1. Performance Management System

2. 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

3. 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.

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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.

16. 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

17. 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

18. 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.

19. 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

20. Management Audit Scores

21. 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 ?

22. 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

23. 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

24. 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

25. Disruption Log - Shift Report

26. How to Review The Issues Boardc 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

27. ISSUE ESCALATION STRIP
Issue Resolution - PUM
ISSUE ESCALATION STRIP
The Product Unit Manager;
Thursdays, 11: :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: :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.

28. 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.

29. 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

30. 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.

31. 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

32. 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

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

34. 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.

35. 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.

36. 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

37. 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)

38. 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

39. 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