5 things you should do immediately to improve plant performance
TRANSCRIPT
5 Things You Can Do Immediately to Improve Plant Performance
Author:
Calvin Williams
Manuficient Consulting
There are actions that can be taken that will have an immediate impact on plant performance
Immediate Performance Improvement
KPI AssessmentTarget Setting
Performance Transparency
Escalation Protocols
Training & Execution
• Establish or realign KPI’s with current plant priorities
• Establish targets that indicate acceptable verse failing performance levels
• Publicize performance in real-time both line-side and in performance review meeting spaces
• Incorporate escalation protocols for both chronic and immanent issues
• Train workforce on escalation protocols and execute processes to drive desired performance levels
Eliminate the 8th Waste of Non-Utilized Talent and Ideas to drive continuous improvement in manufacturing
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KPI’s should be established or evaluated to ensure alignment with current plant priorities
Plant KPI Assessment
Plant Priority Example KPI’s
Cost • Conversion Cost / Unit• Labor Cost / Unit• Material Cost / Unit• OEE
Quality • First Pass Right• Non-Conformances• Quality Incidents
Service Levels • On Time and Full (OTIF)• Customer Complaints• # of Returns
Safety • Recordable Incidents• Incident Reports• Non-Recordable Incidents
Environmental Factors • PPB Particle Emissions• Tons to Landfill• Tons Recycled
Establishing KPI’s
Ensure that KPI’s can be tied directly to Key Priorities
Keep KPI’s limited to enable greater focus
Implement feasible & reliable method for tracking actual performance
Assign single point of accountability for tracking and managing KPI
Review KPI’s periodically to re-align with changing priorities
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Performance targets should be set and managed at the level of actionability, which allows preventative action to be taken
Performance Management – Target Setting
Plant Priority Example KPI’s
Cost • Conversion Cost / Unit• Labor Cost / Unit• Material Cost / Unit• OEE
Quality • First Pass Right• Non-Conformances• Quality Incidents
Service Levels • On Time and Full (OTIF)• Customer Complaints• # of Returns
Safety • Recordable Incidents• Incident Reports• Non-Recordable Incidents
Environmental Factors • PPB Particle Emissions• Tons to Landfill• Tons Recycled
Target
Performance Gap
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Ideally, the line operator (or value creator) would use these metrics in real-time make the appropriate adjustment to avoid an issue from materializing
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Actual performance should be made highly visible near the production line and summarized in review meeting areas
Performance Transparency
SafetyPerformance Gap
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QualityPerformance Gap
H1 H2 H3 H4 H5 H6
CostPerformance Gap
H1 H2 H3 H4 H5 H6
Line-Side Performance Metrics Performance Review Meeting Metrics
Safety
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Quality
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Cost
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Area 1
Safety
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Quality
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Cost
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Area 2
Safety
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Quality
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Cost
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Area 3
Safety
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Quality
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Cost
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Area 4
Safety
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Quality
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Cost
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Area 5
Safety
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Quality
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Cost
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Area 6
Illustrative
Area 1 Hourly Performance
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Issues should be systematically managed to complete resolution using two separate escalation processes
Escalation Protocols
Chronic issues erode performance but do not completely prevent adherence to schedule. These could include cases where deviations from standard and running below standard throughput are done over prolonged periods of time
Chronic Issue Escalation
Immanent issues pose an immediate threat to schedule adherence. These could include the complete or frequent breakdowns of a key piece of equipment or production line
Immanent Issue Escalation
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L3
L2
Issues resolved at Operator Level
Issues resolved at Support Level
Issues resolved at Mgmt Level
Chronic issues are allowed a time limit, process requirement, and resource allocation for resolution at each level
Immanent issues should be escalated from the Operator to the Facility Manager within a matter of hours. Each level should continue the RCA Process
Issues are escalated on pre-established time increments
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The workforce needs to be trained and on an on-going basis to adhere to performance management protocols
Training & Execution
Standard Procedure Development & Management
Training Execution & Records
• Validation of Learning
Change Management Execution
Workforce Training Process Execution
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We offer an array of services to help manufacturers across industries to realize their business objectives
Manuficient Service Offerings
Operating Cost Reduction
Optimize process efficiency to increase labor and asset utilization
Production Throughput Increase
Eliminate process bottlenecks to unlock untapped capacity
Material Cost Reduction
Close material loss points and/or identify favorable sourcing options
Business Case Analysis
Evaluate overall business impact to support decision-making
Should-Cost Analysis
Determine what a product should cost to make or procure
Network Optimization
Assess the optimal manufacturing footprint and associated benefit
Efficiency & Opportunity Analysis
Provide on-going process improvement support
All services are founded in principles of Lean, Six Sigma, Agile Manufacturing and other leading disciplines designed for operational excellence
Contact Details
Calvin L. Williams, MBA, BSIE, LSSManagement Consultant - Manufacturing(404) [email protected] Manuficient ConsultingManufacturing Strategy & Implementation2300 Holcomb Bridge Rd Suite 103-103Roswell, GA 30076www.manuficient.com Visit my Excelville Profile for tools and resources for your operations excellence initiative. Engage with us:Subscribe | Request Material | Schedule a Call | Request a Proposal Connect with us:Facebook | Twitter | Linkedin | Google+ | Blog