I.

Introduction-Page 1
Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

1.Department Manager's name

2.Department Supervisors' names

1st shift
2nd shift
3rd shift

3.Names of other people performing supervisory functions,

such as senior staff, lead people, etc.
1st shift
2nd shift
3rd shift

4.Department's total number of hourly employees/direct,

indirect, support, etc.

5.Department's hours of operation: (by shift, start/stop,

breaks, lunches, clean-up or "prep" time)

6.Organization Chart: Top Client on down. Name, title &

area of responsibility. Include names, hire date,
seniority, shifts, job class or position.

7.What are some of the problems that cause you to miss

 your schedules, plans, etc.?
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II Work Flow-Page 1
Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.What is the function of the department?

2.What are the types of work done or performed?

3.Define and give an example of each.

4.How does the department receive its work?

5.Where does it come from?

6.When complete, where does it go?

|::
II. Work Flow-Page 2

7.How?

8.Are collateral services, material or support required

in order to fulfill the department's responsibility?

9.What kind of coordination does this require?

10Does it concern required equipment?

11Does it concern required material?

12Does it concern required staffing?

13Does it concern required training?

14Does it concern required _______?

 15Who is responsible for each?

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II Work Flow-Page 3

16Is there seasonality or "peaks & valleys" that affect

the department?

17What are they and what is the result?

18Are there any significant changes (methods changes)

that are going to occur in the next year, and what are
they?

19What effect will these changes have on the department?

20What is the timetable for these changes?

21List all of the major pieces of equipment in the

department. If known, what are the limitations
(capacities), speeds, feeds, and the common name they
are known by in the department. (Addendum).
 22Draw a physical layout of the department, depicting the
major stations, machines or "steps along the way", and
showing how the "work" moves through the department
(Addendum).

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IIISTAFFING-Page 1
Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.How does the department determine its requirements for

personnel?

2.Who is responsible for making this determination?

3.Is there a basic difference in staffing requirements

from shift to shift?
 4.How are breaks, lunches, wash-up, prep-time, etc.
handled?

5.Are there specific policies dealing with the

aforementioned?

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IIIStaffing-Page 2

6.What is the overtime if any (possible addendum)?

7.How is the need for overtime determined?

8.Does overtime, meaning "paid time", apply to management

& supervision as well as to hourly/non-exempt
personnel?

9.What is the turnover (attrition)%. Annual or monthly?

10What is the % of absenteeism by week or month?

 11How do vacations impact the department? What is the
average vacation?

12When are vacations scheduled?

13Is there an annual "shutdown" of the department?

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III Staffing-Page 3

14How are vacations and absenteeism covered by this

department?

15Are people transferred in and out of the department?

16Are there paid holidays? What are they?

17What about the seniority (longevity) of the staff. How

long?

18Do you have a way of measuring your people? If so,

how?
 19Do we know the individual performance levels of each
employee? (Addendum)

20Do we know it by group, or department?

21Are there staffing schedules ? (Addendum)

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III Staffing-Page 4

22Are the "supporting functions", such as stock clerks,

material handlers, expediters, etc., also included in
the staffing schedules?

23Current management or supervisory training programs,

current or past. Determine areas covered, techniques
used and results (Addendum)?

24Any formal Skills Training Programs for non-

exempt/hourly employees?

25What is the department Evaluation Procedure ?

(Addendum)
 26When does it occur? Who conducts it? How are results
used?

27If there is a union, what are the ramifications, if

any?

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III Staffing-Page 5

28Are there work place rules, safety considerations,

special equipment or clothing that is required in the
area ? (Addendum)

29Is the department supervisor (1st line) a "working"

supervisor?

30Are "disciplinary measures" ever necessary? How are

they carried out?

31Is there a program for "positive reinforcement" when an

employee does a good job?
|::
IVJOB CLASSIFICATIONS/JOB DESCRIPTIONS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Do all of the "jobs" have written job descriptions ?

(Addendum)

2.What are the job "titles" in the department ?

(Addendum)

3.Whether there are "formal" job descriptions or not,

describe each position or "job", in laymen's terms.
(Addendum)

4.Prepare a Flexibility Chart for the department.

 (Addendum)

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IVJOB CLASSIFICATION/ JOB DESCRIPTIONS-Page 2

5.How does the department obtain new people?

6.Who recruits? Who interviews? What are the criteria?

7.Are there some jobs that are "highly" repetitive ?

(Addendum)

8.Are there some "station fill" jobs ? (Addendum)

9.Depending on the amount of activity or volume in the

department, are there some positions that can be
combined from time to time?

10How are the assignments given to the staff?

 11What happens if assignments are not completed on time?

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IVJOB CLASSIFICATION/ JOB DESCRIPTIONS-Page 3

12Does the department utilize Trainees?

13How are they trained?

14What is the learning curve?

15Are the personnel shifted to different functions during

the day?

16What happens if there are not enough people or

resources?

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V.DEPARTMENT SCHEDULING-Page 1
Dept. Concerned ___________
 Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Where do the department schedules originate?

2.Are they received on time?

3.Who receives them?

4.Do the "front line" personnel, such as the supervisors,

get the schedules on time?

5.Are the schedules adequate?

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V.DEPARTMENT SCHEDULING-Page 2

6.Are there considerations for collateral items, such as

material, support documentation or required "paper
work"?

7.How is the work quantified on these schedules? How is

it counted?

8.Are due dates or completion times reflected in the

schedules?

9.Who establishes these "times"? Are they realistic?

10Do the schedules change? How often?

11Are the changes formal? Are the changes written or

oral?

12What happens when volume changes or the department

experiences a significant change of "mix"? Who is
responsible for any adjustments?
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V.DEPARTMENT SCHEDULING-Page 3

13How is "non-scheduled", or "emergency", or "unexpected"

work handled? How is it scheduled?

14Is "Backlog" monitored? Does it exist?

15How is "backlog" expressed? In Hours, Units, People,

Patients, etc.?

16Is there a "normal" backlog level in the department?

17How/who determines the priority or sequence of work to

be completed?

18How is "emergency" or "hot list" work handled?

19Is the flow of work into, or through, the department

predictable?
|::
V.DEPARTMENT SCHEDULING-Page 4

20Is the work forecasted or planned?

21Are there "standards" in the department ? (Addendum)

22How are they determined?

23Are the employees aware of these "standards"?

24Does the department ever get "off schedule"?

25Is the department "on" or "off" schedule now? How is

that known?

26What happens when the department is "off schedule" or

if "priorities" are changed?
27Are there "deadlines"?

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V.DEPARTMENT SCHEDULING-Page 5

28What happens when you don't meet the "deadline"?

29What happens if required material or information is not

available when the department is otherwise ready?

30How much advance notice is required to have the

required material or information there on time?

31Do you have any repetitive problems in the "scheduling"

area ? (Addendum)

32Are there any major steps, processes, machines, etc.

that can be identified as a restriction in the flow
("bottlenecks")?
|::
V.DEPARTMENT SCHEDULING-Page 6

33Are the "schedules" or "plans" that are received

converted into meaningful and useful tools for the
department?

34Is the management concept of "estimating" being used to

help manage the work?

35Do any of the "schedules" help in assigning work?

36Do the schedules highlight "off schedule" or variances?

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VIREPORTING-Page 1
Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________
 ____________________________

1.Are there any meetings held? Daily? Wkly? Monthly?

Who attends and purpose? Results?

2.Does the "key" supervisor or person responsible for the

department track important information from that
department--if so, what information?

3.Are the identifiable problems logged in any way ?

(Addendum)

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VIREPORTING-Page 2

4.Are there any "computerized" programs used for reporting

or "logging" in departmental information?

5.Is the supervisory technique of "follow-up" utilized to

any great degree in the department?

6.How is the process followed? What is the frequency?

 7.Does the department feel that the current methods are
adequate?

8.Why?

9.Assemble & complete the Department's "System Flow"

(system explosion), with all required documents,
schedules, records, "paper-work", etc.

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VIREPORTING-Page 3

10Are there Operating Budgets? Are they connected to any

Forecasting techniques? Is it accurate? Is it used?

11Does the management/supervision know the department's

profitability? By service indicator? By customer? By
product?

12What personnel/manpower reporting exists? What is

 reported? Is it by day? Week? Month?

13How is the output of "work" reported? Daily? Wkly?

Monthly? By $'s? Units? Standard Hours?

14How are the departments "costs" reported? Method?

Calculation? Timing?

15Is Overtime reported? Rework? Redo? Scrap? Yield? By

function? By process or step?

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VIREPORTING-Page 4

16What exists, daily/wkly, to manage the business of the

department? Who uses it?

17Is the use of inventory monitored? Is the level of

inventory known? Is it tracked to the budget?

18How is productivity reported? Measured? Who uses the

information?
 19Is the department's reporting structured to feed back
to Corporate's goals, expectations or objectives ?

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VI QUALITY ISSUES-Page 1
Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.What are the parameters of "Quality" in this

department?

2.How are they measured? Are they compared to any

"standard"?

3.Where and how were these standards originated ?

(Addendum)
|::
VI QUALITY ISSUES-Page 2

4.Have they been updated?

5.How does supervision (management) ensure quality

performance? Is it formal? Other?

6.Are there specific indicators reporting on how the

department is doing on quality of product, or service?

7.Is there any data on the acceptability of material that

is received? If so, include.

8.Are the various causes of "non-conformance" known and

documented? If so, include.

9.Is the cost of non-conformance known? If so, include.

10Of all acceptable material, what % is ultimately

 scrapped?

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VI QUALITY ISSUES-Page 3

11What is the scrap/rework ratio?

12Rework/return ratio?

13Can scrap be summarized by "reason" codes? (Addendum)

14Are there prints, specs or other supportive

documentation available to explain the quality
parameters? (Addendum)

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VI ORDER ENTRY-CUSTOMERS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________
 ____________________________

____________________________

____________________________

1.Type of business--selling standard items, established

line-selling, made to order, made to stock, job shop,
etc.)?

2.How are the orders received? (mail-phone-telex-fax-

salesman-commission)?

3.How are the orders entered? (post to b/l, delivery

dates, products, automatic, manual)?

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VI ORDER ENTRY-CUSTOMER-Page 2

4.How is inventory checked to see if the order can be

filled?(If yes, what happens; if no, what happens)

5.How and when are delivery dates set? (standard, guess,

fact?)
6.What is their "on time delivery"? (do they
know/how/when/ report what is it / interruption/ good
or bad/ if bad-cause)

7.How and when do they pull from back-log (#of wks/mos.)?

8.If under "quota", or quote cycle, how many does the

customer get that are quoted?

9.Who prepares the quotes? Lead time? (When are

prints/specs drawn up/by whom?)

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VI ORDER ENTRY-CUSTOMER-Page 3

10On "make to order", how are tools & dies acquired?

Handled?

11How are orders tracked?

12Are customers notified when orders are going to be
late? Who? How?

13Who handles customer complaints? Are they summarized

by reason, type? If so, review.

14How many orders by type do they enter per

week/month/year?

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IXORDER ENTRY-MANUFACTURING-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________
1.What generates a production order? (forecast, plan,
inventory, customer)

2.What does a production order cover? (Raw to finished,

Raw to sub assembly, Raw to component, Raw to first
step. If there is an order for each step or sub-
assembly, how is it handled? Are there parts
explosions? How is the order identified? How
scheduled? How is it tracked? E.O.Q.?)

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IXORDER ENTRY-MANUFACTURERS-Page 2

3.How do they sequence (steps) the order? How are prints

and specifications handled?

4.Are there formal "process sheets"?

5.How do they check availability of material? How is it

requisitioned? Are the inventory records updated to
reflect any changes?
6.How are the lead-times determined?

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IXORDER ENTRY-MANUFACTURERS-Page 3

7.Are scheduled completion times (dates) set for each

step in the process?

8.What's the procedure for backlogs? In-process?

Finished? Available?

9.How are the tools, dies, and other requirements

coordinated? Are they in a controlled environment?

10How are the actual orders filed? Are they easily

 accessible? Are they usable to determine status of the
order?

11Where are the orders kept? In the department? In

Production Control?

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IXORDER ENTRY-MANUFACTURERS-Page 4

12How are the orders released to the departments? How

are they controlled once they are released?

13What kind of an identification system is used

to constantly identify the product? Do the ID
numbers change as they "value add" to the product?

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X.INVENTORY CONTROL-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
 Name Position

____________________________

____________________________

____________________________

____________________________

1.What are the different levels of inventory that are

maintained? (raw, finished, sub-assemblies, components)

2.How are they maintained? (manual systems, automated?)

How often? What are the parameters of reporting?

3.What are the procedures that are followed to keep

inventory current?

4. If there are records, how are they used? By whom?

When? How?

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X.INVENTORY CONTROL-Page 2

5.How are purchase orders or requests initiated?

6.How are production orders or requests initiated?

 7.How many stock keeping units (S.K.U.'s) are there?

8.Do they know usage by S.K.U.? What is it?

9.What information is there on obsolete stock? What is

it? Why does it exist?

10Are there overstocks? How much?

11Shortages? How much?

12What is the current system for monitoring

shortages/overstocks? When does it happen?

13How are parts/inventory physically stored?

14What kind of a locator system exists? How does it work?

Computerized?
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XIPURCHASING-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
 Name Position

____________________________

____________________________

____________________________

____________________________

1.What is the step by step procedure for initiating and

placing an order?

2.Do they have an "open to buy" procedure? Is there a

"signature" policy? How does it work? What are the
responsibilities? Do they issue "blanket" purchase
orders? If so, for which items?

3.Is there a Purchase Order Register to monitor status of

orders? (How many, late, early)? Are these production
or non-production type orders?

|::
XIPURCHASING-Page 2

4.Do they track vendor performance? Is there any type of

Vendor Rating System in effect?

5.How are vendor lead times determined?

 6.What method is used to expedite "short" or "hot" items?
Who's responsible? How is it done? Frequency?

7.How does receiving coordinate with incoming orders?

What if they are late? What if they are expedited
parts/product?

8.What determines quantities ordered? (E.O.Q., discounts,

safety stock, production runs?)

9.Are the orders "cut" manually, or are they automated?

10Do they have alternate suppliers or vendors? How are

they authorized? Who's responsible?

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XIPURCHASING-Page 3

11How is the quality of vendor/supplier shipments

monitored? When? Who? How?
 12Who has the authority to initiate a requisition?

13Are the requisitions prepared satisfactorily? Do they

follow their own procedure?

14How many purchase orders are issued per week?

15How is the Purchasing Department measured?

16Are there budgets? For material? (for entire operation)

17Is a bid or quote system used? How are they solicited?

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XIPURCHASING-Page 4

18On what basis are contracts awarded?

19Is there a policy of "charge backs" to vendors for poor

quality or service?
 20What is the vendor return policy?

21Are demurrage charges a problem? If so, state the

problem.

22Are vendor shortages a problem in receiving?

23Are order quantities checked? 100% or random?

24Are checks done at other points in the flow?

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XIPURCHASING-Page 5

25Do you use any "off-site" storage or inventory? What's

the procedure?

26Is the department aware of the inventory levels? Are

 they aware of the accuracy of the counts?

27How do book inventory and physical inventory quantities

compare? How often is inventory taken?

28Which technique is used to count the inventory?

(perpetual, actual count)

29Are inventory levels tied to the forecast?

30What is the financial investment in the inventory?

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XIPURCHASING-Page 6

31What is the inventory turnover?

32What indicates inventory turnover?

33Is the inventory system tied to updated sales
forecasts? How?

34Was there ever an inventory purge done? When?

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XI PRODUCTION SCHEDULING--FLOOR SCHEDULING-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Do they have man/machine loads? Covering what period?

How are they updated? By whom? When? What is the
concept? Is it by machine groupings?
2.What factor is used to determine the requirements?
Standards? Estimates? What calculation is done to
allow for increases in performance or improvement of
any kind?

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XI PRODUCTION SCHEDULING--FLOOR SCHEDULING-Page 2

3.Is the concept of "ready back-logs" utilized? What is

known about it? How is it reported? What is the
format?

4.How is the "input" of work controlled?

5.How is Schedule Attainment monitored? How about Scrap?

Rework? Personnel or crewing? Performance?
Productivity? Efficiency?

6.Are there Daily Schedules? How effective are they?

What elements are accounted for? (vol, hrs req., stds?)
7.How are the various assignments made to the people?

8.Do they have a procedure for "1st piece" inspection?

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XI PRODUCTION SCHEDULING--FLOOR SCHEDULING-Page 3

9.What is the procedure for ensuring that all

materials/support is available at the right time?
Responsibility? How?

10How do they report the actual completion of work? Who

does it? How? When? Does it make sense?

11What is their understanding of "Productivity"? How do

they calculate it?

12What happens if there are variances to the schedule/

plan? What action is taken? What are the indicators
for unacceptable variances?
13If it applies, how is downtime reported? Who? When?
How is the information used? How is downtime defined
(start/stop)?

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XI PRODUCTION SCHEDULING--FLOOR SCHEDULING-Page 4

14Is "work-in-process" monitored? Is it controlled?

15What consideration is made for maintenance, P.M.? How

is it coordinated? How is it reported on?

16What about set-ups? What about other "preparation"

steps? How are they considered?

17Are "expediters" used? How many? where? when?

18Do they have "bills of materials"? Route sheets? Move
tickets?

19What kind of "production meetings" do they hold?

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XI PRODUCTION SCHEDULING--FLOOR SCHEDULING-Page 5

20What types of production schedules are made? Ship

schedules? Warehouse schedules? Production
Manufacturing build schedules?

-Departmental schedules
-Assembly schedules
-Sub-assembly schedules
-Machine loading
-Work center loading
-Schedules for release dates

21What plant processes are the key scheduling indicators?

-lead times
-process time
-mix
-seasonality
-capacities
-customer orders
-inventory levels
 22Do they have "floor" controls?

-do they, in fact, control the "physical" work of

the department?

-is there "sign out" of some type? Work orders? Batching?

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XI PRODUCTION SCHEDULING--FLOOR SCHEDULING-Page 6

23Do we know the value of a "machine hour?" a "run hour?"

or a "production hour?"

24Do they have norms/standards--when were they last

updated? By Whom?

25Are norms part of the union contract?

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XI ENGINEERING-Page 1

Dept. Concerned ____________

Data Source Dept.___________

 People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Where does the department's workload come from? Who is

responsible for the "input"?

2.What is the frequency of the input? When is the

"workload" known by the department?

3.Are the projects estimated ? Are standards used ? How

are they derived ?

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XI ENGINEERING-Page 2

4.Do they know the backlog of work? How? By section,

function, type of work, skill, individual?
 5.Is there a plan for completion? Hourly, daily, weekly,
or ???

6.What is the inventory of "projects"? How are we

monitoring progress? Are there key "decision points"
identified?

7.Is there a regular review of the projects to determine

if they are emergency, important, necessary, nice-to-
have, etc.

8.What is the process of follow-up to determine progress

of completion and attainment.

9.Can the department measure its performance or

productivity? How?
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XI ENGINEERING-Page 3

10Is support for engineering adequate to allow the

 engineers to "engineer" rather than spend their time on
"non-engineering" tasks ?

11Is engineering scheduled by Project ?

12Do they know the status of the Projects ?

13Do managers "manage" or are they "working" managers ?

14Are projects "phased" to allow adequate management of

attainment or completion to a schedule ?

15Is there a lot of "think" time associated with the

scheduling of Projects ?

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XI ENGINEERING-Page 4

16Is lost time, or re-work easily identified ? Is it

monitored ?
 17What does the backlog represent in "gross" manhours ?

18What are the percentages of on schedule, behind

schedule, past due, etc. projects?

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XI MAINTENANCE-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________
 1.What crafts or skills are represented in the department?

2.What types of maintenance are required? (P.M., regular,

emergency, capital)

3.How are the people allocated, by shift, craft? How

many supervisors are there and how are they allocated?

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XI MAINTENANCE-Page 2

4.How is the work received? Work order? formal? phone

calls?

5.How much of the work performed is covered by work

order?

6.Do they estimate work? Who does it?

 7.Is the concept of "backlogs of work" established here?
Is it recorded? Is it by category of work?

8.Are priorities determined for the various jobs? Who

does it? How is it done? When does this happen?

9.How do they assign the work to the people? When? How

much at a time?

10How do the people get their next jobs?

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XI MAINTENANCE-Page 3

11What is the "follow-up" procedure to determine if the

jobs are being completed? Can we determine if they are
being done on time?

12Review the current jobs--How many are currently

active--How many are "in process"--what %
complete/finished are they? When will they be
completed?
 13Are large jobs "phased" into smaller, controllable
units? How is this done? When? Who?

14Is there some type of "status report" that illustrates

a current status or work complete/incomplete, by craft,
priority, backlog, or ?????

15Is there a daily or weekly report of hours used per

work order, or of "gross" hours used?

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XI MAINTENANCE-Page 4

16How is overtime authorized? Reported? Is it

justified?

17Are there any daily schedule controls?

 18How are the manpower requirements determined? Who does
this? How are additional people acquired?

19How much overtime is used in the department, by shift?

20Is there a Work Order System? How is it used?

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XI MAINTENANCE-Page 5

21Is downtime recorded by anyone? Are there equipment

logs showing repairs?

22How is the inventory of spare parts handled? Is there

a critical parts program?
 23Is there any management/supervisory report that
monitors backlog by craft of priority? % of regular
maintenance? % of breakdown work? % of P.M.? % of
capital work? % of routine maintenance?

24Do they have a leak-repair program; insulation program;

a steam-trap program?

25How well are the mechanics trained?

26Is there an on-going training program?

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X CLERICAL / ADMINISTRATIVE-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________
 ____________________________

____________________________

____________________________

1.How does the department know much work has been

completed?

2.How does the department know how successful it's been?

3.How do they measure output?

4.What is the "key" unit to "count"?

5.What documents are processed by the department?

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X CLERICAL / ADMINISTRATIVE-Page 2

6.Do they know "why" they are processing these documents?

 7.Are there any records or "logs" of work that has been
processed?

8.Do they utilize the concept of "standards" to monitor

or measure work in any way?

9.How does the department control the work into, through

and out of the department?

10Is work "batched"?

11How is the work assigned?

12Are there "special" skills required in the department?

What are they?

|::
X CLERICAL / ADMINISTRATIVE-Page 3

13Are there backlogs?

14How are backlogs monitored?

15What should the backlogs be?

|::
XVFORECASTING-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.What is the "type" of business that the client is in?

(Job shop, re-pack & ship, service oriented, customer
driven, retail, etc.)
2.Do they have a "sales" forecast? Items? Dollars?
Units?

3.Is the forecast, most properly defined as a Product

forecast? (how is it "exploded", to what level, how)

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XVFORECASTING-Page 2

4.Is it a Purchasing forecast? (vendor history,

performance)

5.Material/Inventory forecast? (R.O.P./E.O.Q. -- stock

levels)

6.Manufacturing forecast (forward loaded, machine loaded,

people, performance, or ?)

7.Capital improvement forecast (equipment, machines,

facilities)
8.Determine the availability and accuracy of the
following information:

a. Historical Data--What is available?

b. Market Potential--What is the potential?

c. Market Share--What is the share of the total

market? What improvements, if any, can we expect
in the share of the market?

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XVFORECASTING-Page 3

d. Geographic Penetration--Are there plans to sell

within a new geographic area? What is the new
market potential and the expected share of the
market?

e. New Market Strategy--Have they developed or are in

the process of developing a new marketing strategy
that could affect future sales?

f. New Product Development - -Are there any new

products that will affect the overall sales? Will
some of these new products help in the selling of
the existing product line?
 g. Substitution--Will a new product be an improved
substitution of an existing product? What is the
anticipated effect of this substitution?

h. Trends-- Are there any long range or short range

trends?

i. Seasonality--Is there any degree of seasonality in

the products?

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XVFORECASTING-Page 4

j. Fashionability -- Is there any fashionability or

style in any of the products? Is the
historical data invalid because of it?

k. Product acceptance-- What is the overall image or

acceptance of the products in the market place?

l. Competition -- What is the competition doing?

Aggressiveness? Price? Quality? Customer Service?

m. Customer Service-- What is the customer service

level in relation to the overall industry? What
is being done to improve the customer service level?
 n. Export vs. domestic-- Should exports be viewed
separately from domestic markets? Are world
conditions affecting the exports.

o. Economic Indices-- Are there any government or

commercial indices that affect the products,
either directly or indirectly? Money? supply?
Housing starts? Auto production?

p. Methods of Distribution and Warehousing--Are there

plans for new branch warehouses? Are there plans
for delivering with own trucks instead of by
common carrier?

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XVFORECASTING-Page 5

q. Important customers--Are we contemplating the gain

or loss of any large customers or distributors?

r. Cost reductions- -Do we anticipate any future

reduction in the selling price due to some
manufacturing cost reduction?

s. Capacity restrictions--Are there any upper limits

to the product sales due to some manufacturing
capacity restriction?

t. New Facilities--Are there any plans to obtain new

facilities for increased capacity? If so, how
much of this new capacity can be expected to be
sold?
 u. Promotions--Are there plans for any sales
promotions? Will these promotions distort the
historical sales patterns?

v. Market Research Data--Is there any current market

research data (consumer sampling and/or geographic
test marketing areas) that give an indication of
the market potential?

w. Historical Distortions--Have there been any

strikes or other unusual events that have caused
potential distortions to the normal historical
sales pattern.

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XVFORECASTING-Page 6

x. Examples--As an example, just about anything can

be forecasted. In your discussions with the
client, these are some of the things that they
might be "forecasting":

Sales-Dollars
Inventory-Raw material
Inventory-components
Production-Std Hrs
Customers
Key Volume Indicators
Training Needs
Absenteeism
Sales in Units
Inventory-work in process
Inventory-Finished goods
Tooling requirements
Transactions
 Energy requirements
Attrition

9.Do they really need to forecast? Or, is the future

already fixed by a firm order board position?

10How are they going to use the answer? For purchasing

raw material? To determine a financial budget? Are
they trying to determine our manpower planning?

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XVFORECASTING-Page 7

11What unit of measure is required? Std Hrs? Pieces?

Tons?

12What is the degree of accuracy required? Absolute

accuracy on some items, and relative accuracy on
others?

13How often must they forecast? Daily? Weekly? Monthly?

14How far in the future should they forecast? Is one
year long enough or not enough? Should they use a six
week horizon because of the fashionability of the
product? Should they use a 3 year horizon because of
the numerous long lead times?

15Must all or part of the items be classified stock

versus non-stock items. High value versus low value?
Export versus domestic orders? Important customers
versus others?

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XVFORECASTING-Page 8

16Will the answer capture 100% of the total or is some

piece of the action missing? How will they obtain the
missing pieces? What is the overall significance of the
missing segments ?

17Is there an easier, or simpler way of doing it?

|::
XV DATA GATHERING & STATISTICS -- ANALYTICAL STEPS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.What internal records must they recap? Record the

name, type of data, and how we will use the
information. As an example:

Sales, Revenue or Production $'s L/Yr

Forecast

Cost of Sales

Materials

Direct Labor

Indirect Labor

Support Labor

Total
 Operating Profit

|::
XV DATA GATHERING & STATISTICS -- ANALYTICAL STEPS-Page 2

Inventory Dollars Month L/Yr Prv/yr

Raw Material

Work In Process

Finished Goods

Total

Bookings Dollars

Past Due Dollars

Perform/Prod/Efficiency

Overtime--Hours

Dollars

Turnover

Number of Ppl

Direct
Hourly ind
salary
exempt
non-exempt
professional
 management
supervision
eng/technical

Union Contracts

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XV DATA GATHERING & STATISTICS -- ANALYTICAL STEPS-Page 3

2.Do they need to install any type of collection system

to collate the information? What information will be
required to establish base levels for manloading and
workload requirements?

3.Do they feel that the current organization is adequate

to meet department and company objectives? Span of
Control? Authority? Responsibility?

4.Are there any significant synchronization or

coordination problems that are immediately evident?

5.Is there a need to improve communication to any great

degree?
 6.Do we know the "service level" requirements? Other
service factors?

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XV DATA GATHERING & STATISTICS -- ANALYTICAL STEPS-Page 4

7.List all of the potential problems, as they see them

at the moment.

8.Are there any safety or environmental needs that would

restrict implementation in this department?

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XV. CUSTOMER SERVICE-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________
 ____________________________

1.What is the method of determining promise dates?

2.What is the accuracy of the method that they use?

3.How can they determine what the "original" promise date

was compared to actual delivery? Are the changes to
these dates measurable?

|::
XV. CUSTOMER SERVICE-Page 2

4.Who can change a promise date?

5.What percentage of items are delivered to a promise

date as opposed to ASAP?
 6.What policy is followed to acknowledge order due dates?

7.What techniques are in place to identify where a

customer's order might be in the process?

8.Is there a backorder policy? What is it? How does it

work?

|::
XV. CUSTOMER SERVICE-Page 3

9.What is the historical service level?

10How does this client compare to service levels in his

own industry?
 11Some statistics: What % is the client ahead or behind
promise/schedule % on time? % late? Aging of early
or late?

12How do we measure "good" vs. "bad" customer service?

13What quality programs are in place or have been tried?

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XI DISTRIBUTION-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Are there remote stock locations?

 2.Alternate shipping points?

3.Delivery costs? Who absorbs?

4.Modes of delivery/transportation?

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XI DISTRIBUTION-Page 2

5.Minimum/maximum weight considerations?

6.Partial shipment policy?

7.Drop ship policy?

8.Packaging considerations?
 9.Delivery frequency?

10Economic transportation radius?

11Excess cost/late shipment penalty?

12Back haul potential?

|::
X LABOR-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Union/non-union?
 2.Contract restrictions?

3.Labor availability?

4.Skill requirements?

|::
X LABOR-Page 2

5.Incentive systems?

6.Seniority rules?

7.Percent attrition?

8.Percent absenteeism?
9.Working hours?

10Direct People?

11Support?

12Indirect?

|::
XXMANUFACTURING ENGINEERING OR METHODS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________
1.Does each work station have formal procedures?

2.Are there engineering specs, at the proper engineering

level, for the operation?

3.When was the last review of the tools, jigs, fixtures,

methodology for the operation?

|::
XXMANUFACTURING ENGINEERING OR METHODS-Page 2

4.Do all of the workers understand the use of tools,

fixtures & jigs?

5.Do the workers all understand the proper operation of

the equipment?

6.Are the "setups" or "startups" scheduled to allow

reasonable time for the workers to achieve the
standards?
7.Are the setups pre-staged?

8.Is the actual, true output known for every piece of

equipment? How was it determined? Are there
manufacturing specs on speeds, feeds & output
(capacity)?

|::
XXMANUFACTURING ENGINEERING OR METHODS-Page 3

9.Is there a program to systematically check the

calibration of all of the equipment? some of the
equipment?

10What are the "bottlenecks" in the flow?

11Does the product have a logical "flow" through the

operation?
12Does the layout of the machines and equipment make
sense?

13Are there staging areas in the department? Are they

useful and are they convenient to the user?

14Is all floor space being economically utilized?

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XXMANUFACTURING ENGINEERING OR METHODS-Page 4

15Is the product being produced "value engineered?" Or

was it released for production before it was ready,
resulting in excessive re-work or "floor engineering"
to "make" it work?

16Is there a technique to update the prints and drawings

as changes are made to the product?
17Are there "mechanized" material handling systems? Are
they effective?

18Are the conveyors, forklifts, etc., properly maintained

to do the job?

19When were the norms last updated?

|::
XX BUDGET PROCESS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Is there a budget?

2.What preparation data is necessary to complete the

 budget?

3.What period does it cover?

4.Who prepares it?

|::
XX BUDGET PROCESS-Page 2

5.Who has to approve it?

6.When is it done?

7.Who meets on the process and when?

8.What is the budget preparation sequence?

9.What "stretch" or improvement built into it from period

to period?

10What is the distribution?

11Is it tied to hours or volume?

12What overheads are looked at?

13Is it revised? how often? when?

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XX. BACKLOG CONTROLS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Does the client track backlogs?

2.Are they- ready backlogs?

 in process backlogs?

input vs output?

work remaining at each work station?

3.How are the backlogs used?

given to production scheduling

tied into management decisions?

4.When are they reviewed?

|::
X BASE-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Do you currently have a productivity measurement method

for department ________________? If yes, go to ques.
2, if no, go to ques. 8.
 2.What is this method?

3.When was it developed?

4.How often is it updated?

5.Who updates it?

|::
X BASE-Page 2

6.What is your impression of its accuracy?

7.What do you use this information for or who uses this

information?

8.How do you measure this department?

9.What do you feel are the best indicators for this

department?
 10What data is available to measure this department?

11Where can I find this information?

l2Can you explain to me how the people in the department

are paid?

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X BASE-Page 3

13How does the payment of the people spit out?

Basic

Overtime

Benefits

Insurance

Bonus

14What are the other costs of employment?

Clothing
 Canteen

Car

Transport

Insurance

Overhead

|::
X BASE-Page 4

15If you were to take a person off the payroll, what

would the savings be?

16What are the costs of reducing a person?

17How would you evaluate an increase in throughput?

|::
X ENERGY QUESTIONS FROM ANALYSIS SEQUENCE-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.How much energy is the client using per year and what
types of energy are involved?

2.What types of machinery and equipment are used in the

plant?

3.Does the client have any energy programs working at the

present time?
|::
X ENERGY QUESTIONS FROM ANALYSIS SEQUENCE-Page 2

4.What are his plans for next year which would affect the
energy cost?

5.We will need one to two years of energy bills to help

develop base year data. We will also need degree day
data and all KVI's available.

6.What type of preventive maintenance programs do they

have? Example: Leak repair, Steam Trap Program,
Replacement of Pipe Insulation.

7.Do they have boilers? What size are they? How many?
Are they for process or heating?

Do they have a water treatment system? Do they control

the condensation return to the boilers?

Do they have a steam-trap program at the present time?

Are the boilers tested on a regular basis for air to

fuel ratios?
|::
X ENERGY QUESTIONS FROM ANALYSIS SEQUENCE-Page 3

Who makes the adjustments from the test findings?

Do they maintain a boiler log and a water treatment

log, and who monitors these logs?

8.Air Compressors: How many and what is the H.P of each

one? What is the total H.P.? What is the required PSI
that must be maintained? Is there a formal leak-repair
program? Find out where air is used throughout the
plant. How are they repaired and by whom?

9.Where are the major users of energy located throughout

the plant? By department throughout.

--Locate and identify the equipment. Examples:

a. Presses--HP of motors? Number of hours and shifts.

b. Ovens - Gas or electric? What are the sizes of the

ovens and at what temperatures do they run? What is
the cycle time and how many burners are on each oven?

c. Furnaces-Same as above. What is the process?

 d. Cleaning lines - hot water and gas fired. Are
proper temperatures maintained?
|::
X ENERGY QUESTIONS FROM ANALYSIS SEQUENCE-Page 4

e. Paint lines - air usage - are there air leaks in

this area?

f. Utilization of equipment - is it at max? Could they

get more throughput? How reliable is the
instrumentation? Do they have a P/M program for
calibration of the instruments? How good are the SOPs,
and how are they monitored by supervision?

l0Lighting

a. How do they control and schedule lighting

throughout the plant and offices.

b. Do they have a daily and weekend start-up and

shut-down procedure?

c. Are security people used to turning off the

lighting when not needed?

d. Is the outside lighting left on during daylight

hours?

11Heating and Air Conditioning

a. How well are the temperatures controlled?

 b. How often are the thermostats checked and
calibrated?

|::
X ENERGY QUESTIONS FROM ANALYSIS SEQUENCE-Page 5

c. Do they have a program for setting back the

temperatures on weekends?

d. How well do they fix the following:

Items for Heating:

i. Steam Leaks
ii. Steam Traps
iii. Pipe Insulation
iv. Clean Heating Units
v. Check and calibrate thermostats

Air Conditioning:

i. Fix Leaks (Duct work)

ii. Change Filters
iii. Clean Condensers
iv. Do an Air Balance
v. Check and Calibrate Thermostats

Ovens and Furnaces:

i. Burner conditions
ii. Do they check for air-to-fuel ratio and adjust on
regular basis?
iii. How good are door and cover seals? Are they
leaking? (heat loss)
 iv. Is the fan vibrating? (dirty and out of balance)
v. Do they clean the duct work?
vi. Do they change the filters?
vii. How often are the instruments checked?
viii. How good is the insulation? (heat loss)
|::
X ENERGY QUESTIONS FROM ANALYSIS SEQUENCE-Page 6

P LAYOUT ITEMS TO CHECK

Product Flows

Bottle Necks

Material Handling

Machinery speeds and feeds

Cycle times

Product being moved too many times

Housekeeping problems

Improper storage

Lead time (in and out)

Forecasting and scheduling of orders

Equipment utilization

Improper tooling

Machine loading

Staging areas (in and out)

Sub-assembly (lead time and storage)

 Proper loading of process equipment
|::
X RETAIL OPERATIONS-Page 1

Dept. Concerned ____________

Data Source Dept.___________

People Involved:
Name Position

____________________________

____________________________

____________________________

____________________________

1.Regarding the personnel contracts--how are they divided

among the people who work full time, part time, only on
the holidays, only in the evenings, etc. How many
hours does each type of contract log each week or
month? What are the differences in hourly wages? How
is overtime paid?

2.How are the goods ordered, delivered, and how do they

know when to stock the shelves with a given item? Do
they have stock outs? How do they control the
inventory on the shelves to ensure the proper turnover?

3.How is the quality of service measured? How is the

quality of the goods measured and followed?
4.How are leakage and wastage controlled?