Across every industry, organizations are working to implement continuous improvement processes to operate more effectively and stay ahead of the competition. By engaging every employee in their improvement efforts, they are able to increase quality, improve safety, save time, and generate revenue.
One of the most effective ways to measure the success of improvement efforts is to demonstrate the measurable impact through ROI, or Return on Investment. When you’re busy doing the work of improvement, though, tracking that impact often falls by the wayside. KaiNexus can help with that! By tracking the savings that result from specific improvements in KaiNexus, leaders can increase buy-in for improvement efforts from others in their organization.
The KaiNexus Advanced ROI module gives you more control over how the impact of your improvement methods is measured and tracked.
For example, did you know that one in three Improvements in KaiNexus has a financial impact?
The standard version of KaiNexus lets you track a LOT of information about each of those impacts, from how significant the impact was to when it took place and whose time was saved. With the Advanced ROI add-on, you can do even more. Check out the awesome features included with the upgrade:
Reach out to your Customer Experience Lead for more information on enabling this module.
If your organization is spread across multiple countries, you likely have employees using multiple currencies. With the Advanced ROI add-on, you can configure your organization to use any currency you want!
This allows people in various locations to specify which currency they’re using when they report financial impacts, and see total impacts for each currency type on the Impact Summary or on the Reports Snapshot.
Track the Impact by User
With Impact Credit Splitting & Allocation, the Advanced ROI Add-On makes it easier to recognize the impact of individual users and teams. The Impact Credit Splitting allows the system to take all of the impact recorded on an Item and designate a certain User or team in the system to be specifically responsible for a specified percentage value of the impact.
Impact Credit Splitting can be turned on - as either an optional or required element - for any template that has a Resolution enabled.
With help from your Customer Experience Lead, you can add Impact Splitting to any of your Impact Types - such as Cost-Saving or Safety - which allows you to designate a Location that directly benefited by the impact that was recorded.
Track Production and Resources Efficiently
In the standard version of KaiNexus, impact categories include cost savings, cost avoidance, revenue generation, time savings, quality, safety, satisfaction, health, and environment. There are two additional Impact Type Categories with this Add-On - Product and Resources. A Product impact is reported as part of Revenue Generation, while a Resources impact is reported as part of Cost Savings.
You can customize the Product and Resource impact types just like you can to your organization's list of Time Savings People.
This customization allows users to create a new product, edit a product, and delete a product. These same steps apply for working with Resources as well. Check out the support page for further instructions on how to customize this.
Additionally, you can add three more Time-Saving Impact Type Categories with this Add-On - Lead Time, Cycle Time, and Takt Time. An impact concerning Lead Time, Cycle Time, or Takt Time will be reported as part of Time Savings, but can also be individually reported on within the Impact Summary Report.
Customize Impact Types
Time Savings People allow you to calculate "soft savings" based on the rates you apply for a specific person.
For example, you could add "Engineers" to time savings people and specify that they work “X” hours in a day, per week, per year. You can even put in a dollar amount for an hourly rate! Then when logging a time-saving amount on an Item, you can say this saved engineers 50 hours, and KaiNexus can calculate the financial impact of that time savings for you.
Choose from More Impact Type Options
When resolving an Item that resulted in a change, you can choose between the various Impact Types created by your organization.
These quantitative Impact Types - Cost, Revenue, Time Savings, Product, and Resource - can be configured to give the person resolving an Improvement more control when recording money saved and generated.
The standard version of KaiNexus allows people to choose between a one-time impact, a recurring impact, and unknown metrics. This Advanced ROI Add-On module provides two additional options: range and custom.
Record Investments on an Improvement
If you invested finance, time, or resources when implementing an Item, you may want to record that on the Item itself. Each Investment Type can be customized independently of the others, and those changes will be reflected on each template using that Type. For example, if you bought a new machine that saved 2,000 hours/year and cost $400,000, you could log both the investment and the time savings for a more accurate assessment of the impact.
Successful improvement organizations understand that these measurable impacts play a direct role in ensuring their success. People that use KaiNexus' continuous improvement software to capture, implement, measure, and share improvement across their organizations are able to track and achieve a greater ROI, all the while striving to be better every day.