monitorable. Therefore, performances must not be difficult and expensive to monitor in practice. Too many or hard-to-understand performance measures must not be selected. Performance measures are instruments that ensure the measurement of the success of implementation results in particular. A performance is expressed in terms of potential, time, quality, and cost to ensure its measurability.

Deviations from goals must be identified and the reasons for these deviations must be analyzed. Corrective actions must be decided. Based on the results obtained, necessary revisions must be made to performance assessments, budget, actions, and goals.

Once implementations are up and running for a time, actual results that are achieved should be audited. In short, the actions described in the preceding paragraphs can be executed as follows and Table 8.2 can be used for auditing the results. First, gather the actual cost data. These will typically be available from records relating to the installation. The actual savings data should be available from company records, and should correspond to the analysis done during the project. Intangible benefits noted should result from a survey of the users, the people who are affected by the changes involved.

Next, record the actual results. Rate each using the same vowel letters used in step 5. In the case example, the results in terms of savings far exceeded expectations.

Table 8.2 Auditing Project Results—Example Case

Prepared bv: . Business / P roble m: Invoice s ystem . Authorized bv: . P roi ect : Accountingsystem change Date: .

NO.

DESCRIPTION

MEASUREMENT

CURRENT

TARGET

Processing Errors Reduced

Errors/Month

2

0

2

Accts. Payable Overtime Reduced

Ave. Hours/Week

2

0

3

Morale Imp-roved

Transfer Requests

2

0

4

System Streamlined

Minutes/Invoice

4

1

5

Supplier Relations Improved

Complaints/Month

1

0

6

Cycle Time to Process Reduced

Days to Process

2

1

7

Payments Simplified

Checks/Week

5

1

RESULTS AUDIT: April/23

RESPONSIBLE: RS

INV.COSTS: PLANNED $169,000.00 ACTUAL $167,179.20

ADDITIONAL NOTES

NET POT.SAV. PLANNED $250,000 ACTUAL $371,392.02

OTHER BENEFITS Housekeeping & morale

NO.

ACTUAL

RATING

COMMENTS

1

0

A

2

0

A

3

0

A

4

0

A

5

0

A

6

25

E

7

0

A

Elec. fund transfer

8

In addition, Table 8.3 can be used to summarize the status of the projects with respect to the targeted goals.

While monitoring the performances and effects of the projects, we should always ask whether we have reached the set program target or not. If the answer is not sufficient to serve the main target, then analysis, ideas, and/or implementation plans should be considered again and accordingly additional improvements should be made. Figure 8.3 shows how to monitor the status of the total improvement target.

Table 8.3 Project Log—Example Case

PROJECT

RESPONSIBLE

PERSON

START

Fit-up Problem—Redesign Bottom Plate of Model 1206

HB

4/20

Capacity Problem—Setup Time—#2 Shear

YO

7/13

Invoice System—Changes to Accounting System

RS

7/17

COMPLETE

% TIME STATUS

% INVESTMENT COST STATUS

% POTENTIAL SAVINGS STATUS

6/20

100

110

90

8/13

100

90

85

7/30

85

96

145

Figure 8.3 Status of total improvement target—example case.

 
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