Performance Management System
Performance Management System
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
Aims and Objectives
Fire Exits: Everyone know the procedure?
We Will………
We Will Not…….
Group Agreements:
Welcome to the Performance Management Training
• Name
• Department
• Current knowledge of Performance Management
Introductions
How KPI’s & Issues Management interact to make a complete Performance Management
System.
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt System
Plan Improvement
Build Incentives
Capture Issues & Resolve
Information Centre / Team boardAn information centre will be located line side and provide a key communication
tool, meeting point and focus for managing line performance
TEAM BOARD : STATION 99QUALITYQUALITYQUALITYQUALITY COSTCOSTCOSTCOST DELIVERYDELIVERYDELIVERYDELIVERY PEOPLEPEOPLEPEOPLEPEOPLE
SCRAP
CONCESSIONS / DEFECTS
PRODUCTIVITY SKILLS MATRIX
ATTENDANCE
HEALTH & SAFETY
TAKT ADHERENCE
5C
CURRENT
PREVIOUS
LOCAL INFORMATION
DISRUPTIONS
SHIFT : TEAM LEADER :SHIFT : TEAM LEADER :SHIFT : TEAM LEADER :SHIFT : TEAM LEADER :
SIGN OFF
PRD File
ISSUES RESOLVED
Aim:
To enable you to leave the session able to set up & run a Performance Management System in your
area.
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!”
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.
Performance Management
Performance Management relies on gathering accurate data about how processes perform in order to stimulate improvement activity
Data
Information
Measurement
ImprovementThere can be no information without data
There can be no measurement without information
There can be no improvement withoutmeasurement
There can be no data without operator involvement
How Performance improves with Management
Flip Chart
A performance management system is needed to ensure we meet ourobligations to customers, shareholders & employees
Aims: Benefits:
• Make our performancevisible• Drive us to take action• Provide timely feedback on the effects of our actions
• Highly visible performance gap
• Increased pressure to improve
• Indication where improvement is needed
• Continuous and sustained improvement in quality, cost, delivery and safety
• Satisfied customer, shareholders and employees
Aims & Benefits ofPerformance Management
The performance management system needs to focus not only onmonitoring but on action centered management
Key Elements of a PerformanceManagement System
Elements Key tools
Monitoring
Visible KPIs with agreed targets
Cascaded objectives for all
Progress tracker for each section
Central information system
Regular review process
Action-centred
management
Andon system (line stop)
Formal and well understood escalation procedure
Standard work
Line side rebalancing mechanisms
Kaizen
!!!!!
!
!!
!
!
Performance Management Framework
Design a KPI
HierarchySet
Targets
Performance Mgt System
Define the key Drivers (QCDP)Cascade K.P.I.’s through the organisation
Create achievable‘stretch’ targets for
each KPI
KPI - examples TargetQuality
Defects(Defects per unit)Errors(errors per unit)
DeliverySchedule adherence(Hours delta to plan)Cycle Time(Hours per Unit)
CostManning(man hours per set)(Cost per unit)
PeopleSkill LevelTraining Hours
0 delta (nil Hours behind or ahead of plan)
To be agreed
1 Defects per unit
2 errors per unit
270 hours per unit
£5,000 per unit
Key performance indicators need to be simple and focused
75% people trained to Practitioner Level40 hrs per man per year
Typical KPI’s
Performance Management Framework
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt System Create support
work streams & haveissues logged with
them visually
Work Package Progress Tracker
A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action
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2
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Operator
Cycle Time
Takt Time
Task Description Unit Start
dateStart Time Target finish
WORKPACKAGE 1 PACKAGE PROGRESS TRACKER
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Performance Management Indicators
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10
Week 11
Week 12
Week 13
Week 14
Week 15
Week 16
Week 17
Week 18
Week 19
Week 20
Week 21
Week 22
Week 23
Week 24
Week 25
Week 26
Week 27
Week 28
Week 29
Week 30
Week 31
Week 32
Week 33
Week 34
Week 35
Week 36
Week 37
Week 38
Week 39
Week 40
Week 41
Week 42
Week 43
Week 44
Week 45
Week 46
Week 47
Week 48
Week 49
Week 50
Week 51
Week 52
2001
M T W Th F M T W Th F
M T W Th F M T W Th F
Team Attendance
Team Leader: _______________
Shift: _____ Defects Per Unit W/P: ______
3456 3456 3456 3456
• Andon call system and line stop
Andon board
1 2 3 4 5 6 7 8Issues 1 2 3 4 5 6 7 8Stopped 1 2 3 4 5 6 7 8
On plan
Performance Management Indicators
Issues Outstanding W/P: ______
43 44 45 46 47 48 49 50 51 52
Scrap / Lost on Shop SHIFT: ______
Scrap
Lost
34 35 36 37 38 39 40 41 42 43 43 44 45
Shift: ______ProductivityTakt Achievement
Performance Management Indicators
•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.
Process
Management Audit
Management Audit
Audit process ensures the performance management process is being used
appropriately
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.
Flowline Performance and Workplace Management Flowline Performance and Workplace Management Flowline Performance and Workplace Management Flowline Performance and Workplace Management AuditAuditAuditAudit
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50
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80
90
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3/02
30/0
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4/02
03/0
4/02
05/0
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07/0
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09/0
4/02
11/0
4/02
13/0
4/02
15/0
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4/02
DateDateDateDate
Ce
ll S
co
reC
ell
Sc
ore
Ce
ll S
co
reC
ell
Sc
ore
Cell 1
Cell 2
Cell 3
TARGET
Management Audit Scores
Ongoing Maintenanceof the Department
T/LHandover
- Daily -T/L must completeat the end of shiftand hand to the
incoming T/L
- Daily -The incoming T/Lneeds to decide
whether the dept.is in an acceptable condition
DAILYWEEKLY
YES NO
T/L can nowcontinue to deployoperators onto job
T/L off the previousshift to rectify the
issues with immediateeffect
ACCEPTABLEHANDOVER ?
The handover documentto C/L for archive
PUM C/L
- Weekly -C/L(with or without PUM) mustComplete the Cell Performance/
Workplace Mgnt Audit Sheet
- Weekly -PUM must then feedthe results into the
HUD
- Weekly -PUM must conduct an auditusing the Area Map (supportpersonnel to attend) +adhoc
dip check ofT/L Handover archive
- Weekly -Results communicated toT/Ls at the morning brief,
then communicated to Operations(via PMS Board)
C/L to understand/address any
shortfalls then filein C/Ls Office
- Weekly -PUM to review the auditWith Ops Manager/HoB
Before the HUD is updated
Audit Process Schematic
Performance Management Framework
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt System
Capture Issues & Resolve
Formalise the shift handover & IPT around the
tracking system & Capture Issues for resolution
Issues Resolution Process
Team Leader
MgrPUM
Shift Leader
Team Member
Issue Management - Information Flow
ISSU E ESCA LA TION STR IP
Raised on Issue Bo ard : ____/____/____ W /P N o.______ Issue No. ______
Who What Where When How
Shift Report
Conce ssion s
P roductivity
Ta kt A chievem ent
S crap / Lost
Issue s O utstanding
W or k P ack age 1 2 3 4 Totals
N otes:
T/L
S/L
PUM
H.O.B Strip Meeting
Escalation Meeting
T/L Issues Board
On Team-Leader board, shop floor As information / issues become available. Should be updated at earliest opportunity to display the real time state
As per Issue board process
Shift ReportAt Team-Leader board, shop floor Set review for each team, 16:30 w/p 1
16:40 w/p 216:50 w/p 317:00 w/p 4
5 minute status review of key metrics displayed on board. 5 minute discussion of pertinent issues / suggestions
PUM Office Thursday, 08:30-09:00 PUM’s propose strips and debate which to raise / which are appropriate
Head of Business chairs meeting. Assembly managers and managers from support departments review progress on Strips(PUMs in attendance as required)
Friday, 08:00-08:30Information Centre
T/L
T/LAndon Light
DisruptionLog
On Team-Leader board, shop floor
On shop floor with team As disruptions occur, they are logged.
When a problem has occurred that will prevent the Team from achieving planned productivity.
(Rules change with Andon maturity)
Light mounted on Team-Leader Board is switched on. Dept responsible is contacted and rep. summoned. Light off only when problem owned & plan in place
Any disruptions causing delay are entered into the log. The description, time length of delay and owner are recorded.
Esc
alat
ion
S/LIntegrated Production Team
& Problem Owners
& Team Leaders
& Support Dept.
conference room Each morning, start of shift PUM and C/L review prior to IPT
Direction set for the day. Major issues discussed briefly.
A. Mgr Information Centre Thursday, 09:00-09:45 Assembly Mgr and PUMs review progress over week using key metrics on the Shop information board. PUM’s propose Strips to Assembly Manager
Weekly Review
& PUMS
Assembly MgrsSupport Mgrs
Issue Escalation
Disruption Log - Shift Report
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.
a b c d e f g h i j k l
How to Review The Issues Board
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
Issue Resolution - PUM
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
Issue Resolution - Ops Mgr
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt SystemTackle issues locally
where possible; utilisesystems to solve
high priority issues.
Plan Improvement
Capture Issues & Resolve
Performance Management Framework
Flip Chart
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 – FITProblem Resolution Document - PRD
Engineering Query Note - EQNCorrective Action Board - CAB
Non-Conformance Review Board - NCRBMaintenance requestTooling Modifications
Improved Method & Improved Control - Work InstructionsLine Balancing
Improve Environment - 5 C
How to Plan Improvements
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt System
Plan Improvement
Build Incentives
Create an environmentof continuous
improvement for a better workplace
Capture Issues & Resolve
Performance Management Framework
Flip Chart
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
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
Performance Management Framework
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt System
Plan Improvement
Build Incentives
Capture Issues & Resolve
Performance Management Framework
Attributes of Performance Managment No OK1. 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
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.
Why do Performance Management?
Flip Chart
Performance Management
Flip Chart
Define the information need to be displayed and where
Involve the all stakeholderssupport team, team leaders and operators
Define the frequency of update and who
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
Define the system:
Creating a Performance Management System for your area!
NO. ISSUES ACTION WHO WHEN STATUS
Action Plan Sheet
• Why do Performance Management
• Main Principles of Performance Management
• Tools of Performance Management
• How to implement
Design a KPI
Hierarchy
Install tracking
systems & process
Set Targets
Performance Mgt System
Plan Improvement
Build Incentives
Capture Issues & Resolve
Summary
Aim:
To enable you to leave the session able to set up & run a Performance Management System in your
area.
Are you able?
Performance Management Course