1 Performance Management System
2 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
3 Welcome to the Performance Management Training Fire Exits: Everyone know the procedure? Group Agreements: We Will We Will Not.
4 Introductions Name Department Current knowledge of Performance Management
5 How KPI s & Issues Management interact to make a complete Performance Management System. Build Incentives Plan Improvement Design a KPI Hierarchy Performance Mgt System Capture Issues & Resolve Set Targets Install tracking systems & process
6 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 QUALITY TEAM BOARD : STATION 99 COST DELIVERY PEOPLE SCRAP PRODUCTIVITY TAKT ADHERENCE SKILLS MATRIX CONCESSIONS / DEFECTS DISRUPTIONS CURRENT ATTENDANCE ISSUES RESOLVED HEALTH & SAFETY PREVIOUS LOCAL INFORMATION SIGN OFF 5C SHIFT : TEAM LEADER : PRD File
7 Performance Management Aim: To enable you to leave the session able to set up & run a Performance Management System in your area.
8 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!
9 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.
10 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
11 Aims & Benefits of Performance Management Aims: Make our performance visible Drive us to take action Provide timely feedback on the effects of our actions Flip Chart Benefits: 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
12 Key Elements of a Performance Management System Elements Monitoring Key tools!!!!! Visible KPIs with agreed targets Cascaded objectives for all Progress tracker for each section Central information system Regular review process Actioncentred management!!!!! 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
13 Performance Management Framework Define the key Drivers (QCDP) Cascade K.P.I. s through the organisation Design a KPI Hierarchy Performance Mgt System Set Targets Create achievable stretch targets for each KPI
14 Typical KPI s KPI - examples Quality Defects (Defects per unit) Errors (errors per unit) Delivery Schedule adherence (Hours delta to plan) Cycle Time (Hours per Unit) Cost Manning (man hours per set) (Cost per unit) People Skill Level Training Hours Target 1 Defects per unit 2 errors per unit 0 delta (nil Hours behind or ahead of plan) To be agreed 270 hours per unit 5,000 per unit 75% people trained to Practitioner Level 40 hrs per man per year Key performance indicators need to be simple and focused
15 Performance Management Framework Design a KPI Hierarchy Performance Mgt System Set Targets Install tracking systems & process Create support work streams & have issues logged with them visually
16 Performance Management Indicators Work Package Progress Tracker Task WORKPACKAGE 1 PACKAGE PROGRESS TRACKER Description Unit Start date Start Time Target finish Cycle Time Operator 1 2 chop Root lugs end chop Root lugs end Takt Time 3 chop Root lugs end 4 chop Root lugs end 5 chop Root lugs end 6 chop Root lugs end 7 chop Root lugs end 8 chop Root lugs end 9 chop Root lugs end A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action
17 Performance Management Indicators Week 1 Shift: Defects Per Unit W/P: Team Attendance Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 M T W Th F M T W Th F Week 27 Week 28 Week 29 Week 30 Week 31 Week 32 Week 33 Week 34 Week 35 Week 36 Week 11 Week 37 Week 12 Week 38 Week 13 Week 14 Week 15 Week Week 39 Week 40 Week 41 Week 42 Week 17 Week 18 Week 43 Week Week 19 Week 45 Week 20 Week 46 Week 21 Week 22 Week 47 Week 48 Week 23 Week 24 Week 49 Week 50 Week 25 Week 51 Week 26 Week 52 M T W Th F Team Leader: M T W Th F Andon board On plan Issues Stopped Andon call system and line stop
18 Performance Management Indicators Takt Achievement Productivity Shift: Scrap / Lost on Shop SHIFT: Scrap Lost Issues Outstanding W/P:
19 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.
20 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
21 Management Audit Scores Flowline Performance and Workplace Management Audit Cell 1 Cell 2 Cell 3 TARGET Date Cell Score 26/03/02 28/03/02 30/03/02 01/04/02 03/04/02 05/04/02 07/04/02 09/04/02 11/04/02 13/04/02 15/04/02 17/04/02 19/04/02 21/04/02 23/04/02 25/04/02 27/04/02 29/04/02
22 Audit Process Schematic Ongoing Maintenance of the Department C/L to understand/ address any shortfalls then file in C/Ls Office WEEKLY DAILY The handover document to C/L for archive PUM - Weekly - PUM must conduct an audit using the Area Map (support personnel to attend) +adhoc dip check oft/l Handover archive C/L - Weekly - C/L(with or without PUM) must Complete the Cell Performance/ Workplace Mgnt Audit Sheet T/L Handover - 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 NO - 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 - 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 T/L off the previous shift to rectify the issues with immediate effect ACCEPTABLE HANDOVER?
23 Performance Management Framework Design a KPI Hierarchy Set Targets Formalise the shift hand over & IPT around the tracking system & Capture Issues for resolution Performance Mgt System Capture Issues & Resolve Install tracking systems & process
24 Issue Management - Information Flow Issues Resolution Process Team Member Team Leader Shift Leader PUM Mgr
25 ISSUE ESCALATION STRIP Work Package Concessions Productivity Takt Achievem ent Scrap / Lost Issues Outstanding Notes: Issue Escalation Escalation Who What Where When How T/L T/L T/L & Problem Owners S/L & Team Leaders S/L & Support Dept. T/L Issues Board Shift Report Disruption Log Andon Light Shift Report Totals Integrated Production Team On shop floor with team On Team-Leader board, shop floor On Team-Leader board, shop floor As disruptions occur, they are logged. When a problem has occurred that will prevent the Team from achieving planned productivity. (Rules change with Andon maturity) As information / issues become available. Should be updated at earliest opportunity to display the real time state 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 Any disruptions causing delay are entered into the log. The description, time length of delay and owner are recorded. 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 As per Issue board process 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 Direction set for the day. Major issues discussed briefly. PUM Escalation Meeting PUM Office Thursday, 08:30-09:00 PUM s propose strips and debate which to raise / which are appropriate Raised on Issue Board: / / W/P No. Issue No. A. Mgr & PUMS Weekly Review Information Centre 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 H.O.B Assembly Mgrs Support Mgrs Strip Meeting Information Centre 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)
26 Disruption Log - Shift Report
27 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.
28 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
29 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
30 Performance Management Framework Design a KPI Hierarchy Set Targets Tackle issues locally where possible; utilise systems to solve high priority issues. Plan Improvement Performance Mgt System Capture Issues & Resolve Install tracking systems & process
31 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 Flip Chart Document - PRD 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
32 Performance Management Framework Create an environment of continuous improvement for a better workplace Build Incentives Plan Improvement Design a KPI Hierarchy Performance Mgt System Capture Issues & Resolve Set Targets Install tracking systems & process
33 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
34 Performance Management Framework Build Incentives Design a KPI Hierarchy Set Targets Plan Improvement Performance Mgt System Capture Issues & Resolve Install tracking systems & process
35 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 No OK 1. Clear, visible and succinct mission 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
36 Performance Management Why do Performance Management? Flip Chart
37 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
38 Action Plan Sheet NO. ISSUES ACTION WHO WHEN STATUS
39 Summary Why do Performance Management Main Principles of Performance Management Tools of Performance Management How to implement Build Incentives Design a KPI Hierarchy Set Targets Performance Mgt System Plan Improvement Capture Issues & Resolve Install tracking systems & process
40 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?