Performance Management System

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Performance Management System

  1. 1. Performance Management System
  2. 2. Aims and Objectives 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. 3. Welcome to the Performance Management Training Fire Exits: Everyone know the procedure? Group Agreements: We Will……… We Will Not…….
  4. 4. Introductions • Name • Department • Current knowledge of Performance Management
  5. 5. How KPI’s & Issues Management interact to make a complete Performance Management System. Design a KPI Hierarchy Build Set Incentives Targets Performance Mgt System Install Plan tracking Improvement systems & Capture process Issues & Resolve
  6. 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 PRODUCTIVITY TAKT ADHERENCE SKILLS MATRIX CONCESSIONS / DISRUPTIONS CURRENT ATTENDANCE DEFECTS ISSUES RESOLVED HEALTH & SAFETY PREVIOUS LOCAL INFORMATION SIGN OFF 5C SHIFT : TEAM LEADER : PRD File
  7. 7. Performance Management Aim: To enable you to leave the session able to set up & run a Performance Management System in your area.
  8. 8. 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!”
  9. 9. Performance Management 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.
  10. 10. How Performance improves with Management There can be no data without operator involvement Data There can be no There can be no improvement Improvement Information information without without data measurement Measurement There can be no measurement without information Performance Management relies on gathering accurate data about how processes perform in order to stimulate improvement activity
  11. 11. Aims & Benefits of Performance Management Aims: Benefits: • Make our performance • Highly visible performance visible gap • Drive us to take action • Increased pressure to • Provide timely feedback Flip Chart improve on the effects of our • Indication where actions improvement is needed • Continuous and sustained improvement in quality, cost, delivery and safety • Satisfied customer, shareholders and employees A performance management system is needed to ensure we meet our obligations to customers, shareholders & employees
  12. 12. Key Elements of a Performance Management System Elements Key tools ! Visible KPIs with agreed targets ! Cascaded objectives for all Monitoring ! Progress tracker for each section ! Central information system ! Regular review process ! Andon system (line stop) Action- ! Formal and well understood escalation procedure centred ! Standard work management ! Line side rebalancing mechanisms ! Kaizen The performance management system needs to focus not only on monitoring but on action centered management
  13. 13. Performance Management Framework Define the key Drivers (QCDP) Cascade K.P.I.’s through the organisation Design a KPI Hierarchy Set Create achievable Targets ‘stretch’ targets for each KPI Performance Mgt System
  14. 14. Typical KPI’s KPI - examples Target Quality Defects 1 Defects per unit (Defects per unit) Errors (errors per unit) 2 errors per unit Delivery Schedule adherence 0 delta (nil Hours behind or ahead of plan) (Hours delta to plan) Cycle Time To be agreed (Hours per Unit) Cost Manning 270 hours per unit (man hours per set) (Cost per unit) £5,000 per unit People Skill Level 75% people trained to Practitioner Level Training Hours 40 hrs per man per year Key performance indicators need to be simple and focused
  15. 15. Performance Management Framework Design a KPI Hierarchy Set Targets Performance Mgt System Install Create support tracking work streams & have systems & issues logged with process them visually
  16. 16. Performance Management Indicators Work Package Progress Tracker Task WORKPACKAGE 1 PACKAGE PROGRESS TRACKER Description Cycle Time Unit Start Start Time Target finish date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Root end Root end Root end chop lugs chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end 1 chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs Operator Root end Root end chop lugs Root end Root end chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end 2 chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs Takt Time Root end Root end Root end 3 chop lugs chop lugs Root end chop lugs 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 Root end Root end chop lugs chop lugs chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end 4 chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs Root end Root end 5 Root end chop lugs chop lugs Root end chop lugs 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 Root end Root end chop lugs chop lugs chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end 6 chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs Root end Root end 7 Root end chop lugs chop lugs Root end chop lugs 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 Root end Root end chop lugs chop lugs 8 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 Root end Root end chop lugs chop lugs 9 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 A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action
  17. 17. Performance Management Indicators Shift: _____ Defects Per Unit W/P: ______ Team Attendance M T W Th F M T W Th F Week 1 Week 27 Week 2 Week 28 Week 3 Week 29 Week 4 Week 30 Week 5 Week 31 Week 6 Week 32 Week 7 Week 33 Week 8 Week 34 Week 9 Week 35 Week 10 Week 36 Week 11 Week 37 Week 12 Week 38 Week 13 Week 39 Week 14 Week 40 Week 15 Week 16 2001 Week 41 Week 42 Week 17 Week 43 3456 3456 3456 3456 Week 18 Week 44 Week 19 Week 45 Week 20 Week 46 Week 21 Week 47 Week 22 Week 48 Week 23 Week 49 Week 24 Week 50 Week 25 Week 51 Week 26 Week 52 M T W Th F M T W Th F Team Leader: _______________ • Andon call system and Andon board On plan 1 2 3 4 5 6 7 8 line stop Issues 1 2 3 4 5 6 7 8 Stopped 1 2 3 4 5 6 7 8
  18. 18. Performance Management Indicators Productivity Shift: ______ Takt Achievement SHIFT: ______ Scrap / Lost on Shop Scrap Issues Outstanding W/P: ______ Lost 34 35 36 37 38 39 40 41 42 43 43 44 45 43 44 45 46 47 48 49 50 51 52
  19. 19. Management Audit Process •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.
  20. 20. Management Audit 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. Audit process ensures the performance management process is being used appropriately
  21. 21. Cell Score 0 100 10 20 30 40 50 60 70 80 90 26/03/02 28/03/02 30/03/02 01/04/02 03/04/02 05/04/02 07/04/02 09/04/02 11/04/02 13/04/02 Au d it 15/04/02 17/04/02 19/04/02 21/04/02 23/04/02 25/04/02 27/04/02 Management Audit Scores 29/04/02 F lo wlin e Pe r fo r ma n c e a n d Wo r k p la c e Ma n a g e me n t Da t e Cell 3 Cell 2 Cell 1 TARGET
  22. 22. Audit Process Schematic Ongoing Maintenance C/L to understand/ address any of the Department shortfalls then file in C/Ls Office The handover document to C/L for archive DAILY WEEKLY PUM C/L - Daily - T/L The incoming T/L Handover needs to decide whether the dept.is in an - Weekly - - Weekly - - Daily - acceptable condition PUM must conduct an audit C/L(with or without PUM) must using the Area Map (support Complete the Cell Performance/ T/L must complete personnel to attend) +adhoc Workplace Mgnt Audit Sheet at the end of shift dip check ofT/L Handover archive and hand to the incoming T/L YES NO - Weekly - PUM to review the audit T/L off the previous With Ops Manager/HoB shift to rectify the Before the HUD is updated issues with immediate effect T/L can now continue to deploy - Weekly - - Weekly - operators onto job PUM must then feed Results communicated to ACCEPTABLE the results into the T/Ls at the morning brief, HANDOVER ? HUD then communicated to Operations (via PMS Board)
  23. 23. Performance Management Framework Design a KPI Hierarchy Set Targets Performance Mgt System Install tracking systems & Formalise the shift hand Capture process over & IPT around the Issues & tracking system & Capture Resolve Issues for resolution
  24. 24. Issue Management - Information Flow Issues Resolution Process Team Member Team Leader Shift Leader PUM Mgr
  25. 25. Issue Escalation Who What Where When How On shop floor with team As disruptions occur, they are logged. Any disruptions causing delay are T/L Disruption entered into the log. The description, time length of delay and owner are Log recorded. On Team-Leader board, shop floor When a problem has occurred that will Light mounted on Team-Leader Andon Light prevent the Team from achieving Board is switched on. Dept planned productivity. responsible is contacted and rep. T/L summoned. Light off only when Escalation (Rules change with Andon maturity) problem owned & plan in place On Team-Leader board, shop floor As information / issues become As per Issue board process T/L T/L available. Should be updated at earliest opportunity to display the real time & Problem Owners Issues Board state Sh ift R epo rt 1 2 3 4 Tot als At Team-Leader board, shop floor Set review for each team, 16:30 w/p 1 5 minute status review of key Shift Report W or k P ack age S/L C once ss ion s P roducti vity Ta kt A chi evem ent S crap / Los t 16:40 w/p 2 metrics displayed on board. 5 minute & Team Leaders Is sue s O ut st anding N otes : 16:50 w/p 3 discussion of pertinent issues / 17:00 w/p 4 suggestions conference room Each morning, start of shift PUM and C/L review prior to IPT Integrated Production Team S/L Direction set for the day. Major issues discussed briefly. & Support Dept. Escalation Meeting PUM Office Thursday, 08:30-09:00 PUM’s propose strips and debate PUM IS S U E E S C A L A T IO N S T R IP which to raise / which are appropriate R a is e d on Is s ue B o a rd : _ _ _ _ /_ _ _ _ /_ _ __ W /P N o._ _ _ _ __ Is s ue N o. _ _ _ _ _ _ Weekly Review Information Centre Thursday, 09:00-09:45 Assembly Mgr and PUMs review A. Mgr progress over week using key metrics on the Shop information & PUMS board. PUM’s propose Strips to Assembly Manager Strip Meeting Information Centre Friday, 08:00-08:30 Head of Business chairs meeting. H.O.B Assembly managers and managers Assembly Mgrs from support departments review Support Mgrs progress on Strips (PUMs in attendance as required)
  26. 26. Disruption Log - Shift Report
  27. 27. How to Review The Issues Board a b c d e f g h i j k l 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.
  28. 28. Issue Resolution - PUM 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. 29. Issue Resolution - Ops Mgr 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. 30. Performance Management Framework Design a KPI Hierarchy Set Targets Performance Tackle issues locally Mgt System Install Plan tracking where possible; utilise Improvement systems & systems to solve high priority issues. Capture process Issues & Resolve
  31. 31. How to Plan Improvements 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 Flip Chart 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. 32. Performance Management Framework Design a KPI Create an environment Hierarchy of continuous Build Set improvement for a better Incentives Targets workplace Performance Mgt System Install Plan tracking Improvement systems & Capture process Issues & Resolve
  33. 33. Performance Management Framework 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 Flip Chart 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. 34. Performance Management Framework Design a KPI Hierarchy Build Set Incentives Targets Performance Install Mgt System Plan tracking Improvement systems & Capture process Issues & Resolve
  35. 35. 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. 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
  36. 36. Performance Management Why do Performance Management? Flip Chart
  37. 37. Creating a Performance Management System for your area! Define the system: Define the information need to be displayed and where Involve the all stakeholders support team, team leaders and operators Define the frequency of update and who Flip Chart 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
  38. 38. Action Plan Sheet NO. ISSUES ACTION WHO WHEN STATUS
  39. 39. Summary • Why do Performance Management • Main Principles of Performance Management Design a • Tools of Performance Management KPI Hierarchy Build Set • How to implement Incentives Targets Performance Mgt System Install Plan tracking Improvement systems & process Capture Issues & Resolve
  40. 40. Performance Management Course Aim: To enable you to leave the session able to set up & run a Performance Management System in your area. Are you able?

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