People Powered LeanIntegrating a Modernized Human Capital Management Program with the Lean Manufacturing Journey Virginia SHRM State Conference Virginia Beach, Virginia September 25-27, 2005
TMG Core Beliefs • We are in the business of making hard things easy…not easy things hard. • Start with the end in mind! • Take a Systems Approach • People are good and want to do the right thing • It is the organizations responsibility to create an environment for its people to be successful • Our employee’s “Vote” counts more than ours
Organizational Map PM OPS OPS OPS PM: Plant Manager OPS: Operations Manager SS: Shift Supervisor F: Foreman LM: Lead Mechanic M: Mechanic : Vertical Dyad Linkage SS SS SS F F F LM LM LM M M
Linkage Power Depends On… 1. Creating a Shared Goal. • The Employee’s Goals and Needs • The Organization’s Goals and Needs as articulated by the Supervisor • Requires continuous Goal Alignment within context of Individual Developmental Plans 2. Leaders Managing Personal Relationships • Vertical Dyad: Leader Led x number of direct reports • Employee productivity and commitment depends on their relationship with their IMMEDIATE Supervisor
Begin with the end in mind… “Build more quality products faster to improve market share and increase profit.”
Lean Enterprise Goals • Improve Quality • Eliminate Waste • Reduce Lead Time • Reduce Total Costs Through… • Near real time visibility over… • Process • Materials • Cost • Equipment And…
Small Manufacturing Shop Features • Small Headcount requires more skills agility and situational flexibility • Peaks and valleys in Production Requirements. • Multiple Shifts • Insufficient Support Staff… • Lack of development programs • Lack of resources
Senior Management TeamLabor Resource Strategy Development REQUIREDLevel of Performance CURRENT Level of Performance • Options: • Re-allocate Current Employees • Hire Experience • Hire New People • Work Overtime • Hire Temporary Labor • Outsource • Increase Productivity • Change the Process (Lean/Six Sigma) • Increase Capacity (Automate) Resources Required Performance Gap Measures of Performance
Business Metrics If we fully implement People Powered Lean we will: • Reduce Lead Time to Increase Market Share • Improve Production to Headcount Ratio to Reduce Labor Cost per product and… • Improve PROFIT margin …by optimizing the plant’s physical production to labor capacity.
Hiring Process July 2004 Production Identifies Requirement HR Posts Requisition & Sends to OET HR Receives Applications HR Schedules Interviews Production Interviews Welding Test Hiring Decision Drug Screen and Physical Offer Sent Applicant Given Report Date Cycle Time: 10.3 Weeks Cost: $2,008 per new hire (Labor costs only) HR Admin Inprocessing 8 Hours of Video OSHA Training OJT Training
People Powered LeanPolicy Statement Our plant builds to order, only producing those products they have orders for. Therefore, we must have the capability to acquire employees quickly and move them between assembly lines to support production needs. A flexible workforce drives down credible delivery time and improves our bottom line profit.
People Powered LeanMission Provide our production supervisors the right people in the right numbers in the right skills at the right time to improve business performance. The Goal: An agile, competent workforce capable to move at the speed of business.
Concept of Operations “A Systems Engineering Approach” Phase 1 Current State & Good Ideas People Powered Lean Phase 6 – n Continuous Improvement Phase 2 Future State Design, Plan of Action with Resources Phase 3 Creation and Development Phase 5 Production and Roll Out Phase 4 Pilot and Evaluation
Project Scope Enrich the Lean Manufacturing Continuous Improvement Process by developing and implementing a Human Capital Management Program called People Powered Lean… Featuring: • Improved Employee Acquisition Process • Modernized Orientation Program • Integrated Skills Development Program (starting with Welders) • Embedded PPL Skills Management System
Acquisition of New Team Mates Goal: Create a New Hire “Pull System” • When Production needs people they “create an order” • Production demand “cues” the PPL system. • Maximize our best source of New Hires (Pipelines) • Optimize use of Government Employee Services to Outsource as much as possible • Reduces cost of Hiring by utilizing Subject Matter Experts to recruit, identify, and evaluate skills of recruits
Building Pipelines Business Focus: - Reduce Turnover - Improve New Hire Job Match - Focus on actual job skills - Reduce Cycle Time Adult Education Temp Agencies Military College Transfers Initially Orient, Screen & Identify Candidates Generate Labor Req’s Common Skills Training Interview & Skill Test Life Cycle Skills Development High Schools Tech Schools Other Companies Hiring Decision Current Employees Increase Cost Decrease Cost State Employment Offices Community Colleges
RealisticJob Preview Link to full RJP
Welding Skills Assessment(Interview) Goal: Create a situation where the employee and the company can determine if the new employee has the skills and attitudes to be successful Features: • Plant Tour (Informal Discussion) • Scenario Based Welding Skills Assessment • Job Based Attitude Assessment • Hiring Decision • New Teammate Skills Development Plan NOTE: HR is not involved other than scheduling
New Teammate Orientation Goal: Create a “world class”first day. • New Employee Leaves after his first day thinking: • Wow! These guys really know what they are doing. • I’ve talked to the Plant Manager and my Boss. • I understand what we do here and how I fit in. • I know the how to work safely. OSHA Training (Plant Focused) • I know what I need to do to be successful in this company • I have a hard hat and a locker with my name on it • I know I will get paid. • I know what I need to do tomorrow. • Let’s get with it!
Value Stream Map toTasks List Cells Tasks Value Stream Map
Right Person/Right Job Move the Employee in the Right Direction Go To Person High Quantity High Quality High Quantity Low Quality Quantity of Work Low Quantity Low Quality Low Quantity High Quality New Person Quality of Work What is our plan to move our people along the correct developmental path?
Welding Common Skills Training Goal: Using Subject Matter Experts bring all new Welders to competency on all Common Tasks Welding Trainer implements the tailored Individual Development Plan developed at the Welding Skills Interview. Computer Assisted Instruction Lesson Outline: • Personal Protective Equipment (PPE) • Reading Measurements to the 1/16” Detail • Parts of a Weld and Weld Bead Placement • Weld Quality • Blueprints and Weld Symbols • Welding Equipment/Maintenance • Quality Assurance • Product Terms and Language NOTE: Web Based so can be reviewed and pre-trained prior to Welding Skills Interview or Training. Also, post hiring support tool.
Cell Training Goal: Improve Welder “Time to Competency” Features: • Common Skills developed during Common Welding Training • Train “just in time and just enough” for 1st job requirements • Uses 1st Line Supervisors as Trainers • 30-60-90 Feedback to assess performance and update skills development record
Life Cycle Skills Development Program Management Skills “A Guide” Leader Development Training Complex Tasks Leader Skills Training Pre-Employment V Employment Skills Mentor Skills Basic Skills Intermediate Skills Advanced Skills Soft Skills Development IV Initial Entry Skills Training Basic Training Intermediate Training Advanced Training III Practical Application/Coaching Evaluation Practical Application/Coaching Evaluation Practical Application/Coaching Evaluation Skills Evaluation II Experienced Personnel I Employee Career Competency Level
ExampleLifecycle Skills Development Program Pre-Hire Initial Basic Intermediate Advanced Mentor Orientation Bucket 101 Master Bucket Welder TABE Common ESCO Training Master Bucket Builder Cell Cell KMSS Welder Cell Cell Weld Test Common Welding Training Master MFP Welder MFP 101 Master ESCO Builder Cell Cell Cell Cell Bucket 101 TABE Orientation Master Bucket Machinist KMSS Common ESCO Training Cell Cell Master MFP Builder Machine Operator or Other Skill Skills Test Cell Cell MFP 101 Master MFP Machinist Cell Cell Cell Cell
PPL Management System • Goal: Develop Data Driven Systems to Manage the Process • Features: • Monthly Reports and Management Meetings • Specific Metrics Reported: • Cycle Time (Responsiveness) • Touch Time (Cost) • In Process Flow • Turnover • Absenteeism • Aligns PPL with Labor Resource Planning • Measures Head Count to Production • Predictive Measures Focus
The Depth Chart Visual Employee Management Tool • Employee Name and Picture • Skills they have demonstrated • Cell they are assigned too and qualified to work in. • Cell they are cross-trained in (Self Motivated Training) • Backed up by Web Based Tracking System Keith Teegarten
Hiring Process September 2004 Production Identifies Requirement HR Posts Requisition & Sends to OET OET Screening HR Receives Applications HR Schedules Interviews Interviews Conducted; Welding Test Hiring Decision Drug Screen and Physical Offer; New Hire Packet Sent Applicant Given Report Date HR Admin Inprocessing Plant Manager Meeting Shift Supervisor OSHA Training Process/ Quality Training Cell Training Structured Orientation and Training Process Cycle Time: 5.8 Weeks - 43.7% reduction Cost: $1,420 per new hire (Labor costs only) – 29.3% reduction
“End to End”Human Capital Management Step 1 Generate Labor Requirement Step 2 Pre Hire/ Recruit/ Assess Step 3 Interview/ Employee Hire Step 4 Orientation Step 5 World Class First Day
After the Welders… Welding Skills Machinist Skills Team Leader Skills Blast & Paint Skills Final Assembly Skills Sales & Scheduling Skills
Strategic Goal “If I only have one guy show up for work I want to be able to build an entire bucket” Dick Dale Operations Manager ESCO Covington
Human Capital Management ProgramSuccess Features • Matching Candidates Expectations with Work Realities • Matching the Person to the Job • Matching the Task to the Person • Providing Training, Coaching, and Feedback • Providing Career Advancement and Growth Opportunities • Making Employees Feel Valued and Recognized • Reducing Stress from Work/Life Imbalance and Overwork • Inspiring Trust and Confidence in Senior Leaders
Human Capital ManagementChallenges • No silver bullet…People are a complex problem with a lot of moving parts in a dynamic business environment • Our commitment is to provide some real analysis to focus our efforts…not a “Good Idea of the Day” approach. • Our recommendations must make good business sense • We must be realistic and “eat the elephant” one bite at a time. • We must be long range thinkers… People are multi-year projects-- if fact Life Long Projects • We must create a SYSTEM to: • Accomplish Big Goals and Objectives • Synchronize and integrate our Projects and Programs with the normal business operations. • Better communicate with our primary clients: the Line Managers • Give the Line Managers predictable yet responsive support • Do not be a part of the problem!
Golden Rule of Leadership they Treat your subordinates how you would like to be treated. …1 at a time! …and it can not occur without a conversation between the Leader and the Led about them with them!
Discussion & Questions Joe Barto Training Modernization Group 757-218-8444 Jbarto@tmgva.com
Training Goals Decrease the cost of training by reducing the time to train— Decrease time to competency (improve the quality of training) – provide an early success Decrease HR Risk (Safety, Litigation, etc.) Empower the most effective and efficient training environment possible… and Expert and a Novice on the job. Improve support to 1st Line Supervisors…the responsible person Align training capacity with Human Resources Labor Resource and Hiring Plan
Organizational Goals Revenue Productivity Compliance Market Share Readiness Individual Goals Compensation Opportunities Responsibility Work Environment Recognition High Performance Organizations Mission First– People Always Goal Alignment Awareness Communication Individual Development Plans Individual Development Plans Individual Development Plans Resources Required Led Leader Led Led Led