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Performance Management System. Target Audience : Cell leaders, Line managers, Operations Management, Support functions Purpose of Module : To develop.

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Presentation on theme: "Performance Management System. Target Audience : Cell leaders, Line managers, Operations Management, Support functions Purpose of Module : To develop."— Presentation transcript:

1 Performance Management System

2 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 Aims and Objectives

3 Fire Exits: Everyone know the procedure? We Will……… We Will Not……. Group Agreements: Welcome to the Performance Management Training

4 Name Department Current knowledge of Performance Management Introductions

5 How KPIs & Issues Management interact to make a complete Performance Management System. Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Plan Improvement Build Incentives Capture Issues & Resolve

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 TEAM BOARD : STATION 99 QUALITYCOSTDELIVERYPEOPLE SCRAP CONCESSIONS / DEFECTS PRODUCTIVITY SKILLS MATRIX ATTENDANCE HEALTH & SAFETY TAKT ADHERENCE 5C CURRENT PREVIOUS LOCAL INFORMATION DISRUPTIONS SHIFT : TEAM LEADER : SIGN OFF PRD File ISSUES RESOLVED

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

8 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

9 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. Performance Management

10 Performance Management relies on gathering accurate data about how processes perform in order to stimulate improvement activity Data Information Measurement Improvement There can be no information without data There can be no measurement without information There can be no improvement without measurement There can be no data without operator involvement How Performance improves with Management

11 Flip Chart A performance management system is needed to ensure we meet our obligations to customers, shareholders & employees Aims: Benefits: Make our performance visible Drive us to take action Provide timely feedback 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 Aims & Benefits of Performance Management

12 The performance management system needs to focus not only on monitoring but on action centered management Key Elements of a Performance Management System Elements Key tools Monitoring Visible KPIs with agreed targets Cascaded objectives for all Progress tracker for each section Central information system Regular review process Action- centred management Andon system (line stop) Formal and well understood escalation procedure Standard work Line side rebalancing mechanisms Kaizen

13 Performance Management Framework Design a KPI Hierarchy Set Targets Performance Mgt System Define the key Drivers (QCDP) Cascade K.P.I.s through the organisation Create achievable stretch targets for each KPI

14 KPI - examples Target 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 0 delta (nil Hours behind or ahead of plan) To be agreed 1 Defects per unit 2 errors per unit 270 hours per unit £5,000 per unit Key performance indicators need to be simple and focused 75% people trained to Practitioner Level 40 hrs per man per year Typical KPIs

15 Performance Management Framework Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Create support work streams & have issues logged with them visually

16 Work Package Progress Tracker A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action Operator Cycle Time Takt Time Task Description UnitStart date Start Time Target finish WORKPACKAGE 1 PACKAGE PROGRESS TRACKER Root end chop lugs Performance Management Indicators

17 Team Attendance Team Leader: _______________ Shift: _____ Defects Per Unit W/P: ______ 3456 Andon call system and line stop Andon board Issues Stopped On plan Performance Management Indicators

18 Issues Outstanding W/P: ______ Scrap / Lost on Shop SHIFT: ______ Scrap Lost Shift: ______ Productivity Takt Achievement Performance Management Indicators

19 Management Audit Audit process ensures the performance management process is being used appropriately 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.

20 Management Audit Scores

21 Ongoing Maintenance of the Department 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 DAILYWEEKLY YESNO 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 ? The handover document to C/L for archive PUMC/L - Weekly - C/L(with or without PUM) must Complete the Cell Performance/ Workplace Mgnt Audit Sheet - Weekly - PUM must then feed the results into the HUD - Weekly - PUM must conduct an audit using the Area Map (support personnel to attend) +adhoc dip check ofT/L Handover archive - Weekly - Results communicated to T/Ls at the morning brief, then communicated to Operations (via PMS Board) C/L to understand/ address any shortfalls then file in C/Ls Office - Weekly - PUM to review the audit With Ops Manager/HoB Before the HUD is updated Audit Process Schematic

22 Performance Management Framework Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Capture Issues & Resolve Formalise the shift hand over & IPT around the tracking system & Capture Issues for resolution

23 Issues Resolution Process Team Leader Mgr PUM Shift Leader Team Member Issue Management - Information Flow

24 WhoWhatWhereWhenHow T/L S/L PUM H.O.B Strip Meeting Escalation Meeting T/L Issues Board On Team-Leader board, shop floorAs information / issues become available. Should be updated at earliest opportunity to display the real time state As per Issue board process Shift Report At Team-Leader board, shop floorSet 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 PUM OfficeThursday, 08:30-09:00 PUMs propose strips and debate which to raise / which are appropriate Head of Business chairs meeting. Assembly managers and managers from support departments review progress on Strips (PUMs in attendance as required) Friday, 08:00-08:30Information Centre T/L Andon Light Disruption Log On Team-Leader board, shop floor On shop floor with teamAs disruptions occur, they are logged. When 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 place Any disruptions causing delay are entered into the log. The description, time length of delay and owner are recorded. Escalation S/L Integrated Production Team & Problem Owners & Team Leaders & Support Dept. conference roomEach morning, start of shiftPUM and C/L review prior to IPT Direction set for the day. Major issues discussed briefly. A. Mgr Information Centre Thursday, 09:00-09:45Assembly Mgr and PUMs review progress over week using key metrics on the Shop information board. PUMs propose Strips to Assembly Manager Weekly Review & PUMS Assembly Mgrs Support Mgrs Issue Escalation

25 Disruption Log - Shift Report

26 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. abcdefghijkl How to Review The Issues Board

27 ISSUE ESCALATION STRIP The Product Unit Manager; Thursdays, 11: :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: :30 Determines with the PUM team any issues that require escalation Raises Escalation Strips as appropriate Issue Resolution - PUM

28 The Assembly ManagerFridays ????? 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 Issue Resolution - Ops Mgr

29 Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Tackle issues locally where possible; utilise systems to solve high priority issues. Plan Improvement Capture Issues & Resolve Performance Management Framework

30 Flip Chart 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 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 How to Plan Improvements

31 Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Plan Improvement Build Incentives Create an environment of continuous improvement for a better workplace Capture Issues & Resolve Performance Management Framework

32 Flip Chart 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 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

33 Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Plan Improvement Build Incentives Capture Issues & Resolve Performance Management Framework

34 Attributes of Performance ManagmentNoOK 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 ImprovedResponsible 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.

35 Why do Performance Management? Flip Chart Performance Management

36 Flip Chart 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 Define the system: Creating a Performance Management System for your area!

37 NO.ISSUESACTIONWHOWHENSTATUS Action Plan Sheet

38 Why do Performance Management Main Principles of Performance Management Tools of Performance Management How to implement Design a KPI Hierarchy Install tracking systems & process Set Targets Performance Mgt System Plan Improvement Build Incentives Capture Issues & Resolve Summary

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


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