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Daily Management Overview

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A system of Daily Management (based on the work of Luftig & Warren International) that enables management of the day-to-day operation of departments or cells at the lowest possible level by the …

A system of Daily Management (based on the work of Luftig & Warren International) that enables management of the day-to-day operation of departments or cells at the lowest possible level by the process owner. It provides the means to improve performance on an ongoing basis and lock in the hard won gains.


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  • 1. Daily Management – D il M t Engaging the Workforce for  Continual Improvement Ed Gillespie February 8, 2010 F b 8 2010 Based on work copyrighted by Luftig & Warren  Based on work copyrighted by Luftig & Warren International in 2000.  Used with permission.
  • 2. Do These Sound Familiar? • Recurring Problems (solved over and over) bl ( l d d ) • Inability to maintain Kaizen gains (backsliding) – 5S Kaizens 5S Kaizens – SMED Kaizens • “Operator error” or “Training” as root causes • Inability to meet “established” specifications • Surprises • End of month syndrome End of month syndrome – Why the extra effort during the last week of the month  to “Save the  month” ? • ISO di ISO audit cram
  • 3. Milliken & Company Milliken & Company There are three things a company must  g p y improve every year to assure its future  p p y prosperity: 1)  The execution of the basics of its business 2)  Its strategic position in  its markets 3)  Its competitive fitness  for the future
  • 4. Improvement Hierarchy  Improvement built on a  foundation — a weak  foundation leads to collapse  Improve‐ ment of improvement Control  Higher levels require  increasing discipline Standardization  Must start with lowest levels  Maintenance needing work Housekeeping  Upon reaching the top,  U hi th t Management‐Employee  lower levels are then further  Trust & Respect strengthened Management Self‐Discipline
  • 5. These things aren’t difficult… These things aren’t difficult but easy can be hard. y
  • 6. The Basics The Basics The improvement efforts of some  h i ff f organizations resemble trying to  win a Sprint Cup race with a  “beater”.
  • 7. Assumed Results Assumed Results Innovation I ti Assumed Performance ‐ Improvement with Innovation
  • 8. Actual Results Actual Results Backsliding B k lidi Actual Performance ‐ Improvement with Innovation
  • 9. Reality If you are not strengthening  the basics, you are probably  backsliding
  • 10. Innovation with Daily Management Continuous Improvement Performance Improvement  with  Innovation, Control, and Continuous Improvement and Continuous Improvement
  • 11. Three Management Systems Three Management Systems Functional Improvement (DM) Horizontal Alignment (CFM)
  • 12. Daily Management Daily Management Daily  Work il k Daily Management is the  Data‐Based Communication system that provides the  y p ability to manage  Daily   Daily Work  departments, functions,  Control Improvement and processes wherein  and processes wherein processes are defined,  Define & Standardize standardized, controlled,  and improved by the  Establish Ownership  of Area Roles  process owners. & Responsibilities
  • 13. Daily Management is the system that  prevents backsliding by making control and  improvement the norm. C A D S DM
  • 14. Daily Management Vision • Systems are in place that facilitate improvement  y p p within the designated area and strengthen the  infrastructure supporting the area’s performance. • Continuous improvement of the area’s outputs  and associated processes is an accepted way of  d i t d i t d f life. • These systems should facilitate sound business  management within the area. management within the area.
  • 15. Daily Management Vision • More specifically... p y – The area’s purposes, roles and responsibilities are clearly   understood. – KPI’s are in place to understand all aspects of an area including KPI s are in place to understand all aspects of an area including  safety, quality, delivery and cost. – Systematic control methods are in place for area KPI’s. – There is clear understanding of the needs of the internal and There is clear understanding of the needs of the internal and  external customers. – Those needs are translated into improvement priorities and  operational practices. operational practices – Systems in place that maximize associate involvement. – Sound plans are developed to continuously improve area  performance in the context of the company’s overall direction. f i th t t f th ’ ll di ti
  • 16. The Elements of Daily Management Daily  Work Daily Work Data‐Based Communication Daily   Daily Work  Control Improvement Daily Work: The day to  day activities which are  day activities which are Define & Standardize the primary purpose of  the area Establish Ownership  of Area Roles  & Responsibilities
  • 17. The Elements of Daily Management Establish Ownership: Daily  Work Defining the roles and  responsibilities for the  Data‐Based Communication area Daily   Daily Work  Control Improvement Establish Ownership  of Area  Establish Ownership of Area Define & Standardize Roles & Responsibilities
  • 18. Ownership • Documented roles and responsibilities with defined Documented roles and responsibilities with defined  boundaries • Knowledge and skills for required roles and  responsibilities • Defined accountability • Defined authority within span of control • Knowledge of expected results and ability to regulate  performance • Personal commitment made to the outcomes • External acknowledgment of the ownership External acknowledgment of the ownership
  • 19. Four Core Systems Drive Daily Work Process Quality  Management: The  Data‐Based Communication Daily  Work systems of Daily  Management that  Daily   Daily Work  Control Improvement p bring about  bi b t definition, control  Define & Standardize and continuous  and continuous improvement of the  area Establish Ownership  of Area Roles  & Responsibilities
  • 20. The Elements of Daily Management Define & Standardize: Define & Standardize: Defining of the area's  Daily  Work p processes and the  development and  Data‐Based Communication implementation of  common operational  Daily   Daily Work  Control Improvement practices Define & Standardize Establish Ownership  of Area Roles  & Responsibilities
  • 21. Standardize the Process Standardize the Process • Standardization helps  minimize variation in  materials, methods,  equipment, and strategies • Establishes the base from  bl h h b f which to launch  improvement • Locks in improvements  after they are made after they are made
  • 22. The Elements of Daily Management Daily Control: The  Daily Control: The monitoring, control, and  Daily  Work reaction activities of  important processes to  Data‐Based Communication maintain performance  levels and prevent  Daily Work  Improvement backsliding Daily   y Control Define & Standardize Establish Ownership  of Area Roles  & Responsibilities
  • 23. Purpose of Daily Control Purpose of Daily Control Daily Control counteracts this • Maintain  Performance 100 90 80 • Prevent  ance 70 60 Backsliding k ld Performa 50 40 30 20 10 0 Time
  • 24. Elements of Daily Control Elements of Daily Control • Control Item Control Item  Identification 100 90 • Monitoring 80 ance 70 Performa 60 • Evaluation 50 40 30 20 • Reaction 10 0 Time • Prevention
  • 25. Linkage of Metrics Linkage of Metrics Your Manager’s Measures g ures You Measu ur   Metric  Target g  Who Monitors  Who Owns  Update Period Update Period  Tracking Method
  • 26. Evaluation of Daily Control Evaluation of Daily Control • Critical characteristics are not backsliding Critical characteristics are not backsliding • Signals are well understood • Reaction plans are well executed • Roles and responsibilities are clearly defined p y
  • 27. The Elements of Daily Management Daily Work  Daily Work Improvement: The  Daily  Work system that takes system  y y input, prioritizes  Data‐Based Communication opportunities, and  deploys and monitors  Daily   Control improvements using  Daily Work  local resources local resources Improvement Define & Standardize Establish Ownership  of Area Roles  & Responsibilities
  • 28. Daily Work Improvement Daily Work Improvement Daily  Work Daily Work Improvement  drives improvement in  p Data‐Based Communication the other elements of  Daily Management Daily   Daily Daily Work  Daily Work Control Improvement Define & Standardize D fi & St d di Establish Ownership  of Area Roles  & Responsibilities & Responsibilities
  • 29. Continual Improvement Continual Improvement Policy  y Deployment Cross‐ Functional  Functional Problem Management Daily Daily Work identification Control Improvement Recommend for CFM Reaction Plan or PD Execution Prioritized and   Deployed Local  No Improvements p Chronic No Yes Only Local Fix  Resources? Problem? Improvement Ideas d Yes
  • 30. The Elements of Daily Management Daily  Work Data‐Based Communication Data‐Based  D t B d Daily   Daily Work  Communication: The on‐ Control Improvement going communication to  going communication to Define & Standardize provide system feedback,  focus, and alignment within  g Establish Ownership  of Area Roles  & Responsibilities and between areas
  • 31. Data Based Communication • Plan for value‐added, effective,  and efficient communication • Tailor the communication to the  audience • Provide for horizontal and  vertical communications • Remember ‐ Communication  without value is NOISE
  • 32. Interaction of System Elements Daily Work Improvement The Daily Management  system elements work  l k Daily Control Define & Standardize together and  support  each other each other Data-based Daily Work Communication Establish Ownership
  • 33. Guiding Principles • Definition and continuous improvement of area processes. • High energy focus on successful, consistent and timely execution.  • Direct linkage between subordinate, area and senior level KPI’s,  g , , coupled with controls on the key inputs to those metrics. • Vehicle for associate involvement deployed to lowest possible level Vehicle for associate involvement ‐ deployed to lowest possible level. • Enabler for 80/20 focus on Policy Deployment breakthroughs.  • Data based communications and performance assessments. • Effective problem solving to resolve performance gaps.
  • 34. Daily Work Comments Daily Work Comments • Daily Work can be  performed as: – a highly efficient  g y “well‐oiled”  machine, or – a random series of  ineffective events
  • 35. Ineffective Daily Management The components of  Degradation  Process Management are  continues  without sustained  often missing or neglected. infusion of  energy and  resources. Data‐based Communication Without these  components  Daily Work Improvement Daily Work Improvement operating effectively,  operating effectively Daily Control D il C l control and  Define and Standardize improvement will be  difficult. Establish Ownership
  • 36. Daily Management Applies at All Levels Operations Staff Plant Staffs Sub‐Plants Cells
  • 37. Steps to Daily Management Establish system to: •Define roles and responsibilities •Prioritize opportunities Daily Work within and between organization Improvement •Apply resources and methods Apply resources and methods units. •Relationships with other system  elements •Include elements of TAI “The Work” Establish Define and  Data‐based (The product of (The product of Ownership Standardize Communication the Unit) •Define supplier/customer relationships •Define processes •Define targets, specifications and expectations Establish systems to: y •Establish measurement systems y •Monitor and control key  Daily D il •Maintain and improve standard methods processes Control •Develop and codify process knowledge •Respond to  performance  shortfalls
  • 38. Implementation Approaches • Incremental implementation – Long delay before results visible – Maintaining management dedication and discipline key – Over coming inertia of current practices. • Kaizen (3 5 days for 1 3 work centers) Kaizen (3‐5 days for 1‐3 work centers) – Focused training and implementation – Basic system “under roof” to “trim” out in a defined period “ d f” “ ” d f d d • Continued support and development
  • 39. Daily Management Implementation Yes Define  Management   Management Do It? Organization Form Teams Audit Area Overview Form Teams & Structure Form Teams Form Teams No Define, Link, Support from higher levels Stop SIPOC Model Set Ownership & will likely be required. Flow Diagrams Establish Methods Area Basics: Define & Establish & Gaps &  Document  Write Mission Link Metrics Actions Process Establish Establish Daily Work Standardization Transfer Communication Daily Control Improvement Review & Accountability System System System Plan
  • 40. Challenges to Implementation • Management discipline and consistency is key. • Not a quick fix… Not “Fire and forget” • Invert the pyramid Invert the pyramid • Identify leaders within the work group.  • Must  maintain stability for the team. • Must develop team management/meeting skills Must develop team management/meeting skills. • Must develop basic data management and problem solving  skills
  • 41. Prerequisites Empowerment q p Knowledge  Knowledge and  Tools Authority  Responsibility  Responsibility Within  a and  Span of Control Accountability
  • 42. Daily Management Results For a Machining & Assembly Cell  Increased productivity 43% Increased productivity 43%,   Reduced scrap 30%, Reduced scrap 30%,   Reduced set‐uptime 38%, and   Reduced temporary worker training 50%.
  • 43. Daily Management Daily Management “Business, we know, is now so complex and difficult, the  , , p , survival of firms so hazardous in an environment  increasingly unpredictable, competitive, and fraught with  danger, that their continued existence depends danger that their continued existence depends on the day‐to‐day mobilization of every ounce of intelligence.” Konosuke Matsushita Founder, Matsushita Electric Founder Matsushita Electric
  • 44. Questions? 2/9/2010 44