Number of FTEs (including external) that perform the process group "develop products and services" per $1 billion revenue

This measure calculates the number of full-time equivalent employees (FTEs), including external FTEs, that perform the process group "develop product and services," which handles all activities associated with designing, prototyping, evaluating, and market testing products and services. This measure is part of a set of Process Efficiency measures that help companies optimize the performance of their "develop products and services" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
105504
Total Sample Size:
840 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are FTEs.

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(Number of FTEs (including external) that perform the function "develop and manage products and services" * (Percentage of FTEs (including external) that perform the function "develop and manage products and services" allocated to the process "design and prototype products and services" + Percentage of FTEs (including external) that perform the function "develop and manage products and services" allocated to the process "test market for new or revised products and services" + Percentage of FTEs (including external) that perform the function "develop and manage products and services" allocated to the process "prepare for production/service delivery") * 0.01) / (Total business entity revenue * 0.000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 2.3.1 - Design and prototype products and services (19993)
    • 2.3.1.1 - Assign resources to product/service project (10083)
      • 2.3.1.1.1 - Identify requirements for product/service design/development partners (19994)
    • 2.3.1.2 - Prepare high-level business case and technical assessment (10084)
    • 2.3.1.3 - Develop product/service design specifications (10085)
    • 2.3.1.4 - Develop user experience design specifications (16813)
    • 2.3.1.5 - Provide warranty-related recommendations (16817)
    • 2.3.1.6 - Document design specifications (10086)
    • 2.3.1.7 - Conduct mandatory and elective external reviews (10087)
    • 2.3.1.8 - Design products/services (19995)
      • 2.3.1.8.1 - Design for manufacturing (16819)
      • 2.3.1.8.2 - Design for product servicing (16820)
      • 2.3.1.8.3 - Design for re-manufacturing (16821)
      • 2.3.1.8.4 - Review product troubleshooting methodology (16822)
      • 2.3.1.8.5 - Design and manage product data, design, and bill of materials (16818)
      • 2.3.1.8.6 - Design for product upgrades (16823)
    • 2.3.1.9 - Build prototypes/proof of concepts (10088)
    • 2.3.1.10 - Develop and test prototype production and/or service delivery process (10098)
    • 2.3.1.11 - Eliminate quality and reliability problems (10089)
    • 2.3.1.12 - Conduct in-house product/service testing and evaluate feasibility (10090)
    • 2.3.1.13 - Identify design/development performance indicators (10091)
    • 2.3.1.14 - Collaborate on design with suppliers and external partners (10092)
  • 2.3.2 - Test market for new or revised products and services (19996)
    • 2.3.2.1 - Prepare detailed market study (10093)
    • 2.3.2.2 - Conduct customer tests and interviews (10094)
    • 2.3.2.3 - Finalize product/service characteristics and business cases (10095)
    • 2.3.2.4 - Finalize technical requirements (10096)
  • 2.3.3 - Prepare for production/service delivery (19997)
    • 2.3.3.1 - Design and obtain necessary capabilities/materials and equipment (10099)
    • 2.3.3.2 - Identify requirements for changes to manufacturing/delivery processes (10097)
    • 2.3.3.3 - Request engineering/process change (11418)
    • 2.3.3.4 - Install and validate production/service delivery process (10100)
      • 2.3.3.4.1 - Monitor initial production runs (11417)
    • 2.3.3.5 - Validate launch procedures (19998)