In-plant Audits Help Improve Performance
A new NAPL white paper outlines an action plan in-plants can use to effectively assess their productivity and cost-effectiveness.
- Financial Performance. Is the in-plant profitable? Losing money? Breaking even? Why?
- Customer Satisfaction/Value Perception. Is the in-plant providing good service for its clients? Are clients being surveyed on a regular basis?
- Competitive Alternatives. How does the in-plant compare to the competition in quality, pricing and customer service? Do its price points and services meet the needs of a broad spectrum of internal customers?
- Operational Metrics. Is the in-plant's workflow as efficient as it could/should be? "Every aspect of the workflow, from order entry to delivery, must be measured during both peak times and slow periods," says Fenton, who also cautions managers to keep in mind that a workflow audit is only one part of an in-plant audit.
- Service Offerings—Present and Potential. Are the in-plant's offerings meeting its customers' current needs? Is it on track to meet those of the foreseeable future?
- Industry Benchmark Comparison. Is the in-plant performing at or near the level of industry leaders?
"Understanding your in-plant's products, run lengths, specifications, volumes and level of customer satisfaction is the first step in the performance analysis," reports Fenton. "The financial evaluation starts with a break-even analysis and a cost competitiveness analysis. The competitive benchmarking of financial, operational and customer service metrics identifies realistic opportunities for improving the in-plant's financial results."
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