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Creating a Lean Culture
Visual Management
Daily Accountability &
Tiered Metric Boards Tom Groth Thermo Fisher Scientific [email protected]
Tedd Snyder Snyder Consulting & Associates [email protected]
Continuous Improvement
• Cost Reduction
– Reduce year on year expenses
• Capacity Increase
– Do more with the same number of people
• Customer Satisfaction
– Focus on what matters most to customers (internal and external)
Visual Management – 5S
Are you more productive working in one of these environments? Why or why not?
Visual Management – 5S
When creating a Lean environment follow one simple rule Everything has a place and everything is in it’s place
Why is that important for productivity?
Visual Management
• Processes which rely on equipment can use daily accountability to monitor:
– Run time
– Change over time
– Down time
• Where is the gap?
– M1 to M11
Visual Management
Identify the top processes in your workplace and make them visual
White board, colored tape, post-it-notes, and a label maker
Visual Management
• Use visual management to level load invoice processing and track progress throughout the day
Visual Management
• Error proof the process by adding Red, Yellow, Green to a process
• The employee can quickly and accurately determine if the measurement is within specification
Visual Management
• How is a red tag process used as a form of visual management and quality control?
Visual Management
• Add employee photos to personalize visual management
• Track progress of tasks in queue, in progress and completed
Daily Accountability
• How are daily stand up meetings similar to a football teams huddle at the start of each play
Daily Accountability
• What is the purpose of a daily stand up meeting?
• What should the standard work for the meeting include?
Daily Accountability
• Purpose
– Communicate status, identify problems, communicate problem resolutions
• Same time, place and attendees each day • Follow an agenda • Review top metrics (3 – 4 maximum) • Plan versus actual from the previous day
– Identify gaps in performance – Ask WHY?
• Involve everyone on a regular basis
Daily Accountability
• Top metrics – safety, quality, delivery,
inventory, or productivity
• Assigned action items with due dates
• Identify gaps and report on solutions
• Employee recognition – Proactive solutions not
fire fighting
Daily Accountability
• Every metric must contain a goal
• A run chart displays plan versus goal
• When you hit the goal recognize the team and move on
• When a gap is identified treat it like a piece of gold
• Attack the problem not the person
Daily Accountability
• This run chart documents plan versus actual
• Clearly communicate if we had a good day or a bad day allowing the team to make adjustments as needed
Daily Accountability
• We can quickly identify process gaps by creating a day by the hour plan
• How many units will we make each hour today
• The leader can track our progress versus plan every hour and make adjustments as needed
Daily Accountability
• Number of units produced each hour; Plan versus Actual • In this case we missed the 9:00 production plan (i.e., gap) • Focusing on the 5 resources of production (manpower, machinery,
method, material and environment) the leader was able to make adjustments to achieve plan for the remained of the day
• Overall we had a RED day • During tomorrow’s stand up meeting the team will report what
happened and what is being done to prevent the problem in the future
Daily Accountability
• During a daily stand up meeting the tendency is to tell the team about a problem (i.e., report the weather)
• Instead quickly define the gap and tell your peers how we fixed the problem
• If the solution is not know capture an action item to provide an update by a certain date
Traceability Matrix
• Employees capture issues and update the traceability matrix prior to the daily stand up meeting
• Review the information weekly and identify trends that require the teams attention
• In this case the team should focus problem solving activities on part shortage and rework
Tiered Metric Boards
• An organization is made up of several teams and departments working together for a common goal
• Linking daily accountability meetings is a powerful method to improve communication & solve problems
Tiered Metric Boards
• Tier 3 – Operations manager, quality, value stream managers,
purchasing, supply chain, human resources, logistics – 9:30 AM until 10:00 AM
• Tier 2 – Supply chain, planning, value stream managers
meeting with their cell leaders – 8:45 AM until 9:00 AM
• Tier 1 – Individual production cells meet – 8:00 AM until 8:15 AM
Operations example