Number of FTEs for the phase 'design and develop product/services' per $1 billion revenue

This measure calculates the number of full-time equivalent (FTE) employees per $1 billion revenue for the ‘design and develop products/services,' which includes assigning resources to product/service projects; preparing business cases and technical assessments; developing and documenting design specifications; building prototypes; eliminating quality and reliability problems; conducting in-house testing; identifying performance indicators; collaborating with suppliers; and contracting manufacturers. It is a Process Efficiency measure that helps companies optimize the performance of their "design, build, and evaluate products and services" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
100996
Total Sample Size:
514 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are FTEs.

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((Percentage of FTEs for product development phases in the phase 'design and develop product/services' * 0.010) * Number of FTEs for product development phases) / (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.

Measure Scope

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Cross Industry (6.1.1)

  • 2.2.1.1 - Assign resources to product/service project (10083) - Allocating resources to the design, development, and evaluation of product/service concepts. Allocate funds, personnel, and time for developing the new and/or revised products/services. Begin to design the potential new product/service concepts that have been prioritized and selected for further development.
  • 2.2.1.2 - Prepare high-level business case and technical assessment (10084) - Preparing a business-level business case and a technical feasibility assessment in order to move the product/service projects forward. Weigh the costs and benefits of designing, developing, and evaluating the shortlisted product/service concepts. Prepare a business case to justify the product/service projects. Conduct a technical appraisal to ensure that the organization has the technical know-how and resources to further develop these concepts.
  • 2.2.1.3 - Develop product/service design specifications (10085) - Creating design specifications. Create specifications for the design of new or revised product/service concepts as a measure to meet during development. Have the senior functional-level solutioning or design staff create a framework of compliance standards for these products/services.
  • 2.2.1.4 - Document design specifications (10086) - Documenting requirements to meet in the design of new or revised products/services. Specify technical, quality, and costing requirements, as well as ergonomic, safety, and servicing requirements for such products/services. Ensure the information presented can be understood by the personnel executing the design and includes examples, anecdotal references, and illustrations.
  • 2.2.1.5 - Conduct mandatory and elective external reviews (legal, regulatory, standards, internal) (10087) - Conducting any mandatory and elective appraisals of the product/service design specifications in order to ensure compliance with external standards. Carry out external reviews of specifications created for the development of new product/service designs. Conduct mandatory appraisals such as legal and regulatory, as well as any optional assessments that, for instance, pitch the specifications against industrial benchmarks.
  • 2.2.1.6 - Build prototypes (10088) - Building prototypes for shortlisted product/service concepts. Develop prototypes for those product/service concepts that have been identified for further development. Provide proof-of-concepts, and test any processes involved. Build prototypes in line with the design specifications already outlined. Enlist the solutioning and/or design staff.
  • 2.2.1.7 - Eliminate quality and reliability problems (10089) - Eliminating any problems relating to utility of the product/service over the course of its expected lifetime. Tweak the prototype in order to comply with the required quality and reliability standards. Further refine the prototype, so it may be subjected to testing.
  • 2.2.1.8 - Conduct in-house product/service testing and evaluate feasibility (10090) - Carrying out an in-house appraisal of the prototypes in order to validate design and feasibility. Test the product/service prototypes to confirm their compliance with design and usability standards. Corroborate the viability of the design, and validate the feasibility of their production. Identify any areas for improvement.
  • 2.2.1.9 - Identify design/development performance indicators (10091) - Identifying performance parameters. Determine the parameters to measure performance of the design and development of the product/service concepts into prototypes.
  • 2.2.1.10 - Collaborate on design with suppliers and contract manufacturers (10092) - Interacting with suppliers and manufactures to determine design decisions. Collaborate with vendors, suppliers, contractors, and subcontractors to verify feasibility of co-producing the prototype's design. Ensure that efforts can be coordinated with other stakeholders in the organization's supply chain ecosystem at the time of manufacturing, producing, or packaging the finished product/service.