Performance Management System - Lean Six Sigma

The performance management system needs to focus not only on monitoring but on action centered management Key Elements of a Performance Management Sys...

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Performance Management System

Aims and Objectives Target Audience : Cell leaders, Line managers, Operations Management, Support functions

Purpose of Module :To develop the practical ability to achieve the timely control of value stream resources in order to achieve the desired outputs (as visualised by KPI’s)

Aims & Objectives : • Understanding of Issue Resolution • Ensure people can interpret KPI’s and be able to translate into effective management of their resources • Enable people to set up and run a performance management system • To understand the impact of performance management on the value stream • Explain the importance of inputs control and importance of visual management / andon

Welcome to the Performance Management Training Fire Exits: Everyone know the procedure?

Group Agreements: We Will……… We Will Not…….

Introductions

• Name • Department • Current knowledge of Performance Management

How KPI’s & Issues Management interact to make a complete Performance Management System. Design a KPI Hierarchy Set Targets

Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve

Install tracking systems & process

Information Centre / Team board An information centre will be located line side and provide a key communication tool, meeting point and focus for managing line performance

TEAM BOARD : STATION 99 QUALITY SCRAP

CONCESSIONS / DEFECTS

COST PRODUCTIVITY

DISRUPTIONS

DELIVERY

PEOPLE

TAKT ADHERENCE

SKILLS MATRIX

CURRENT

ISSUES RESOLVED

ATTENDANCE

HEALTH & SAFETY PREVIOUS

LOCAL INFORMATION

SHIFT :

TEAM LEADER : PRD File

SIGN OFF

5C

Performance Management

Aim: To enable you to leave the session able to set up & run a Performance Management System in your area.

Performance Management

‘There are no world class manufacturing companies without Performance Management in place’ “Having no performance management system is like having a ‘plane without altimeter, compass or gyroscope!”

Performance Management

What is Performance Management?

Performance Management is a structured visual approach to monitoring the business performance, highlighting issues & reacting to them in a timely manner.

How Performance improves with Management

There can be no data without operator involvement Data

There can be no improvement without measurement

Improvement

Information

There can be no information without data

Measurement

There can be no measurement without information Performance Management relies on gathering accurate data about how processes perform in order to stimulate improvement activity

Aims & Benefits of Performance Management Aims:

Benefits:

• • Make our performance visible • • Drive us to take action • Provide timely feedback Flip Chart • on the effects of our actions •



Highly visible performance gap Increased pressure to improve Indication where improvement is needed Continuous and sustained improvement in quality, cost, delivery and safety Satisfied customer, shareholders and employees

A performance management system is needed to ensure we meet our obligations to customers, shareholders & employees

Key Elements of a Performance Management System Elements

Monitoring

Actioncentred management

Key tools ! Visible KPIs with agreed targets ! Cascaded objectives for all ! Progress tracker for each section ! Central information system ! Regular review process ! Andon system (line stop) ! Formal and well understood escalation procedure ! Standard work ! Line side rebalancing mechanisms ! Kaizen

The performance management system needs to focus not only on monitoring but on action centered management

Performance Management Framework Define the key Drivers (QCDP) Cascade K.P.I.’s through the organisation Design a KPI Hierarchy Set Targets Performance Mgt System

Create achievable ‘stretch’ targets for each KPI

Typical KPI’s KPI - examples Quality Defects (Defects per unit)

Errors (errors per unit)

Delivery Schedule adherence

Target 1 Defects per unit 2 errors per unit

0 delta (nil Hours behind or ahead of plan)

(Hours delta to plan)

Cycle Time

To be agreed

(Hours per Unit)

Cost Manning (man hours per set) (Cost per unit)

270 hours per unit

People Skill Level Training Hours

75% people trained to Practitioner Level 40 hrs per man per year

£5,000 per unit

Key performance indicators need to be simple and focused

Performance Management Framework

Design a KPI Hierarchy Set Targets Performance Mgt System

Install Create support tracking work streams & have systems & issues logged with process them visually

Performance Management Indicators Work Package Progress Tracker WORKPACKAGE 1 PACKAGE PROGRESS TRACKER

Task Description

Unit

Start date 1

1 Operator

2 3 4 5 6 7 8 9

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Start Time

4

Cycle Time

Target finish

5

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A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action

Takt Time

Performance Management Indicators Shift: _____

Team Attendance M

T

W

Th

F

M

T

Week 1

W

Th

Defects Per Unit

W/P: ______

F Week 27

Week 2

Week 28

Week 3

Week 29

Week 4

Week 30

Week 5

Week 31

Week 6

Week 32

Week 7

Week 33

Week 8

Week 34

Week 9

Week 35

Week 10

Week 36

Week 11

Week 37

Week 12

Week 38

Week 13

Week 39

Week 14

Week 40

2001

Week 15 Week 16

Week 41 Week 42 Week 43

Week 17 Week 18

3456

3456

3456

3456

Week 44 Week 45

Week 19 Week 20

Week 46

Week 21

Week 47

Week 22

Week 48

Week 23

Week 49

Week 24

Week 50

Week 25

Week 51

Week 26

Week 52 M

T

W

Th

F

M

T

W

Th

F

Team Leader: _______________ Andon board

On plan

1 2 3 4 5 6 7 8 Issues 1 2 3 4 5 6 7 8 Stopped 1 2 3 4 5 6 7 8

• Andon call system and line stop

Performance Management Indicators Productivity

Shift: ______

Takt Achievement

SHIFT: ______

Scrap / Lost on Shop

Issues Outstanding

Scrap

W/P: ______

Lost

34

35

36

37

38

39

40

41

42

43

43

44

45

43

44

45

46

47

48

49

50

51

52

Management Audit Process •Every day Team Leader self audits workplace & performance against a check list. •Forms part of the Team Leader handover from shift to shift. •Agreement between Team Leaders on the current state. Looking for: •Housekeeping to the required standard. •Performance management measures up to date and on target. •Quality standards are adhered to. •Work is being performed to the standard. •Issues identified & customer protection/counter measure underway.

Management Audit Process •At the appropriate frequency (every shift/every day/once per week) the Cell Leader to audit team performance. •Audit scores feed into a weekly HUD info. centre •Every month senior management complete “Go & See” tour; audits & signs. Looking for: •Housekeeping to the required standard. •Performance management measures up to date and on target. •Quality standards are adhered to. •Work is being performed to the standard. •Issues identified & customer protection/counter measure underway.

Audit process ensures the performance management process is being used appropriately

29/04/02

27/04/02

25/04/02

23/04/02

21/04/02

19/04/02

17/04/02

15/04/02

13/04/02

11/04/02

09/04/02

07/04/02

05/04/02

03/04/02

01/04/02

30/03/02

28/03/02

26/03/02

Cell Score

Management Audit Scores

F lo wlin e Pe r fo r ma n c e a n d Wo r k p la c e Ma n a g e me n t Au d it

100

90

80 Cell 1

70 Cell 2

60 Cell 3

50 TARGET

40

30

20

10

0 Da t e

Audit Process Schematic C/L to understand/ address any shortfalls then file in C/Ls Office

Ongoing Maintenance of the Department The handover document to C/L for archive

DAILY

WEEKLY PUM

C/L T/L Handover

- Weekly PUM must conduct an audit using the Area Map (support personnel to attend) +adhoc dip check ofT/L Handover archive

- Weekly C/L(with or without PUM) must Complete the Cell Performance/ Workplace Mgnt Audit Sheet

- Daily T/L must complete at the end of shift and hand to the incoming T/L

- Daily The incoming T/L needs to decide whether the dept.is in an acceptable condition

YES

- Weekly PUM to review the audit With Ops Manager/HoB Before the HUD is updated

- Weekly PUM must then feed the results into the HUD

NO T/L off the previous shift to rectify the issues with immediate effect

- Weekly Results communicated to T/Ls at the morning brief, then communicated to Operations (via PMS Board)

T/L can now continue to deploy operators onto job

ACCEPTABLE HANDOVER ?

Performance Management Framework

Design a KPI Hierarchy Set Targets Performance Mgt System Formalise the shift hand over & IPT around the tracking system & Capture Issues for resolution

Capture Issues & Resolve

Install tracking systems & process

Issue Management - Information Flow

Issues Resolution Process Team Member Team Leader Shift Leader PUM Mgr

Issue Escalation Who

What

Where

T/L

Andon Light

As disruptions occur, they are logged.

Any disruptions causing delay are entered into the log. The description, time length of delay and owner are recorded.

On Team-Leader board, shop floor

When a problem has occurred that will prevent the Team from achieving planned productivity.

Light mounted on Team-Leader Board is switched on. Dept responsible is contacted and rep. summoned. Light off only when problem owned & plan in place

On Team-Leader board, shop floor

As information / issues become available. Should be updated at earliest opportunity to display the real time state

As per Issue board process

At Team-Leader board, shop floor

Set review for each team, 16:30 w/p 1 16:40 w/p 2 16:50 w/p 3 17:00 w/p 4

5 minute status review of key metrics displayed on board. 5 minute discussion of pertinent issues / suggestions

conference room

Each morning, start of shift

PUM and C/L review prior to IPT

(Rules change with Andon maturity)

T/L & Problem Owners

T/L Issues Board Sh ift R epo rt

S/L

Shift Report

1 2 3 4

Tot als

C once ss ion s P roducti vity Ta kt A chi evem ent S crap / Los t Is sue s O ut st anding

& Team Leaders

S/L

W or k P ack age

N otes :

Integrated Production Team

Direction set for the day. Major issues discussed briefly.

& Support Dept.

PUM

Escalation Meeting

PUM Office

Thursday, 08:30-09:00

PUM’s propose strips and debate which to raise / which are appropriate

Thursday, 09:00-09:45

Assembly Mgr and PUMs review progress over week using key metrics on the Shop information board. PUM’s propose Strips to Assembly Manager

Friday, 08:00-08:30

Head of Business chairs meeting. Assembly managers and managers from support departments review progress on Strips (PUMs in attendance as required)

IS S U E E S C A L A T IO N S T R IP

R a is e d on Is s ue B o a rd : _ _ _ _ /_ _ _ _ /_ _ __

A. Mgr

W /P N o._ _ _ _ __

Is s ue N o. _ _ _ _ _ _

Weekly Review

Information Centre

Strip Meeting

Information Centre

& PUMS

H.O.B Assembly Mgrs Support Mgrs

How

On shop floor with team

Disruption Log

T/L

Escalation

When

Disruption Log - Shift Report

How to Review The Issues Board

a

b

c

d

e

f

g h i

j

k

l

The number of issues raised versus the number closed can be quickly established by comparing column a with column L. This is an immediate appraisal of success rate. Where there are outstanding issues, firstly look at column f to establish if there are plans in place. Look firstly for completed circles that promise implementation. Reference to column k to ensure that the date committed to has been achieved, and that the issue is on monitor. Assess the success of the countermeasure. Green = Ok, Red = NOk Where the countermeasure has failed on monitor, re-raise the issue. Where plans have lapsed, contact the owner to establish why. Where countermeasure tracking is blank, column j will reveal if an owner has accepted responsibility for the issue. If this is not the case, columns h and i will reveal the individual and the department that are identified for ownership. If the owner has not signed to accept the issue, look at column b to establish when it was raised.

Issue Resolution - PUM

ISSUE ESCALATION STRIP

The Product Unit Manager; Thursdays, 11:00 - 12:00 •Holds weekly ‘Issues Review Meeting’ with operational equivalents from the supporting departments. •Reviews resolution progress as presented by the shift leader for each team. •Identifies areas where extra support is required •Tasks operational equivalents from support departments to provide appropriate support where it is required Thursdays, 12:00 - 12:30 •Determines with the PUM team any issues that require escalation •Raises ‘Escalation Strips’ as appropriate

Issue Resolution - Ops Mgr The Assembly Manager

Fridays ?????

•Attends weekly ‘Strip Meeting’ with Head Of Business for all stakeholders in the Natural Workgroup •Presents ‘Escalation Strips’ to senior team •Pins strip under the department responsible on the ‘Strip Board’ •Seeks support and accountability from Senior Team •Does not discuss individual issues, but aspects that are appropriate for senior level review •Records actions on strip, and seeks to ensure review of the ‘Escalation Strip’ outside of the meeting

Performance Management Framework

Design a KPI Hierarchy Set Targets

Tackle issues locally where possible; utilise systems to solve high priority issues.

Performance Mgt System

Plan Improvement

Capture Issues & Resolve

Install tracking systems & process

How to Plan Improvements

Through use of the Problem Solving Techniques identify the issues have most impact and prioritise

Use current systems to solve the issues: Focused Improvement Team – FIT Problem Resolution Document - PRD Flip Chart Engineering Query Note - EQN Corrective Action Board - CAB Non-Conformance Review Board - NCRB Maintenance request Tooling Modifications Improved Method & Improved Control - Work Instructions Line Balancing Improve Environment - 5 C

Performance Management Framework

Create an environment of continuous improvement for a better workplace

Design a KPI Hierarchy Set Targets

Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve

Install tracking systems & process

Performance Management Framework

Create an environment for Kaizen

Involve the Team Leaders and Operators: Solve the issues which curtail production Use the operators knowledge in problem solving Display the results of workshops Flip Chart

Have the Team leaders own the data on their area board Use the boards for team hand-over and briefings Use the boards for IPT information and support ownership allocation Have Management audits of the boards and the information gathered Regularly review the appropriateness of the information presented

Performance Management Framework

Design a KPI Hierarchy Set Targets

Build Incentives Performance Mgt System

Install Plan tracking Improvement systems & process Capture Issues & Resolve

Performance Management Assessment •Performance Management – Performance Management is a structured visual approach to monitoring the business performance, highlighting issues & dealing with them in a timely manner. Attributes of Performance Managment 1. Clear, visible and succinct mission

No

2. Simple KPIs each with a target 3. Less then 10 KPIs 4. Targets linked to individual performance 5. Information centre based on shop floor 6. Single location for information 7. Graphs to be owned and updated by production 8. Team leaders and team own process performance 9. Engineering and logistics support line issues 10. PERFORMANCE MANAGEMENT SYSTEM USED TO “MANAGE” List Items To Be Improved

Responsible

OK

Performance Management

Why do Performance Management?

Flip Chart

Creating a Performance Management System for your area! Define the system: Define the information need to be displayed and where Involve the all stakeholders support team, team leaders and operators Define the frequency of update and who

Flip Chart

Define and provide location for information centre and cell boards Train people in definitions of Cause, Customer Protection, Countermeasure. Create & implement K.P.I.’s Create & implement other lower level indicators

Action Plan Sheet NO.

ISSUES

ACTION

WHO

WHEN

STATUS

Summary



Why do Performance Management



Main Principles of Performance Management



Tools of Performance Management



How to implement

Design a KPI Hierarchy Set Targets

Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve

Install tracking systems & process

Performance Management Course

Aim: To enable you to leave the session able to set up & run a Performance Management System in your area.

Are you able?