Published on February 28, 2014
SANYO DENKI PHILIPPINES, INC. FINANCE DEPARTMENT Would like to present our entry for the 2007 MID-YEAR BUSINESS INNOVATION CONFERENCE ROOM 2 MAY 11, 2007
Our Entry Sanyo Denki Philippines, Inc Finance Department THE QUALITY PERFORMANCE APPRAISAL AND MONITORING SYSTEM (QPAMS)
Sanyo Denki Philippines, Inc Finance Department INTRODUCTION The success of an organization will depend mainly on its ability to measure accurately the performance of their employees and use it persuasively to develop them as a “VALUABLE RESOURCES” . “PEOPLE MANAGEMENT
Sanyo Denki Philippines, Inc Finance Department What is our objective in suggesting the use of the improved appraisal system?
Sanyo Denki Philippines, Inc PROJECT OBJECTIVES Finance Department Please Take Note 1. To identify the most important aspect of the job or KRAs and KRAs base performance measures on the same. 2. To evaluate employees on their performance during the appraisal period. 3. To facilitate employees in planning and management of their own work, leading to enhanced performance. 4. To facilitate career planning by determining appraisee’s potential for taking on diverse roles and responsibilities. 5. To provide training focused on specific developmental needs.
Sanyo Denki Philippines, Inc What are WhatKRAs are KRAs What are KRAs Finance Department KRAs are… What are KRAs? What are KRAs? What are KRAs?
Sanyo Denki Philippines, Inc Finance Department Overviews about KRAs - KRA's is the set of activities on which performances are rated. - KRA's are the main objectives of the employee in an organization. - KRA's refer to general areas of outcomes or outputs for which a role is responsible. - KRA's are also known as key work outputs (KWO's) .
Sanyo Denki Philippines, Inc Finance Department How does it work..? Individuals determine the KRAs of their roles: 1. They list their main day to day responsibilities/activities. 2. They review the answers to their “why” questions, looking for common themes or areas. 3. For each activity, they ask “Why do I do this?” 4. They identify their KRA’s from these themes. 5. They share their KRA’s, preferably with those they report to, those they work along with, and those who report to them.
Sanyo Denki Philippines, Inc Finance Department Organizational Objectives (Key Objectives) 1 st Step Planning Premises KEY RESULT AREAS (KRAs) 2 nd Step Superior’s Objectives (Departmental / Sectional KRAs) THE PROCESS FLOWCHART Superior’s recommendation for subordinate’s objectives (Key Performance Areas – KPAs) Subordinate’s Statement of his objectives (Key Performance Areas – KPAs) 3 Step VERY SIMPLE DI BAHHH… rd 4 th Step 5 th Step 6 th Step Subordinate’s Agreed Objectives (Key Performance Areas – KPAs) Subordinate’s Performance (Key Performance Indicators – KPIs) Subordinate’s Performance Review and Appraisal (QPAMS) (KRA based format)
We usually focus on WHAT the person does and not on WHY the job exists WHAT WE do ? (“I make buildings”) WHY our job exists, which is the vital one (“I keep the ”) WHAT our job title is (“I’m an architect”) FOCUS : WHY our job exists???
Sanyo Denki Philippines, Inc Finance Department Analysis by determining S.W.O.T. STRENGHTS 1. 2. 3. 4. 5. 6. Clarify the individuals roles. Align their roles to the organization business or strategic plans. Focus on “RESULTS” rather than activities. Communicate their role and purposes to others. Helps to set goals and objectives. Prioritize their activities and therefore “IMPROVE THEIR TIME/ WORK MANAGEMENT” . 7. Make value added decisions 8. Identify and separate the good workers from bad workers. WEAKNESSES 1. Highly selective which causes some areas to be neglected. 2. To focused causing less development of other areas (VERY MINIMAL). 3. Normally, it only makes 80% of the total job. 4. Less emphasis on process.
Sanyo Denki Philippines, Inc Finance Department OPPORTUNITIES . . . . Increased focus on the outcomes. Improve the competencies of KEY RESULTS AREAS. “FOCUSED RESPONSIBILITIES”. Employees will be made “ACCOUNTABLE AND RESPONSIBLE FOR THE DELIVERABLES” . . Fine tuning of the measurables more effectively. THREATS 1. 2. 3. 4. Poorly defined “JOB DESCRIPTION”. MULTI ROLE JOB. REPORTING TO TWO BOSSES. ROLE AMBIGUITY. (UNCLEAR ROLES)
kra’s distribution …. 80% KRAs are 80% of work role 20% are shared responsibilities 20% like Helping team members. Image of the organization. Activities good for the organization. Most roles include 3 to 5 key result areas . If individuals are accountable for more than this, they may be overloaded
Sanyo Denki Philippines, Inc Finance Department THE APPRAISAL SHEET Oct. to Nov. = 6% improvement Nov. to Dec. = 11% improvement
Sanyo Denki Philippines, Inc Finance Department Monthly Report Deadline vs. Actual Submission Deadline Submission Date Yan ang 1010 10 9 9 9 9 9 9 9 KAIZEN!!! 10 9 9 9 8 8 8 8 8 8 8 8 8 7 7 7 7 7 6 7 6 6 6 Number of Working Days 7 5 5 Reporting deadlines were surpassed by 13.33% 4 3 2 1 0 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Date of Report Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07
Sanyo Denki Philippines, Inc Finance Department ATTENDANCE SUMMARY 2006 16 Nov-Dec was due to an employee infected by Dengue THAT’S PRODUCTIVITY 14 12 DAYS 10 8 WOWOWEE!!! Absences dramatically decreased to a MINIMAL 6 4 2 0 JAN FEB MAR APR MAY JUN JUL MONTHS AUG SEP OCT NOV DEC TOTAL ABSENCES
Sanyo Denki Philippines, Inc Kaya naman pala eh (%#&^.?!) Finance Department MAGNIFICO!! ! TARDI NESS SUMMARY 2 0 0 6 26 24 22 20 MI NUTES 18 16 14 TOTAL LATES 12 LATES were theoretically eliminated 10 8 6 4 2 0 JAN FEB MAR APR MAY JUN JUL MONTHS AUG SEP OCT NOV DEC
Sanyo Denki Philippines, Inc Finance Department OPPORTUNITY COST AND SAVINGS ANALYSIS Based on the Principle of the Vital Few and the Trivial Many also known as the PARETO PRINCIPLE which states that: “80% of the Consequences stem from 20% of the Causes” We arrived at the following statements: 1. 20% of the good workers contribute 80% of income. 2. 20% of the bad workers contribute 80% of the incremental cost. Cost that arised due to inefficiency
Sanyo Denki Philippines, Inc Finance Department Given the following financial data: Ave. Actual Manhours/month for CF = 413,978 hours Standard Manhours/month for CF = 333,301 hours Total Finished Goods (produced 2006) = 16,808,962 Pieces Total Finished Goods Sold = 16,619,882 Pieces Total Cost of Goods Manufactured = Php2,937,303,040.59 Total Cost of Goods Sold = Php2,904,235,068.03 Ave. Actual less Standard manhours = Unfavorable Variance 413,978 – 333,301 hours = 80,676.48 (Unfavorable Variance) Variance / Standard manhours = Variance Rate 80,676.48 / 333,301 hours = 24.21% (Variance Rate) Production Efficiency Level = 75.79%
Sanyo Denki Philippines, Inc Finance Department Applying the Pareto Principle: Countermeasures could have been done against the “20% of the bad workers that contribute 80% of the incremental cost.” Efficiency could Variance Rate x 80% = Opportunity Cost % improved x 80% = 19.368% 24.21% by 25.55% Opportunity Cost % + Old Efficiency % = Favorable Efficiency % 19.368%+75.79% = PREVIOUS EFFICIENCY LEVEL 75.79% 95.158% IMPROVED EFFICIENCY LEVEL To 95.16%
Sanyo Denki Philippines, Inc Finance Department Estimated Effect of Improved Efficiency against Cost: Total Cost of Goods Manufactured = Php2,937,303,040.59 Total Finished Goods (produced 2006) = 16,808,962 Pieces Total Cost of Goods Manufactured / Total Finished Goods (Units) = Cost per Unit Php2,937,303,040.59 / 16,808,962 Pieces = Php174.74 per unit Variance Rate x 20% = Incremental Cost % 24.21% x 20% = 4.842% (minority) Cost % + Old Efficiency % = Cost Efficient Level 4.842%+75.79% = 80.632% Cost per unit x Cost Efficient Level = Acceptable Cost per unit Php174.74 per unit x 80.632% = Php140.90 per unit
Sanyo Denki Philippines, Inc At 75.79% Efficiency Level Finance Department At 95.16% Efficiency Level YES…IT IS THEORETICALLY POSSIBLE!!! Cost per unit = Php174.74 Cost per unit = Php140.90 Is it possible? Multiply by Multiply by 16,808,962 Pieces 16,808,962 Pieces = Php2,937,303,040.59 = Php2,368,382,745.80 Cost decreased by: Php33.84 per unit Or Cost Efficient by: Php568,920,294.79
First and Foremost I would like to thank the FATHER UP ABOVE without HIM, I may never existed THE END To my Managers: MR. SUSUMU SHINAZAWA MR. EDMUND S. MINERVA and to all my colleagues from my Department (Finance) for the support, commitment and unending quest for WORK IMPROVEMENT!!! MISSION ACCOMPLISHED…
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