We | Help Increase Productivity
In any for profit organization the highest measure of performance is ROI (Return on Investment). Revenues and costs enter into the calculation and are the two main categories of control in order to increase ROI.
Simply stated if revenues and costs change relative to each other the ROI changes as well.
- Use same resources to achieve greater results
- Use less resources to achieve same results
- Use less resources and achieve greater results
To measure these three possibilities, we introduce a simple chart called a RIRO (Resources In, Results Out)
It looks like this calibrated so that the current starting point or base measure result in a 45 deg line.
It is easy for every person to create RIRO’s that account for at minimum 80% of the resources they use. Management can easily see at a glance in each cubicle or office whether progress is being made with the RIROs affixed to the walls.
The success of the RIRO approach as a system is that it is based on people working smarter and not on cost cutting across the board.
- It is also continuous.
- It has the added advantage of empowering individuals and teams to engage their own intelligence in looking at their own use of resources.
- It also works at the individual, team, division and corporate levels. All that changes is the measurement of the Resources In and the Results Out.
- It is easy to teach and can be implemented fast.
- It is also totally compatible with Kaizen, A3 form usage and process redesign work.
- Productivity also refers to THROUGHPUT. The speed at which something is produced or processed. Throughput is always dictated by the longest step in the process. If the measure is quality throughput then the percentage quality produced is also a key measure.
Throughput of quality outcomes is improved through the disciplined application of the Perfect Process System.
Some Examples of Elements of a RIRO
Highest level (ROI) : Net revenue (RO) and Total costs (RI) and Net revenue (RO)
Sales: # calls made and # sales made Sales: # sales people deployed and # sales made
Admin: # photocopies made and # documents processed Admin: # Credit assessors and # applications processed
Manufacturing: Weight potatoes in and percentage quality out Manufacturing: # saw blades used and length/thickness wood cut
Service: #call center operators and # dropped calls Service: # customer service staff and number of inquiries handled