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Peter Handlinger

Peter Handlinger: Straight Delivery Rate (SDR) basically measures how much of your product went through your process(es) within the design leadtimes and quality parameters

By Peter Handlinger, - Last updated: Monday, January 28, 2013 - Save & Share - Leave a comment
The adage that you get what you measure (and then some other bonus
unexpected behavioural outcomes) is as true as ever. This has been lucidly
described in this forum and in the literature. However, the central point
still remains, and that is to achieve a specified result it is critical
for one to understand the underlying processes. I recently listened to an
interview with one of the South African Test cricket team members talking
about how they became the world's best test cricket team (cricket, to my
European and American colleagues is the game played with a flat bat and a
hard red ball ...). What he said, in essence, was that although they were
keenly aware of the results they wanted to achieve (i.e. achieve world
ranking #1) their entire being during test matches was focused on
executing the process of fielding, batting and bowling as best they could.
If something didn't work they checked at the close of each day's play
whether it was a skills or strategy issue and adjusted accordingly. Coming
from a Toyota background I had to smile - many of the elements of the TPS
philosophy are embodied in those few sentences. And it worked. More
importantly, they clearly  understood the desired outcome and had a cogent
model about what processes will deliver that outcome (Steven Spear gives
some guidelines as to how to start clarifying these in his response).

How does this apply to the business world? Understand what your customer
wants and then translate this into what processes will deliver this best -
then measure those. In the absence of anything in place I have found the
concept of a
The adage that you get what you measure (and then some other bonus
unexpected behavioural outcomes) is as true as ever. This has been lucidly
described in this forum and in the literature. However, the central point
still remains, and that is to achieve a specified result it is critical
for one to understand the underlying processes. I recently listened to an
interview with one of the South African Test cricket team members talking
about how they became the world's best test cricket team (cricket, to my
European and American colleagues is the game played with a flat bat and a
hard red ball ...). What he said, in essence, was that although they were
keenly aware of the results they wanted to achieve (i.e. achieve world
ranking #1) their entire being during test matches was focused on
executing the process of fielding, batting and bowling as best they could.
If something didn't work they checked at the close of each day's play
whether it was a skills or strategy issue and adjusted accordingly. Coming
from a Toyota background I had to smile - many of the elements of the TPS
philosophy are embodied in those few sentences. And it worked. More
importantly, they clearly  understood the desired outcome and had a cogent
model about what processes will deliver that outcome (Steven Spear gives
some guidelines as to how to start clarifying these in his response).

How does this apply to the business world? Understand what your customer
wants and then translate this into what processes will deliver this best -
then measure those. In the absence of anything in place I have found the
concept of a Straight Delivery Rate (SDR) a very useful trend measurement.
This basically measures how much of your product went through your
process(es) within the design leadtimes and quality parameters. It is not
the be all and end all but it is a very useful indicator to management
where attention is required. I find that when I ask for this metric the
response generally is "we don't measure this" or if they do then this is
the one they watch carefully but don't really talk much about. I hasten to
add that this can't be the only metric but it is perhaps a good starting
point for further discussion within the management team.

. It is not the be all and end all but it is a very useful indicator to management where attention is required. I find that when I ask for this metric the response generally is "we don't measure this" or if they do then this is the one they watch carefully but don't really talk much about. I hasten to add that this can't be the only metric but it is perhaps a good starting point for further discussion within the management team.

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