Although we introduced flexibility early in our discussion of operational roles and responsibility, this is where its impact can be felt on a minute-by-minute, hour-by-hour basis. Increasing the speed of workflow through the cell is one of the primary objectives for lean manufacturing; therefore, those individuals who actually touch the product (shape it, mold it, machine it, assemble it, etc.) are truly the only value-adding activity from the customer’s perspective and need to be effectively deployed when producing the product. This means each touch labor employee ultimately will need to be capable of operating every process within the cell. This is more easily said than done, but the transformation has to begin somewhere. A recommended approach to ini- tiating this transformation is to build a skills matrix (Figure 3.5), in which
the people in the cell are listed on the y-axis and the processes or operations
to be performed are listed across the top on the x-axis.
Filling out this matrix gives the cell team and cell leaders the means to identify areas and people requiring training. A recommended approach to soliciting input (because this can be a very uncomfortable part of the cell development process) is for the cell leader to ask his touch labor personnel: (1) what they can do well, and (2) what they cannot do because of any limitations (e.g., union contract, physical conditions). Do not ask them what they cannot do. This is a negative approach and puts the employee on the defensive. It will become evident soon enough as to what they cannot do when they have to begin performing at multiple workstations. By incorpo- rating a validation process to clarify what is expected of the job, and validating performance in regard to those clarified expectations, the cell leader will be Chapter 03 Page 32 Friday, August 11, 2000 11:04 PM
Organization Element 33
able to develop a more accurate picture of the capability of the cell. Compa- nies should develop a fair and unbiased validation process. In doing so, they may be able to take advantage of a skill-based pay scenario down the road. In addition to an inquiry as to what they can do well, ask the employee to rank their skills from strongest to weakest. This will help establish training plan priorities. After the matrix is complete, you should have a pretty good idea about what areas for improvement need to be addressed in the short term.
As cell team members become familiar with their new responsibilities, accountability for performance can begin to be established. Validation of actual performance and the use of control mechanisms that look at variation from plan both support adherence to standards and drive continuous improvement in the process. It is through this monitoring of the process, that we can keep our operational output performance in check, as we will see in the next chapter.
Figure 3.5 Cross-Training Matrix
35
4
Metrics Element
n comparison with the other four elements (Organization, Logistics, Manufacturing Flow, and Process Control), Metrics (measurement) is the element that provides the primary focus for changing behavior. It is this element that ensures alignment between cell-level shopfloor activity and higher level company business objectives. It is this connection that is neces- sary for lean manufacturing improvements to appear on the bottom line. This chapter will describe how empowerment at the cell level to achieve operational objectives leads to improved performance, resulting in an impact on the company’s bottom line. The metrics described will not be new, but they may be applied and managed in a manner that could be contrary to what some companies are accustomed.
No matter what company or what industry, we all have our fair share of metrics. There are metrics on cycle time, defects per unit, items shipped on schedule, direct labor cost, return on net assets (RONA), overtime, percentage of work orders released on time, cost of quality, hours of rework, cash flow, inventory turnover, etc. No company is lacking for reported measurements of performance. It is recognized that companies are spending valuable resources collecting, sorting, analyzing, and displaying these performance data and reporting them on a monthly, weekly, daily, and sometimes even hourly basis. If we, as companies, are spending this much effort on measurement why aren’t all of our organization performing at “best-in-class” levels? Why are some of our organizations leading the pack while others are falling behind and some
way behind? According to Hays, Wheelwright, and Clark (Dynamic Manufac-
turing: Creating the Learning Organization), it could very well be a matter of too much data and not enough information: “Measurements can provide useful information to managers who are trying to identify the sources of their
I
36 Lean Manufacturing: Tools, Techniques, and How To Use Them
problems or the reasons for their success. But most measurement systems in place today do not provide the kind of information needed by companies that
seek to create a competitive advantage through manufacturing.”8 This chapter
will explore some measurement formats that will enlighten us about this situation and will explain why an understanding of human behavior plays as much of a vital role in the success of performance improvement as the metrics themselves.
We are what we measure. …Improvement comes only from that which is visible. …A hidden problem reveals nothing. Although these statements have an element of truth to them, the real power of measurement comes from an individual’s understanding of the measurement itself. The real trick to improving performance comes from an individual’s definition, develop- ment, control, and understanding of cause and effect as they are related to the metric. Metrics that are developed by an outside entity and forced on a cell team are not likely to produce desired results. Metrics defined and devel- oped by a cell team have a higher likelihood of resulting in a positive corre- lation between activity on the shop floor and desired performance. Understanding of the measurement, ownership of its results, and control over the factors that make it rise or fall are all important features necessary for the successful deployment of a measurement system.
This area of measurement will be looked at from several different per- spectives:
1. DuPont model (a company view)
2. Output-based measures (a cell team’s results)
3. Process-driven measures (infinite continuous improvement) 4. Goal alignment through policy deployment
5. Measurement definition and understanding (power to the people)