Operations reviews
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The document discusses different levels of operational reviews that can be implemented to ensure teams are focusing on the right things and continuously improving performance. Mini reviews within a shift analyze data over a short timeframe to provide focus. Tactical reviews within a shift analyze data since the last review to provide focus until the next review. 24 hour meetings analyze data over the last 24 hours and provide focus for the next 24 hours. Weekly/strategic reviews analyze a week's performance to identify improvement opportunities. The reviews have different objectives like identifying greatest losses, reviewing action effectiveness, setting improvement targets. They also have minimum standards like agreed structure and attendance, identifying top losses, assigning responsibilities. Regularly auditing the reviews ensures the accuracy of data
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Controlling is one of the four main functions of management and involves measuring performance, comparing it to standards, and taking corrective action. Managers use various control tools and techniques including objectives and standards, accurate and timely measurement, comparison of actual performance to objectives, corrective action, management by exception, and feedforward, concurrent, and feedback controls. Controls can be internal through self-discipline or external through supervision, policies, budgets, and other administrative systems. Quality control, total quality management, continuous improvement, control charts, and techniques like Six Sigma and Gantt charts are important control methods. Financial ratios and balanced scorecards also help managers exercise strategic control.
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7Keeping Things in CheckControls and the Control Process.docx
7
Keeping Things in Check
Controls and the Control Process
Learning Objectives
After Studying This Chapter, Students Should Be Able To
· Understand the elements of control, measurement tools, and corrective steps
· Differentiate among the types of controls utilized within an organization
· Employ control strategies for effective management
· Identify which control processes are effective in an operational setting
· Describe an integrated planning process
Chapter Summary
Chapter 7 focuses on maintaining control by becoming adept at utilizing various control techniques and processes.
Components of the Control Process
There are four basic components of the control process:
1. Planning: Sets the directions and allocates resources.
2. Organizing: Brings people and material resources together in working combinations.
3. Leading: Inspires people to best utilize these resources.
4. Controlling: Checks that the right things happen, in the right way, and at the right time.
Objectives and Standards
· Objectives provide the performance targets.
· Output standards measure results in terms of performance quantity, quality, cost, or time.
· Input standards measure effort in terms of the amount of work expended in task performance.
Measurement Tools
Managers are able to not only adopt measurement tools by which success can be determined, but they also can use historical comparison (historical information), relative comparison (comparing to performances of others), or engineering comparison (comparing to scientific standards as a means of evaluating performance).
Corrective Action
The last step in the control process is to take any action necessary to correct or improve future performance. Management by exception can be used to direct action on problems requiring more urgent attention.
Effective Controls
The best managers, by contrast, are proactive and positive in applying the control process to full advantage. Effective controls in organizations share the following characteristics:
· Controls are understandable: They support decision making by presenting data in understandable terms; they do not involve complex reports and hard-to-understand statistics.
· Controls encourage self-control: They allow for mutual trust, good communication and participation among everyone involved.
· Controls are timely and exception-oriented: They report deviations quickly, lending insight into why a performance gap exists and what you can do to correct it.
· Controls are positive in nature: They emphasize their contribution to development, change, and systems improvement; they deemphasize their role in penalties and reprimands.
· Controls are fair and objective: They are considered impartial and accurate by everyone; they are respected for one fundamental purpose—performance enhancement.
· Controls are flexible: They leave room for individual judgment and can be modified to fit new circumstances as they arise.
Types of Control
A variety of control strat.
Management Review
Management review is the routine evaluation of whether management systems are performing as intended and producing the desired results as efficiently as possible. It is the ongoing “due diligence” review by management that fills the gap between day-to-day work activities and periodic formal audits.
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- 2. Why Implement Operational Reviews? • To ensure teams are focusing on the right things at the right time • A lack of a habitual performance management will almost guarantee a steady decline in results What gets measured, gets managed What gets managed can be maintained and improved upon
- 4. Review Level Purpose Who’s Involved 1hr Mini Reviews within Shift • Analyse data over a short • timeframe to provide focus Set on-going focus • Lead Operator/Lead Technician • Operator of worst performing machine • Line Leader/Team Leader (Optional) 1,2 or 4hr Tactical Review within Shift (SIC) • Analyse data since the last review • Provide focus until next review Set improvement targets for next interval • Line/Team Leader • Lead Operator/Lead Technician • Manufacturing Manager (Optional) 24 Hour Meetings (AM/PM) • Analyse data over the last 24 hrs • Provide focus for the next 24 hrs Set improvement targets for next day • Manufacturing/Shift Manager • Line Leader/Team Leader • Lead Operator/Line Technician • Technical Expert • Asset care representative • Operations/Technical Mgrs (Optional) Weekly/Period Strategic • Review week’s performance of each line • Identify improvement opportunities Set improvement targets for the next week • Operations Manager • Engineering Manager • Manufacturing/Shift Manager • Asset Care Manager • Zonal owner/Team leader (Optional)
- 5. Mini Reviews within Shift Tactical Review within shift (Short Interval Control) 24 Hour review Weekly Strategic Review Purpose Analyse data over a short timeframe to provide focus. Analyse data since the last review to provide focus area until the next review. Analyse data over the last 24 hours and provide focus for the next 24 hours. Review the week’s performance of each line to identify improvement opportunities. Objectives Identify the greatest loss and provide focus Review action effectiveness Identify greatest losses to the line and allocate actions and targets Review effectiveness of completed actions Review any planned downtime event identify actions if not within target Identify any planned downtime event due and plan to make it as effective as possible Plan any maintenance activities by looking for the next available opportunity Identify the top losses and provide focus for the day allocating corrective actions Review the effectiveness of actions Check compliance and effectiveness of the tactical reviews Review any internal and external planned downtime events and allocate actions if required Identify any asset care opportunities in the next 24 hours Review the weeks performance of each line and an 8 week trend of data Identify the top focus areas and provide corrective actions to resolve the greatest loss areas Review medium/long term action list Confirm effectiveness of closed actions Plan for any improvement projects by allocating targets, timeframe and resource Minimum standards and measures Ensure identified actions from the tactical review are having a positive effect Review current situation to ensure there is focus on the greatest loss area Agreed structure and attendance Top loss identified Improvement target set Responsibility or accountability assigned Agreed structure and attendance Top losses for the last 24 hours identified Review correlation of top losses identified in shift tactical reviews with the 24hour review Review effectiveness of actions Assign accountabilities, targets and timeframes Agreed structure and attendance Top focus areas for each line identified Improvement targets and accountabilities assigned Review action completion and effectiveness
- 6. Operational Reviews at a Glance
- 7. Three factors affecting results • Information - The accuracy of the data (that identifies current losses) • Focus - The amount of time spent understanding and formulating decisions • Actions - The quality of actions/fixes that are taken (that target resolution of the underlying losses) Auditing the meetings, reviews and outputs for their effectiveness is a powerful tool to assist the change process