Table of Contents
Preface: Evaluator's Guide
IBM has always valued ideas. In many respects, imagination makes this company work. Creativity is respected, fostered and rewarded. And one vehicle for this encouragement is the IBM Suggestion Plan.
A vital program since 1928, the Plan provides cash awards to employees for ideas of value, ideas that work.
Specifically, the suggestion must save money or provide value in improving product quality, product reliability, external customer service, safety, health, or security. The suggestion and solution must be specific and the employee and subject must be eligible under the rules of the Plan.The Plan was founded on the concept that a company must continually seek to improve its methods of operation if it is to remain competitive and succeed in the marketplace. The best way for IBM to do this is through the creativity of its employees. As Thomas Watson, Sr. said, "You can get capital to erect buildings, but it takes people to build a business."
Your role as an evaluator is key in making the Plan work. You are the main link, the interface between an employee with an idea and the successful implementation of that idea. The success of the Plan depends on the quality and timeliness of your response. Employees have given IBM millions of dollars of cost-saving ideas since the Suggestion Plan began. Your support of the Plan is essential. The valuable ideas of our employees combined with your abilities to implement them are among the ingredients that help IBM to remain a leader in the business world.
This document is designed to help you conduct proper evaluations and to serve as a handy reference. Read it carefully along with the employee document "Your Ideas Have Value." It should answer most of your questions. If you need additional information, see Section 2-24 of the IBM Manager's Manual or contact the Suggestion Department.
1.0 Your role as an evaluator
Your role as an evaluator is to help make the IBM Suggestion Plan work. That means acting promptly, getting the facts and making a sound recommendation based on detailed analysis.
But it also means far more that that. Your approach, your attitude, your enthusiasm are what really make the Plan itself work. Your treatment of a suggestion as a high priority sets an example and moves the idea along. Your positive attitude encourages more ideas.
Let's face it. Some evaluators do not do a quality job. They look at suggestions as another "chore," shoving the idea to the bottom of the pile. They simply do not give the suggestion the attention it deserves, in quality and timeliness of response.
Always approach the evaluation in a positive manner. Look for ways to use the idea rather than for ways to refuse it. Be objective, and don't let personalities influence your evaluation.
You'll need to make your review thorough and businesslike. That's no more than you would expect as a suggester. And while you are not expected to know all the facts personally, you should know how and where to get the information.
Prompt action is essential. All suggestions must be treated as current business--answered with 10 working days of receipt by the evaluator. Areas of critical importance--safety, health, or security--are to be answered and returned with 48 hours of receipt. Suggestions in these critical areas must be signed off by the Safety or Security Department or an indication made that they have reviewed or concurred with the evaluation. Adopted safety, health and security suggestions are to be implemented promptly.
1.2 How to conduct an evaluation
Your basic role as an evaluator is to:
You'll follow a fairly set procedure, flowcharted on 1.4.1. The following steps are recommended to help you make a thorough, objective, prompt evaluation of an employee suggestion.
1.2.1 Act on suggestions promptly.
Read the file immediately upon receipt. If you are not the person to answer the suggestion, simply date, sign and return the file in accordance with referral instructions at the bottom of the IBM Suggestion Evaluation Report. If known, identify the person or department that should make the evaluation. Call that person to verify that he or she can answer the suggestion. This can save valuable time. Expediting referrals will also prevent the new evaluator from being rushed due to the delay.
1.2.2 Work with the complete file.
Review all records, reports and documentation relating to the suggestion. If your evaluation shows that IBM has already considered the subject of the suggestion, find out who initiated the action and why. Identify and list the dates of predating documentation. If a decision is made to implement a suggestion on an activity in the maturing process, award consideration should be in accordance with the following:
1.2.2.1 Activity in Maturing Process
1.2.3 Make sure you understand the suggestion.
Define the problem and solution as shown on the IBM Suggestion Form, making sure you fully understand what the employee proposes. The best way to insure that the suggester's idea and concerns are completely understood is to contact the suggester personally. This not only insures the idea is understood, it also fosters a sense of concern and involvement between you as an evaluator and the employee. Do not debate with the suggester, or discuss confidential information. Record a brief summary of what was said on the IBM Suggestion Evaluation Report. If a new situation or solution is offered, advise the suggester that this should be submitted immediately as a new idea on an IBM Suggestion Form. Stress that timeliness is important, since someone else might submit the same idea first. Be sure of your facts when addressing questions about the Plan's operation or refer the suggester to his or her manager or Suggestion Department.
1.2.4 Talk to other people affected.
Make an effort to talk with employees and managers you feel are most affected by the suggested change. Make sure they fully understand your role, the problem identified by the suggester and the recommended solution. Coordinate the suggestion answer if others are affected. Don't just route the suggestion from place to place.
1.2.5 Analyze the suggestion carefully.
Be thorough in your analysis. Does your evaluation address all the suggester's points? Can a different solution be used? (If so, the suggester may still be eligible for an award based on individual consideration.) Are there any facts missing? Should the suggestion be considered for applications at other IBM locations as well?
1.2.6 Advise promptly on delays.
If the evaluation will require longer that 10 work days for completion because of test runs, parts on order, or other justifiable delays, notify your coordinator or Suggestion Department. Explain the reasons for the delay and the estimated additional time required. The Suggestion Department analyst will inform the suggester of the reason for the delay. Retain the file until your evaluation has been completed. Promptness in completing the evaluation is extremely important.
1.2.7 Prepare a clear, legible answer and recommendation.
You should prepare your answer in a way that requires little or no rewriting editing in the Suggestion Department. Legibility is vital. Put yourself in the suggester's shoes. Does the answer fully address the specific problem and solution? Would you accept it? Are the reasons for not implementing the idea sound?
Be as clear as you can. Your answer should be understandable to persons with less knowledge of the subject. If you use abbreviations or acronyms, define them. Your answer will include a recommendation for implementing or not implementing the suggestion based on the facts. Check the "Will be implemented" or "Will not be implemented" box on the report. Make clear what action is being taken as a result of the suggestion. Remember that the idea must either save money or improve safety, health, security, product quality, product reliability or external customer service.
1.2.8 Complete the IBM Suggestion Evaluation Report.
Always complete the section of the IBM Suggestion Evaluation Report relating to implementation or no action planned regardless of subject or employee eligibility. Indicate if the subject is one periodically reexamined by management or already under consideration by the company, identifying the document source and/or dates.
If you are not a manager, be sure to obtain your manager's review and signature on the report.
To recap the evaluation and recommendation procedure:
1.3 Recommending implementation
If you recommend implementation of the specific solution stated in the suggestion, check the "Will be implemented" box on the IBM Suggestion Evaluation Report. This will apply even though the idea may have been implemented prior to your receipt of the suggestion priority date. It may or may not result in an award depending on the employee's eligibility or the suggestion subject as described in the "Your Ideas Have Value" document.
An award may be granted based on individual consideration when a suggestion provides substantial assistance in bringing about an improvement. The decision to grant such an award is based on management judgment. If you think such an award should be considered, include your recommendation and reasons in the report.
Two kinds of awards can be made: tangible savings awards and intangible value awards. It is your responsibility to provide enough information to make the award calculation.
A tangible savings award is granted (or savings credited if the suggester is declared ineligible for an award) when cash savings or cost avoidance results from implementation of the specific solution made in a suggestion. The total award is based on 25% of the first year's actual net savings plus 25% of the second year's projected net savings. An initial award payment is made based on 25% of the first year's estimated net material and labor savings. Tangible savings awards range from $50 to $150,000 for suggestions considered eligible.
To help calculate the award, you should include the following in your IBM Suggestion Evaluation Report and Award Worksheet.
Note: An idea must be cost justified to implement. The priority to implement an idea as well as the utilization of affected resources is determined by the responsible management.
1.3.1 Labor Savings
An average basic hourly rate (burden removed) should be used for the job classifications) performing the operation where the idea is implemented.
Average hourly rates can be obtained from the Suggestion Department.
1.3.2 Capital Equipment Savings
When an adopted suggestion eliminates a planned capital expenditure, the first year's depreciation computed on a straight-line basis on the funds which are not spent, would be considered as a savings.
1.3.3 Savings on IBM Equipment
Awards involving savings on IBM equipment are only to be paid when there is a savings to the company.
1.3.4 Tangible Savings
To determine gross savings, the estimated costs for the proposed method for the first year of implementation are subtracted from the actual costs for the present method. Costs for each method include labor, material and other costs incurred for a comparable period of time. The present method can be one which is currently in effect, or one which is in the process of being implemented.
Net savings are to be determined by deducting implementation costs from the gross savings. Actual costs should be substituted for estimated costs to the extent possible prior to final approval of an award.
Awards of $200 or more are reviewed one year after implementation for additional award. (See "Automatic award reevaluation" in topic 1.5.1)
The Savings and Award Formula is as follows:
A-B-C = D x 25% = Initial Award
A = Present Costs (Labor, Material and Equipment)
B = New Estimated Costs (Labor, Material and Equipment)
C = Implementation Costs
D = Net Savings
1.3.5 Comparability of Bases
The computation of savings assumes that the basis for the present method is comparable to that of the proposed method.
When a "base change" occurs during the period for which savings are being calculated, the change should not work to the suggester's advantage or disadvantage. For suggestion purposes, a "base change" is one which alters any of the factors upon which the cost of the proposed method is based.
1.3.6 Implementation Costs
An implementation cost is a necessary cost incurred by IBM. There are two types of implementation costs:
The following costs, where applicable, are to be included as implementation costs:
Implementation costs are not to include such "paper-work" costs as processing engineering changes, routings, bills of material, assembly instructions, engineering specifications, logic diagrams, wiring lists, etc. All other engineering costs required to implement the suggestion should be included (except the cost of evaluating the suggestion).
Intangible value awards may be recommended when the specific solution in a suggestion is implemented and results in a value to IBM that cannot be measured or estimated in the precise dollar and cent savings of a tangible award.
To qualify for an "intangible award", the following conditions must be met:
1. For Safety, Health, or Security suggestions
a. The Safety Department, Health Department or Security Department, as appropriate, must concur with the idea, and
b. The idea is implementable or caused action to correct the situation.
2. For Product Quality, Product Reliability or External Customer Service suggestions
a. Idea is implementable or caused action to correct the situation, or
b. There are clearly no savings or the cost to implement the idea exceeds the savings, and
c. The idea pertains to a product marketed by IBM for sale to a customer.
For this kind of award, your report should state:
The intangible award guide will assist you in calculating the award amount. The minimum award amount is $50. Although the guide only goes to 100 points, the maximum intangible award is not limited to $100 if a larger amount is justified. If you recommend a higher amount, include a brief statement with the reason.
1.3.7 Determining Point Values
Selecting the point value is merely a matter of judgment on the part of the evaluator.
1.4 Recommending nonimplementation
If you recommend the suggestion not be implemented, you should check the no action planned box.
In most cases, you'll need to prepare a nonadopt reply. It is extremely important that your answer is accurate and complete. All reasons for not implementing an idea should be indicated clearly and concisely in the report.
A comprehensive answer:
Sometimes an idea is simply predated by another suggestion or by management action. In these cases, identification and dates of documentation should be given. If documentation is not available, you must give a clear indication of sufficient verbal evidence. It must be certified by two levels of management. A valid management action predate - such as an engineering notebook--must be no more than two years old, showing current activities that will lead to the suggested solution.
1.4.1 Suggestion evaluation flowchart
1. Suggestion received and logged in
2. Read suggestion first, then read all attachments and other evaluators' reports.
3. Is suggestion in your area of responsibility?
No? Go to step 4.
Yes? Go to step 6.
4. Do you know whose responsibility it is?
No? Follow the instructions at the bottom of the Suggestion Evaluation Report.
Yes? Go to step 5.
5. Is responsibility at your physical location (e.g., San Jose, Boca, etc.)?
No? Follow the instructions at the bottom of the Suggestion Evaluation Report.
Yes? Follow the instructions at the bottom of the Suggestion Evaluation Report.
6. Is idea in suggestion already under consideration by the company? if so, evidence of predate consideration should be documented. Is it predated?
No? Go to step 7.
Yes? then
a. Provide names, date and other necessary data to identify when, who, how.
b. Explain what action was taken or is planned and the date it will be released.
c. If no workable solution is available, will suggested solution work? Or, why won't it work?
d. Go to step 8
7. Was the suggestion adopted?
No? then
a. While eligibility may be addressed, an answer to suggester's idea is required even if ineligible.
b. If suggestion cannot be used, explain in clear, complete terms why not. (If it was your suggestion, what would you want to know?)
c. Complete Suggestion Evaluation Report, including printing of your name. Be sure your telephone number and department are given.
d. Go to step 8.
Yes? Go to step 10.
8. Reread Suggestion. Would you be satisfied with action taken or reply?
No? Provide additional information required and go to step 9.
Yes? Go to step 9.
9. Should suggestion be reviewed by another department or person?
No? If you are not a manager, have your manager review and sign the Suggestion Evaluation Report. Return report with file to Suggestion Department unless otherwise noted on Suggestion Evaluation Report.
Yes? Go to step 4 above.
10. Will the idea be adopted as is?
No? If solution is modified, explain the solution to be used. Go to step 11.
Yes? Go to step 11.
11. Will suggestion have any savings to IBM whatsoever material or time (1 hour or 1 part best estimate)?
No? State on Suggestion Evaluation Report "No Savings." Go to step 12.
Yes? Does the savings offset cost of implementation? (Unburdened cost and savings should be used.) When cost to implement is a one-time cost, such costs are spread over two years or the life of the product, program or method.
No? State on Suggestion Evaluation Report "No Savings." Go to step 12.
Yes? then
a. Provide total time and material saved for first year from implementation date, plus type of hours; manufacturing, CE, administration, sales, etc.
b. Provide total implementation cost in time, material, system programming, etc. How much of this is a one-time charge? How much recurring?
c. Suggester will receive 25% of first year's actual net savings plus 25% of projected second-year net savings. Go to step 17.
12. Will suggestion have intangible value?
No? Go to step 16
Yes? Go to step 13.
13. Does the idea improve product quality, reliability, customer service, safety, health or security?
No? Go to step 16.
Yes? Go to step 14.
14. Check the appropriate box under the intangible award guide section of the Suggestion Evaluation Report Award Worksheet (Safety, etc.). Go to step 15.
15. Complete the Suggestion Award Guide and total the Point value. The 5-25 scale is to be used with the total corporation as a base. Go to step 17.
16. State why you adopted the suggestion. Go to step 17.
17. State implementation date.
18. Refer to Awards Section of Manager's Manual 2-24 or call Suggestion Department if you have any questions.
19. If you are not a manager, have your manager review and sign the Suggestion Evaluation Report. Return report with file to Suggestion Department unless otherwise noted on the Suggestion Evaluation Report.
Overall, a good nonadopt reply will:
After completing your answer, look it over one last time. Then print your name and date the report. If you are not a manager, have your manager review and sign the report.
1.5 Reevaluation
Suggesters, evaluators, management or the Suggestion Department may request that a suggestion be reevaluated if it is believed that a review is in order. The request must be supported by documentation or a justifiable reason for the action.
Reevaluation answers which provide information that differs substantially from the original answer must be supported by an explanation for the change. The file must be escalated to the next level of management for review and sign off. On the second reevaluation, the evaluating management should contact the suggester by phone or in person to resolve any questions.