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Performance Management System

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

Welcome to the Performance Management
Training
Fire Exits: Everyone know the procedure?

Group Agreements:
We Will………
We Will Not…….

Introductions

• Name
• Department
• Current knowledge of Performance Management

How KPI’s & Issues Management interact to make a complete Performance Management System. Design a KPI Hierarchy Set Targets Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve Install tracking systems & process .

meeting point and focus for managing line performance TEAM BOARD : STATION 99 QUALITY SCRAP CONCESSIONS / DEFECTS COST PRODUCTIVITY DISRUPTIONS DELIVERY PEOPLE TAKT ADHERENCE SKILLS MATRIX CURRENT ISSUES RESOLVED ATTENDANCE HEALTH & SAFETY PREVIOUS LOCAL INFORMATION SHIFT : TEAM LEADER : PRD File SIGN OFF 5C .Information Centre / Team board An information centre will be located line side and provide a key communication tool.

Performance Management 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.

How Performance improves with Management There can be no data without operator involvement Data There can be no improvement without measurement Improvement Information There can be no information without data 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 .

Aims & Benefits of Performance Management Aims: Benefits: • • Make our performance visible • • Drive us to take action • Provide timely feedback Flip Chart • 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 & employees . shareholders and employees A performance management system is needed to ensure we meet our obligations to customers.

Key Elements of a Performance Management System Elements Monitoring Actioncentred management Key tools ! Visible KPIs with agreed targets ! Cascaded objectives for all ! Progress tracker for each section ! Central information system ! Regular review process ! Andon system (line stop) ! Formal and well understood escalation procedure ! Standard work ! Line side rebalancing mechanisms ! Kaizen The performance management system needs to focus not only on monitoring but on action centered management .

’s through the organisation Design a KPI Hierarchy Set Targets Performance Mgt System Create achievable ‘stretch’ targets for each KPI .P.Performance Management Framework Define the key Drivers (QCDP) Cascade K.I.

000 per unit Key performance indicators need to be simple and focused .Typical KPI’s KPI .examples Quality Defects (Defects per unit) Errors (errors per unit) Delivery Schedule adherence Target 1 Defects per unit 2 errors per unit 0 delta (nil Hours behind or ahead of plan) (Hours delta to plan) Cycle Time To be agreed (Hours per Unit) Cost Manning (man hours per set) (Cost per unit) 270 hours per unit People Skill Level Training Hours 75% people trained to Practitioner Level 40 hrs per man per year £5.

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 .

Performance Management Indicators Work Package Progress Tracker WORKPACKAGE 1 PACKAGE PROGRESS TRACKER Task Description Unit Start date 1 1 Operator 2 3 4 5 6 7 8 9 Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs Root end chop lugs 2 Root end chop Root lugs end 3 Root end chop lugs chop lugs Root end chop Root lugs end chop lugs Root end chop Root lugs end chop lugs Root end chop Root lugs end Root end chop lugs Root end chop lugs Root end chop lugs chop lugs Root end chop Root lugs end chop lugs Root end chop lugs Root end chop Root lugs end Root end chop lugs chop lugs Root end chop lugs Root end chop Root lugs end chop lugs Root end chop lugs Root end chop lugs Root end chop Root lugs end chop lugs Root end chop lugs Root end chop lugs Root end chop Root lugs end chop lugs Root end chop lugs Start Time 4 Cycle Time Target finish 5 6 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 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 7 Root end chop lugs 8 Root end chop lugs 9 Root end chop lugs 10 Root end chop lugs 11 Root end chop lugs 12 Root end chop lugs 13 Root end chop lugs 14 15 16 17 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 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 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 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 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 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 Takt Time .

Performance Management Indicators Shift: _____ Team Attendance M T W Th F M T Week 1 W Th Defects Per Unit W/P: ______ F 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 2001 Week 15 Week 16 Week 41 Week 42 Week 43 Week 17 Week 18 3456 3456 3456 3456 Week 44 Week 45 Week 19 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 board On plan 1 2 3 4 5 6 7 8 Issues 1 2 3 4 5 6 7 8 Stopped 1 2 3 4 5 6 7 8 • Andon call system and line stop .

Performance Management Indicators Productivity Shift: ______ Takt Achievement SHIFT: ______ Scrap / Lost on Shop Issues Outstanding Scrap 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 .

•Performance management measures up to date and on target. . •Issues identified & customer protection/counter measure underway. •Agreement between Team Leaders on the current state. •Work is being performed to the standard. •Quality standards are adhered to.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. Looking for: •Housekeeping to the required standard.

Looking for: •Housekeeping to the required standard. •Audit scores feed into a weekly HUD info. •Performance management measures up to date and on target. •Quality standards are adhered to. Audit process ensures the performance management process is being used appropriately . •Work is being performed to the standard. centre •Every month senior management complete “Go & See” tour. audits & signs.Management Audit Process •At the appropriate frequency (every shift/every day/once per week) the Cell Leader to audit team performance. •Issues identified & customer protection/counter measure underway.

29/04/02 27/04/02 25/04/02 23/04/02 21/04/02 19/04/02 17/04/02 15/04/02 13/04/02 11/04/02 09/04/02 07/04/02 05/04/02 03/04/02 01/04/02 30/03/02 28/03/02 26/03/02 Cell Score Management Audit Scores 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 Au d it 100 90 80 Cell 1 70 Cell 2 60 Cell 3 50 TARGET 40 30 20 10 0 Da t e .

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 The incoming T/L needs to decide whether the dept.Weekly PUM must then feed the results into the HUD NO T/L off the previous shift to rectify the issues with immediate effect .Daily T/L must complete at the end of shift and hand to the incoming T/L .Weekly PUM to review the audit With Ops Manager/HoB Before the HUD is updated . then communicated to Operations (via PMS Board) T/L can now continue to deploy operators onto job ACCEPTABLE HANDOVER ? .Audit Process Schematic C/L to understand/ address any shortfalls then file in C/Ls Office Ongoing Maintenance of the Department The handover document to C/L for archive DAILY WEEKLY PUM C/L T/L Handover .is in an acceptable condition YES .Weekly Results communicated to T/Ls at the morning brief.

Performance Management Framework Design a KPI Hierarchy Set Targets Performance Mgt System Formalise the shift hand over & IPT around the tracking system & Capture Issues for resolution Capture Issues & Resolve Install tracking systems & process .

Information Flow Issues Resolution Process Team Member Team Leader Shift Leader PUM Mgr .Issue Management .

PUM Escalation Meeting PUM Office Thursday. 09:00-09:45 Assembly Mgr and PUMs review progress over week using key metrics on the Shop information board. The description.B Assembly Mgrs Support Mgrs How On shop floor with team Disruption Log T/L Escalation When . shop floor When a problem has occurred that will prevent the Team from achieving planned productivity. Any disruptions causing delay are entered into the log. summoned. Major issues discussed briefly. Light off only when problem owned & plan in place On Team-Leader board. On Team-Leader board._ _ _ _ __ Is s ue N o. start of shift PUM and C/L review prior to IPT (Rules change with Andon maturity) T/L & Problem Owners T/L Issues Board Sh ift R epo rt S/L Shift Report 1 2 3 4 Tot als C once ss ion s P roducti vity Ta kt A chi evem ent S crap / Los t Is sue s O ut st anding & Team Leaders S/L W or k P ack age N otes : Integrated Production Team Direction set for the day. 5 minute discussion of pertinent issues / suggestions conference room Each morning. Mgr W /P N o. shop floor As information / issues become available.O. they are logged. 08:30-09:00 PUM’s propose strips and debate which to raise / which are appropriate Thursday. Should be updated at earliest opportunity to display the real time state As per Issue board process At Team-Leader board. PUM’s propose Strips to Assembly Manager Friday. shop floor Set review for each team. 16:30 w/p 1 16:40 w/p 2 16:50 w/p 3 17:00 w/p 4 5 minute status review of key metrics displayed on board. 08:00-08:30 Head of Business chairs meeting. Dept responsible is contacted and rep. Light mounted on Team-Leader Board is switched on. Assembly managers and managers from support departments review progress on Strips (PUMs in attendance as required) IS S U E E S C A L A T IO N S T R IP R a is e d on Is s ue B o a rd : _ _ _ _ /_ _ _ _ /_ _ __ A. & Support Dept. time length of delay and owner are recorded.Issue Escalation Who What Where T/L Andon Light As disruptions occur. _ _ _ _ _ _ Weekly Review Information Centre Strip Meeting Information Centre & PUMS H.

Disruption Log .Shift Report .

If this is not the case. firstly look at column f to establish if there are plans in place. and that the issue is on monitor. column j will reveal if an owner has accepted responsibility for the issue. Where plans have lapsed. If the owner has not signed to accept the issue. Green = Ok. Assess the success of the countermeasure. re-raise the issue. columns h and i will reveal the individual and the department that are identified for ownership.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. Reference to column k to ensure that the date committed to has been achieved. look at column b to establish when it was raised. This is an immediate appraisal of success rate. . contact the owner to establish why. Where there are outstanding issues. Look firstly for completed circles that promise implementation. Red = NOk Where the countermeasure has failed on monitor. Where countermeasure tracking is blank.

12:00 .12:30 •Determines with the PUM team any issues that require escalation •Raises ‘Escalation Strips’ as appropriate .Issue Resolution . Thursdays.PUM ISSUE ESCALATION STRIP The Product Unit Manager. 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.

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.Issue Resolution . 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 .

Performance Management Framework Design a KPI Hierarchy Set Targets Tackle issues locally where possible. Performance Mgt System Plan Improvement Capture Issues & Resolve Install tracking systems & process . utilise systems to solve high priority issues.

NCRB Maintenance request Tooling Modifications Improved Method & Improved Control .PRD Flip Chart Engineering Query Note .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 .5 C .CAB Non-Conformance Review Board .EQN Corrective Action Board .Work Instructions Line Balancing Improve Environment .

Performance Management Framework Create an environment of continuous improvement for a better workplace Design a KPI Hierarchy Set Targets Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve Install tracking systems & process .

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 .

Performance Management Framework Design a KPI Hierarchy Set Targets Build Incentives Performance Mgt System Install Plan tracking Improvement systems & process Capture Issues & Resolve .

Single location for information 7. visible and succinct mission No 2. Simple KPIs each with a target 3. Information centre based on shop floor 6. PERFORMANCE MANAGEMENT SYSTEM USED TO “MANAGE” List Items To Be Improved Responsible OK . highlighting issues & dealing with them in a timely manner. Attributes of Performance Managment 1. Less then 10 KPIs 4. Clear.Performance Management Assessment •Performance Management – Performance Management is a structured visual approach to monitoring the business performance. Engineering and logistics support line issues 10. Graphs to be owned and updated by production 8. Team leaders and team own process performance 9. Targets linked to individual performance 5.

Performance Management Why do Performance Management? Flip Chart .

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.I.’s Create & implement other lower level indicators . Countermeasure. Create & implement K.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. Customer Protection.P.

Action Plan Sheet NO. ISSUES ACTION WHO WHEN STATUS .

Summary • Why do Performance Management • Main Principles of Performance Management • Tools of Performance Management • How to implement Design a KPI Hierarchy Set Targets Build Incentives Performance Mgt System Plan Improvement Capture Issues & Resolve Install tracking systems & process .

Are you able? .Performance Management Course Aim: To enable you to leave the session able to set up & run a Performance Management System in your area.