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 KPIs)

Aims & Objectives :

Understanding of Issue Resolution
Ensure people can interpret KPIs 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
Welcome to the Performance Management
Training

Fire Exits: Everyone know the procedure?

Group Agreements:

We Will

We Will Not.
 Introductions

Name

Department

Current knowledge of Performance Management

How KPIs & Issues Management interact to
make a complete Performance Management
System.

Design a
KPI
Hierarchy
Build Set
Incentives Targets

Performance
Mgt System Install
Plan tracking
Improvement systems &
Capture process
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 PRODUCTIVITY TAKT ADHERENCE SKILLS MATRIX

CONCESSIONS / DISRUPTIONS CURRENT ATTENDANCE

DEFECTS

ISSUES RESOLVED HEALTH & SAFETY

PREVIOUS

LOCAL INFORMATION SIGN OFF 5C

SHIFT : TEAM LEADER :

PRD
File
 Performance Management

Aim:

To enable you to leave the session able to set up

& run a Performance Management System in your
area.
 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!
 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.
How Performance improves with Management

There can be no data without operator involvement

Data

There can be no
There can be no
improvement Improvement Information information
without
without data
measurement

Measurement

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
Aims: Benefits:

Make our performance Highly visible performance

visible
Drive us to take action
Provide timely feedback Flip Chart
on the effects of our
actions
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

A performance management system is needed to ensure we meet our

obligations to customers, shareholders & employees
 Key Elements of a Performance
Management System

Elements Key tools

! Visible KPIs with agreed targets
! Cascaded objectives for all
Monitoring ! Progress tracker for each section
! Central information system
! Regular review process

! Andon system (line stop)

Action- ! Formal and well understood escalation procedure
centred ! Standard work
management ! 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 Create achievable
Targets stretch targets for
each KPI
Performance
Mgt System
 Typical KPIs
KPI - examples Target
Quality
Defects 1 Defects per unit
(Defects per unit)
Errors
(errors per unit)
2 errors per unit

Delivery
Schedule adherence 0 delta (nil Hours behind or ahead of plan)
(Hours delta to plan)
Cycle Time To be agreed
(Hours per Unit)

Cost
Manning 270 hours per unit
(man hours per set)
(Cost per unit) 5,000 per unit

People
Skill Level 75% people trained to Practitioner Level
Training Hours 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 Create support
tracking work streams & have
systems & issues logged with
process them visually
 Performance Management Indicators

Work Package Progress Tracker

Task WORKPACKAGE 1 PACKAGE PROGRESS TRACKER
Description Cycle Time
Unit Start Start Time Target finish
date

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Root end Root end
Root end chop
Root lugs
end chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end
1 chop lugs
chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs

Operator Root end

Root end
chop
Root lugs
end
Root end
chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end
2 chop lugs
chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs
Takt Time
Root end Root end
Root end
3 chop lugs
chop
Root lugs
end
chop lugs
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 Root end
Root end chop
chop lugs Root lugs
end chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end

4 chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs

Root end Root end

5 Root end
chop lugs
chop
Root lugs
end
chop lugs
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 Root end
Root end chop
chop lugs Root lugs
end chop lugs Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end Root end
6 chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs chop lugs

Root end Root end

7 Root end
chop lugs
chop
Root lugs
end
chop lugs
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 Root end

Root end chop
Root lugs chop lugs
8 chop lugs 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 Root end

Root end chop
Root lugs chop lugs
9 chop lugs 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

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

Shift: _____ Defects Per Unit W/P: ______

Team Attendance
M T W Th F M T W Th F
Week 1 Week 27

Week 2 Week 28

Week 3 Week 29

Week 4 Week 30

Week 5 Week 31
Week 6 Week 32

Week 7 Week 33

Week 8 Week 34

Week 9 Week 35

Week 10 Week 36

Week 11 Week 37

Week 12 Week 38

Week 13 Week 39

Week 14 Week 40

Week 15

Week 16
2001 Week 41

Week 42

Week 17 Week 43
3456 3456 3456 3456
Week 18 Week 44

Week 19 Week 45

Week 20 Week 46

Week 21 Week 47

Week 22 Week 48

Week 23 Week 49

Week 24 Week 50

Week 25 Week 51

Week 26 Week 52

M T W Th F M T W Th F

Team Leader: _______________

Andon call
system and
Andon board
On plan 1 2 3 4 5 6 7 8
line stop
Issues 1 2 3 4 5 6 7 8
Stopped 1 2 3 4 5 6 7 8
 Performance Management Indicators

Productivity Shift: ______

Takt Achievement

SHIFT: ______
Scrap / Lost on Shop
Scrap Issues Outstanding W/P: ______
Lost

34 35 36 37 38 39 40 41 42 43 43 44 45 43 44 45 46 47 48 49 50 51 52
Management Audit

Process
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 state.

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.
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
 Cell Score

0
100

10
20
30
40
50
60
70
80
90
26/03/02

28/03/02

30/03/02

01/04/02

03/04/02

05/04/02

07/04/02

09/04/02

11/04/02

13/04/02
Au d it

15/04/02

17/04/02

19/04/02

21/04/02

23/04/02

25/04/02

27/04/02
Management Audit Scores

29/04/02
F lo wlin e Pe r fo r ma n c e a n d Wo r k p la c e Ma n a g e me n t

Da t e
Cell 3
Cell 2
Cell 1

TARGET
 Audit Process Schematic
Ongoing Maintenance C/L to understand/
address any
of the Department shortfalls then file
in C/Ls Office
The handover document
to C/L for archive
DAILY
WEEKLY

PUM C/L - Daily -

- Weekly -
PUM must conduct an audit
using the Area Map (support
personnel to attend) +adhoc
dip check ofT/L Handover archive
- Weekly -
PUM to review the audit
With Ops Manager/HoB
Before the HUD is updated
- Weekly -
PUM must then feed
the results into the
HUD
- Weekly -
C/L(with or without PUM) must
Complete the Cell Performance/
Workplace Mgnt Audit Sheet
- Weekly -
Results communicated to
T/Ls at the morning brief,
then communicated to Operations
(via PMS Board)
T/L The incoming T/L
Handover needs to decide
whether the dept.is in an
- Daily - acceptable condition
T/L must complete
at the end of shift
and hand to the
incoming T/L
YES NO
T/L off the previous
shift to rectify the
issues with immediate
effect
T/L can now
continue to deploy
operators onto job
ACCEPTABLE
HANDOVER ?
Performance Management Framework

Design a
KPI
Hierarchy
Set
Targets

Performance
Mgt System Install
tracking
systems &
Formalise the shift hand
Capture process
over & IPT around the
Issues &
tracking system & Capture
Resolve
Issues for resolution
Issue Management - Information Flow

Issues Resolution Process

Team Member
Team Leader
Shift Leader

PUM
Mgr
 Issue Escalation
Who What Where When How
On shop floor with team As disruptions occur, they are logged. Any disruptions causing delay are
T/L Disruption entered into the log. The description,
time length of delay and owner are
Log recorded.

On Team-Leader board, shop floor When a problem has occurred that will Light mounted on Team-Leader
Andon Light prevent the Team from achieving Board is switched on. Dept
planned productivity. responsible is contacted and rep.
T/L summoned. Light off only when
Escalation

(Rules change with Andon maturity) problem owned & plan in place
On Team-Leader board, shop floor As information / issues become As per Issue board process
T/L T/L available. Should be updated at earliest
opportunity to display the real time
& Problem Owners Issues Board state
Sh ift R epo rt
1 2 3 4 Tot als
At Team-Leader board, shop floor Set review for each team, 16:30 w/p 1 5 minute status review of key
Shift Report
W or k P ack age

S/L
C once ss ion s

P roducti vity

Ta kt A chi evem ent

S crap / Los t
16:40 w/p 2 metrics displayed on board. 5 minute
& Team Leaders
Is sue s O ut st anding

N otes : 16:50 w/p 3 discussion of pertinent issues /

17:00 w/p 4 suggestions
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 Office Thursday, 08:30-09:00 PUMs propose strips and debate
PUM IS S U E E S C A L A T IO N S T R IP which to raise / which are
appropriate
R a is e d on Is s ue B o a rd : _ _ _ _ /_ _ _ _ /_ _ __ W /P N o._ _ _ _ __ Is s ue N o. _ _ _ _ _ _

Weekly Review Information Centre

Thursday, 09:00-09:45 Assembly Mgr and PUMs review
A. Mgr progress over week using key
metrics on the Shop information
& PUMS board. PUMs propose Strips to
Assembly Manager

Strip Meeting Information Centre Friday, 08:00-08:30 Head of Business chairs meeting.
H.O.B Assembly managers and managers
Assembly Mgrs from support departments review
Support Mgrs progress on Strips
(PUMs in attendance as required)
Disruption Log - Shift Report
 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.
 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
 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
 Performance Management Framework

Design a
KPI
Hierarchy
Set
Targets

Performance
Tackle issues locally Mgt System Install
Plan tracking
where possible; utilise
Improvement systems &
systems to solve
high priority issues. Capture process
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
Flip Chart
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
 Performance Management Framework

Design a
KPI
Create an environment Hierarchy
of continuous Build Set
improvement for a better Incentives Targets
workplace
Performance
Mgt System Install
Plan tracking
Improvement systems &
Capture process
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
Flip Chart
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
Performance Management Framework

Design a
KPI
Hierarchy
Build Set
Incentives Targets

Performance
Install
Mgt System
Plan tracking
Improvement systems &
Capture process
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
 Performance Management

Why do Performance Management?

Flip Chart
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

Flip Chart
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

 Action Plan Sheet

NO. ISSUES ACTION WHO WHEN STATUS

 Summary

Why do Performance Management

Main Principles of Performance Management

Design a
Tools of Performance Management KPI
Hierarchy
Build Set
How to implement Incentives Targets

Performance
Mgt System Install
Plan tracking
Improvement systems &
process
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.

Are you able?