Performance Excellence

Performance Excellence

Strategic Planning & the Balanced ScorecardStrategy in Action!!

YR 2013

X-Ray Industries One Page Translator

X-Ray Industries, Inc.Annual Strategic Business Planning

Session(Annual)

VisionMission

Quality PolicyCore Values

Vision,Mission,

Quality Policy,Core Values Strategic Business Planning Strategic Initiatives

Business Units Strategic Business

Planning SessionAnnual

X-Ray Industries Balanced Scorecard

Business UnitIdentifies

Performance Indicators to support BSC

Action Plans

Business Unit Initiatives

X-Ray Industries Action Plans To

Support Initiatives

Business Unit Action Plans To

Support Initiatives

Strategic Business Planning Annual (September Time Frame)

Strategic Business Planning Business Unit determine frequency as needed

Report Out Action Plan Status

X-Ray Industries Review Rocks / Report Status

Determine Quarterly Initiatives

Business UnitsReview Rocks / Report Status


X-Ray Industries One Page Translator

Business Unit Rocks


Support Initiatives

Strategic Initiatives Action Plans

Business Unit Action Plans To

Support Initiatives

1033 2.0 Director, Corporate Quality 11/28/2012

Monitor every third Monday of the MonthReport Out BSC results Quarterly


Business Unit Initiatives Support the Corporate Direction as defined the Annual SBP Sessions by · Corporate Initiatives· Customer Needs· Technology· Capacity / Resource Needs

Business Unit Initiatives Support the Corporate Direction as defined the Annual SBP Sessions by · Corporate Initiatives· Customer Needs· Technology· Capacity / Resource Needs

Lean Model / Strategic Planning / BSC


The Balanced Scorecard


Strategic Planning Process

The Strategic Planning Process has been formally documented and inputted into the Quality Management System.

This document is numbered 1033.

1033 is an auditable procedure.



The Strategic Planning starts with;

1.the purpose of the Organization2.the Vision3.Mission4.Core Values5.Quality System.

These documents and values define the heart of the organization and who they are. They are critical to the foundation of the Strategic Business Planning Sessions.

PurposeWhy we exist – Beyond making money To reduce the potential danger to human life by ensuring the integrity of our customers' products

CoreIdeology Core Values

The few essential tenets that is non-negotiable

within the organization, timeless and unchanging.

Honesty, Integrity and Responsibility,Service Focused Treating People with Respect, Dignity, and Fairness

Commitment to Excellence, Individual and Team Initiative, Personal and Team Safety

To be the leading NDT and Surface finishing company in the world

A competitive World Class Organization utilizing Continuous Improvement methodologies and Employee Involvement in support of our Core Values and meeting Customer’s Expectations and our Financial Commitment to the Stakeholders

Vision

Mission

September Timeframe


Strategic Planning ProcessX-Ray Industries, Inc.

Annual Strategic Business Planning Session

(Annual) Sept Timeframe

X-Ray Industries Strategic Rocks



Support Initiatives

As illustrated through the process flow Strategic Rocks are developed at the Corporate level and are assigned deadlines and targets. (these rocks are measured / monitored using the Balanced Scorecard (BSC)).

This process takes place in September and is presented to the Business Unit Leaders during a SBP meeting lasting 3 – 5 hours.

Business Unit Leaders have the opportunity to ask questions for clarification of the rocks and get direction for the upcoming year.

September Timeframe


Strategic Planning ProcessX-Ray Industries, Inc.

Annual Strategic Business Planning Session

(Annual) Sept Timeframe




Support Initiatives

At the conclusion of the Annual September meeting held by Corporate, the Business Unit Leaders are assigned a date in which they must present their Strategic Planning Initiatives to support Corporates direction.

These initiatives include:1.Safety2.Quality3.People / Human Resources4.Performance Excellence 5.Cost Management6.Financial 7.Strategic Growth8.Systems Requirements

Business Units Strategic Business Planning Session

Business UnitIdentifies Performance

Indicators to support BSC

September Timeframe




Business Unit Action Plans to

support Initiatives

Business Units Initiatives

September Timeframe

Every initiative has an action plan identifying 1.Action2.Champion3.Date Open4.Date Closed5.PE Category6.Status7.Comments / Results

Business Unit Initiatives Support the Corporate Direction as defined by the Annual SBP Sessions by; · Corporate Initiatives· Customer Needs· Technology· Capacity / Resource Needs


Strategic Planning Process Quarterly Report OutsX-Ray Industries Review Rocks / Report Status




Support Initiatives

Every Business Unit conducts a formal Midyear review, members of the Corporate Team Participate in order to see progress and offer assistance to ensure BU success.

Business UnitsReview Rocks / Report Status


Business Unit RocksBusiness Unit

Action Plans To Support Initiatives

Business Unit Initiatives Support the Corporate Direction as defined by the Annual SBP Sessions by · Corporate Initiatives· Customer Needs· Technology· Capacity / Resource Needs


Strategic Planning Process Report Card

The above graphic illustrates a report card that will grade each Business Unit on their performance as it relates to the Strategic planning and the Initiatives.

Strategic Planning RoadmapStrategic Planning ProcessCoreIdeology Core Values

The few essential tenets that is non-negotiable

within the organization, timeless and unchanging.

Honesty, Integrity and Responsibility,Service Focused Treating People with

Respect, Dignity, and Fairness

Commitment to Excellence, Individual and Team Initiative, Personal and Team Safety

PurposeWhy we exist – Beyond making money To reduce the potential danger to human life by ensuring the integrity of our customers' products

To be the leading NDT and Surface finishing company in the world

Vision

Mission

A competitive World Class Organization utilizing Continuous Improvement methodologies and Employee Involvement in support of our Core Values and meeting Customer’s Expectations and our Financial Commitment to the Stakeholders

SWOTStrategic Planning ProcessStrengthsCertified PersonnelEmployee LoyaltyNadcap CertificationsPrime CertificationsQuality SystemSafety SystemAbility to Train InternallyCompany Commitment to grow the businessFinancial PositionOverall LeadershipCustomer FocusedEmployee / People FocusedCore ValuesCapacity (Multiple Processes)Synergies Between Business UnitsBusiness Launches (equipment , processes, certifications)Corporate Support

WeaknessesCommunication top downEmployee Knowledge, understanding the commitment of the

core valuesPerformance Excellence6S Management By SiteLack of understanding of the financialsCustomer engagementPerformance Reviews (IPP vs Performance measures)Succession & DevelopmentResistance to changeLanding new business / opportunitiesPersonnel documentation (performance, attendance & etc)Contract Review Process & the understanding of the risksReputationMore 1:1 with Business Unit ManagersForecasting ModelLack of Training (Cross)Lack of qualified personnel in the market place (to hire)

SWOTStrategic Planning ProcessOpportunities

Growth in UT (Composites)Growth in non-core NDT MethodsPerformance Excellence6S Management By SiteImproved CommunicationsContinuous ImprovementMid-Level Leadership “from a growth and Learning”

perspectiveDR / CR in Hampton & ZeelandAutomation in ZeelandPCC in ClevelandAdditional Business / AcquisitionsSales focus / Cleveland / Troy / South CarolinaN-Ray ReplacementLeadership TrainingCustomer Engagement Capital InvestmentConversion to new processes (RT, CT vs DR &etc)Growth through additional locationsBetter utilization with IT systems(software) trainingBetter utilizations of Best PracticesStandardization of asset taggingBetter means of forecasting manpower dynamics / traineesImprove Forecasting ModelsThermography Opportunities (Chromalloy, Alcoa, PCC)

ThreatsCustomer Contracts (Lack of LTA’s)EconomyCompetitionCustomer Downsizing/ClosingsCustomers losing market shareNew Competition “players”Key Individuals leaving the companyNot meeting financial expectationsEscapes (reputation, human life, suspect product)Lack of Revenue prohibiting raisesEnvironmental (compliance, spill, waste water)Silver process that are in our LTA’sYear – over – Year pricing concessions / demands

“Rocks”Strategic Planning Process The Strategic Rocks are measured in the Balanced Scorecard as “P2 Strategic Initiatives”.

“Rocks”Strategic Planning Process

3 YearMetrics

Date: YR2015

F1 Revenue:F2 Operating Income:F3 Conversion on Sales:Growth in Revenue

1 YearMetrics

Date: YR2013

F1 Revenue: $$F2 Operating Income: $$F3 Conversion on Sales: %

Key Initiatives (Top 5 – 10)

2. Grow our markets in Thermography & Training/Consulting

Key Thrusts (Top 3 – 5)

1. Pursue growth strategy:Continue to expand XRI’s footprintCo-location ModelStand-alone facilities

3. Convert from film to digital when supported by Customers & Primes

4. Living Performance Excellence and Supplier Excellence Alliance in all divisions throughout X-Ray Industries

Safety Management SystemQuality Management SystemHuman Resources Performance Excellence / SEACost ContainmentContinuous ImprovementGrowthSystem RequirementsFinancial PerformanceTechnology Enhancements

“Rocks”Strategic Planning Process

X-Ray Industries, Inc. Top 5 Goals1. Customer Focus & Quality Management System2. Workforce Engagement & Development3. Safety & Environment4. Growth Opportunities5. Achieve Financial Results

Vivid Description of the FutureGlobal provider across IndustriesThe go to company in our key services (NDT / Nadcap Special Processes along with Consulting & Training) – the market comes to us based on market and size.Profitable growth through acquisition and expansion into world markets with NDT and Special Processes without compromising our core values.Employer of choice – respects employees and provides for an environment of advancement and development, sense of security, and competitive wages and benefits.


The BSC is Designed in-line with the

initiatives from the Sept SBP Meeting

Balanced Scorecard

Strategic Planning ProcessThe Balanced Scorecard Methodology used at X-Ray Industries, Inc. was developed by Robert Kaplan & David Norton, professors at the Harvard Business School.

The concept behind the Scoreboard is to translate Strategic Planning into an actionable model to monitor and measure an organizations performance as it relates to their strategic business planning.

There are four perspectives:1.Financial2.Customer3.Process4.Learning & Growth

These perspectives are built from the top down!

However they are measured from the bottom up!

Built Measured



Lean ModelThis model has been designed as our Lean Model as you can see the criteria for Performance Excellence, Supplier Excellence Alliance and the Balanced Scorecard have been aligned.

The lean assessment tools have been identified under the Performance Indicators category, aligning with the Business Plan, BSC, PE.



Balanced Scorecard (BSC)

The 2013 BSC has been designed using the “rocks” that were initiated from the Strategic Business Planning meeting in Sept 2012, and will measure the years Strategic Planning Initiatives as set by the Corporate Team and all Business Units.



Balanced Scorecard (BSC)

Take notice that all BSC perspectives (Financial, Customer, Process and Learning & Growth) have now been clearly aligned with the Performance Excellence criteria.


Documents

Performance Excellence