Performance Management System - Lean Six Sigma

1 Performance Management SystemTarget 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 / andonAims and ObjectivesFire Exits: Everyone know the procedure?

2 We Will Agreements: Welcome to the Performance Management Training Name Department Current knowledge of Performance ManagementIntroductions How KPI s & Issues Management interact to make a complete Performance Management a KPI HierarchyInstall tracking systems & processSet TargetsPerformance Mgt SystemPlan ImprovementBuild IncentivesCapture Issues & ResolveInformation Centre / Team boardAn information centre will be located line side and provide a key communicationtool, meeting point and focus for managing line performanceTEAM BOARD : STATION 99 QUALITYQUALITYQUALITYQUALITYCOSTCOSTCOST COSTDELIVERYDELIVERYDELIVERYDELIVERYPEOP LEPEOPLEPEOPLEPEOPLESCRAPCONCESSIONS / DEFECTSPRODUCTIVITYSKILLS MATRIXATTENDANCEHEALTH & SAFETYTAKT ADHERENCE5 CCURRENTPREVIOUSLOCAL INFORMATIONDISRUPTIONSSHIFT : TEAM LEADER :SHIFT : TEAM LEADER :SHIFT : TEAM LEADER :SHIFT : TEAM LEADER :SIGN OFFPRD FileISSUES RESOLVEDAim.

3 To enable you to leave the session able to set up & run a Performance Management System in your 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 ManagementWhat is Performance Management ? Performance Management is a structured visual approach to monitoring the business Performance , highlighting issues & reacting to them in a timely ManagementPerformance Management relies on gathering accurate data about how processes perform in order to stimulate improvement activityDataInformationMeasurementImprov ementThere can be no information without dataThere can be no measurement without informationThere can be no improvement withoutmeasurementThere can be no data without operator involvementHow Performance improves with ManagementFlip ChartA Performance Management System is needed to ensure we meet ourobligations to customers.

4 Shareholders & employeesAims: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 managementKey Elements of a PerformanceManagement SystemElements Key tools Monitoring Visible KPIs with agreed targetsCascaded objectives for all Progress tracker for each sectionCentral information System Regular review processAction-centred Management Andon System (line stop)Formal and well understood escalation procedure Standard workLine side rebalancing mechanisms Kaizen!

5 !!!!!!!!! Performance Management FrameworkDesign a KPI HierarchySet TargetsPerformance Mgt SystemDefine the key Drivers (QCDP)Cascade s through the organisationCreate achievable stretch targets foreach KPIKPI - examplesTargetQualityDefects(Defects per unit)Errors(errors per unit)DeliverySchedule adherence(Hours delta to plan)Cycle Time(Hours per Unit)CostManning(man hours per set)(Cost perunit)PeopleSkill LevelTraining Hours0 delta (nil Hours behind or ahead of plan)To be agreed1 Defects per unit2 errors per unit270 hours per unit 5,000 per unitKey Performance indicators need to be simple and focused75% people trained to Practitioner Level40 hrs per man per yearTypical KPI sPerformance Management FrameworkDesign a KPI HierarchyInstall tracking systems & processSet TargetsPerformance Mgt SystemCreate support work streams & haveissues logged with them visuallyWork Package Progress TrackerA work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action1234567891234567891011121314151617 OperatorCycle TimeTakt TimeTask

6 DescriptionUnitStart dateStart TimeTarget finishWORKPACKAGE 1 PACKAGE PROGRESS TRACKERRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot

7 End chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot

8 End chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsRoot end chop lugsPerformance Management IndicatorsWeek 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 522001M T W Th FM T W Th FM T W Th FM T W Th FTeam Attendance Team Leader: _____Shift: _____Defects Per UnitW/P: _____3456345634563456 Andon call System and line stopAndon board12345678 Issues12345678 Stopped12345678On planPerformance Management IndicatorsIssuesOutstandingW/P: _____43444546474849505152 Scrap / Lost on ShopSHIFT.

9 _____ScrapLost34353637383940414243434445 Shift: _____ProductivityTakt AchievementPerformance 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 for: Housekeeping to the required standard. Performance Management measures up to date and on target.