By Vincent Bozzone
Does your job shop have a weekly performance report? You could call it a scorecard, weekly management report, key indices report, or something else. What you call it doesn’t matter—it’s what’s in
it that counts.
All-inclusive, the report should show the most up-to-date, accurate
information on key performance metrics that span the entire business
process, from leads generated to orders shipped. This enables managers
to see trends; monitor the health of the business more precisely, virtually
in real time; and act quickly.
Say something goes awry during the first week of the month. Four
weeks later accounting just begins preparing the financial statement for
the previous month. Two weeks after that, accounting releases the financial statements—a full six weeks after that initial problem caused performance to suffer. When something in your business goes south, using
six-week-old information to detect it puts you behind the eight ball.
The weekly performance report, or WPR, functions as an early warning
system. Detecting problems sooner rather than later is better, of course,
and the WPR enables you to do just that. It allows you to stay on top of
your business and drive continuous improvement at the same time.
The Right Report for the Right Structure
Of course, simply publishing metrics is just a piece of the job shop puzzle.
For the WPR to be truly effective, other pieces need to be in place.
One piece is a shop’s organizational structure. Traditionally, shops have
a functional structure. If you work in a large shop as, say, a laser cutting
machine operator, you report to the laser cutting department supervisor,
who reports to the shop foreman or production manager, who reports to
the vice president of manufacturing, who reports to the senior executive
team. If you’re a senior engineer, you might report to the vice president
of engineering, who reports to the president.
The functional structure seems natural except for one thing: It doesn’t
align with the job shop business process. Put another way, the structure
forces orders to flow through a forest of functional silos and organiza-
tional boxes—from sales to estimating to purchasing to engineering to
manufacturing and shipping. Each silo’s performance might be based
on a variety of things, but it’s probably not on how well an order flows
through the entire organization, from quotes to cash. And the character-
istics of that quote-to-cash cycle—the quality, speed, effective communi-
cation, and delivery—are what the customer really cares about.
But what if a job shop changed its organizational chart so it aligns
with the job shop business process, which is getting an order, preparing
an order, and producing that order? Why not organize a shop around
these three basic tasks? The front end (marketing, sales, customer
service, estimating, engineering support) focuses on getting the
order; preproduction (purchasing, capacity planning, scheduling, tool
development, quality protocol development) prepares that order;
and production (manufacturing, quality, maintenance, and shipping)
produces that order. (To dive deeper into this new concept, check out
“A new look at the job shop organization chart” from the March 2019
issue, archived at www.thefabricator.com.) When you view and manage
your business as a process, you will be in a much better position to
pinpoint areas for improvement, act on them more precisely, and direct
What’s in the WPR?
Typical information in the WPR includes operational numbers, such as
the number of orders shipped on time; dollars, like the value of orders
shipped during the week; and percentages, such as the percentage of orders shipped on time.
The WPR aligns with the income statement and foreshadows it. The
information in the WPR is a leading indicator of the monthly income
statement that follows. When a series of good WPRs indicates a healthy
business process, healthy financials will follow.
The report comprises two parts, a spreadsheet and a set of graphs
(see Figures 1 and 2). The spreadsheet captures weekly data on metrics
that managers have determined are important to monitor. The graphs
show trends over time and are used to monitor and measure continuous
improvement. Each metric has its own graph. When data is entered, the
worksheet automatically adds another bar to the appropriate graph for
The WPR shows average and cumulative calculations. For example, a
WPR for a small job shop in the sixth week of its fiscal year might show
$144,000 in year-to-date shipments, with an average weekly dollars
Payroll Information UM
Enter Week 52
Percent of Year Elapsed 100% Week 1 Y TD Average Annual 2017
W/E Date: Date 1/7/2018 Cumulative Week Run Rate Totals
TotalHoursPaid: 358 17806 342 17806 18935
OvertimeHours# 38 1855 36 1855 2876
Total Payroll Dollars $9,895 $517,549 $9,953 $517,549 525,150
Number of Customers Contacted 2 346 7 346 420
Number of RFQ's Received 58 3236 62 3236 4316
RFQ's Not Quoted 16 1062 20 1062 928
TotalQuoted# 42 2173 42 2173 3391
Number of Quotes Won 12 1036 20 1036 837
Number Won/Number Quoted 28.6% 47.7% 47.7% 47.7% 24.7%
Dollars Quoted $58,934 $2,693,866 $51,805 $2,693,866 2,667,702
Dollars Won $7,258 $1,298,819 $24,977 $1,298,819 543,298
Dollars Won/Dollars Quoted 12% 48% 48% 48% 20%
T & M Orders Shipped $6,393 $901,149 $17,330 $901,149 940,197
Quoted Orders Shipped $10,405 $1,249,366 $24,026 $1,249,366 1,012,714
Total Orders Shipped $16,798 $2,150,517 $41,356 $2,150,517 1,900,683
T&M to Total Sales 38.1% 41.9% 41.9% 41.9% 0
Production & Productivity
ReworkHours# 1 182 4 182 172
Rework Costs and Lost Revenue $125 $27,300 $525 $27,300 25,868
Order Backlog $140,281
Dollars Shipped/Hour Paid $47 $106 $106 $106 88
Payroll Dollars as a Percentage of Sales 58.9% 24.1% 24.1% 27.6%
Number of Orders with Actual Cost Over Price 0 19 0 36 16
Dollars Lost Actual Cost Over Price $0 1,155 $22 $1,155 895
CustomerConcerns# 2 0 2 4
JobsShipped# 34 3133 60 3133 3,098
Jobs Shipped Late 0 0 2 90 44
On Time Ship Performance 100.0% 100.0% 97.1% 97.1% 98.6%
Order Velocity (Average Lead Time Days) 16 17 0
Copyright 1998-2008 Delta Dynamics Inc.
Need to know
where things stand?
Turn to the weekly performance report
» Figure 2
The report’s trend graphs illustrate the
progress being made on specific metrics.
» Figure 1
The weekly performance report incorporates key metrics like rework, shipping
performance, and dollars shipped per hour.
» Figure 3
The WPR alters its projections with changes in performance. For instance, if the average
weekly value of shipments increases, the year-end revenue projection changes.
Average YTD Annual
Week Cumulative Projection
Shipments $24,000 144,000 $1,248,000
Average YTD Annual
Week Cumulative Projection
Shipments $25,000 150,000 $1,300,000