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

Fire Exits: Everyone know the procedure? Welcome to the Performance Management Training Fire Exits: Everyone know the procedure? Group Agreements: We Will……… We Will Not……. Ensure the delegates are familiar with the fire exits and the muster points in case of emergency. Get group agreement as to how to react to each other’s ideas, be open, not critical, respect others thoughts, turn mobiles off. COURSE OBJECTIVE: To gain an understanding of the benefits of what performance management is about (including office). AIM: To enable attendees to return to their work areas with the tools and techniques to contribute the construction of a performance management system in their areas.

Current knowledge of Performance Management Introductions Name Department Current knowledge of Performance Management Start with the presenters then round the training room asking each delegate their name location and any knowledge of PM they have. Presenters to give name, position and where they learnt about Lean, which company, which customers, what products. Emphasis that the site knows how to make…………, but the Lean tools are aimed at the waste in any system. This ice breaker helps settle the group and get more participation latter. 1 Slide 2 Verbal 3 Flip Chart 4 Training Matl. 5 Photo 6 Prepared Flip Chart

How KPI’s & 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 Overview of the performance mgt system; 6 elements all of which need to be working together otherwise no improvement will be made. The following presentation takes you through each hexagon one at a time. Capture Issues & Resolve

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 TEAM BOARD : STATION 99 QUALITY COST DELIVERY PEOPLE SCRAP CONCESSIONS / DEFECTS PRODUCTIVITY SKILLS MATRIX ATTENDANCE HEALTH & SAFETY TAKT ADHERENCE 5C CURRENT PREVIOUS LOCAL INFORMATION DISRUPTIONS SHIFT : TEAM LEADER : SIGN OFF PRD File ISSUES RESOLVED The previous graphic might look like this on the shop floor – open accountable information. QCDP KPI’s to indicate how the business is progressing compared to the plan. Issues Resolution to create ownership and accountability of open issues and provide history of actions taken to protect the customer and prevent re-occurence.

Performance Management Aim: To enable you to leave the session able to set up & run a Performance Management System in your area. 1 Slide 2 Verbal 3 Flip Chart 4 Training Matl. 5 Photo 6 Prepared Flip Chart

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!” This statement is a fact. 1

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. Ask the group to define what they think PM is Use flip chart to capture the ideas the group has on Perf Mgt Eg’s Visual Structure Problem Solving Performance monitor Meaningful to the audience Timely 1 Slide 2 Verbal 3 Flip Chart 4 Training Matl. 5 Photo 6 Prepared Flip Chart

How Performance improves with Management There can be no data without operator involvement Data Information Measurement Improvement There can be no improvement without measurement There can be no information without data This is a continuous cycle - if the cycle is maintained, continuous improvement will take place 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 Make our performance visible 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 Flip Chart A performance management system is needed to ensure we meet our obligations to customers, shareholders & employees

Key Elements of a Performance Management System Key tools  Visible KPIs with agreed targets Cascaded objectives for all Progress tracker for each section Central information system Regular review process Monitoring      Action-centred management 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

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

Key performance indicators need to be simple and focused Typical KPI’s KPI - examples Target Quality Defects (Defects per unit) Errors (errors 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

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 To have the site level KPI’s is fine but the need to cascade them and make them applicable to all, and to show how each individuals performance affects the site performance. In order to do this the site level KPI’s may need to be broken down into ‘simpler’ trackers for an individual cell. Eg delivery schedule adherence will be broken down into the “Work Package Tracker” so that each hour an individual knows how his team is performing against the planned production run.

Work Package Progress Tracker Performance Management Indicators Work Package Progress Tracker Task Description WORKPACKAGE 1 PACKAGE PROGRESS TRACKER Cycle Time Unit Start date Start Time Target finish 1 2 3 4 5 6 7 8 9 10 11 12 13 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 Operator Takt Time Each operator within a team has a planned work schedule and stamps this off hour by hour, any problems will become visible in the hour it occurred avoiding the hiding of the issue until the unit is delivered late. In other words something can be done about it straight away. A work package progress tracker will be used to monitor how the unit build is progressing against takt and drive corrective action

Performance Management Indicators Defects Per Unit W/P: ______ 3456 Team Attendance Team Leader: _______________ Shift: _____ Other useful trackers can be applied Absence will affect the teams ability to achieve schedule – so track attendance Defects directly affect quality the product delivered & induce extra cost to correct – track Defects / unit or by Work Package. Andon boards are used to visually indicate the status of production cells so that the whole of the natural work group are aware of issues. Andon call system and line stop 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

Performance Management Indicators Shift: ______ Productivity Takt Achievement Scrap / Lost on Shop SHIFT: ______ Scrap Lost 34 35 36 37 38 39 40 41 42 43 44 45 Issues Outstanding W/P: ______ 43 44 45 46 47 48 49 50 51 52 Takt achievement shows the cells status against the schedule is a summary of the Work Package Tracker over a longer period of time– tracks schedule adherence Productivity shows the amount of work achieved by the cell/individual – might be used to track Cost and delivery. Scrap tracks cost and the causes of late delivery. Outstanding issues shows the status of the natural work group’s ability to solve production issues.

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. In order to ensure the system is kept up to date an audit system must be in place. This ensures issues are being solved, that KPI’s are being used to manage the business, but most important increases visibility of the management team and increase their knowledge of current status and involves them in the issues resolution process. Audit process ensures the performance management process is being used appropriately

Management Audit Scores

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 DAILY WEEKLY PUM C/L - Daily - The incoming T/L needs to decide whether the dept.is in an acceptable condition T/L Handover - Weekly - PUM must conduct an audit using the Area Map (support personnel to attend) +adhoc dip check ofT/L Handover archive - Weekly - C/L(with or without PUM) must Complete the Cell Performance/ Workplace Mgnt Audit Sheet - Daily - T/L must complete at the end of shift and hand to the incoming T/L YES NO KEY: TL = Team Leader CL = Cell Leader PUM = Product Unit Manager HOB = Head of Business HUD = Head up Display for senior Mgmnt team - 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 - PUM must then feed the results into the HUD - Weekly - Results communicated to T/Ls at the morning brief, then communicated to Operations (via PMS Board) ACCEPTABLE HANDOVER ?

Performance Management Framework Design a KPI Hierarchy Set Targets Performance Mgt System Install tracking systems & process Have mentioned the issues tracking a lot. This is how to do it Formalise the shift hand over & IPT around the tracking system & Capture Issues for resolution Capture Issues & Resolve

Issue Management - Information Flow Issues Resolution Process Team Member Team Leader Shift Leader Help SUPPORT PUM Issues tracking, solution and communication to all involves the whole management team and the whole natural work group. The information might be only one of the loops but for large issues may include all levels. Mgr

Issue Escalation Who What Where When How Escalation T/L T/L T/L S/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 On Team-Leader board, shop floor 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 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, 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. 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. PUM Escalation Meeting PUM Office Thursday, 08:30-09:00 PUM’s propose strips and debate which to raise / which are appropriate Create a meeting structure define the escalation process Weekly Review 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 A. Mgr Information Centre & PUMS H.O.B Strip Meeting Information Centre Friday, 08:00-08:30 Head of Business chairs meeting. Assembly managers and managers from support departments review progress on Strips (PUMs in attendance as required) Assembly Mgrs Support Mgrs

Disruption Log - Shift Report

How to Review The Issues Board 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. Talk through the issues Board Define: Issue – succinct sentence describing the problem encountered Customer Protection – the short term ‘policing’ activity to stop the customer receiving a sub standard product Counter Measure – Complete action which prevents the problem occuring EVER again

ISSUE ESCALATION STRIP Issue Resolution - PUM 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 Issues which cannot be resolved by the local team may need escalating to more senior management. These people need to be informed of their responsibility and the effect the issues is having on production – the PUM or PUM’s agree which ones to escalate, presenting to the senior manager a potted history of the problem and their expectations.

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 The escalation meeting held in the same manner.

Performance Management Framework Design a KPI Hierarchy Set Targets Performance Mgt System Tackle issues locally where possible; utilise systems to solve high priority issues. Install tracking systems & process Plan Improvement The natural work group, PUM’s, Area Managers have a variety of tools for problem solving. Use them! Capture Issues & Resolve

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 Flip Chart Some examples Engineering systems already in place FIT – local team set up to look at ‘simple’ issues PRD, CAB, NCRB – for quality problems refer to the complex quality team if necessary.

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

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 Flip Chart Get the audience to come up with ideas of how to involve the TL’s and operators to benefit them and the business

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 Assessment Performance Management – Performance Management is a structured visual approach to monitoring the business performance, highlighting issues & dealing with them in a timely manner. Attributes of Performance Managment No OK 1. 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 Get the audience to go out to their area and asses themselves in the light of what they’ve just learnt.

Performance Management Why do Performance Management? Flip Chart Ask the group for their thoughts on Performance Mgt again – compare to the earlier chart, hopefully they’ve learnt something. Use flip chart to capture the ideas the group has on PM Eg’s Visual Structure Problem Solving Performance monitor Meaningful to the audience Timely Performance Management is a structured visual approach to monitoring the business performance, highlighting issues & reacting to them in a timely manner.

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 Flip Chart

Action Plan Sheet NO. ISSUES ACTION WHO WHEN STATUS Get the audience to use the definition, their learning, to complete an action plan as to how they will introduce a Perf Mgt System Ensure they have KPI research – Perf Mgt workstream Definition of Trackers – Work Package Tracker is an Airbus std document: see Manuf. Eng. Meeting timetable Design Of Boards What training will be required of who Include who’s involved to get info from or agreement from (Team Leaders, Operators, Mgt Team, Natural Work Group)

Summary 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

Performance Management Course Aim: To enable you to leave the session able to set up & run a Performance Management System in your area. Get the audience to complete the course appraisal form. Are you able? 1 Slide 2 Verbal 3 Flip Chart 4 Training Matl. 5 Photo 6 Prepared Flip Chart