Performance Management System

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Performance Management System
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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 KPIs)
• Aims Objectives
• Understanding of Issue Resolution
• Ensure people can interpret KPIs 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

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Welcome to the Performance Management Training
Fire Exits Everyone know the procedure?
Group Agreements
We Will We Will Not.
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Introductions

• Name
• Department
• Current knowledge of Performance Management

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How KPIs Issues Management interact to make a
complete Performance Management System.
Design a KPI Hierarchy
Set Targets
Build Incentives
Performance Mgt System
Install tracking systems process
Plan Improvement
Capture Issues Resolve
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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
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Performance Management
Aim To enable you to leave the session able to
set up run a Performance Management System in
your area.
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There are no world class manufacturing companies
without Performance Management in place
Performance Management
Having no performance management system is like
having a plane without altimeter, compass or
gyroscope!
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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.
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How Performance improves with Management
There can be no data without operator involvement
There can be no improvement without measurement
There can be no information without data
There can be no measurement without information
Performance Management relies on gathering
accurate data about how processes perform in
order to stimulate improvement activity
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Aims Benefits ofPerformance Management
Benefits
Aims

• 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

• Make our performance visible
• Drive us to take action
• Provide timely feedback on the effects of our
  actions

A performance management system is needed to
ensure we meet our obligations to customers,
shareholders employees
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Key Elements of a PerformanceManagement System
Elements
Key tools

• Visible KPIs with agreed targets
• Cascaded objectives for all
• Progress tracker for each section
• Central information system
• Regular review process

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Andon system (line stop) Formal and well
understood escalation procedure Standard
work Line side rebalancing mechanisms Kaizen
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The performance management system needs to focus
not only on monitoring but on action centered
management
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Performance Management Framework
Define the key Drivers (QCDP) Cascade K.P.I.s
through the organisation
Design a KPI Hierarchy
Create achievable stretch targets for each KPI
Set Targets
Performance Mgt System
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Typical KPIs
KPI - examples
Target
Quality Defects (Defects per unit) Errors (err
ors per unit) Delivery Schedule
adherence (Hours delta to plan) Cycle
Time (Hours per Unit) Cost Manning (man
hours per set) (Cost per unit) People Skill
Level Training Hours
1 Defects per unit 2 errors per unit
0 delta (nil Hours behind or ahead of plan) To
be agreed
270 hours per unit 5,000 per unit
75 people trained to Practitioner Level 40 hrs
per man per year
Key performance indicators need to be simple and
focused
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Performance Management Framework
Design a KPI Hierarchy
Set Targets
Performance Mgt System
Install tracking systems process
Create support work streams have
issues logged with them visually
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Work Package Progress Tracker
Performance Management Indicators
WORKPACKAGE 1 PACKAGE PROGRESS TRACKER
Task Description
Cycle Time
Unit
Start date
Start Time
Target finish
Operator
Takt Time
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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Performance Management Indicators
Andon board
On plan
Issues
Stopped
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Performance Management Indicators
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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.

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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
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Management Audit Scores
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Audit Process Schematic
Ongoing Maintenance of the Department
C/L to understand/ address any shortfalls then
file in C/Ls Office
The handover document to C/L for archive
PUM
C/L
- Daily - The incoming T/L needs to decide
whether the dept.is in an acceptable condition
T/L Handover
- Weekly - C/L(with or without PUM) must Complete
the Cell Performance/ Workplace Mgnt Audit Sheet
- Weekly - PUM must conduct an audit using the
Area Map (support personnel to attend) adhoc dip
check ofT/L Handover archive
- Daily - T/L must complete at the end of
shift and hand to the incoming T/L
YES
NO
- Weekly - PUM to review the audit With Ops
Manager/HoB Before the HUD is updated
T/L off the previous shift to rectify the issues
with immediate effect
T/L can now continue to deploy operators onto job
- Weekly - Results communicated to T/Ls at the
morning brief, then communicated to
Operations (via PMS Board)
- Weekly - PUM must then feed the results into
the HUD
ACCEPTABLE HANDOVER ?
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Performance Management Framework
Design a KPI Hierarchy
Set Targets
Performance Mgt System
Install tracking systems process
Formalise the shift hand over IPT around the
tracking system Capture Issues for resolution

Capture Issues Resolve
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Issue Management - Information Flow
Issues Resolution Process
Team Member
Team Leader
Shift Leader
Help
SUPPORT
PUM
Mgr
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Issue Escalation
Who
What
Where
When
How
T/L
On shop floor with team
As disruptions occur, they are logged.
Any disruptions causing delay are entered into
the log. The description, time length of delay
and owner are recorded.
Disruption Log
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
On Team-Leader board, shop floor
Andon Light
T/L
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
T/L
T/L Issues Board
Escalation
Problem Owners
At Team-Leader board, shop floor
Set review for each team, 1630 w/p 1 1640 w/p
2 1650 w/p 3 1700 w/p 4
5 minute status review of key metrics displayed
on board. 5 minute discussion of pertinent issues
/ suggestions
S/L
Shift Report
Team Leaders
Integrated Production Team
conference room
Each morning, start of shift
PUM and C/L review prior to IPT
S/L
Direction set for the day. Major issues discussed
briefly.
Support Dept.
Escalation Meeting
PUMs propose strips and debate which to raise /
which are appropriate
PUM
PUM Office
Thursday, 0830-0900
Weekly Review
Thursday, 0900-0945
Assembly Mgr and PUMs review progress over week
using key metrics on the Shop information board.
PUMs propose Strips to Assembly Manager
Information Centre
A. Mgr
PUMS
Strip Meeting
H.O.B
Head of Business chairs meeting. Assembly
managers and managers from support departments
review progress on Strips (PUMs in attendance as
required)
Friday, 0800-0830
Information Centre
Assembly Mgrs Support Mgrs
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Disruption Log - Shift Report
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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.
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Issue Resolution - PUM

• The Product Unit Manager
• Thursdays, 1100 - 1200
• 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, 1200 - 1230
• Determines with the PUM team any issues that
  require escalation
• Raises Escalation Strips as appropriate

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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

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Performance Management Framework
Design a KPI Hierarchy
Set Targets
Performance Mgt System
Install tracking systems process
Tackle issues locally where possible utilise
systems to solve high priority issues.
Plan Improvement
Capture Issues Resolve
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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 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
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Performance Management Framework
Design a KPI Hierarchy
Create an environment of continuous improvement
for a better workplace
Set Targets
Build Incentives
Performance Mgt System
Install tracking systems process
Plan Improvement
Capture Issues Resolve
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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 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
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Performance Management Framework
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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.

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Performance Management
Why do Performance Management?
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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 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
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Action Plan Sheet
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Summary

• Why do Performance Management
• Main Principles of Performance Management
• Tools of Performance Management
• How to implement

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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?