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 KPIs)

Aims & Objectives : Understanding of Issue Resolution

Ensure people can interpret KPIs 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 KPIs & Issues Management interact to make a complete Performance Management System.
Design a KPI Hierarchy Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve Set Targets 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

COST
PRODUCTIVITY

DELIVERY
TAKT ADHERENCE

PEOPLE
SKILLS MATRIX

CONCESSIONS / DEFECTS

DISRUPTIONS

CURRENT

ATTENDANCE

ISSUES RESOLVED PREVIOUS

HEALTH & SAFETY

LOCAL INFORMATION

SIGN OFF

5C

SHIFT :
PRD File

TEAM LEADER :

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

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

Key Elements of a Performance Management System

Elements 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

Monitoring

Actioncentred management

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 KPIs
KPI - examples
Quality Defects
(Defects per unit)

Target 1 Defects per unit 2 errors per unit

Errors
(errors per unit)

Delivery Schedule adherence

(Hours delta to plan)

0 delta (nil Hours behind or ahead of plan) To be agreed

Cycle Time
(Hours per Unit)

Cost Manning (man hours per set) (Cost per unit) People Skill Level Training Hours

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

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
Task Description WORKPACKAGE 1 PACKAGE PROGRESS TRACKER Unit Start date
1 2
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Start Time

Target finish

Cycle Time

3
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10
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11
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15

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17

1 Operator 2 3 4 5 6 7 8 9

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Takt Time

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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

Performance Management Indicators

Shift: _____

Team Attendance
M Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 M T W Th F 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

Defects Per Unit

W/P: ______

Week 35 Week 36 Week 37 Week 38 Week 39 Week 40

2001

Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52 M T W Th F

3456

3456

3456

3456

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
Takt Achievement
Shift: ______

Scrap / Lost on Shop

SHIFT: ______

Scrap Lost

Issues Outstanding

W/P: ______

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

Cell Score 100

10

20

30

40

50

60

70

80

90

0
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

Management Audit Scores

Au d it

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

Da t e

Cell 3

Cell 2

Cell 1

TARGET

Audit Process Schematic

Ongoing Maintenance of the Department
The handover document to C/L for archive C/L to understand/ address any shortfalls then file in C/Ls Office

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

DAILY

C/L
T/L Handover
- 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

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

- Weekly PUM to review the audit With Ops Manager/HoB Before the HUD is updated T/L can now continue to deploy operators onto job

- 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)

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 Install tracking systems & process

Capture Issues & Resolve

Issue Management - Information Flow

Issues Resolution Process Team Member Team Leader Shift Leader PUM Mgr

Issue Escalation
Who
T/L

What
Disruption Log Andon Light

Where
On shop floor with team

When
As disruptions occur, they are logged.

How
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

On Team-Leader board, shop floor

T/L

When a problem has occurred that will prevent the Team from achieving planned productivity. (Rules change with Andon maturity)

Escalation

T/L
& Problem Owners

On Team-Leader board, shop floor

T/L Issues Board

Sh ift R epo rt

As information / issues become available. Should be updated at earliest opportunity to display the real time state 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 Each morning, start of shift

S/L
& Team Leaders

Shift Report

W or k P ack age 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 N otes :

1 2 3 4

Tot als

At Team-Leader board, shop floor

5 minute status review of key metrics displayed on board. 5 minute discussion of pertinent issues / suggestions PUM and C/L review prior to IPT Direction set for the day. Major issues discussed briefly.

S/L
& Support Dept.

Integrated Production Team

conference room

PUM A. Mgr
& PUMS

Escalation Meeting
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 : _ _ _ _ /_ _ _ _ /_ _ __ W /P N o._ _ _ _ __ Is s ue N o. _ _ _ _ _ _

PUM Office

Thursday, 08:30-09:00

PUMs propose strips and debate which to raise / which are appropriate

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

H.O.B
Assembly Mgrs Support Mgrs

Strip Meeting

Information Centre

Friday, 08:00-08:30

Disruption Log - Shift Report

How to Review The Issues Board

g h i

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 Performance Mgt System Install tracking systems & process

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

Plan Improvement

Capture Issues & Resolve

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 Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve Set Targets 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 Build Incentives Performance Mgt System Set Targets

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 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 No 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 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

Flip Chart

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
Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve Design a KPI Hierarchy Set Targets

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?