Performance Management System

(1)

(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 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)

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

(5)

How KPI’s & 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

QUALITY

COST

DELIVERY

PEOPLE

SCRAP

CONCESSIONS /

DEFECTS

PRODUCTIVITY

SKILLS MATRIX

ATTENDANCE

HEALTH & SAFETY

TAKT ADHERENCE

5C

CURRENT

LOCAL INFORMATION

DISRUPTIONS

SHIFT : TEAM LEADER :

SIGN OFF

PRD

File

(7)

Aim:

To enable you to leave the session able to set up

& run a Performance Management System in your

area.

(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!”

(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

(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

(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

(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

1

2

3

4

5

6

7

8

9

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17 Operator

Cycle Time

Takt Time

Task

Description

_Unit

_Start

date

Start Time

Target finish

WORKPACKAGE 1 PACKAGE PROGRESS TRACKER

Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs

(17)

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 Week 27 Week 28 Week 29 Week 30 Week 31 Week 32 Week 33 Week 34 Week 35 Week 36 Week 37 Week 38 Week 39 Week 40 Week 41 Week 42 Week 43 Week 44 Week 45 Week 46 Week 47 Week 48 Week 49 Week 50 Week 51 Week 52

2001

M T W Th F M T W Th F M T W Th F M T W Th F

Team Attendance

Team Leader: _______________

Shift: _____

Defects Per Unit

W/P: ______

3456

• Andon call

system and

line stop

Andon board

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

On plan

(18)

Issues

Outstanding

W/P: ______

43

44

45

46

47

48

49

50

51

52 Scrap / Lost on Shop

SHIFT: ______

Scrap

Lost

34

35

36

37

38

39

40

41

42

43

44

45 Shift: ______

Productivity

Takt Achievement

(19)

•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.

Process

(20)

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

(21)

Flowline Performance and Workplace Management

Audit

0

10

20

30

40

50

60

70

80

90

100 26/

0

3 /0

2 28/

0

3 /0

2 30/

0

3 /0

2 01/

0

4 /0

2 03/

0

4 /0

2 05/

0

4 /0

2 07/

0

4 /0

2 09/

0

4 /0

2 11/

0

4 /0

2 13/

0

4 /0

2 15/

0

4 /0

2 17/

0

4 /0

2 19/

0

4 /0

2 21/

0

4 /0

2 23/

0

4 /0

2 25/

0

4 /0

2 27/

0

4 /0

2 29/

0

4 /0

2 Date

Date

C

e

ll S

c

or

e

C

e

ll S

c

or

e

C

e

ll S

c

or

e

C

e

ll S

c

or

e

Cell 1

Cell 2

Cell 3

TARGET

(22)

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

DAILY

WEEKLY

YES

NO

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

PUM

C/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

(23)

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

(24)

Issues Resolution Process

Team Leader

Mgr

PUM

Shift Leader

Team Member

(25)

IS S U E E S C A L A T IO N S T R IP

R a is e d o n Is s u e B o a rd : _ _ _ _ /_ _ _ _ /_ _ __ W /P N o ._ _ _ _ __ Is s u e N o . _ _ _ _ _ _

Who

What

Where

When

How

S h ift R epo rt

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

W or k P ack age1 2 3 4Tot als

N otes :

T/L

S/L

PUM

H.O.B

Strip Meeting

Escalation Meeting

T/L

Issues Board

On Team-Leader board, shop floor

As 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 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

5 minute status review of key

metrics displayed on board. 5 minute

discussion of pertinent issues /

suggestions

PUM Office

Thursday, 08:30-09:00

PUM’s 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, 08:00-08:30

Information Centre

T/L

Andon Light

Disruption

Log

On Team-Leader board, shop floor

On shop floor with team

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)

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 room

Each morning, start of shift

PUM and C/L review prior to IPT

Direction set for the day. Major

issues discussed briefly.

A. Mgr

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

Weekly Review

& PUMS

Assembly Mgrs

Support Mgrs

Issue Escalation

(26)

(27)

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.

a

b

c

d

e

f

g h i j

k

l

(28)

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)

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)

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

(31)

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

(32)

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

(33)

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

(34)

Design a

KPI

Hierarchy

Install

tracking

systems &

process

Set

Targets

Performance

Mgt System

Plan

Improvement

Build

Incentives

Capture

Issues &

Resolve

(35)

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

Performance Management Assessment

• Performance Management – Performance Management is a structured visual approach

Performance Management System

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

Fire Exits: Everyone know the procedure?

We Will………

We Will Not…….

Group Agreements:

Welcome to the Performance Management

Training

• Name

• Department

• Current knowledge of Performance Management

How KPI’s & 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

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

QUALITY

QUALITY

QUALITY

COST

COST

COST

COST

DELIVERY

DELIVERY

DELIVERY

DELIVERY

PEOPLE

PEOPLE

PEOPLE

PEOPLE

SCRAP

CONCESSIONS /

DEFECTS

PRODUCTIVITY

SKILLS MATRIX

ATTENDANCE

HEALTH & SAFETY

TAKT ADHERENCE

5C

CURRENT

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