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Each year we study previous results and derive the ratios, as they are easy for everyone to understand relative performance and allocation of targets between each shop
So if the welders are getting 90% of their jobs right first time and the painters are only getting 40% right first time, your allocation of targets using the same ratio as they achieved last year might mean the welders have to work their butts off get up to 95% while the painters can keep slacking off and still hit their new 42.2% target.
If I understand correctly, the targets should not be success rate, they should be error rate, and they should be a proportion of the errors, not a proportion of the total production. Now the welders just have to halve their error rate from 10% to 5% to earn the same bonuses which the lazy good-for-nothing paint shop won't get until they too have halved their error rate from 60% to 30% :-)
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gbj_tester
The quality targets are KPIs for an Engineering manufacturer. There are three shops (Weld, Paint and Assembly) to which each is allocated one of the sub targets, A, B and C. The overall target and the result of the formula is the overall plant result. I'm not convinced the formula is the best way to calculate an overall result, but it's the company's global standard and little me isn't going to change it. All the percentages represent the proportion of products that go through their respective shops without being repaired, eg correct first time. Each year we study previous results and derive the ratios, as they are easy for everyone to understand relative performance and allocation of targets between each shop.
Hope is crystal now!