Performance Management System

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

4. Introductions • Name • Department • Current knowledge of Performance Management

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 Capture Issues & Resolve

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

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

8. ‘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!”

9. 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.

10. How Performance improves with Management Data Improvement Information Measurement • There can be no data without operator involvement • There can be no improvement withoutmeasurement • 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

11. Aims & Benefits ofPerformance Management Flip Chart 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 performancevisible • Drive us to take action • Provide timely feedback on the effects of our actions A performance management system is needed to ensure we meetourobligations to customers, shareholders & employees

12. Key Elements of a PerformanceManagement System Monitoring Action-centred management Key tools Elements  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

13. 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

14. 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

16. Work Package Progress Tracker Performance Management Indicators 3 4 6 7 8 1 2 5 9 10 11 12 16 17 13 15 14 1 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 2 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 3 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 4 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 5 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 6 7 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 8 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 9 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

17. Performance Management Indicators Shift: _____ Team Attendance Defects Per Unit W/P: ______ 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 3456 3456 3456 3456 • Andon call system and line stop Team Leader: _______________ Andon board On plan Issues Stopped

18. Performance Management Indicators Productivity Shift: ______ TaktAchievement SHIFT: ______ Scrap / Lost on Shop Scrap Lost Issues Outstanding W/P: ______ 36 37 38 39 40 41 42 43 43 44 45 35 34 43 44 45 46 47 48 49 50 51 52

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. Audit process ensures the performance management process is being used appropriately

20. Management Audit Scores

21. Audit Process Schematic WEEKLY DAILY 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 Completethe Cell Performance/ Workplace Mgnt Audit Sheet - Weekly - PUM must conductan audit using theArea 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 ?

22. 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

23. Issue Management - Information Flow Issues Resolution Process Team Member Team Leader Shift Leader Help SUPPORT PUM Mgr

24. 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 problemowned & 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, 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 conference room Each morning, start of shift PUM and C/L review prior to IPT Integrated Production Team S/L Direction set for the day. Major issues discussed briefly. & Support Dept. Escalation Meeting PUM’s propose strips and debate which to raise / which are appropriate PUM Office Thursday, 08:30-09:00 PUM 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 Information Centre A. Mgr & PUMS Strip Meeting H.O.B 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 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.

27. 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

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

29. 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

30. How to Plan Improvements Flip Chart 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

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 Flip Chart 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

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

34. Performance Management Assessment 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 • Performance Management – Performance Management is a structured visual approach to monitoring the business performance, highlighting issues & dealing with them in a timely manner.

35. Performance Management Flip Chart WhydoPerformance Management?

36. Creating a Performance Management System for your area! Flip Chart 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

37. Action Plan Sheet NO. ISSUES ACTION WHO WHEN STATUS

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

39. 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?