Original Date: 10/10/2005
Revision Date: / /
Information : Oregon Productivity Matrix
Raytheon is using the Oregon Productivity Matrix model that was developed by the University of Oregon as a tool for performance measures to identify critical metrics relevant to the strategic decision-making process in implementing lean manufacturing practices.
The Oregon Productivity Matrix (OPM) method of indexing performance measures and calculating a multi-factor performance index is an objective matrix developed by the University of Oregon for identifying critical metrics relevant to the strategic decision making process. This includes collecting critical performance metrics, integrating performance measures, and analysis of information systems required to determine data support. The OPM consists of multiple metrics and uses a seven-step process and subjective weighting system to rank and prioritize the metrics (Figure 3.1).
Raytheon’s Andover Integrated Air Defense Center (IADC) facility has successfully used OPM to keep track of its productivity improvement charting by categorizing the most important performance metrics for monitoring and tracking purposes. Raytheon has compiled a list of matrices that are tracked monthly using OPM including On-Time Delivery, Manufacturing Cost of Poor Quality (scrap and rework), Cost Performance Index, Work-in-Process (WIP) Turns, and Total Employee Involvement (TEI). Baseline and Current Performance Rating are also displayed on the OPM chart, which makes prioritization and resource allocation a simplified process.
The use of OPM at the Andover IADC facility has enabled employees to view the metrics critical to decision-making that will enable Raytheon to retain its competitive edge.
Figure 3.1. Oregon Productivity Matrix
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