EFCOG Best Practice #9

Title: Key Performance Indicator Program

FACILITY: Savannah River Site / Westinghouse Savannah River Company

Point of contact:

Gail Jernigan, Principal Program Planner, gail.jernigan@srs.gov, 803-725-7774 (phone), 803-725-4023 (fax)

Brief description of the Best Practice

WSRC's adaptation of the commercial nuclear power industry Key Performance Indicators (KPI) Program centered around a metrics color roll-up which provides a quick status summary, an easy assessment of trends, and the ability to share expertise /knowledge.

Why the best practice was used:

The implementation strategy involved sharpening the focus on a "critical few" performance metrics, analyzing problem areas and benchmarking successes, mapping KPIs to customer Focus Areas, and using objectivity to assess performance. The multi-tier KPI program approach allowed for drill down from the Focus Area to Level 1 indicators, Level 2, indicators, etc.

What are the benefits of the best practice

Benefits experienced during the first year of implementation include:

Annunciator systems are flexible and can be easily and effectively tailored to:
- Differing missions, facilities, programs, and activities
- Various management and organizational levels
- Differing management needs and interests
Monitoring temporary areas of interest such as problem programs, personnel performance trends, or short-termed missions or activities.
Integrates a significant volume of data and performance knowledge into easily discernible and visually effective performance ratings.
Shifts contract performance to focus on results through KPIs.
Color roll-up allows quick drill down to source of problem areas.
Key Performance Indicators (KPIs) are objective.
Analysis/Action section of KPI allows assessment of problem status.
Facilitates synergistic and constructive management review and discussion of performance, vulnerabilities, trends, and priorities.
Although dependent on lagging performance metrics, the annunciator rating system can be considered "leading" in that it allows timely identification of adverse performance and trends and the proactive application of management attention and resources.
Promotes constructive, beneficial competition and pride in performance accomplishments.
Promotes consistency in approaches across sites.
Drives continuous improvement and the most effective and efficient application of limited resources.

What problems/issues were associated with the Best Practice

Many sites have been concerned about the possibility that there will be comparisons of metrics among the sites. Since the metrics and their scores are determined at the site level, comparing the performance results among the sites is not meaningful. For example, Safety is an area that should be measured at all sites. However, how a site measures its safety performance is a site decision. Some sites may measure TRC and/or DART rates; others may measure Cost Index; and still others may measure days between TRCs, etc. Comparing these metrics would not result in any meaningful data.

How the success of the Best Practice was measured

While no success measure for the performance measure system has been developed, the adoption of the WSRC model by the EFCOG Performance Measures Subgroup and many EFCOG contractors demonstrates the usefulness of this process and system.

Description of process experience using the Best Practice

In December 2000, WSRC Executive Vice President recommended that WSRC implement the Key Performance Indicator format for our corporate metrics. This format for our performance metrics was well received by the site, as well as the customer. WSRC implemented this format site-wide in three months from the time of the initial recommendation.

Using the experience of WSRC, the EFCOG ISM Performance Metric Subgroup worked to develop a process and format for the DOE Complex. In December 2001, Undersecretary Bob Card asked EFCOG and Bev Cook, EH-1, to develop a system for use by the DOE Complex. He asked that this system use a common format, similar to the one used by WSRC This system will be used by Mr. Card with his Program Secretarial Officers (PSOs) in a quarterly safety review. The first submission by the DOE Complex will be in February 2003.

Other sites have taken the information from WSRC and applied it to their own sites. Pantex, for example, took the format and "how to" manual from WSRC and was able to implement the new process within 1/2 day. Many sites have asked for templates and copies of the "how to" manual for implementation at their sites.