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
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6
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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?