2Aims and ObjectivesTarget Audience : Cell leaders, Line managers, Operations Management, Support functionsPurpose 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 ResolutionEnsure people can interpret KPI’s and be able to translate into effective management of their resourcesEnable people to set up and run a performance management systemTo understand the impact of performance management on the value streamExplain the importance of inputs control and importance of visual management / andon
3Fire Exits: Everyone know the procedure? Welcome to the Performance Management TrainingFire Exits: Everyone know the procedure?Group Agreements:We Will………We Will Not…….Ensure the delegates are familiar with the fire exits and the muster points in case of emergency.Get group agreement as to how to react to each other’s ideas, be open, not critical, respect others thoughts, turn mobiles off.COURSE OBJECTIVE: To gain an understanding of the benefits of what performance management is about (including office).AIM: To enable attendees to return to their work areas with the tools and techniques to contribute the construction of a performance management system in their areas.
4Current knowledge of Performance Management IntroductionsNameDepartmentCurrent knowledge of Performance ManagementStart with the presenters then round the training room asking each delegate their name location and any knowledge of PM they have.Presenters to give name, position and where they learnt about Lean, which company, which customers, what products.Emphasis that the site knows how to make…………, but the Lean tools are aimed at the waste in any system.This ice breaker helps settle the group and get more participation latter.1Slide2Verbal3Flip Chart4TrainingMatl.5Photo6Prepared Flip Chart
5How KPI’s & Issues Management interact to make a complete Performance Management System. Design a KPI HierarchySet TargetsBuild IncentivesPerformance Mgt SystemInstall tracking systems & processPlan ImprovementOverview of the performance mgt system; 6 elements all of which need to be working together otherwise no improvement will be made. The following presentation takes you through each hexagon one at a time.Capture Issues & Resolve
6Information Centre / Team board An information centre will be located line side and provide a key communicationtool, meeting point and focus for managing line performanceTEAM BOARD : STATION 99QUALITYCOSTDELIVERYPEOPLESCRAPCONCESSIONS / DEFECTSPRODUCTIVITYSKILLS MATRIXATTENDANCEHEALTH & SAFETYTAKT ADHERENCE5CCURRENTPREVIOUSLOCAL INFORMATIONDISRUPTIONSSHIFT : TEAM LEADER :SIGN OFFPRD FileISSUES RESOLVEDThe previous graphic might look like this on the shop floor – open accountable information.QCDP KPI’s to indicate how the business is progressing compared to the plan.Issues Resolution to create ownership and accountability of open issues and provide history of actions taken to protect the customer and prevent re-occurence.
7Performance Management Aim:To enable you to leave the session able to set up & run a Performance Management System in your area.1Slide2Verbal3Flip Chart4TrainingMatl.5Photo6Prepared Flip Chart
8Performance 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!”This statement is a fact.1
9What is Performance Management? Performance Management is a structured visual approach to monitoring the business performance, highlighting issues & reacting to them in a timely manner.Ask the group to define what they think PM isUse flip chart to capture the ideas the group has on Perf MgtEg’sVisualStructureProblem SolvingPerformance monitorMeaningful to the audienceTimely1Slide2Verbal3Flip Chart4TrainingMatl.5Photo6Prepared Flip Chart
10How Performance improves with Management There can be no data without operator involvementDataInformationMeasurementImprovementThere can be no improvement without measurementThere can be no information without dataThis is a continuous cycle - if the cycle is maintained, continuous improvement will take placeThere can be no measurement without informationPerformance Management relies on gathering accurate data about how processes perform in order to stimulate improvement activity
11Aims & Benefits of Performance Management Make our performance visibleDrive us to take actionProvide timely feedback on the effects of our actionsHighly visible performance gapIncreased pressure to improveIndication where improvement is neededContinuous and sustained improvement in quality, cost, delivery and safetySatisfied customer, shareholders and employeesFlip ChartA performance management system is needed to ensure we meet our obligations to customers, shareholders & employees
12Key Elements of a Performance Management System Key toolsVisible KPIs with agreed targetsCascaded objectives for allProgress tracker for each sectionCentral information systemRegular review processMonitoringAction-centred managementAndon system (line stop)Formal and well understood escalation procedureStandard workLine side rebalancing mechanismsKaizenThe performance management system needs to focus not only onmonitoring but on action centered management
13Performance Management Framework Define the key Drivers (QCDP)Cascade K.P.I.’s through the organisationDesign a KPI HierarchySet TargetsCreate achievable‘stretch’ targets foreach KPIPerformance Mgt System
14Key performance indicators need to be simple and focused Typical KPI’sKPI - examplesTargetQualityDefects(Defects per unit)Errors(errors per unit)DeliverySchedule adherence(Hours delta to plan)Cycle Time(Hours per Unit)CostManning(man hours per set)(Cost per unit)PeopleSkill LevelTraining Hours1 Defects per unit2 errors per unit0 delta (nil Hours behind or ahead of plan)To be agreed270 hours per unit£5,000 per unit75% people trained to Practitioner Level40 hrs per man per yearKey performance indicators need to be simple and focused
15Performance Management Framework Design a KPI HierarchySet TargetsPerformance Mgt SystemInstall tracking systems & processCreate supportwork streams & haveissues logged with them visuallyTo have the site level KPI’s is fine but the need to cascade them and make them applicable to all, and to show how each individuals performance affects the site performance.In order to do this the site level KPI’s may need to be broken down into ‘simpler’ trackers for an individual cell.Eg delivery schedule adherence will be broken down into the “Work Package Tracker” so that each hour an individual knows how his team is performing against the planned production run.
16Work Package Progress Tracker Performance Management IndicatorsWork Package Progress TrackerTask DescriptionWORKPACKAGE 1 PACKAGE PROGRESS TRACKERCycle TimeUnitStart dateStart TimeTarget finish1234567891011121314151617Root end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsOperatorTakt TimeEach operator within a team has a planned work schedule and stamps this off hour by hour, any problems will become visible in the hour it occurred avoiding the hiding of the issue until the unit is delivered late.In other words something can be done about it straight away.A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action
17Performance Management Indicators Defects Per UnitW/P: ______3456Team AttendanceTeam Leader: _______________Shift: _____Other useful trackers can be appliedAbsence will affect the teams ability to achieve schedule – so track attendanceDefects directly affect quality the product delivered & induce extra cost to correct – track Defects / unit or by Work Package.Andon boards are used to visually indicate the status of production cells so that the whole of the natural work group are aware of issues.Andon call system and line stopAndon boardOn plan12345678Issues12345678Stopped12345678
18Performance Management Indicators Shift: ______ProductivityTakt AchievementScrap / Lost on ShopSHIFT: ______ScrapLost343536373839404142434445Issues OutstandingW/P: ______43444546474849505152Takt achievement shows the cells status against the schedule is a summary of the Work Package Tracker over a longer period of time– tracks schedule adherenceProductivity shows the amount of work achieved by the cell/individual – might be used to track Cost and delivery.Scrap tracks cost and the causes of late delivery.Outstanding issues shows the status of the natural work group’s ability to solve production issues.
19Management 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. centreEvery 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.In order to ensure the system is kept up to date an audit system must be in place.This ensures issues are being solved, that KPI’s are being used to manage the business, but most important increases visibility of the management team and increase their knowledge of current status and involves them in the issues resolution process.Audit process ensures the performance management process is being used appropriately
21Audit Process Schematic Ongoing Maintenanceof the DepartmentC/L to understand/address anyshortfalls then filein C/Ls OfficeThe handover documentto C/L for archiveDAILYWEEKLYPUMC/L- Daily -The incoming T/Lneeds to decidewhether the dept.is in anacceptable conditionT/LHandover- Weekly -PUM must conduct an auditusing the Area Map (supportpersonnel to attend) +adhocdip check ofT/L Handover archive- Weekly -C/L(with or without PUM) mustComplete the Cell Performance/Workplace Mgnt Audit Sheet- Daily -T/L must completeat the end of shiftand hand to theincoming T/LYESNOKEY: TL = Team LeaderCL = Cell LeaderPUM = Product Unit ManagerHOB = Head of BusinessHUD = Head up Display for senior Mgmnt team- Weekly -PUM to review the auditWith Ops Manager/HoBBefore the HUD is updatedT/L off the previousshift to rectify theissues with immediateeffectT/L can nowcontinue to deployoperators onto job- Weekly -PUM must then feedthe results into theHUD- Weekly -Results communicated toT/Ls at the morning brief,then communicated to Operations(via PMS Board)ACCEPTABLEHANDOVER ?
22Performance Management Framework Design a KPI HierarchySet TargetsPerformance Mgt SystemInstall tracking systems & processHave mentioned the issues tracking a lot. This is how to do itFormalise the shift handover & IPT around the tracking system & Capture Issues for resolutionCapture Issues & Resolve
23Issue Management - Information Flow Issues Resolution ProcessTeam MemberTeam LeaderShift LeaderHelpSUPPORTPUMIssues tracking, solution and communication to all involves the whole management team and the whole natural work group.The information might be only one of the loops but for large issues may include all levels.Mgr
24Issue Escalation Who What Where When How Escalation T/L T/L T/L S/L On shop floor with teamAs disruptions occur, they are logged.Any disruptions causing delay are entered into the log. The description, time length of delay and owner are recorded.DisruptionLogOn Team-Leader board, shop floorWhen a problem has occurred that will prevent the Team from achieving planned productivity.(Rules change with Andon maturity)Light mounted on Team-Leader Board is switched on. Dept responsible is contacted and rep. summoned. Light off only when problem owned & plan in placeAndon LightT/LOn Team-Leader board, shop floorAs information / issues become available. Should be updated at earliest opportunity to display the real time stateAs per Issue board processT/LT/LIssues BoardEscalation& Problem OwnersAt Team-Leader board, shop floorSet review for each team, 16:30 w/p 116:40 w/p 216:50 w/p 317:00 w/p 45 minute status review of key metrics displayed on board. 5 minute discussion of pertinent issues / suggestionsS/LShift Report& Team LeadersIntegrated Production Teamconference roomEach morning, start of shiftPUM and C/L review prior to IPTS/LDirection set for the day. Major issues discussed briefly.& Support Dept.PUMEscalation MeetingPUM OfficeThursday, 08:30-09:00PUM’s propose strips and debate which to raise / which are appropriateCreate a meeting structure define the escalation processWeekly ReviewThursday, 09:00-09:45Assembly Mgr and PUMs review progress over week using key metrics on the Shop information board. PUM’s propose Strips to Assembly ManagerA. MgrInformation Centre& PUMSH.O.BStrip MeetingInformation CentreFriday, 08:00-08:30Head of Business chairs meeting.Assembly managers and managers from support departments review progress on Strips(PUMs in attendance as required)Assembly MgrsSupport Mgrs
26How to Review The Issues Board cdefghijklThe 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 = NOkWhere 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.Talk through the issues BoardDefine:Issue – succinct sentence describing the problem encounteredCustomer Protection – the short term ‘policing’ activity to stop the customer receiving a sub standard productCounter Measure – Complete action which prevents the problem occuring EVER again
27ISSUE ESCALATION STRIP Issue Resolution - PUMISSUE ESCALATION STRIPThe Product Unit Manager;Thursdays, 11: :00Holds 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 requiredTasks operational equivalents from support departments to provide appropriate support where it is requiredThursdays, 12: :30Determines with the PUM team any issues that require escalationRaises ‘Escalation Strips’ as appropriateIssues which cannot be resolved by the local team may need escalating to more senior management.These people need to be informed of their responsibility and the effect the issues is having on production – the PUM or PUM’s agree which ones to escalate, presenting to the senior manager a potted history of the problem and their expectations.
28Issue Resolution - Ops Mgr The Assembly Manager Fridays ?????Attends weekly ‘Strip Meeting’ with Head Of Business for all stakeholders in the Natural WorkgroupPresents ‘Escalation Strips’ to senior teamPins strip under the department responsible on the ‘Strip Board’Seeks support and accountability from Senior TeamDoes not discuss individual issues, but aspects that are appropriate for senior level reviewRecords actions on strip, and seeks to ensure review of the ‘Escalation Strip’ outside of the meetingThe escalation meeting held in the same manner.
29Performance Management Framework Design a KPI HierarchySet TargetsPerformance Mgt SystemTackle issues locally where possible; utilise systems to solvehigh priority issues.Install tracking systems & processPlan ImprovementThe natural work group, PUM’s, Area Managers have a variety of tools for problem solving. Use them!Capture Issues & Resolve
30How to Plan Improvements Through use of the Problem Solving Techniques identify the issues have most impact and prioritiseUse current systems to solve the issues:Focused Improvement Team – FITProblem Resolution Document - PRDEngineering Query Note - EQNCorrective Action Board - CABNon-Conformance Review Board - NCRBMaintenance requestTooling ModificationsImproved Method & Improved Control - Work InstructionsLine BalancingImprove Environment - 5 CFlip ChartSome examplesEngineering systems already in placeFIT – local team set up to look at ‘simple’ issuesPRD, CAB, NCRB – for quality problems refer to the complex quality team if necessary.
31Performance Management Framework Design a KPI HierarchyCreate an environmentof continuousimprovement for a better workplaceSet TargetsBuild IncentivesPerformance Mgt SystemInstall tracking systems & processPlan ImprovementCapture Issues & Resolve
32Performance Management Framework Create an environment for KaizenInvolve the Team Leaders and Operators:Solve the issues which curtail productionUse the operators knowledge in problem solvingDisplay the results of workshopsHave the Team leaders own the data on their area boardUse the boards for team hand-over and briefingsUse the boards for IPT information and support ownership allocationHave Management audits of the boards and the information gatheredRegularly review the appropriateness of the information presentedFlip ChartGet the audience to come up with ideas of how to involve the TL’s and operators to benefit them and the business
33Performance Management Framework Design a KPI HierarchyInstall tracking systems & processSet TargetsPerformance Mgt SystemPlan ImprovementBuild IncentivesCapture Issues & Resolve
34Performance 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 ManagmentNoOK1. Clear, visible and succinct mission2. Simple KPIs each with a target3. Less then 10 KPIs4. Targets linked to individual performance5. Information centre based on shop floor6. Single location for information7. Graphs to be owned and updated by production8. Team leaders and team own process performance9. Engineering and logistics support line issues10. PERFORMANCE MANAGEMENT SYSTEM USED TO “MANAGE”List Items To Be ImprovedResponsibleGet the audience to go out to their area and asses themselves in the light of what they’ve just learnt.
35Performance Management Why do Performance Management?Flip ChartAsk the group for their thoughts on Performance Mgt again – compare to the earlier chart, hopefully they’ve learnt something.Use flip chart to capture the ideas the group has on PMEg’sVisualStructureProblem SolvingPerformance monitorMeaningful to the audienceTimelyPerformance Management is a structured visual approach to monitoring the business performance, highlighting issues & reacting to them in a timely manner.
36Creating a Performance Management System for your area! Define the system:Define the information need to be displayed and whereInvolve the all stakeholderssupport team, team leaders and operatorsDefine the frequency of update and whoDefine and provide location for information centre and cell boardsTrain people in definitions of Cause, Customer Protection, Countermeasure.Create & implement K.P.I.’sCreate & implement other lower level indicatorsFlip Chart
37Action Plan Sheet NO. ISSUES ACTION WHO WHEN STATUS Get the audience to use the definition, their learning, to complete an action plan as to how they will introduce a Perf Mgt SystemEnsure they haveKPI research – Perf Mgt workstreamDefinition of Trackers – Work Package Tracker is an Airbus std document: see Manuf. Eng.Meeting timetableDesign Of BoardsWhat training will be required of whoInclude who’s involved to get info from or agreement from (Team Leaders, Operators, Mgt Team, Natural Work Group)
38Summary Why do Performance Management Main Principles of Performance ManagementTools of Performance ManagementHow to implementDesign a KPI HierarchyInstall tracking systems & processSet TargetsPerformance Mgt SystemPlan ImprovementBuild IncentivesCapture Issues & Resolve
39Performance Management Course Aim:To enable you to leave the session able to set up & run a Performance Management System in your area.Get the audience to complete the course appraisal form.Are you able?1Slide2Verbal3Flip Chart4TrainingMatl.5Photo6Prepared Flip Chart