Performance Management System Training Pack

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

Aims and Objectives

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

Introductions

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 boardAn information centre will be located line side and provide a key communication

tool, meeting point and focus for managing line performance

TEAM BOARD : STATION 99QUALITY COST DELIVERY PEOPLE

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

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!”


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 relies on gathering accurate data about how processes perform in order to stimulate improvement activity

Data

Information

Measurement

ImprovementThere 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

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 ofPerformance Management

The performance management system needs to focus not only onmonitoring but on action centered management

Key Elements of a PerformanceManagement 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

Performance Management Framework

Design a KPI

HierarchySet

Targets


Define the key Drivers (QCDP) Cascade K.P.I.’s through the organisation

Create achievable ‘stretch’ targets foreach KPI

KPI - examples TargetQuality

Defects(Defects per unit)Errors(errors per unit)

DeliverySchedule adherence(Hours delta to plan)Cycle Time(Hours per Unit)

Cost Manning(man hours per set)(Cost per unit)

PeopleSkill LevelTraining 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 Level40 hrs per man per year

Typical KPI’s


Design a KPI

Hierarchy

Install tracking

systems & process

Set Targets

Performance Mgt System Create support

work streams & have issues logged with them visually

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

dateStart Time Target finish

WORKPACKAGE 1 PACKAGE PROGRESS TRACKER

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Performance Management Indicators

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 3456 3456 3456

• Andon call system and line stop

Andon board

1 2 3 4 5 6 7 8Issues 1 2 3 4 5 6 7 8Stopped 1 2 3 4 5 6 7 8

On plan


Issues Outstanding W/P: ______

43 44 45 46 47 48 49 50 51 52

Scrap / Lost on ShopSHIFT: ______

Scrap

Lost

34 35 36 37 38 39 40 41 42 43 43 44 45

Shift: ______ProductivityTakt Achievement


•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

Management Audit

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.

Flowline Performanc e and Workplace Management

Audit

0

10

20

30

40

50

60

70

80

90

10026/0

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

Ce

ll S

co

re

Cell 1

Cell 2

Cell 3

TARGET

Management Audit Scores

Ongoing Maintenanceof the Department

T/LHandover

- Daily -T/L must completeat the end of shiftand hand to the

incoming T/L

- Daily -The incoming T/Lneeds to decide

whether the dept.is in an acceptable condition

DAILYWEEKLY

YES NO

T/L can nowcontinue to deployoperators onto job

T/L off the previousshift to rectify the

issues with immediateeffect

ACCEPTABLEHANDOVER ?

The handover documentto C/L for archive

PUM C/L

- Weekly -C/L(with or without PUM) mustComplete the Cell Performance/

Workplace Mgnt Audit Sheet

- Weekly -PUM must then feedthe results into the

HUD

- Weekly -PUM must conduct an auditusing the Area Map (supportpersonnel to attend) +adhoc

dip check ofT/L Handover archive

- Weekly -Results communicated toT/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 auditWith Ops Manager/HoB

Before the HUD is updated

Audit Process Schematic


Design a KPI

Hierarchy

Install tracking

systems & process

Set Targets



Formalise the shift handover & IPT around the

tracking system & Capture Issues for resolution

Issues Resolution Process

Team Leader

Mgr

PUM

Shift Leader

Team Member

Issue Management - Information Flow

ISSUE ESCALATION STRIP

Raised on Issue Board: ____/____/____ W/P No.______ Issue No. ______

Who What Where When How

Shift Report

Concessions

Productivity

Takt Achievement

Scrap / Lost

Issues Outstanding

Work Package 1 2 3 4 Totals

Notes:

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 ReportAt Team-Leader board, shop floor Set review for each team, 16:30 w/p 1

16:40 w/p 216:50 w/p 317:00 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, 08:00-08:30Information Centre

T/L

T/LAndon Light

DisruptionLog

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.

Esc

alat

ion

S/LIntegrated 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 MgrsSupport Mgrs

Issue Escalation

Disruption Log - Shift Report

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

How to Review The Issues Board

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 - PUM

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

Issue Resolution - Ops Mgr

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



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 – FITProblem Resolution Document - PRD

Engineering Query Note - EQNCorrective Action Board - CAB

Non-Conformance Review Board - NCRBMaintenance requestTooling Modifications

Improved Method & Improved Control - Work InstructionsLine Balancing

Improve Environment - 5 C

How to Plan Improvements

Design a KPI

Hierarchy

Install tracking

systems & process

Set Targets


Plan Improvement

Build Incentives

Create an environmentof continuous

improvement for a better workplace



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


Design a KPI

Hierarchy

Install tracking

systems & process

Set Targets


Plan Improvement

Build Incentives



Attributes of Performance Managment No OK1. 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

to monitoring the business performance, highlighting issues & dealing with them in a timely manner.

Why do Performance Management?

Flip Chart


Flip Chart

Define the information need to be displayed and where

Involve the all stakeholderssupport 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!

NO. ISSUES ACTION WHO WHEN STATUS

Action Plan Sheet

• 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


Plan Improvement

Build Incentives


Summary

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

Date post:	19-Nov-2014
Category:	Business
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