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Performance Management Peter Stangl Sr. Manager Supplier Development Operations (SDO) May 10, 2001
Five Key Factors for Lean Enterprise Success   (1) <ul><li>1)  A Strategic Vision </li></ul><ul><li>2)  Strong Line Manage...
A Strategic Vision <ul><li>Top management must be able to see how the company will be different </li></ul><ul><li>Vision m...
Strong Line Management <ul><li>Leaders of the transformation must be chosen carefully </li></ul><ul><li>Must have imaginat...
Expert Training and Support <ul><li>May require seasoned lean transformation expert to help in at least the initial, start...
Aggressive Performance Targets <ul><li>People need to know what is expected of them </li></ul><ul><li>This might take the ...
Impatience <ul><li>Impatience by management to see the organization move ahead and deliver tangible results </li></ul><ul>...
Five Key Factors for Lean Enterprise Success   (1) <ul><li>1)  A Strategic Vision </li></ul><ul><li>2)  Strong Line Manage...
Why Aggressive Performance Targets? <ul><li>Proactive key process indicators (KPIs) and an Annual Operating Plan (AOP) are...
Possible Metrics  (Balanced Score Card) <ul><li>Output - To Customer </li></ul><ul><li>Quality </li></ul><ul><li>On Time D...
Suggested Format  for Performance Review
Application <ul><li>By Plant  </li></ul><ul><li>By Product Line </li></ul><ul><li>Monthly </li></ul><ul><li>Cross Function...
Performance Management Meeting <ul><ul><li>Tactical Metrics </li></ul></ul><ul><ul><ul><li>Project Metrics and Cost Saving...
Sample of Performance Data Review
Delivery PPM by Site Example
13 & 5 Wks Quality PPM’s by Site Example
Total Cycle Time Metric by Site/Value Stream Example
Weekly Trend - %Min Finish Goods Example
Weekly Backorder by Line Item Example
Production System Score  <ul><li>Baseline Score _______________________  459 </li></ul><ul><li>Current Score _____________...
Capacity <ul><li>Capacity Review Should Include </li></ul><ul><ul><li>Facilities </li></ul></ul><ul><ul><li>Equipment </li...
Current/Future State Value Stream Map
Sample Improvement Roadmap
Improvement Roadmap
Performance Review <ul><ul><li>Summary </li></ul></ul><ul><ul><li>Next Steps </li></ul></ul>
You Own Your Performance <ul><li>Primary supplier owns quality, delivery, cycle time to AMAT, You were awarded the busines...
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Transcript of "Performance Management 05 10 2001"

  1. 1. Performance Management Peter Stangl Sr. Manager Supplier Development Operations (SDO) May 10, 2001
  2. 2. Five Key Factors for Lean Enterprise Success (1) <ul><li>1) A Strategic Vision </li></ul><ul><li>2) Strong Line Management </li></ul><ul><li>3) Expert Training and Support </li></ul><ul><li>4) Aggressive Performance Targets </li></ul><ul><li>5) Impatience </li></ul>1) Lean Transformation , by B. Henderson and J. Larco
  3. 3. A Strategic Vision <ul><li>Top management must be able to see how the company will be different </li></ul><ul><li>Vision must be held firmly in mind, and communicated to management and staff throughout the organization </li></ul><ul><li>Shared vision all are working toward </li></ul>1) “ Lean Transformation” , by B. Henderson and J. Larco
  4. 4. Strong Line Management <ul><li>Leaders of the transformation must be chosen carefully </li></ul><ul><li>Must have imagination to grasp the “what can be” </li></ul><ul><li>Must be able to focus on the future and the possibilities it holds, rather than on the past and its time-honored traditions </li></ul>1) Lean Transformation , by B. Henderson and J. Larco
  5. 5. Expert Training and Support <ul><li>May require seasoned lean transformation expert to help in at least the initial, start-up and training phase </li></ul><ul><li>After training, those left in charge should have enough knowledge to be self-correcting and lead project core team(s) </li></ul><ul><li>Use of steering committee as a sounding board for the core team(s) </li></ul>1) Lean Transformation , by B. Henderson and J. Larco
  6. 6. Aggressive Performance Targets <ul><li>People need to know what is expected of them </li></ul><ul><li>This might take the form of goals and objectives to shoot for </li></ul>1) Lean Transformation , by B. Henderson and J. Larco
  7. 7. Impatience <ul><li>Impatience by management to see the organization move ahead and deliver tangible results </li></ul><ul><li>Impatience means foot-dragging will not be tolerated </li></ul><ul><li>In its most productive form, impatience should translate into a fire that is lit under the organization to realize the vision </li></ul>1) Lean Transformation , by B. Henderson and J. Larco
  8. 8. Five Key Factors for Lean Enterprise Success (1) <ul><li>1) A Strategic Vision </li></ul><ul><li>2) Strong Line Management </li></ul><ul><li>3) Expert Training and Support </li></ul><ul><li>4) Aggressive Performance Targets </li></ul><ul><li>5) Impatience </li></ul>1) Lean Transformation, by B. Henderson and J. Larco
  9. 9. Why Aggressive Performance Targets? <ul><li>Proactive key process indicators (KPIs) and an Annual Operating Plan (AOP) are suggested methods of tracking a plant’s metrics. Develop KPIs that calibrate the effectiveness and efficiency of the new lean processes. The object is to track the sustainability of process improvements. </li></ul><ul><li>If metrics begin to fall off, a maintenance project must be developed to avert a cycle of improvement followed by a backsliding in performance. </li></ul>
  10. 10. Possible Metrics (Balanced Score Card) <ul><li>Output - To Customer </li></ul><ul><li>Quality </li></ul><ul><li>On Time Delivery </li></ul><ul><li>Finished Goods Inventory </li></ul><ul><li>Internal Efficiency </li></ul><ul><li>Scrap </li></ul><ul><li>Labor Effectiveness </li></ul><ul><li>Cycle Time </li></ul><ul><li>Floor Space </li></ul><ul><li>Workplace Organization </li></ul><ul><li>Work In Process Inventory </li></ul><ul><li>Overall Equipment Effectivess </li></ul><ul><li>Continuous Improvement </li></ul><ul><li>Employee Suggestions adopted </li></ul><ul><li>Kaizens Implemented </li></ul><ul><li>Rate of Improvements </li></ul>
  11. 11. Suggested Format for Performance Review
  12. 12. Application <ul><li>By Plant </li></ul><ul><li>By Product Line </li></ul><ul><li>Monthly </li></ul><ul><li>Cross Functional Team </li></ul>
  13. 13. Performance Management Meeting <ul><ul><li>Tactical Metrics </li></ul></ul><ul><ul><ul><li>Project Metrics and Cost Savings </li></ul></ul></ul><ul><ul><ul><li>On-time Delivery </li></ul></ul></ul><ul><ul><ul><li>Inventory- Weekly Trend of FGs </li></ul></ul></ul><ul><ul><ul><li>Quality PPM (13 and 5 weeks) </li></ul></ul></ul><ul><ul><ul><li>Manufacturing Cycle Time </li></ul></ul></ul><ul><ul><ul><li>Capacity </li></ul></ul></ul><ul><ul><li>Production System Score by site </li></ul></ul><ul><ul><li>Strategic Improvements </li></ul></ul><ul><li>Future State Value Stream Map </li></ul><ul><li>Supplier Quality Road Map </li></ul><ul><ul><li>Summary </li></ul></ul><ul><li>What has been done </li></ul><ul><li>What needs to be done </li></ul>
  14. 14. Sample of Performance Data Review
  15. 15. Delivery PPM by Site Example
  16. 16. 13 & 5 Wks Quality PPM’s by Site Example
  17. 17. Total Cycle Time Metric by Site/Value Stream Example
  18. 18. Weekly Trend - %Min Finish Goods Example
  19. 19. Weekly Backorder by Line Item Example
  20. 20. Production System Score <ul><li>Baseline Score _______________________ 459 </li></ul><ul><li>Current Score ________________________ 575 </li></ul><ul><li>Project Target Score ___________________ 683 </li></ul>Example
  21. 21. Capacity <ul><li>Capacity Review Should Include </li></ul><ul><ul><li>Facilities </li></ul></ul><ul><ul><li>Equipment </li></ul></ul><ul><ul><li>Material & Supply Base </li></ul></ul><ul><ul><li>Labor both Direct and Indirect </li></ul></ul>
  22. 22. Current/Future State Value Stream Map
  23. 23. Sample Improvement Roadmap
  24. 24. Improvement Roadmap
  25. 25. Performance Review <ul><ul><li>Summary </li></ul></ul><ul><ul><li>Next Steps </li></ul></ul>
  26. 26. You Own Your Performance <ul><li>Primary supplier owns quality, delivery, cycle time to AMAT, You were awarded the business with this understanding. </li></ul><ul><li>Special Process Suppliers </li></ul><ul><li>Sub-tier suppliers </li></ul><ul><li>Transportation/Distribution </li></ul>Excuses
  27. 27. Questions ?
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