This performance improvement road map outlines the framework for your firm to deliver more, in less time, while being more flexible. By following this approach, you are able to dramatically reduce costs and build a Management Operating System that aligns your facilities, capabilities and processes with senior management’s strategic objectives and drive sustainable bottom-line results.

1. Operations Excellence
Fundamentals
1

2. DETAILED PROCESS FLOW FOR OPERATIONS EXCELLENCE
Follow-Up/Report
Forecast Plan Assign
MARKET ACTION LOG
MONTHLY MASTER
ANALYSIS
Executive MASTER
COMPANY SCHEDULE REVIEW
SCHEDULE
GOALS MEETING
SALES SAVINGS
FORECAST EVALUATION
VARIANCE
EXPECTATIONS
SUMMARIES
ACTION LOG MANAGEMENT
REPORT
WEEKLY
MANAGEMENT
Make an Impact MEETING
Continuous Improvement
Process
TWO WAY COMMUNICATION
Manager WEEKLY
OPERATING
ACTION LOG REPORT
VARIANCE
DEPARTMENTAL
SUMMARIES
DEPARTMENTAL MONTHLY/
Make an Impact
GOALS WEEKLY WEEKLY
Continuous Improvement
PLAN DEPARTMENT
Process MEETING
EXPECTATIONS
TWO WAY COMMUNICATION
VARIANCE
REPORT
DAILY
DAILY
WORK
AREA OPERATING
ASSIGNMENT
PLAN
GOALS REPORT
PLAN
ACTION LOG
WORK
Supervisor INSTRUCTIONS
MANLOAD / NORMS V L DAILY
CREWING GUIDE/CONVERSION CHART O O Make an Impact REVIEW
SCHEDULE
RATED MACHINE SPEED / CREWING L S Continuous Improvement MEETING
CONTROL
CHANGE-OVER PROCEDURES / TIME
U S Process
PREVENTATIVE MAINTENANCE SCHEDULE
M E
FLEXIBILITY CHART
E S
EMPLOYEE TRAINING PLAN
UPDATE LOSSES WITH LATEST IMPROVEMENTS

3. OPERATIONS EXCELLENCE OBJECTIVES
• To coordinate & align the corporate strategy (mission, vision and
values) of the organization with operations execution across all
Departments and/or Regions of the enterprise
• To ensure the right thing reaches the right place at the right time
with the correct number of trained people available to handle the
planned level of work
• To provide a vehicle for Management to communicate and
cooperate across Departments (no Business Area can work
effectively in isolation)
• To ensure that each person involved with the System must know
and use the System
3

4. IF ONE OF THE LINKS IS REMOVED FROM THE CHAIN,
THE CHAIN IS BROKEN !
4

5. OPEX Highlights
• Reporting & the Management
Cycle
• What is Reporting
TODAY’S
LESSONS
• Using Reports
• Examples of OPEX Reports
• Guidelines for Reports
5

6. The Principles of the Management Cycle
• The Primary Responsibility of Management is the
Pro-active Control of Work
• Management Control is achieved through the
Effective use of the Management Cycle
Natural Division
Forecast / Plan
Assign / Execute
Report
Follow-up
Natural Division
6

7. The Principles of the Management Cycle
Forecast / Specific Events & Timeframe
needed to meet scheduled
Plan
forecasts.
Assignments necessary to
Assign /
achieve plans on schedule.
Execute
Assure continual effective and efficient
Follow-up
utilization of resources
Measure compliance of assignments on a
Report
scheduled basis according to Standard
Operating Procedures while providing value-
added activities to the process.
7

8. Reporting and the Management Cycle
• Reporting is an element of the Operations
Management Cycle, when the Cycle is broken
Management cannot and does not effectively
occur
Plan and
Forecast Schedule
Assign and
Follow-up Execute
8

9. Reporting and the Management Cycle
Follow an Executed Plan and Follow-up is
essential to understand the results!
• Was the Forecast good?
• Was the Plan effective?
• How was the Scheduling?
• Did we Execute effectively?
• Was Follow-up timely?
WE “FOLLOWED-UP” AND USED
ACCURATELY REPORTING
9

10. Reporting and the Management Cycle
Report completion
“Does not end the Task!”
• Reports require evaluation
• Identify what went well
• Identify what can be improved
• FOLLOW-UP and FOLLOW-UP
10

11. What is Reporting ?
• Presenting actual results
• Showing variances to plan
• Identifying opportunities
• Development of resolutions
• Supporting operating systems
• Creating historic data
11

12. Reporting Used as a Thermometer
• Reporting determines focus
• Assists management follow-up
• Provides summaries of facts
• Base point for analysis
• Reporting modifies behaviors
• Enhances forecasting & planning
• Paints honest picture of situations
12

13. Using Your Reports
• Reports are Communications
• Reports request assistance
• Review with source authors
• Know report limitations
• Understand report’s calculations
• Understand meaning of the numbers
• FOLLOW-UP FOLLOW-UP FOLLOW-UP
13

14. Examples of OPEX Reports
• Daily ~ Weekly Operating Report
This is used to track individual Business Unit performance
against a Base & Goal, on a Daily Weekly basis. It is used
by the Operations Leader.
• Management Report
This is used to track Total business performance (all areas).
It reports ALL Key Performance Indicators. It is used by the
Business Unit Leaders and Upper Management.
• OPEX Visual Dashboard Display
This is used to graphically display key information at the Point of
Execution, including Area specific Key Performance Indicator
Metrics and Action Items identifying appropriate Corrective Action
where needed.
14

15. Guidelines for Preparing Reports
• Ensure compliance to gathering process
• Deliver complete & correct data
- Review and edit data
- Does the data make sense
- Check the math
- Is it understandable
- Did we FOLLOW-UP!!!
• Deliver data on-time
15

16. The Three C’s
COMPLETE CONCISE CORRECT
• Have all the numbers been entered?
• Did we re-check all calculations?
• Did we correct suspect information?
• Did we check with sources of reference?
16

17. Key Performance Indicator Trend Analysis
Productivity Utilization
Identify what change in the process has taken place and proceduralize.
Was it a result of better record keeping?
Was it a result of better supervisory follow up?
Productivity Efficiency
Need to understand what is happening to indirect activities:
Was the decrease in value added indirect activities resulting in short term gains at the
expense of long term sustaining gains?
Was the decrease in non-value added indirect activities?
Efficiency
100% Are the standards correct? Base change only on direct observations.
Has there been a change in the process to caused an improvement?
Are there short cuts taking place that could result in quality issues?
Efficiency
100% Have problems been identified and quantified?.
What are the action plans that have been identified and what is their status?
Are there training that need to be addressed?
Attainment Overtime
If attainment is over 100%, why is there and increase in overtime?
100% Are we over capacity due to future capacity constraints, past due back logs, or because
we are ignoring the schedule?
Is the floor in danger of stock outs?
Attainment
Are we in danger of missing customer requirement dates?
100%
Does the floor need to work overtime to make up the low attainment?
Have customers been notified if their orders are going to be late?
Does the floor have a utilization or efficiency problem?
17

18. DASHBOARD
OPERATIONS EXCELLENCE (OPEX)
KPI Action Item
Dashboard Dashboard
• Attainment • Variance Log Summary
• Utilization • Variance Trend Graphs
• Efficiency • Action Items Log
• Productivity • Detailed Action Plans
• Yield • Results
• Scrap
• Forecast Accuracy
Roles & Responsibilities Roles & Responsibilities
Updated Daily / Weekly by Updated as needed
Shift Supervisors
18