The Association of
Manufacturing
Excellence
Presents…
1
People Powered Lean
“Business is a Team Sport”
March 14-15, 2007
2
Or
People are Better Than Materials!
3
Core Beliefs
•
Start with the end in mind! …Take a Systems Approach
•
Be in the business of making hard things easy…not easy things hard.
•
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…and our people’s vote counts more than
ours.
•
Our People’s “Vote” counts more than ours
•
Every organization has a limited bandwidth for change
•
Culture vs. Change and Leading
•
Turf, Ego, and $$$ and the end of the day it is about…
4
Business is a Team Sport
• Think Hard: Are we organized for success and doing
the right things?
– Right Plays
– Right Rules
– Right Positions
• Work Hard: Are we executing the plays?
– Putting the right people with the right skills in the game to run
the plays
– Motivating them to produce and Win!
• Talk: Communicate
– Everything is constantly changing
– Providing Aggressive Leadership
5
Army Basketball Team
1976-1977
6
Task Force 2-4 Cavalry Tactical Operations Center Team
Feb 21, 1991 - Northern Saudi Arabia
7
Workshop Learning Objectives
1. Allow you to “see” People from a business
perspective
2. Understand and Define the Lean Value Stream
from a People Perspective
3. Link your People programs to the business
4. Understand how Senior Leaders evaluate
People investments
5. Learn from others like you
6. Take a Good Idea home with you…
8
The Lean House without Waste
9
Session Feedback
Start with the end in mind!
10
Business Card Exchange
1. Position on the Team?
2. Type of Company? Manufacturing;
Services; Other
3. Product?
4. Number of Employees?
5. Number of Locations?
11
Agenda
8:00 – 8:20
8:20 – 9:45
9:45 – 10:00
10:00 – 11:00
11:00 – 11:30
11:30 – 12:00
12:00 – 1:00
1:00 – 3:00
3:00 – 3:15
3:15 – 4:00
4:00 – 5:00
March 14, 2007
Welcome
“Seeing the Big Picture”: Organizing for Success-- The Theory
Break
Recruiting: Finding the Right Athletes (Scenario Exercise)
Trying Out: Verifying Skills and Attitude
Making the Team: Right Fit; Finding Your Seat on the Bus
STIHL Case Study: Simon Nance
Lunch
Pre-Season Training
Building Your Depth Chart
Improving the Performance of Your Current Team.
Playing to Win
Leaders Executing the Plays: Current Leader; Current Job
(Scenario Exercise)
Building Bench Strength: Future Leaders (Scenario Exercise)
Break
Speeding the Lean Journey:
Keith Hornberger (Lead Sensei and 6 Sigma Black Belt)
Keeping Score: Putting it All Together
12
Wrap Up and Closing
Agenda
March 15, 2007
8:00 – 8:30
Welcome: Bruce Bolton, Operations Manager, Creative Memories
8:30 – 10:30
Creative Memories Plant Tour
10:30 – 11:00
Conference Wrap Up
11:00 – 12:00
Lunch
Optional
1:00 – 6:00
Golf Outing
13
Today we will generate a lot
more questions than
answers…
….and that is OK
14
Take a Blue Slip
Our Way to Communicate and
Facilitate Our Journey!
15
Take a Blue Slip
What do you want to learn today?
16
Break-Out Product Information
1. Realistic Job Previews
2. Training Program Design
3. Electronic Performance Support Module Development
4. Learning Management Systems
5. Depth Charts to Manage “Right Person; Right Job.”
6. Deriving Job Descriptions from Value Stream Maps
7. Attrition Analysis
8. Building Human Capital Budget Request
9. Aging of the Workforce
10. Others:
Name:
Company:
17
Getting Out of the Box…
Big Picture Thinking!
18
Measures of Performance
…It is All About Business
Performance!
REQUIRED Level of Performance
Performance
Gap
Resources
Required
CURRENT Level of Performance
19
Business Metrics
If we completely align our Lean Journey with our People
SYSTEMs we will:
– Improve Quality
– Improve Production to Headcount Ratio thus Reducing Labor
Cost per product
– Reduce Defects through focused Continuous Improvement
– Reduce Lead Time to Increase Market Share
– Increase production capacity and…
– Improve PROFIT margin
…by optimizing the plant’s physical production capacity
to our production process.
20
Business of People
The Mission:
Provide Leaders with right people in the right
numbers, in the right skills, at the right time, at
the right cost to meet business needs.
The Goal:
An agile, competent workforce capable to move
at the speed of business.
21
Alternative Roles for Corporate Learning
1.
Training
Did the Learner accomplish the Learning Objectives efficiently?
Business Metric: Time Invested vs. Skills Outcome
2.
Performance Improvement
Did the Leader receive “improved job performance” as a result of
the investment?
Business Metric: Overhead Cost to Improved Job Performance
3.
Human Capital Management
Do we have a system to provide the Manager’s with Right People
in the Right Numbers with the Right Skills at the Right Time?
Business Metric: Headcount to Productivity
4.
Organizational Effectiveness
Are we organized, labor resourced and costed correctly to
accomplished the business objectives?
Business Metric: Full Time Equivalents vs. Profit Margin
22
Team Sport
Value Stream
1.
2.
3.
4.
5.
6.
7.
Organizing for Success
Recruiting
Trying Out
Making the Team
Pre-Season Training
Playing to Win
Keeping Score
23
Business is a Team Sport!
Building High Performance Teams
1.
2.
3.
4.
5.
Organizing for Success: Aligning Production Process with
People
Recruiting: Finding the Right Athletes
Trying Out: Verifying Skills and Assessing Attitude
Making the Team: Best Player or Best Athlete: Right Fit?
Pre-Season Training:
a.
b.
c.
6.
Playing to Win:
a.
b.
7.
Learning Your Position and the Depth Chart
Developing Leaders at every Level
Current Workforce Skills Development: Building Benchstrength
Leaders emerge: Leader Performance Improvement: Identifying and
empowering leaders with the right behaviors
Teams play smart and hard: Continuous Improvement
Keeping Score: How do you know you are Winning?
24
Organizational Scheme
GM
1S
OM
OM
SS
SS
SS
1S
1S
GT
MU
NE
Vertical Dyad Linkage
GT
NE
OM
GM: General Manager
OM: Operations Manager
SS: Shift Supervisor
1S: 1st Line Supervisor
MU: Make Up Supervisor
GT: Go To Employee
E: Employee
NE: New Employee
Based Upon a Total Operational Headcount of 3060
10
30
60
160
100
500
1600
600
25
Building Pipelines
Adult
Education
Recruiting
Trying Out
Making the Team
Temp
Agencies
Community
Colleges
Generate
Labor
Req’s
College
Transfers
High Schools
Tech Schools
Other
Companies
Orient,
Screen
&
Identify
Candidates
Interview
&
Assess
Skills
Common
Skills
Training
1st Job
Skills
Development
Current
Employees
State Employment
Offices
Increase Cost
Hiring
Decision
Decrease Cost
Military
26
Life Cycle Skills
Development Program
Complex
Tasks
Employment
Skills
Supervisor
Development
Training
VI
Pre-Employment
Basic
Skills
Management
Skills
Intermediate
Skills
Supervisor
Practical
Application/
Evaluation
Mentor
Skills
Advanced
Skills
IV
Initial
Entry
Skills
Training
Basic
Training
Practical
Application
Coaching/
Evaluation
Skills
Evaluation
Intermediate
Training
II
Practical
Application
Coaching/
Evaluation
V
Soft Skills
Development
Advanced
Training
III
Practical
Application
Coaching/
Evaluation
Experienced Personnel
I
Competency Level
Career
27
Leader Development Program
Current State
•
•
•
•
•
•
Leader Development conducted
informally or not at all.
Usually best operators promoted
to Supervisors
Experience gained over time
Many training courses available
but not mapped to critical tasks.
Undocumented program that is
dependent on individual
Management implementation
On the Job Training is ad hoc with
few Training Materials available on
the Job Site.
Perfect State
•
•
•
•
Systematic Approach to Leader
Development
Manager’s are Responsible as the
Primary Trainers of their Supervisors
Manager’s are responsible to tailor
skill development to each individual
supervisor and each operational area.
Leader Development Programs
mapped directly to Performance
Review System
28
Bench Strength is Working the Blue Lines
Operations Manager
Current Shift Supervisor – Future Operations Manager
Current Shift Supervisor – Current Job
Current 1st Line Supervisor – Future Shift Supervisor
Current 1st Line Supervisor – Current Job
Current “Go To” Operator – Future 1st Line Supervisor
29
Putting It All Together
When the CEO/CFO say…
“OK… we see all the pieces, we understand
the problem, we know this critical to our
business…”
“How much money do you need and when
do you need it, and how will we know it
made our business better?”
30
Human Capital Management
Success Principles
1.
2.
3.
4.
5.
6.
7.
Business Focus (People + Process + Material = Products)
Senior Leader “Hands On” Business with embedded Metrics and
Regular Reporting
Centralized Planning while Executing Program as close to the
work area as possible.
Managers are responsible and accountable for the performance
and development of their people…
Be the P&L Responsible Managers best resource for support by
providing them the processes and programs to do better meet their
business objectives.
Do not be a part of the problem by putting HR mechanics ahead of
business support.
Constantly Link the Corporate Strategy to the Human Capital
Management Program…be proactive
31
Human Capital Management
Program Design Challenges
1.
2.
3.
4.
5.
6.
7.
8.
No silver bullet…Big Problem with a lot of moving parts in a
dynamic business environment
Focused effort based upon real analysis…not a “Good Idea of the
Day” approach.
Recommendations must make good business sense
Design Executable Programs and be good Program Managers
(Cost, Schedule, Quality)
Be realistic in execution and “eat the elephant” one bite at a time.
Focus on PEOPLE first; then FTE.
Requires long range thinking… People are multi-year projects-- if
fact Life Long Projects
Do not be a part of the Profit and Loss problem!
32
What group represents the biggest risk
for the future of your business?
(Rank Order with 1 the Highest Priority)
__ Hourly Workforce
__ 1st Line Supervisors
__ Plant Middle Management
__ Plant Managers
__ Executive Staff
__ Administrative Support staff
__ Temporary Workforce
33
Which part of the People Life Cycle requires
the most urgent attention?
(Rank Order with 1 the Highest Priority)
__ Organizational Scheme
__ On Boarding (e.g. Acquiring New Employees)
__ Incumbent Production Workforce
__ Line Supervisors Performance Improvement
__ Executive Leadership Development Program
34
Workshop Participant
Snapshot
“Take a Blue Slip”
•
•
•
•
Title:
Company:
Type of Business:
#1 Challenge:
35
Organizing for Success
Theory and Application
36
People Powered Lean
Assumptions
• Sound Business Model: Crisis?
• Value Stream Map is Present
37
Business Process
Sales/Quoting
Sampling
Sequencing
Customer
Orders
Scheduling
Purchasing
Components
Receiving
Components
Planning
Pulling
Components
Assembly
Staging
Sterilizer
Finished Goods
Processing
Ship to
Distributor/Customer
38
Value Stream Map
FIRST SHIFT PROCESS
03/23/04
FORECAST (30-60-90)
PURCHASE ORDER
STEEL SUPPLIER
Production
Control
PURCHASE ORDER
FORECAST (30-60-90)
BARREL
Per
Week
2
1
Per
Week
5
Completed
Parts from Ideal
Develop Kanban
Replenishment
System
DAYS
10
LIP ASSEMBLY
5
.5
Cycle Time
Production
mins/shift
Production
shift
DAYS
Reduce Plate
Inventory by 20%
45
Mins
540
Mins
1
Shfts
Operators
2
Staff
Qty/Assy (pcs)
11
Shfts
A30
Cycle Time
50
Mins
Production
mins/shift
540
Mins
DAYS
Uptime (%)
95
%
Production
shift
1
Shfts
Production
mins/shift
Production
shift
B20
B40
POINTS
B50
LINE 1
LINE 1
LINE 1
LINE 1
LUG CONNECTION
TACK
WELD 1
WELD 2
WELD 3
Production
mins/shift
Production
shift
5
90
Mins
540
Mins
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
Cycle Time
Production
mins/shift
Production
shift
5
90
Mins
540
Mins
1
Shfts
1
Shfts
1
Shfts
1
Shfts
1
Shfts
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
5
FIFO
F20
Mins
Cycle Time
90
Mins
Uptime (%)
98
%
Staff
Operators
1
Staff
Shfts
Qty/Assy (pcs)
11
Shfts
C10
C20
C30
C40
C50
LINE 2
LINE 2
LINE 2
LINE 2
LINE 2
LUG CONNECTION
TACK
WELD 1
WELD 2
WELD 3
Production
mins/shift
Production
shift
WIP
.5
A40
DAYS
F30
FINAL ASSEMBLY/
BLAST/ PAINT
BORE
Shfts
2
DAYS
F10
1
11
DAYS
BUSHINGS
540
Shift
DAYS
Develop In-Line
Boring Capability
Mins
Operators
Cycle Time
Production
mins/shift
Production
shift
SHIP
45
Mins
540
Mins
1
Shfts
540
Mins
1
Shfts
Operators
2
Staff
Staff
Buckets
11
Shfts
Operators
2
Buckets
11
Shfts
WIP
Cycle Time
SIDE ASSEMBLY
ROUNDO
Cycle Time
Production
mins/shift
Production
shift
2nd SHIFT
ONLY
B30
LINE 1
Cycle Time
OXOX
45
PER
DAY
SHROUDS
BRAKE
BEVEL BEAMS
LUG TACK
Cycle Time
1
DAYS
B10
WIP
.5
A10
BURN
DAYS
WIP
DAYS
PLATE STEEL
Frequency
Develop Kanban
Replenishment
System
BOSSES
A20
SIDE REINF.
5
DAYS
FLOOR SHOP
SCHEDULER
Develop Kanban
Replenishment
System
ADAPTERS
PER
WEEK
PER
DAY
1
11
WAREHOUSE
(CASTINGS
BUSHINGS &
BOSSES)
Frequency
Frequency
CUSTOMER
Develop New
Scheduling Tools for
Flow Lines
Develop Kanban
Replenishment
System
Per
Week
1
IDEAL STEEL
1
F40
ESCO
SALES
BUCKETS
Frequency
Frequency
Frequency
FORECAST (30-60-90)
FAX/SALE ORDER
MRP
Plant 3
45
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
.5
Mins
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
540
Mins
Buckets
5
Shfts
Buckets
5
Shfts
Buckets
5
Shfts
Buckets
5
Shfts
Buckets
5
Shfts
1
Shfts
Operators
1
Staff
Qty/Assy (pcs)
11
Shfts
DAYS
Add Welding
Capability at Final
Assembly
WIP
.5
DAYS
Develop Misc.
Flow Line
D10
MISCELLANEOUS
BUCKETS
Operators
3
Staff
Production
shift
1
Shfts
E10
Shfts
LARGE BUCKETS
Operators
Production
shift
2
1
WKS
DAYS
SHIFTS
HRS
MINS
2
4
2
9.25
60
60
DAYS
DAYS
SHIFTS
HRS
Mins
Secs
Staff
T10
Shfts
TOTALS
5.00
DAYS
5.00
50.00
Mins
DAYS
0.50
45.00
Mins
DAYS
0
108.00
Mins
DAYS
0
108.00
Mins
DAYS
10
108.00
Mins
DAYS
0
108.00
Mins
DAYS
0.50
108.00
DAYS
Mins
How do we create value?
5.00
90.00
Mins
DAYS
0
45.00
Mins
DAYS
Non-Value
26.00
Days
Value-Added
770.00
Mins
Operators
25.00
Staff
39
Value-Adding Activities
….transform materials and
information into products the customer pays for
Non-Value-Adding Activities
….consume resources, but don’t
directly contribute to the product and/or the customer
Non-Value-Adding but Required
….consume resources, but are required
by government regulation or company policy
40
Team Sport: Defining Positions
Mold Maker &
Maintenance
Mold Setter
Mold/Part Designer
Sales Representative
Quality Control
Customer Order
and Materials
Machine
Material
Handler
Finished Products
and Satisfied Client
Machine Operator/
Packer
Process
Technician
Assembly Operator
Press Maintenance
Technician
41
Value Stream to Cell Map
Production Cells
Lips
Lug and
Beam Welder
Assemble/ Tack
Weld 1*
Weld 2*
Weld 3
FIRST SHIFT PROCESS
03/23/04
FORECAST (30-60-90)
PURCHASE ORDER
STEEL SUPPLIER
Production
Control
PURCHASE ORDER
FORECAST (30-60-90)
Per
Week
2
1
Per
Week
5
Completed
Parts from Ideal
10
.5
Cycle Time
Production
mins/shift
Production
shift
DAYS
45
Mins
540
Mins
1
Shfts
Operators
2
Staff
Qty/Assy (pcs)
11
Shfts
BURN
Cycle Time
50
Mins
Production
mins/shift
540
Mins
DAYS
Uptime (%)
95
%
Production
shift
1
Shfts
Production
mins/shift
Production
shift
Production
mins/shift
Production
shift
Mins
1
Shfts
Operators
2
Staff
Operators
1
Staff
Shift
11
Shfts
Qty/Assy (pcs)
11
Shfts
B40
LINE 1
540
Mins
1
Shfts
TACK
Cycle Time
Production
mins/shift
Production
shift
POINTS
B50
LINE 1
WELD 1
90
Mins
540
Mins
1
Shfts
Cycle Time
5
LINE 1
Production
mins/shift
Production
shift
WELD 2
90
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
WELD 3
90
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
5
90
Mins
540
Mins
1
Shfts
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
C10
DAYS
DAYS
BUSHINGS
5
DAYS
F10
C20
LINE 2
C30
LINE 2
C40
LINE 2
C50
F20
DAYS
LUG CONNECTION
TACK
LINE 2
WELD 1
LINE 2
WELD 2
WELD 3
F30
FINAL ASSEMBLY/
BLAST/ PAINT
BORE
Cycle Time
90
Mins
Uptime (%)
98
%
Production
mins/shift
Production
shift
WIP
Cycle Time
Production
mins/shift
Production
shift
SHIP
45
Mins
540
Mins
1
Shfts
540
Mins
1
Shfts
Operators
2
Staff
Staff
Buckets
11
Shfts
Operators
2
Buckets
11
Shfts
WIP
Cycle Time
SIDE ASSEMBLY
ROUNDO
Cycle Time
Production
mins/shift
Production
shift
2nd SHIFT
ONLY
Mins
FIFO
.5
A40
B30
LINE 1
90
Develop In-Line
Boring Capability
Mins
540
PER
DAY
SHROUDS
OXOX
45
B20
LINE 1
LUG CONNECTION
Cycle Time
BRAKE
BEVEL BEAMS
LUG TACK
Cycle Time
1
DAYS
B10
WIP
.5
A10
A30
DAYS
WIP
DAYS
Reduce Plate
Inventory by 20%
Frequency
Develop Kanban
Replenishment
System
BOSSES
LIP ASSEMBLY
PLATE STEEL
5
DAYS
Develop Kanban
Replenishment
System
DAYS
A20
SIDE REINF.
5
11
FLOOR SHOP
SCHEDULER
Develop Kanban
Replenishment
System
ADAPTERS
PER
WEEK
PER
DAY
1
Develop Kanban
Replenishment
System
WAREHOUSE
(CASTINGS
BUSHINGS &
BOSSES)
Frequency
Frequency
CUSTOMER
Develop New
Scheduling Tools for
Flow Lines
Per
Week
1
IDEAL STEEL
1
F40
ESCO
SALES
BUCKETS
Frequency
Frequency
Frequency
FORECAST (30-60-90)
FAX/SALE ORDER
MRP
Plant 3
BARREL
Operators
Qty/Assy (pcs)
45
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Mins
Operators
1
Staff
540
Mins
Buckets
5
Shfts
1
Shfts
1
Staff
11
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
108
Mins
540
Mins
1
Shfts
.5
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Buckets
5
Shfts
Buckets
5
Shfts
Buckets
5
Shfts
Buckets
5
Shfts
DAYS
Add Welding
Capability at Final
Assembly
WIP
.5
DAYS
Develop Misc.
Flow Line
D10
MISCELLANEOUS
BUCKETS
Operators
3
Staff
Production
shift
1
Shfts
E10
Shfts
LARGE BUCKETS
Operators
2
Staff
Production
shift
1
Shfts
WKS
DAYS
SHIFTS
HRS
MINS
2
4
2
9.25
60
60
DAYS
DAYS
SHIFTS
HRS
Mins
Secs
T10
TOTALS
5.00
DAYS
5.00
50.00
Mins
DAYS
0.50
45.00
Mins
DAYS
0
108.00
Mins
DAYS
0
108.00
Mins
DAYS
10
108.00
Mins
DAYS
0
108.00
Mins
DAYS
0.50
108.00
Mins
DAYS
5.00
90.00
Mins
Who is going to do it?
DAYS
0
45.00
Mins
DAYS
Non-Value
26.00
Days
Value-Added
770.00
Mins
Operators
25.00
Staff
42
Horizontal
Labor Planning Considerations
•
•
•
•
•
•
•
Job Complexity
Production Tempo
Level of Manual Labor
Level of Intellectual Labor
Quality Standards
Availability and Skill Set of Labor Pool
Availability of Leaders
(Leader to Led Ratio)
43
Vertical Labor Planning
Senior
Management
P & L Responsible Leaders
IT/HR/
Accounting
Sales
Engineering
1st Line Supervisors
Production Workforce
Machine 1
Machine 2
Machine 3
Machine 4
Machine 5
44
Creating the Conditions for Success
• Owner: Creating the Business Model (Profit and Loss)
• General Manager/Front Office: Runs the Business
• Head Coach: Decide the Game Plan (Players and the Plays)
• Coordinators: Call the Plays
• Coaches: Ensures the Players know how to run the Plays
• Leaders: Read the current situation and execute the Plays
• Players: Execute the Plays
45
Vertical
Labor Planning Considerations
•
•
•
•
•
•
•
•
Span of Control (Leader to Led Ratio)
Physical Environment
Tempo
Hourly or Salaried
Complexity
Same Labor Categories or Mixed
IT/ERP System Granularity
Support Staff Availability (Production Control,
Planning, Quality Control, Engineering,
Training, HR, etc.)
46
Business is a Team Sport
• Think Hard: Is our business model sound, are we
organized for success and doing the right things?
– Right Plays
– Right Rules
– Right Positions
• Work Hard: Are we executing the plays?
– Putting the right people with the right skills in the game to run
the plays
– Motivating them to Produce and Win!
• Talk: Communicate
– Everything is constantly changing
– Providing Aggressive Leadership
47
Business is a Team Sport
Mission
Provide our leaders and teammates with
the tools, skills, training, and procedures
to improve our production processes
through continuously identifying and
eliminating waste.
48
Lean Goals
•
•
•
•
Improve Quality
Eliminate Waste
Reduce Lead Time
Reduce Total Costs
Through Near Real Time Visibility over:
•
•
•
•
Process
Materials
Cost (People)
Equipment
49
People Powered Lean:
A SYSTEM to Align
People to Process obtaining
Employee Ownership
Process
Materials
Cost
Equipment
People
50
Linkage to Business Outcome
•
•
•
•
Ownership is the Outcome
Engagement is the Behavior
Lean is the process
Lean training provides the skills at every level.
PPL System
Metrics + Process + Training + Resources =
Expected Business Outcomes
51
Business Goals
• Create an atmosphere of ownership
• Identify and close productivity gaps to increase
profitability
• Create a condition that produces “First Time Quality”
• Continuously improve our safety rates
• Improve customer satisfaction through increased
responsiveness to critical customer concerns
• Continuously identify and eliminate waste
52
Employee Ownership
Requires Trust
• Leaders will provide:
– Clear direction
– Appropriate
Resources
– Expert Advice
– Feedback and
Coaching
– Growth Opportunities
– Reward and Praise
– Fair Treatment
• Led will:
– Treat the company
like their own
– Hold each other
accountable for
doing the right thing
– Give early warning of
problems
– Have the courage to
ask questions
53
Goal Alignment
Led
Led
Led
Led
Leader
Communication
Organizational Goals
–
–
–
–
Cost
Schedule
Quality
Safety
Goal
Alignment
Awareness
Individual Goals
–
–
–
–
Compensation
Opportunities
Responsibility
Work
Environment
– Recognition
Can only occur when there is a conversation
between the Leader and the Led about the Led!
54
Gallup Path to Business Success
Real Profit
Increase
Stock
Increase
Sustainable
Growth
Business Success
Measures:
Productivity,
Profitability,
Employee Retention
Customer Satisfaction
People
Enter
Here
Engaged
Customers
Identify
Individual
Strengths
Engaged
Employees
The
Right Fit
Great
Leaders
55
Finding the Right Questions to
Assess Leader Performance
Project:
• Human Sigma: Gallup conducts 30 years of research (70’s, 80’s, 90’s)
• Thousands of different questions
• More than 1 million employees
Task:
• Identify the factors common to the most productive workplaces
• Identify the best questions to measure these factors
• Validated through meta-analysis
Result:
• Q12 Survey
56
Are my needs being met?
SA/A/D/SD Answers:
1. Do I know what is expected of me?
2. Do I have the materials, equipment, and skills I need to do my work
right?
3. Do I have the opportunity to do what I do best everyday?
4. In the last seven days, have I received recognition or praise for good
work?
5. Does my Supervisor, or someone at work, seem to care about me as a
person?
6. Is there someone that encourages my development?
7. At work, my opinions seem to count?
8. The mission or purpose of my company makes me feel my job is
important?
9. My associates or fellow employees are committed to doing quality
work?
10. I have a best friend at work?
11. In the last six months, someone at work has talked to me about my
progress?
12. This last year, I have had opportunities at work to learn and grow?
13. Do I trust my leader?
57
Source: Gallup
Signs of Engaged Employees
•
•
•
•
•
•
•
•
•
•
Psychologically committed to the company
Consistent levels of High Performance
Innovative and a drive for efficiency
Intentionally build supportive relationships
Clear about role outcomes expected
Passionate, high energy, and enthusiastic
Never run out of things to do
Loyal to workgroup and company
Broaden what they do and build on it
Positive constructive criticism
58
Signs of Not Engaged Employees
•
•
•
•
•
•
•
Meeting the Basics
Confusion or inability to act with confidence
Low risk response
No real sense of achievement
Making up their own game
Not always committed
Show negativity but not underground
59
Signs of Actively Disengaged Employees
•
•
•
•
•
•
•
•
•
•
•
Physically present but psychologically absent
“What can I take” rather than “what can I give”
Share unhappiness about work with peers
“I’m OK but everyone else is not”
Service prevention rather than service provision
Not productive but always has excuses
Inability to move from problem to solution
Normal reaction starts with resistance
Low commitment to company
Might sabotage or manipulate solutions
Isolation, low trust
60
Can we
prevent this
type of
waste from
happening?
61
Opportunity for Improvement
• 25% of the working population are ignored by their
supervisor
– Actively Disengaged: 40% of them are in their workplace
– 58% are Not Engaged
– 2% are Engaged
Source: Gallup
62
Example
Employee Handbook
Welcome to Nordstrom
WE’RE GLAD TO HAVE YOU WITH OUR COMPANY
Our number one goal is to provide outstanding customer service.
Set both your personal and professional goals high.
We have great confidence in your ability to achieve them.
So our employee handbook is very simple.
We have only one rule.......
The other side of the card says:
One Rule
Use good judgment in all situations.
Please feel free to ask your Department Manager, Store Manager,
or Human Resource office any question at any time.
- From “The Speed of Trust,” By Stephen Covey
and Rebecca Merrill
63
Business Performance
Leading Indicators
1st Line Supervisors:
– Responsible for producing “Customer Value”
– Are held accountable for production requirements
– They are responsible for getting “8 for 8” from the
hourly workforce
– Usually in their first leadership position
– Work all shifts
– Blending of technical and people skills is required
– Performance is directly related to their Manager’s
ability to lead them.
64
Vertical Dyad Linkage Theory
The Linkage Power Depends On…
1. Leaders Managing Personal Relationships
– Vertical Dyad: Leader Led x number of direct reports
– Employee performance, productivity, and engagement
depends on their relationship with their IMMEDIATE
Supervisor
2. Leader and Led continuously Creating Shared Goals.
– The Employee’s Goals and Needs
– The Organization’s Goals and Needs as articulated by the
Supervisor
– Requires continuous Goal Alignment within Developmental
Plans and continuous Feedback
65
Group Breakdown
Leader
Led(I)
Led(O) Led(M)
In Group:
–
–
–
–
–
High Trust
Good Communications
“Let ‘em Run” Goal Setting
Low Task Definition Needs
High Relationship Needs
Out Group:
–
–
–
–
–
Low Trust
Stressful Communications
“By the Numbers” Goal Setting
High Task Definition Needs
Low Relationship Needs
66
High Performing Team Development
Strategic Goal
• Increase the In-Group
• Decrease the Out-Group
Facts:
– Out Group is Actively Disengaged or Physically Present but
Psychologically Disruptive. Unhappy and Insist on sharing
their unhappiness with others. Doing positive harm to the
organization.
– Little movement from Out to In
– More movement from In to Out due to Leaders breaking the
Goal Alignment Contract/Agreement
67
Middle Group
The Key to Success
1. New Employees make a decision within first 48 - 72
hours from introduction to immediate supervisor.
2. Not Engaged Employees are those “…just putting in my
time” but not actively doing harm. They can be
influenced by Leaders.
Strategy:
Focus on the Middle Group to move them into the In Group
as quickly as possible.
68
Organizational Scheme
Analysis
Current State
69
Org Chart
70
Organizational Scheme
GM
1S
E
OM
OM
SS
SS
SS
1S
1S
GT
MU
NE
OM
GT
NE
E
GM: General Manager
OM: Operations Manager
SS: Shift Supervisor
1S: 1st Line Supervisor
MU: Make Up Supervisor
GT: Go To Employee
E: Employee
NE: New Employee
71
Vertical Dyad Linkage
Organizational Scheme
GM
Self Motivated Tasks
1S
Directed Tasks
E
OM
OM
SS
SS
SS
1S
1S
GT
MU
NE
OM
GT
NE
E
GM: General Manager
OM: Operations Manager
SS: Shift Supervisor
1S: 1st Line Supervisor
MU: Make Up Supervisor
GT: Go To Employee
E: Employee
NE: New Employee
72
Vertical Dyad Linkage
Who gets to Play?
Matching Leaders to People to Jobs
Considerations
1.
Past
Performance
2.
Technical
Experience
3.
Strengths and
Weaknesses
4.
Work Area
Complexity
5.
Leader-to-Led
Ratio
6.
Lead Times
7.
Crew Make-Up
8.
Shifts
OM
PC
SS
PLANNING
1S
1S
GTM
NE
M1S
M
GTM
M
NE
73
PC
Example:
Running Your Business Chart
MPL
WF
PC
FF
MPL
GTM MUF GTM
WF
FF
M
PC
MPL
M
WF
FF
GTM MUF GTM
M
GTM MUF GTM
M
MPO
PC
M
M
PLANNING
MPL
WF
PC
FF
GTM MUF GTM
M
M
PC
MPL
WF
WF
Every Bubble has a Name!
…linked to their Developmental Plan
MPL
FF
GTM MUF GTM
FF
GTM MUF GTM
M
M
74
M
M
Quality/Fit Rating (4-pt. Scale) Annual
Turnover (as decimal)
The Effects of Selection and Supervisor Training on
Turnover
5
Turnover
4.5
4
3.5
Fit with
Supervisor
3
2.5
Quality
2
1.5
1
0.5
0
Jan
Feb
Mar
Apr
Overall Quality (Leading Indicator)
May
Jun
Jul
Aug
Sep
Oct
Nov
Fit With Supervisor (Leading Indicator)
Dec
Jan
Feb
Mar
Apr
May
Annualized Turnover (Lagging Indicator)
75
Source: The Gabriel Institute (2006, June) www.thegabrielinstitute.com From Maximizing Human Capital
Jun
Core Daily Business Activity
Success = Job Packages Completed within Cost, on Schedule, Safely, with no Re-Work
Job
Packages
Foreman
Materials
Products
People
Foreman Provide:
Clear Goal Definition
Materials and Equipment to accomplish the task
 People with the Right Qualifications and Skills
76
 Leadership: Organizational Energy and Momentum
Project Plans
and
Labor Estimates
Core Business
Data Element
Leader
Assigning
Charge #s &
Approving
Time
Assigning Work to Crew in Discrete Increments and Measuring
77
Goal Accomplishment
Planning & Execution
• Job Packages
–
–
–
–
• Worker Capabilities
Job Description
# Hours Planned
Materials Available
ERP Tools
–
–
–
–
Qualifications
Capacity
Skills
Physical Limitations
Foreman
Cost, Schedule,
Quality, Safety
78
Organizational Scheme
Does it Support the Core Daily Business Activity?
SDO
DP
PM
PSP
DW
SDO: Senior Director, Ops
DP: Director of Production
DW: Director of Warehousing
DM: Director of Maintenance
PM: Production Manager
PSP: Production Supervisor
TLMU: Teal Leader Make-Up
TL: Team Leader
SU: Set Up
BU: Back Up
CRA: Clean Room Assembler
NCRA: New Clean Room Assembler
DM
PM
PSP
TL
PSP
PSP
TL
TL
TLMU
SU
NCRA
CRA
BU
NCRA
CRA
79
Analytical Methodology
1. Evaluate Responsibilities of each level
2. Look for Common Themes that flow
from level to level
3. Look for Unique Responsibilities on
each level
4. Evaluate interactions between Levels
5. Evaluate Planning Horizons at each level
6. Evaluate Communications Techniques at
each level (Message and Method)
7. Remove echelons one at a time and reassess.
80
Scope of Responsibilities
Team Leader:
• Works on a Process
• Planning Horizon 1 Day
• Focuses on today and working with
People
• Quality
• Speed
• Communicates Verbally to Team
• Communicates Verbally and via
Data System to Supervisors and Managers
81
Scope of Responsibilities
Supervisor:
•
•
•
•
Runs multiple Teams/Processes
Planning Horizon 1-2 Days
Focuses on near term
Allocates People across Teams to
increase speed
• Monitors daily workflow
• Communicates Verbally
82
Scope of Responsibilities
Production Manager:
•
•
•
•
•
•
•
Manages the System
Planning Horizon: Up to 2 weeks
Develops Supervisors and Team Leaders
Levels the Lines, Maximizes Productivity
Monitors and determines headcount
Communicates Verbally and Electronically
Accesses and analyzes metrics to
manage Production Flow.
• Maintains Situational Awareness
83
TASK
VPO
MO
PS
PSPC
LO
Leads
X
X
X
X
X
Knows Customers & Suppliers (Understands the
Value Stream)
X
X
X
X
X
Stewardship of Assets
X
X
X
X
X
Communications
X
X
X
X
X
Continuous Improvement
X
X
X
X
X
Self Development
X
X
X
X
X
Synthesis of the Asset
X
Sync of Strategic Operations
X
Balance Production with Costs
X
Team Building
X
X
X
Identify & Remove Barriers
X
X
X
Development of the Workforce
X
X
X
Understands the Process
X
X
X
Strategic Planning
X
Knows Business Systems Tools
X
X
Expense Management
X
Prioritization
X
X
X
Use the Computer
X
Fix Today’s Problems
X
Knows the Job
X
Knows the People
X
84
THINK Strategically…
Continuous Improvement
“Changing the Conditions”
1.
2.
3.
4.
Cost
Schedule
Quality
Safety
…ACT Tactically:
“Day to Day” operations to meet
business objectives
85
Apollo 13
Houston… We Have a Problem!
Example
86
Continuous Improvement
Over Time
Success = Job Packages Completed within Cost,
on Schedule, no Re-Work, Safely
TIME
Current
State
Future
State
Perfect
State
87
Leader Lanes
Current
State
Leader? Leader?
Future
State
Leader? Leader?
Perfect
State
Leader?
Time
Leader?
Job
Packages
Foreman
Materials
Products
People
88
Summary
• Start with the end in mind…
• Organization Charts show reporting relationships
• Organizational Scheme describe how you run
your business and it changes by itself
• Is there Waste in your organizational scheme?
• Do your leaders know their lane and more
importantly does everyone else?
• Are you Organized for Success?
• You MUST get this right!
89
Break
90
The On Boarding Program
Recruiting
Trying Out
Making the Team
Getting the Right People on the Bus…
91
Our People’s Vote Counts More…
• Create a system that enables both the company and
the applicant to make a “Win-Win” commitment…
– First day should be a “commitment” day; not a “let’s see how
this goes day”
• It is Management’s responsibility to create an
environment for our employees to be successful…
– Not an environment that encourages them to fail
92
Are you forecasting your labor as
you forecast your business?
Production needs drive labor requirements…
• How far out are you looking?
• What skills will you require? Current or New?
• Lead Time from labor requirement to
competency?
• Who is responsible for managing it?
• What models do you use?
• What options do you have?
93
Labor Acquisition Options
Best Recruiting Pipelines?
Measures of Performance
REQUIRED
Options:
• Re-allocate Current Employees
• Hire Experience
• Hire New People
• Work Overtime
• Hire Temporary Labor
• Outsource
• Increase Productivity
• Change the Process (Lean)
• Increase Capacity (Automate)
CURRENT
Resources
Required
94
Four Keys to On Boarding Success
1. Identify the best candidates for jobs
2. Select the best candidate; then teach them what you
expect from them and what they can expect from their
leader
3. Provide technical training to build self-confidence and
greater job proficiency as they grow (Career Path)
4. Leaders manage the process based upon predictive,
production-based systems and reliable data
95
Focus on New Employees
96
Building Pipelines
Adult
Education
Business Metrics:
Temp
Agencies
- Decrease Cost of Hiring
- Reduce Attrition (pre- and post- hiring)
- Reduce Hiring Cycle Time
- Improve New Hire Integration
- Improve New Hire Job Performance
- Decrease New Hire Time to Competency
Community
Colleges
Generate
Labor
Req’s
College
Transfers
High Schools
Tech Schools
Other
Companies
Orient,
Screen
&
Identify
Candidates
Interview
&
Assess
Skills
Common
Skills
Training
1st Job
Skills
Development
Current
Employees
State Employment
Offices
Increase Cost
Hiring
Decision
Decrease Cost
Military
97
Employee Acquisition
Create a New Hire “Pull System”
– When Production needs people they “create an order”
– Production demand “cues” the Employee Acquisition
SYSTEM.
– Reduce cost of Hiring by utilizing Subject Matter
Experts to recruit, identify, and evaluate the skills
of applicants.
– Optimize the use of Government Provided Employee
Services to Outsource as much as possible.
– Reduce hiring cycle time to improve responsiveness.
– Reduce touch time to reduce cost.
98
Forecast
By Labor Category
Generate
Labor
Req’s
Minimum: ___
Maximum: ___
What is your Labor Forecast?
What is your capacity to on board new employees?
99
Example
Hiring Forecast and Schedule
Month
July:
August:
Sept:
Oct:
Nov:
Dec:
Total:
# Hires
10
5
0
10
5
0
30
100
Total Turnover Chart
101
Lean Enterprise Initiative
Continuous improvement in products and
processes to provide customers with
superior quality, value and speed.
(Cultural Change)
(Never Ending Journey)
(All Aspects of the Business)
102
Begin with the end in mind…
“Build more quality steel products faster to
improve market share and increase profit.”
103
Lean Enterprise Goals
•
•
•
•
Improve Quality
Eliminate Waste
Reduce Lead Time
Reduce Total Costs
Through…
• Near real time visibility
over…
–
–
–
–
Process
Materials
Cost
Equipment
And…
104
People
105
Concept of Operations
“A Systems Engineering Approach”
Phase 1
Current State &
Good Ideas
Phase 6 – n
Continuous
Improvement
July 2005 – Present
Phase 5
Production and
Roll Out
April – June 2004
People
Powered
Lean
November 2004 – June 2005
Phase 4
Pilot and
Evaluation
August – October 2004
Phase 2
Future State Design,
Plan of Action with
Resources
June – July 2004
Phase 3
Creation and
Development
July – August 2004
106
Hiring Process
July 2004
Production
Identifies
Requirement
HR Posts
Requisition &
Sends to OET
HR
Receives
Applications
Welding Test
Hiring
Decision
Drug Screen
and
Physical
HR Admin
Inprocessing
8 Hours of
Video
OSHA Training
OJT
Training
HR
Schedules
Interviews
Production
Interviews
Offer Sent
Applicant
Given Report
Date
Cycle Time: 10.3 Weeks
Cost: $2,008 per new hire
(Labor costs only) 107
The Hiring Process
“Opportunity for Improvement”
108
Hiring Process
August 2004
Production
Identifies
Requirement
HR Posts
Requisition &
Sends to OET
Interviews
Conducted;
Welding Test
Hiring
Decision
HR Admin
Inprocessing
Plant
Manager
Meeting
OET
Screening
HR
Receives
Applications
HR
Schedules
Interviews
Drug Screen
and
Physical
Offer;
New Hire
Packet Sent
Applicant
Given Report
Date
Process/
Quality
Training
Cell Training
Shift
Supervisor
OSHA 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
109
Policy Statement
Our company’s employees build to order, only
producing those buckets they have orders for.
Therefore, we must have the capability to
acquire employees quickly and move them
between assembly lines and departments to
support production needs.
A flexible workforce drives down credible
delivery time and improves our business
performance.
110
Scenario Exercise
Recruit Profiles
111
Establish Candidate Profiles
• Working at another company doing similar
work
• Must have minimum Skills
• At least 18 years old and eligible to work
in the United States
• Proven Positive Work Habits
• Willing to work at Flat Standard Starting
Rate of $14/hr. or $11/hr for training pay
• Willing to work 2nd Shift only
(no 1st shift hires)
• Reliable Transportation
112
Identify Recruiting Differentiators
•
Working Condition
–
•
Work Environment
–
•
•
•
•
•
“My boss tells me what to do and then lets me do it.”
Inside vs. Outside
Pay and Benefits
Workforce Stability
Shift Schedule
Free and convenient parking
Overtime Opportunities
113
Potential Pipelines
•
•
•
•
•
•
•
•
•
•
•
Adult Education
Employment Agencies
Military
Community Colleges
High School Graduates
Technical School Graduates
College Transfers
College Graduates
Other Companies
State and Local Agencies
Current Employees
114
Example
Pipeline Capacity Analysis
•
–
–
1. Community
Colleges
2. Adult
Education
•
Tidewater (50)
Paul D. Camp (15)
Adult Education (108 identified)
–
–
–
–
3. Other
Companies
(VEC)
4. Tech
Schools
Community Colleges (65 identified)
•
Norfolk Tech (12)
New Horizons (20)
Pruden (1)
Richmond Tech (75)
Local Companies Laying Off Workers (50 Identified)
–
•
Information from Virginia Employment Commission
Technical High Schools (56 identified)
–
New Horizons (20), Pruden (4), Norfolk Tech (10),
Virginia Beach (16), Chesapeake (6), Badger (0)
Total Identified as of 5/11/2005: 279
115
Example
Orientation and Screening
•
Orient,
Screen
&
Identify
Candidates
•
•
•
•
•
Conduct Initial Orientation by providing Realistic Job
Preview to each interested person.
Candidates passing minimal screening criteria are
provided applications.
Validates Pre-Requisite Experience as required and
provides copy of skills assessment/test.
Ensure application completion
Classifies Recruit
Provide Recruit with Hiring Process Information and
Tracking Sheet
116
Example
Candidate Classifications
1.
2.
3.
4.
5.
6.
7.
Hire Now: Exceeds All Criteria
Hire: Meets All Criteria
Near Hire: Will meet All Criteria within 30 days with
self-directed development
Far Hire: Will meet All Criteria within 120-180 days with
self-directed development
No Hire: Will not meet minimum criteria for at least 6
months
Best Athlete
Has unique skills outside of current Job Search
Requirements
117
Realistic Job Previews
Link to full RJP
118
Interview or “Try Out”
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:
1.
2.
3.
4.
5.
Plant Tour
Skills Assessment
Attitude Assessment
Hiring Decision
New Teammate Skills Development Plan
119
New Teammate Orientation
Goal: Create a “world class” first day.
– New Teammate Leaves after 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 go to work!
120
World Class 1st Day
Thursday’s
9:30 AM: Arrive at Plant
• Met by Production Manager
• Turn HR New Hire Packet to HR Rep
• Issued Locker with Name on it
• Issued Helmet with Name on it
• Digital Picture taken
• Issued Equipment
• Check Employee provided PPE
9:45 AM: Plant Tour and Safety Training with Production Manager
• OSHA Safety Training Checklist Completed and placed in Employee
Training File
11:45 AM: Meet Plant Manager
• Lunch
• Introduction to company and general information about the corporation,
history, products, markets, and facilities
• Expose the new employee to Culture, Values, what the company does,
how the company makes money, and where the employee fits in the bigger
121
picture
World Class 1st Day
Thursday’s
1:00 PM: Quality Overview
• Plant Tour with Quality Manager
• General training on quality
• Individual expectations, metrics, quality control, quality process
2:00 PM: Process Overview
• Plant Tour with Continuous Improvement Manager;
• Walks the Value Stream; Sees the Big Picture
• Introduction to Lean Training.
• Continuous Improvement Responsibilities
4:00 PM: Administrative Questions and Answers
• Verification of In-processing with HR Manager
122
Value Stream Map to Tasks to Cell Map
Cells
Tasks
Lips
Lug and
Beam Welder
Assemble/ Tack
Weld 1
Weld 2
Weld 3
FIRST SHIFT PROCESS
03/23/04
FORECAST (30-60-90)
PURCHASE ORDER
STEEL SUPPLIER
Production
Control
PURCHASE ORDER
FORECAST (30-60-90)
Fit Materials
Per
Week
2
Quality Assurance
Per
Week
5
Completed
Parts from Ideal
PER
DAY
1
Operate Brake
.5
Cycle Time
Production
mins/shift
Production
shift
DAYS
Reduce Plate
Inventory by 20%
45
Mins
540
Mins
1
Shfts
Operators
2
Staff
Qty/Assy (pcs)
11
Shfts
A30
Operate Saw
Cycle Time
Operate Glibert
DAYS
50
Mins
Production
mins/shift
540
Mins
Uptime (%)
95
%
Cycle Time
Production
mins/shift
Production
shift
1
Shfts
Production
shift
OXOX
Cycle Time
Production
mins/shift
Production
shift
45
Mins
540
Mins
1
Shfts
Operators
2
Staff
Operators
1
Staff
Shift
11
Shfts
Qty/Assy (pcs)
11
Shfts
Operate Lathe
POINTS
B50
Value Stream Map
90
Mins
540
Mins
1
Shfts
LINE 1
LINE 1
WELD 1
WELD 2
WELD 3
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
1
Shfts
Cycle Time
Production
mins/shift
Production
shift
90
Mins
540
Mins
1
Shfts
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Operators
1
Staff
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
Buckets
6
Shfts
5
DAYS
SHROUDS
5
DAYS
BUSHINGS
5
DAYS
F10
FIFO
F20
C10
C20
C30
C40
Uptime (%)
C50
LINE 2
LINE 2
LINE 2
LINE 2
LINE 2
LUG CONNECTION
TACK
WELD 1
WELD 2
WELD 3
Production
mins/shift
Production
shift
WIP
DAYS
90
98
F30
FINAL ASSEMBLY/
BLAST/ PAINT
BORE
Cycle Time
SIDE ASSEMBLY
ROUNDO
Operate T1
PER
DAY
Mins
Cycle Time
Production
mins/shift
Production
shift
%
45
SHIP
Mins
540
Mins
1
Shfts
540
Mins
1
Shfts
Operators
2
Staff
Buckets
11
Shfts
Operators
2
Staff
Buckets
11
Shfts
WIP
Production
mins/shift
Production
shift
SHIFT
ONLY
B40
LINE 1
TACK
Develop In-Line
Boring Capability
.5
Cycle Time
2
B30
LINE 1
Operators
Cycle Time
nd
1
DAYS
B20
LINE 1
LUG CONNECTION
BRAKE
BEVEL BEAMS
LUG TACK
A40
Burn Table
B10
WIP
.5
A10
BURN
DAYS
WIP
DAYS
PLATE STEEL
Frequency
Develop Kanban
Replenishment
System
BOSSES
A20
10
5
5
Develop Kanban
Replenishment
System
DAYS
LIP ASSEMBLY
SIDE REINF.
Bevel
FLOOR SHOP
SCHEDULER
Develop Kanban
Replenishment
System
ADAPTERS
PER
WEEK
Frequency
DAYS
WAREHOUSE
(CASTINGS
BUSHINGS &
BOSSES)
Frequency
1
11
Develop New
Scheduling Tools for
Flow Lines
Develop Kanban
Replenishment
System
Per
Week
1
IDEAL STEEL
Use a Ruler
Read Blueprint
1
CUSTOMER
BUCKETS
Frequency
Frequency
Frequency
F40
ESCO
SALES
Plant 3
BARREL
Welding
FORECAST (30-60-90)
FAX/SALE ORDER
MRP
45
Production
mins/shift
Production
shift
Mins
Operators
540
Mins
Buckets
1
Shfts
Operators
1
Staff
Qty/Assy (pcs)
11
Shfts
108
Mins
Cycle Time
Production
mins/shift
Production
shift
540
Mins
1
Shfts
1
Staff
Operators
5
Shfts
Buckets
108
Mins
Cycle Time
Production
mins/shift
Production
shift
540
Mins
1
Shfts
1
Staff
Operators
5
Shfts
Buckets
108
Mins
Cycle Time
Production
mins/shift
Production
shift
540
Mins
1
Shfts
1
Staff
Operators
5
Shfts
Buckets
108
Mins
Cycle Time
Production
mins/shift
Production
shift
108
Mins
.5
540
Mins
1
Shfts
1
Staff
Operators
540
Mins
1
1
Shfts
Staff
5
Shfts
Buckets
5
Shfts
DAYS
Add Welding
Capability at Final
Assembly
WIP
.5
DAYS
Develop Misc.
Flow Line
D10
MISCELLANEOUS
BUCKETS
Operate T2
Operators
3
Staff
Production
shift
1
Shfts
E10
Shfts
LARGE BUCKETS
Operators
Production
shift
2
1
WKS
DAYS
SHIFTS
HRS
MINS
2
4
2
9.25
60
60
DAYS
DAYS
SHIFTS
HRS
Mins
Secs
Staff
T10
Shfts
123
TOTALS
5.00 DAYS
5.00 DAYS
50.00 Mins
0.50 DAYS
45.00 Mins
0 DAYS
108.00 Mins
0 DAYS
108.00 Mins
10 DAYS
108.00 Mins
0 DAYS
108.00 Mins
0.50 DAYS
108.00 Mins
5.00 DAYS
90.00 Mins
0 DAYS
45.00 Mins
Non-Value
26.00
Days
Value-Added 770.00 Mins
Operators
25.00
Staff
Common Skills Training
Goal: Using Subject Matter Experts to bring all new
Welders to competency on all Common Tasks
Feature: Welding Trainer creates Individual Training
Plan between interview and 1st training day.
Subject Areas:
•
Production Terms
•
Use a Ruler
•
Cranes Safety and Operations
•
Equipment/Tools Operations and Maintenance
•
Visual Inspection
•
OSHA (Job Focused)
•
Quality Assurance
124
Cell Training
Goal: Improve “Time to Competency”
Features:
– Common Skills developed during Common Welding
Training
– Train “just in time and just enough” for 1st job
requirements
– Uses Team Leaders as trainers
– 30-60-90 Feedback to assess performance and
update skills development record
125
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
– Measures Head Count to Production
– Predictive Measures Focus
126
Focus on the Applicant
Interview and Test Schedule
– Pre-schedule appointment times to reduce cycle time.
– Understand you company’s interview and test capacity.
– Must support the Applicants Schedule NOT just making
things easy for the interviewers.
– May require 2nd Shift/Weekend availability for interviews
and tests to support currently employed workers.
127
Example
Common Skills Training
Trainer implements the tailored Individual Development Plan developed at the
Interview and Skills Assessment.
Example Learner Based Training Lesson Outline:
1.
2.
3.
4.
5.
6.
7.
8.
Production Terms and Language
Use of 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; Use of Cranes and Rigging
Quality Assurance
NOTE: A Web Based Platform so that New Hires can review and pre-train prior to
Welding Skills Interview or Training. Can also be used as a post hiring128
support tool.
Example
Cell Training
Goal: Seamlessly integrate new Hire into the production
line and reduce “Time to Competency”
Sequence List:
1.
1st Job
Skills
Development
2.
3.
4.
New Team Mate meets with 1st Line Supervisors/Cell
Trainers
1st Line Supervisor uses Welder Skills Development
Record to develop Cell Training Program
Supervisors use 30-60-90 day Feedback System to
assess performance and update skills development
record.
New Team Mate and 1st Line Supervisor conduct a Goal
Alignment session and agree on initial Career Path and
Production Skills Training Plan.
129
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
– Measures Head Count to Production
– Predictive Measures Focus
130
Applicant Flow
Dec. 12
Nov. 7
Delta
# Interested
104
97
+7
# of Apps Received
85
81
+4
# of Screened Candidates Scheduled for
Test/Interview
65
59
+6
# Tested & Interviewed
58
53
+5
7
7
-
Qualified (Less than 2 weeks)
17
17
-
Minimally Qualified (2-4 weeks)
26
22
+4
Unqualified (More than 4 weeks)
8
7
+1
Awaiting Weld Test Results (Bend)
0
0
-
Fully Qualified
Test
Results
Applicant Flow: Page 1 of 2
131
Applicant Flow
Dec. 12
Nov. 7
Delta
# Failed Interview
13
12
+1
# that Voluntarily Withdrew
9
9
-
# Awaiting Hiring Decision or Offer Pending
0
1
-1
# of Active Applicants
5
6
-1
# Offered and Accepted Employment
34
31
+3
# of Offers Declined or Rescinded
3
3
-
# Started
32
30
+2
# Terminated
7
5
+2
132
Applicant Flow: Page 2 of 2
Hiring Cycle Times
- All Cycle Times measured in Calendar Days -
Cycle Time Interval
Application Date to
Test/Interview Date
Days
18.55
Test /Interview Date to
Offer Date
5.05
Offer Date to
Acceptance
2.64
Acceptance to Start
Date
10.50
Total Application Date
to Start Date
42.41
Changes since last
Program Review
-1.96
133
Hiring Cycle Attrition
Hiring Cycle Phase
# Attrited
Pre-Application
19
App Date to Weld Test
21
Weld Test to Interview
8
Post-Interview
15
Drug Test
0
Offer Declined
2
Post-Hire (In-Training)
7
134
Total Hiring Cycle Attrition:
72 of 104 Candidates
Post-Hire Attrition Analysis
Name
Termination
Date
Termination Reason
Days on the Job
(Liebherr Work
Days)
7/25/2005
Discharged from Welding Training. Poor work habits
and slow progression given as primary reasons.
10
10/4/2005
Unable to complete the Welding School within 7
weeks. Work Ethic was great so we offered him
positions in Assembly/Paint. He refused to work on
2nd Shift and thus was dismissed.
44
8/26/2005
Discharged from Welding School. Dismissed for
‘cheating’ on his vertical Weld Test. Employee his
test plate flat after receiving warning.
15
8/8/2005
Discharged from Welding School. Poor work habits
and slow progression given as primary reasons.
11
10/10/2005
Unacceptable progress in Welding School and
unwillingness to brake old habits. Needs more
experience than our training can provide.
11
11/18/2005
Discharged for falsifying application with regards to
educational background (HS Graduation).
31
12/2/2005
Discharged for falsifying application with regards to
educational background (HS Graduation).
45
135
Successful Program Results
March 2004/July 2006
– Labor Requirement to 1st Day (Lead Time):
• 10.3 weeks / 1 week
– Cost per Hire:
• $2,008 / $500
– 1st Year Attrition Rate:
• 59% / 6 %
• Overall Attrition Rate reduced by 31%
– Production Efficiency: Labor Hours/Bucket
• 29.42 / 23.98
136
Big Picture Goal
If you design and implement a good
On Boarding Program you will put
yourself out of the On Boarding
business…
For all the right reasons!
137
Take a Blue Slip!
What data to you regularly receive during your
company’s on boarding process?
What is one way you could change your
“on boarding” process today?
If you changed the process, how do you know
it would be better?
138
The Lie of Modern
Manufacturing
Simon Nance
Manager, Training and Development
STIHL
Virginia Beach, Virginia
139
Lunch
and
Networking
140
Production Skills Development
“Building the Depth Chart”
How to…
Increase Productivity,
Control Head Count,
and Improve Capacity
141
Or…
If you have $1 dollar to spend…
– Hire a new employee.
– Invest in your current high
potential employee.
142
To answer this question…
If after my first 12 weeks on the job; I am the
best person you have ever hired tell me
the story of the next 12 years of my life…
143
The Depth Chart
Visual Employee Management Tool
–
–
–
–
–
Employee Name and Picture
Skills they have demonstrated
Cell they are assigned to and qualified to work in.
Cell they are cross-trained in (Self Motivated Training)
Backed up by Web-Based Tracking System
144
145
0
Acct/Finance
Assembly/Secondary Indirect - Material
Assembly/Secondary Indirect - Other
Assembly/Secondary Indirect Assembly/Secondary Indirect - Technician
Corp Admin
Corp Mfg
Corp Mold Mfg
Engineering
Exec
HR
IT
MED Quality - Both
MED Quality CORPRATE
Mold Maintenance
Molding Indirect - Materials Mgmt
Molding Indirect - Other
Molding Indirect - Setup
Molding Indirect - Supervision
Molding Indirect - Technician
Molding Indirect-Supervision
Production Assembly/Secondary
Production Molding
Quality
Quality Assembly
Sales
Supervision
Tooling CNC - Direct
Tooling Design Engineering - Direct
Tooling EDM - Direct
Tooling FasTrack - Direct
Tooling Grinder - Direct
Tooling Maintenance - Indirect
Tooling Misc. - Indirect
Tooling Moldmaker - Direct
Tooling Other - Direct
Tooling Polisher - Direct
Admin -Mfg
350
Total Distribution by Job Title
300
300
250
200
38 Labor Categories
156
150
100
105
76
90
59
50
12 14
2
6
9
5
8 13
30
7
9 14 5
3
48
20
30 35
63
43
22 26
33 34
49
11 10 7 12
19
6
8
146
Maintenance Support (Cont.)
PAINT, FABRIC & UPHOL
MECH
Labor Categories
513
1
QDR TECH
10
RECORDS SPEC
47
SERVICE ATTENDANT
33
Aircraft Mechanic
1367
Maintenance Support
A/C MECHANIC
1367
A/C COMPONENT PLATER
1
A/C REFININSHING SPEC
20
TECH PUBS TECH
14
12
TEST CELL TECH
3
WEIGHT AND BALANCE TECH
4
1
Avionics/ Electronics
441
A/C SCHEDULER
AAE&I TECH
192
A/C WELDER
AE&I MECH
249
AMSS ACFT ENG SHOP
MECH
25
X RAY TECH
AMSS ACFT HYD SHOP
MECH
10
Other Support
137
A/C MONITOR
17
Sheet Metal
114
A/C STRUC MECH
114
5
AVIATION LIFE SUPPORT
EQUIP TECH
37
Armament
85
COMPONENT CLEANER
8
A/C ARMAMENT TECH
85
ELECTRONIC INSTRUMENT
TECH
5
FABRIC AND UPHOLSTERY
TECH
1
Technical Inspection
A/C TECHNICAL/ NDT
INSPEC
Test Pilot
MAINT TEST PILOT
213
213
89
89
ACCOUNTING SPEC
6
ADMIN SPEC
21
COMPUTER OPERATOR
3
F AND M SPECIALIST
30
FLIGHT OPS SPEC
8
MACHINIST
13
JANITOR
MATERIAL CLERK
34
MESSENGER
1
PERSONNEL SPEC
8
MATERIAL INSPECTOR
3
MATERIAL SPECIALIST
166
P/C SPEC - ATTC
P/C CLERK
2
58
PLANT AND FACILITIES
MECH
PROGRAMMER
35
147
2
6
Skill Paths
1.
2.
3.
4.
5.
6.
7.
Aircraft Mechanic
Avionics/Electronics
Sheet Metal
Armament Mechanic
Technical Inspection
Test Pilot
Maintenance Support
a.
b.
c.
d.
8.
42 Labor Categories
8 Skill Paths
AMSS (Hydraulics, Machinist, etc.)
Specialized Mechanics
Records Clerks/Production Control
Supply and Logistics
Other Support
a.
b.
c.
d.
e.
f.
g.
Human Resources
Information Technology
Finance
Administration
Environment Health and Services
Training
Facility Support (Monitors, Service Attendants, Janitors)
148
Training Management System
• Allow Supervisors to get a real-time oversight of the
training status of each of their workers.
• Coordinated effort between IT, HR, the Training Staff,
and Production Leaders.
• The goal is to create a system where all the training
and job experience of each employee is retained and
accessible to Supervisors and Managers for better
job matching.
149
Life Cycle Skills
Development Program
Leader
Development
Training
Complex
Tasks
Pre-Employment
Employment
Skills
Management
Skills
Leader
Skills
Training
V
Basic
Skills
Intermediate
Skills
Mentor
Skills
Advanced
Skills
IV
Initial
Entry
Skills
Training
Basic
Training
Practical
Application/
Coaching
Evaluation
Skills
Evaluation
“A Guide”
Intermediate
Training
II
Practical
Application/
Coaching
Evaluation
Soft Skills
Development
Advanced
Training
III
Practical
Application/
Coaching
Evaluation
Experienced Personnel
I
Competency Level
Employee Career
150
Right Person/Right Job
Move the Employee in the Right Direction
Quantity of Work
Go To Person
High Quantity
Low Quality
High Quantity
High Quality
Low Quantity
Low Quality
Low Quantity
High Quality
New Person
Quality of Work
151
What is our plan to move our people along the correct developmental path?
Strategic Objectives
1. Training is NOT about INDIVIDUAL CHOICE. We Care!
2. Job Performance and Training are Seamless
3. Train on the Same Equipment, with the Same People,
Under the Same Conditions, to the Same Standard on the
Job Site
4. Reduce Time and Effort Between Subject Matter Experts
and Users
5. Get the Most Value from Training/Education Dollars
6. People drive Skills Based Requirements
You can be perfectly trained and absolutely unproductive!
152
People Focused Training
1. Every employee is on a Career Path
2. The Career Path is agreed to by the employee and the supervisor
based upon needs of the company, the potential of the individual
and the employee desires and aspirations
3. The Career Path drives skills required:
a. To Meet required training, certifications, licensing for current job.
b. To Improve Productivity on Current Job
c. To Meet minimum competency level for Future Job
d. To provide for Employee Driven Self-Development Training and Education
4. Training does not exist unless a Manager creates an “order”
5. The Manager then selects the most appropriate delivery method
based upon their specific operational circumstance.
6. The Training is delivered via the most resource efficient and
effective method.
7. The Training is evaluated and recorded
8. The Employee’s Skills Record and Career Path Map is updated.
153
Goal Alignment System
Led
Led
Led
Led
Leader
Communication
Goal
Alignment
Awareness
Performance Reviews
Organizational Goals
–
–
–
–
Cost
Schedule
Quality
Safety
Individual Goals
Individual
Individual
Development
Individual
Development
Development
Plans
Plans
Plans
Resources
Required
–
–
–
–
Compensation
Opportunities
Responsibility
Work
Environment
– Recognition
154
Developmental Plans
• Everyone has them!
• Consider education, experience, training
• Aligns Team Mate potential with organizational needs
• Focused on the Mission Essential Tasks derived directly
from the Value Stream Map
• Provides measurable outcomes to monitor individual
progress.
• Are the “White Space” between Performance Reviews
• Drive Training and Development budgeting and
resources requirements based upon People NOT
Program Focus
155
Employee Skill Path
On Boarding
Hiring
Skill Paths
1. Mechanic
2. Assembly
3.Sheet Metal
4. Material Handler
5.Technical Inspection
6. Maintenance
7. Production Control
Common Skills
Training
What every employee
needs to know
Cell
Training
Skills to do 1st Job
Intermediate Skills
Training
Skills to do second and
third job
Lead/Advanced
Skills Training
Training Program
Overview
Skills to Teach Others
the Job
Master Mechanic
Mentor
156
Tech Specialist
Production Skills
Training Guidelines
• Leaders are responsible for the training of their
subordinates.
• Training programs must be based on the tempo of
operations and the resources available to train.
• The majority of the training must occur on the job in
conjunction with production work.
• Lengthy training events that take the employee away
from the worksite cannot be considered.
• Movement from Process to Process must be closely
monitored and linked to Skill Path tracking. A Skills
inventory must accompany each transfer – just like a
tool box.
• There must be a clear articulation of what skills the
157
employee has when the transfer is made.
Effort vs. Competency in Learning
• “I know” skill:
– Exchange of Information
• “I can do” skill:
– Performance based Instruction
– Skills transfer
– Subject Matter Experts observe and
validate competency
• “I can adopt and apply” skill:
– The actual performance requirement
– Linked to Skills Based Performance
Assessments
158
Skills Transfer
Subject Matter Experts
Standardized Work
Those Who Have
the Information
Training
System
Training
Audience
Those Who Need
the Information
159
Common Training
• Skills required by every person regardless of Process
• May be hiring pre-requisites
• A Skills Demonstration Checklist validates performance
prior to arrival in production area
• 1st Line Supervisor verifies
160
Basic Skills Training
•
•
•
•
•
Those Baseline Skills required by the specific
process or production area
Trainer creates Individual Training Plan between
interview skills assessment and during Common
Training
Train “just in time and just enough” for 1st job
requirements
Use Production Subject Matter Experts as
trainers
30-60-90 Feedback to assess performance and
update skills development record
161
Basic Skills Training Outline
• Cell Specific Terms
• Cell Specific Procedures and Job Instructions
• Material Handling Equipment Safety and
Operations
• Tools Operations and Maintenance
• OSHA (Job Focused)
• Lean for Hourly Workers; Identifying Waste and
Continuous Improvement
• Quality Assurance
162
Intermediate Training
•
•
•
•
Training to develop Competency.
Focused on creating agile workforce
Training based on normal workplace opportunities
Under the direction of the 1st Line Supervisor who is
“Recognizing Teachable Moments”
• 1st Line Supervisor recording increased skills proficiency
by process.
163
Advanced Training
• Training to develop Masters
• Training based on normal workplace
opportunities and focused coaching events
• Under the direction of the current Master
• 1st Line Supervisor recording increased skills
proficiency by process
• Requires movement across processes
164
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
165
Churn
Sucking Cost Invisibly!
166
Churn
Definition: Percentage of Workforce scheduled to work that
day are present to perform the work in the assigned
areas.
• Scheduled: The reaction time to prepare on “On Boarding”
Plan to accelerate the transition time to competency of new
teammate. Usually caused by external churn factors;
Promotion, Transfer, Expansion, or Downsizing Initiatives
• Unscheduled: The Leaders confidence level that the
teammates they planned to work that day actually showed up
to work. Usually caused by internal churn factors; sickness,
vacation, and absenteeism.
Unmanaged Churn Reduces Trust!
167
Causes
• Individual Induced:
–
–
–
–
–
–
–
–
–
Sick
Appointment
Work Schedule
Lifestyle
Apathy
Vacation
Don’t Like My Boss
Looking for New Job
Family Crisis
• Organization Induced:
–
–
–
–
–
–
–
–
–
Promoted
Re-assigned
Training
Personnel Policies
Required Meetings
Additional Duties
Business Travel
Process Changes
Transferred
168
Churn
Good News - Bad News
• Bad News:
–
–
–
–
Reactively; Taken Individually or “One at a Time”
Crisis of the Day approach
Just get through…
“Do No Harm” is measure of success
• Good News:
–
–
–
–
–
–
Proactively; Taken Systematically
Opportunity to Change Culture
Increases Informal Communication Networks
Builds Trust
Every “Churn” is a Developmental Opportunity
Lean Training Opportunity: Understanding the Value Stream
both Horizontally and Vertically.
169
Transition Acceleration
Current Job
Time
Quality
Level of Effort
Future Job
Current State:
How long from assignment to competency?
170
Leading and Lagging Indicators
• Leading:
– Scheduled vs. Unscheduled Churn Data
– Benchstrength Depth
– Engagement Levels
• Lagging:
– Cost, Schedule, Quality, Safety
– Workforce Attrition
– Increased Absenteeism
171
Churn Impact
Do the Math!
•
•
•
•
•
•
Increased Cost
Behind Schedule
Reduced Quality
Increased Safety Risk/Incidents
Increased Leader Job Redundancy
Decreases Confidence in Senior Leadership
172
Churn Happens!
Churn Impact Reduction Strategy
Every Teammate who is not performing their normal work in their
normal area requires an “On Boarding” event.
On Boarding:
Start: Identifying “Churn”
Stop: Teammate Competent in New Job
Metric: Time to Competency
Best Case: Minutes
Worst Case: Never
173
Early Interventions
•
•
•
•
Better Job Matching
Leverage Developmental Opportunities
Increase reaction time where possible
Understand Churn caused internally and
externally
• Information System informed “Depth Chart”
174
Scheduled Churn
Pipelines
•
•
•
•
•
Work Overtime
Dual Task
Assign from within the same Process
Assign from within the Company
Temp Labor
Key Questions:
What is the Volume of each Pipeline?
What is the Lead Time of each Pipeline?
What is the organizational Cause and Effect?
175
Each Pipeline has a different
Mean Lead Time
Considerations:
• Expected Competency Level
• Distribution of Labor within organization
• Expected assignment of new employees
• Work Area Complexity
• Availability of High Performers as resources during
“On-Boarding” period
• Match-Up with Leader
176
Working the Sums
• Ramp Up Schedule by Area
– Future State Requirement (Available)
• Baseline Current State
– Current State (Available)
• Pipeline Volume
– How many in each pipeline? (Available)
• Define Expected Competency Level at First Hour
– Time and Resources Required Pre-Assignment
• Define On-Boarding Plan
– Focus in reduce “Time to Competency”
177
Leader Churn
Definition: Percentage of Leaders assigned to work that
day are present to perform the work in the assigned
areas.
• Scheduled: The reaction time to prepare on “On Boarding”
Plan to accelerate the transition time to competency of new
leaders. Usually caused by external churn factors;
Promotion, Transfer, Expansion, or Downsizing Initiatives
• Unscheduled: The Leaders Leader confidence level that the
Leaders they planned to work that day actually showed up to
work. Usually caused by internal churn factors; sickness,
vacation, and absenteeism.
Unmanaged Leader Churn Reduces Trust!
180
Early Interventions
•
•
•
•
Better Leader Job Matching
Leverage Developmental Opportunities
Increase reaction time where possible
Understand Churn caused internally and
externally
• Information System informed “Depth Chart”
181
The Leader Development Challenge
“Playing to Win!”
182
If People are Hard!
Leaders are Harder!!
• Everyone is at a different place developmentally
• Everyone must take responsibility for their own Development;
It is a High Performance Behavior
• Everyone will not always meet our standards
• We must set behaviorally defined high standards
• Create a “Top Down Culture” of continuous improvement
and communications
• Bell Curves are unacceptable
183
Business Performance
Leading Indicators
1st Line Supervisors:
– Responsible for producing “Customer Value”
– Are held accountable for production requirements
derived directly from the Value Stream
– They are responsible for getting “8 for 8” from the
hourly workforce
– Usually in their first leadership position
– Work all three shifts
– Blending of technical and people skills is required
– Performance is directly related to their Manager’s
ability to lead them.
184
Agenda
• The Theory
• Improving Current Leader Performance
• Building Future Leaders
185
The Leading Indicator of Future
Business Performance…
…the strength of the Leader to Led Linkage.
186
The Gallup Path to Business Success
Real Profit
Increase
Stock
Increase
Sustainable
Growth
Business Success
Measures:
- Productivity,
- Profitability,
- Employee Retention
- Customer Satisfaction
People
Enter
Here
Identify
Individual
Strengths
Engaged
Customers
In-Group/Engaged
Employees
Great
Leaders
The
Right Fit
187
Opportunity for Improvement
• 25% of the working population are ignored by their
supervisor
– Actively Disengaged: 40% of them are in their workplace
– 58% are Not Engaged
– 2% are Engaged
Source: Gallup
188
Core Business Data Element
Project Plans
and
Labor Estimates
Leader
Assigning
Charge #s &
Approving
Time
Assigning Work to Crew in Discrete Increments and Measuring189
Goal Accomplishment
The 1st Line Supervisor Challenge
Orders
Success = Orders Completed within Cost, on Schedule,
Safely, with no Re-Work
Materials
1st Line
Supervisor
Products
Machines
People
1st Line Supervisors Provide:
 Clear Goal Definition derived from Work Packages or Orders
 Materials and Equipment to accomplish the task
 People with the Right Qualifications and Skills
 Leadership: Planning, Organizational Energy and Momentum
190
The Rubber Meets the Road
Equipment
and Tools
New Folks
Work
Packages/
Orders
Success = Orders Completed within Cost,
on Schedule, Safely, with no Re-Work
“Go To”
Operators
Products
Materials
Machines
Training
and
Qualifications
191
1st Line Supervisor Challenge
Create an situation for the Go To Operators to be successful by ensuring all factors
are present at the same time or….THEY BECOME PROBLEM SOLVERS
Equipment
and Tools
Work
Packages/
Orders
New Guys
1st Line Supervisor =
PROBLEM
SOLVERS
“Go To”
Operators
Products
Materials
Success = Orders Completed within
Cost, on Schedule, Safely, with no Re-Work
Machines
Training
and
Qualifications
192
Goal Alignment System
Led
Led
Led
Led
Leader
Communication
Goal
Alignment
Awareness
Performance Reviews
Individual Goals
Organizational Goals
–
–
–
–
Cost
Schedule
Quality
Safety
Individual
Individual
Development
Individual
Development
Development
Plans
Plans
Plans
Resources
Required
–
–
–
–
Compensation
Opportunities
Responsibility
Work
Environment
– Recognition
193
Gallup Path to Business Success
Organizing for Success
Real Profit
Increase
Stock
Increase
Sustainable
Growth
Business Success
Measures:
- Productivity,
- Profitability,
- Employee Retention
- Customer Satisfaction
People
Enter
Here
Identify
Individual
Strengths
Engaged
Customers
Engaged
Employees
The
Right Fit
Great
Leaders
194
Employee Ownership
Requires Trust
• Leaders will provide:
– Clear direction
– Appropriate
Resources
– Expert Advice
– Feedback and
Coaching
– Growth Opportunities
– Reward and Praise
– Fair Treatment
• Led will:
– Treat the company like
their own
– Hold each other
accountable for doing
the right thing
– Give early warning of
problems
– Have the courage to
ask questions
195
Organizational Scheme
“Leader is a BIG Word”
GM
OM
1S
SS
SS
1S
1S
GT
MU
NE
OM
SS
GT
OM
GM: General Manager
OM: Operations Manager
SS: Shift Supervisor
1S: 1st Line Supervisor
MU: Make Up Supervisor
GT: Go To Employee
E: Employee
NE: New Employee
10
30
60
160
100
500
1600
600
NE
196
Vertical Dyad Linkage
Based Upon a Total Operational Headcount of 3060
Leader Development Program
Perfect State
Current State
•
•
•
•
•
•
Leader Development conducted
informally or not at all.
Usually best operators promoted to
Supervisors
Experience gained over time
Many training courses available but
not mapped to critical tasks.
Undocumented program that is
dependent on individual Management
On the Job Training is ad hoc with few
Training Materials available on the Job
Site.
•
•
•
•
•
Systematic Approach to Leader
Development
Manager’s are the Primary Trainers
with the right tools kit to develop their
Supervisors
Manager’s are responsible to tailor
skill development to each individual
Supervisor and each operational area.
New Supervisors are methodically
created so their First day is a High
Performance Day top reduce time to
competency
Leader Development Programs
synchronized and integrated directly
with the Performance Review System
197
Behavior Focus
• Skills and Attitudes are extremely difficult to
describe, measure, or observe.
• Behaviors are observable actions that can be
replicated.
• We KNOW how the Best Performers Behave!
• Behaviors change Leads Culture change!
198
Defining the Current State
1.
2.
3.
4.
5.
6.
7.
8.
9.
Go find the High Performers
Find out what they do and don’t do everyday
Write it down
Agree on the Mission Essential Task List and High
Performance Behaviors
Ensure Alignment with Business Goals and Value Stream
Compare all the Leaders behaviors to the High Performer
behaviors
Manager’s and Supervisors Conduct Goal Alignment
Sessions to validate current behaviors and identify
improvement areas.
Analyze to define, defend, and distribute Performance
Improvement resources
All Leader’s Continuously Improving Systematically 199
Scenario Exercise
200
Observable Behavior
Example
Technically Competent:
– High: 9/10 times when asked a question gives the
right answer immediately and work continues.
– Developmental: 5/10 times gives the right answer
and tells the person they will get back with them with
the right answer causing waste.
– Dysfunctional: Gives the person the wrong answer
causing positive harm to the organization.
201
Tell me about the best 1st Line
Supervisor you know…
Take a Blue Slip
202
High Performer
1st Line Supervisor
Mission Essential Tasks
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
See Hand Out
Demonstrates Leadership
Understands Manufacturing Process
Seeks Continuous Improvement
Plans Work
Communicates up the Chain
Communicates to Subordinates
Builds Teams
Technically Competent
Uses Technology
Develops Crew
203
Develops Subordinates
•
•
•
•
•
•
Recognizes Teachable moments: Constantly stopping and
talking to subordinates with tips and best practices
When asks who is responsible for the training of their
people says “Me!”
Realizes the “best training” occurs on the job when highly
skilled people work with less skilled people: Matches
novices with experts by design
Uses normal work flow as training opportunities
Has scheduled and record of formal counseling/feedback
sessions with subordinates outside of normal job interface
Knows the Leadership Pipeline - their replacement; future
leaders
204
Designing Leader Development Systems
Senior Leader Guidance
• Managers are the Primary Supervisor Trainers, Assessors, and
Developers
• Focuses on single value-added behaviors, techniques and
procedures key to each Supervisor’s Success
• Events will occur on the job site (If any, classroom should be
reserved for only the most high value requirements)
• Focus will be to provide Managers with tools to more effectively
train Supervisors (Performance Support System)
• Focus on sharing High Performer “Best Practices” with others
• Ensure we get feedback directly from the Supervisors
• We are ALL about helping our leaders be better at their work
205
Goal Alignment System
Led
Led
Led
Led
Leader
Communication
Goal
Alignment
Awareness
Performance Reviews
Individual Goals
Organizational Goals
–
–
–
–
Cost
Schedule
Quality
Safety
Individual
Individual
Development
Individual
Development
Development
Plans
Plans
Plans
Resources
Required
–
–
–
–
Compensation
Opportunities
Responsibility
Work
Environment
– Recognition
206
Developmental Plans
• Everyone has them!
• Consider education, experience, training
• Aligns Leader potential with organizational needs
• Focus on the High Performer Mission Essential Task List
• Provide measurable outcomes to monitor individual
progress.
• Are the “White Space” between Performance Reviews
• Drive Training and Development budgeting and resources
requirements based upon People NOT Program Focus
207
Program Objective
Move Employee to the Left
HIGH:
All Leaders should be
High Performing and
displaying the behavior
traits in this column.
Developmental Plan to
focus on sustaining
performance
DEVELOPMENTAL
Leaders displaying the
behavior traits in this
column should be
involved in a defined
developmental plan.
Focus on moving them
to the left
DYSFUNCTIONAL
All Managers displaying
the behavior traits in this
column are creating
harm in the organization.
Behavior needs to be
changed ASAP or the
manager needs to leave.
Task
Technical
Competence
When asked a question are able to
give the correct answer 90%
allowing work to continue
When asked a question answer
correctly 50% and will get the right
answer to the person as soon as
possible. Still causes work slow
down
Ignore, guess or give the wrong
answer to get rid of the questioner.
208
Supervisor
Developmental
Strategy Matrix
Does Not
Know How to
do the Task
Knows How
to do the task
– needs On
the Job Help
Initial Assessment
Knows the
Job but has
trouble
“putting it all
Together”
Knows their
area but
needs to
Understand
entire Value
Stream
Send to
Established
Training Course
Task Coach –
High Performing
Supervisor/
Manager
Task Coach –
High Performing
Support Staff
Reassessment
Spend the Day
with High
Performing
Supervisor at
their Job Site
ID Developmental
Positions either
up or down
stream
ID Support
Shadowing
Opportunity
209
Building the Tool Kit
Developmental
Assignments
Customized
Courses
Goal
Alignment
Session
Access
Procedures,
Manuals,
References
Independent
Study
Mission
Essential
Task
Commercial Off
The Shelf
Courses
Tips and
Best
Practices
Scenarios
Low Cost
Coaches
On the Job
EPSMs
Subject
Matter
Experts
Medium Cost
High Cost
210
** Electronic Performance Support Modules
Managers
or
First Line Supervisor
Who is First?
Get the Managers on the right
page first, then have them
develop the First Line Supervisors
211
Building Future Leaders
Developing Bench Strength
212
Leader Churn
213
2nd Squadron 4th Cavalry
Squadron Staff - March 22, 1991
214
2nd Squadron 4th Cavalry
Squadron Staff - January 1, 1991
215
Foreman Scheduled Churn
Overview
Sep 2003: 69 Foreman
Aug 2004: 61 Foreman
– 8 Foreman rated in 2003 but not in 2004 (Transferred, Promoted, Demoted, Retired)
– 8 Foremen rated in 2004 but not in 2003 (New)
– 16/61 = 26% Churn Rate
Jun 2005: 45 Foreman
– 15 Foremen rated in 2004 but not in 2005 (Transferred, Promoted, Demoted,
Retired)
– 1 Foremen rated in 2005 but not in 2004 (New)
– 16/45 = 35% Leader Churn Rate
Jan 2006: 33 Foreman
– 14 Foremen rated in 2005 but not in 2006 (Transferred, Promoted, Demoted,
Retired)
– 4 Foremen rated in Jan 2006 but not in 2005 (New or returned from on loan)
– 18/33 = 54% Leader Churn Rate
216
Foreman Internal
(Unscheduled)
Churn Data
Total Foreman
# of General Foreman Changes
# of Area Changes
Both General Foreman & Area
= 33
= 19 (58%)
= 9 (27%)
= 7 (21%)
217
Why Dream Teams Fail…
• Lack of Trust
• How do you build Trust?
–
–
–
–
–
Do what you say you are going to do
See the Big Picture
Continuous Goal Alignment
Communication
By playing the Game…Operations
• Paradox: Trust by Nature Builds Slowly…
We don’t have the time!
218
Transition Acceleration
Current Job
Time
Quality
Level of Effort
Future Job
Current State:
How long from assignment to competency?
219
Leader Lead Time
• Example Goal: Ensure Leaders come to
competency with 4 weeks of 1st Day on the Job.
• Factors:
–
–
–
–
–
–
–
Hiring Cycle Time: Job Requisition to 1st Day
Skills Requirements
Minimum Training Requirement
Coach/Mentor Availability
Hourly Labor Hiring
Job Flow/Production Schedule
Team Dynamics
220
Working the Blue Lines
Operations Manager
Current Shift Supervisor – Future Operations Manager
Current Shift Supervisor – Current Job
Current 1st Line Supervisor – Future Shift Supervisor
Current 1st Line Supervisor – Current Job
Current “Go To” Operator – Future 1st Line Supervisor
221
Leadership Pipelines
1.
2.
3.
4.
Former Leaders
Transfers with Area Experience
Transfers without Area Experience
Pre-identified Emerging Potential Leaders
(Succession Plan)
5. High Performing Mechanics/Employees
6. Product of the Hiring Process (Announcing
Position, etc.)
Each Pipeline has a different mean Lead Time
222
Developmental Phases
1.
2.
Do the right things
Do the right things right
3.
4.
Do the right things better, faster and more effectively
Are we doing the right things? Re-defining the right
things
Prepare for next career path position
5.
} Prior to 1
st
Day on Job
It is our Choice on when to place the New Leaders 1st Work
Day…
223
New Leader On Boarding Program
OVERVIEW
“Bull Pen”
“Warm Up”
“I Know”
“I Can Do”
START: Individual
Development Plan
• Required Common
Training Courses
• Designated Training
Courses depending
on assignment
• Orientation to AOR
• Work with High
Performer NOT in
assigned area
“Throwing Ks”
“I Can Apply”
• Assigned to Manager
• Coach performs 1st Skill
Assessment
• Orientation to Work Flow
in 1st 30 days
• Orientation to Job Site
and Support Activities
(PC, Planning, etc.)
• Rehearses 1st Day and
Chalk Talks 1st Week with
Manager and Coach
Competency
Check
Gaining Manager Involvement
Competency
Check
• KEY EVENT:
Leader First Day with
Crew in Charge!
• 90 Day Coaching Event
• 30-60-90 Day Skills
Assessment (Coach,
Self, Manager)
• Integrated with
Performance Review
Process
Normal
Developmental
Process
224
Scenario Exercise
A Leaders Perfect 1st Day
225
Foreman Warm Up Scenario
Scripting a High Performance
First Day on the Job
First Day is a Performance Day not a let’s see
how it goes day
226
1st Day Preparation “Warm Up”
1. Task: Plan Work – Conduct an analysis of the current jobs; current “checkbook” and
schedule status; and who is working the jobs;
–
–
–
Warm Up Event: Works with Coach to “catch the bubble”, develops Work Plan, develop “Hot
Jobs” List
Supporting Tasks: Understand Work Packages, Network with Key Players, Technically
Competent
1st Day Event: Issue Job Assignment for each mechanic at Start Up.
2. Task: Lead by Example – Conduct 1st Day Start up Briefing with Crew;
communicate personal style, establish ground rules, and goals.
–
–
–
Warm Up Event: Prepares first day speech and rehearses it with the Coach.
Supporting Tasks: Live the Values of the Company; Demonstrate Ownership of Work
(Quality), Understand Union Contract, Gives Clear Direction to Subordinates.
1st Day Event: Give 10 minute Start Up Briefing to entire crew.
3. Task: Job Assignment (Match Jobs to People) – Conduct 1 on 1 assignment
sessions with every mechanic on crew
–
–
–
Warm Up Event: Coach creates “role playing scenario” with own crew and
rehearses/observes 1 on 1 session and provides feedback.
Supporting Tasks: Crew Development and Performance and Set Expectations and Provide
Feedback (Pulls available personnel data and personal background information on entire
crew prior to first day.)
1st Day Event: Interact 1 on 1 with every mechanic on crew during first day to Assign Jobs,
Set Expectations and Provide Feedback.
227
1st Day Preparation “Warm Up”
Task: Network with Key Players – Interface with Planning and PC
4.
–
–
–
Warm Up Event: Coordinates/pre-briefs 1st Week Work Plan with Planning and PC under
the direction of the Coach.
Supporting Tasks: Innovate, Understand Work Packages, Communicate Laterally,
Network with Key Players, Technically Competent, Understand the Manufacturing
Process
1st Day Event: Before end of 1st Day update Key Players on “Hot Jobs” List
Task: Communicate Up the Chain – Pre-Brief Supervisor prior to 1st Day and
Out-Brief at end of day.
5.
–
–
–
Warm Up Event: Meet with Supervisor to receive Supervisor guidance and direction with
Coach. Conduct and analysis and back-brief Supervisor on 1st Day Plan.
Supporting Tasks: None
1st Day Event: At end of first day report progress to Supervisor.
Task: Administer Time and Accounting System – Pay crew
6.
–
–
–
7.
Warm Up Event: Pay Coaches Crew
Supporting Tasks: Use the Computer
1st Day Event: Successfully Pay Crew
Task: Job Assignment and Give Clear Directions to Subordinates, Setting
Expectations
–
–
–
Warm Up Event: Complete focused Training and practice preparing Job Assignment
Sheets
Supporting Tasks: Give Clear Directions to Subordinates
1st Day Event: Issue Job Assignments and have a face-to-face conversation at the job 228
about setting goals and stretch goals.
1st Day Preparation “Warm Up”
8.
Task: Understands How to Train
–
–
–
Warm Up Event: Work with expert Coach on how to identifying teachable moments within
the crew and understanding how to coach his/her crew to improve individual and crew
performance
Supporting Tasks: Crew Development and Performance
1st Day Event: Within 1st week conduct a goal alignment session with each hourly and
then prepare an individual training plan.
Task: Crew Development and Performance – Preview/Prepare Hourly Annual
Performance Feedback Form
9.
–
–
–
Warm Up Event: MPL/Foreman will go over the Hourly Performance Feedback Form
Supporting Tasks: Lead By Example, Network With Key Players, MOS Feedback
Prior to first day Foreman will contact SER and review employees attendance record
–
1st Day Event: Within 1st Week go over the Hourly Performance Feedback
form individually with each employee and discuss expectations
10.
Task: Adhere to the Spirit and Intent of Union Contracts
–
–
–
Warm Up Event: Review Union Contract Articles with Coach or MPL
Supporting Task: Lead by Example
1st Day Event: N/A
229
1st Day Preparation “Warm Up”
Task: Demonstrate Technical Competence
11.
•
•
•
12.
Warm Up Event: Review Leader Playbook
Supporting Task: Refer to and Explain Procedures, Interpret Work Packages,
Interpret and Explain Drawings
1st Day Event: N/A
Task: Innovate: Understand the Value Stream
•
•
•
Warm Up Event: Walk the Value Stream, Meet other Foreman in Area and visit
like work centers. Review the Performance Improvement Process
Supporting Task: Network with Key Players, Communicate Laterally, Integrate
Job into Shipbuilding Process
First Day Event: N/A
230
Performance Improvement Plan
Candidate Name:
Current Position:
Task
Plan Developed By:
Reviewed By:
Bull Pen
Warm
Up
The Heat “K”
Coaching:
□
X
□
- Spend time with teachable
moment expert as he/she points
out opportunities
□
X
□
- Walk area, identify teachable
moments and take action
□
X
□
- Analyze teachable moments to
determine if systemic issues exist
□
X
□
- Share lessons learned with all
crews and other MPLs
□
X
□
- LDP primer
□
X
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
□
Training / Event
Remarks
Recognizes
Teachable Moments
•During the normal
course of daily
activities recognizes
“Teachable Moments”
and takes advantage
of them.
•Uses data to inform
and update internal
capabilities and
limitations map.
•Sets conditions to
make training
important on the job.
•Realizes the “best
training” occurs on the
job when highly skilled
people work with less
skilled people
231
Break
232
Building Lean Leaders
233
Hypothesis
If we transform our current Leaders into Lean
Leaders with new responsibilities and behaviors;
we will eliminate waste and improve business
performance measured in “line of sight” savings.
Outcome Metric:
WASTE Identification and Elimination
Process Metric:
Improving Leader Behaviors
234
1st Line Supervisors
“We have Leaders who are busier than ever but
don’t seem to be making any progress.”
Expected Outcomes:
• Increase our leader's ability to solve more day-to-day
problems correctly the first time.
• Increasing our capacity to identify and eliminate Day-toDay Waste.
• Increasing our capability to identify and eliminate
Systemic Waste to reduce the number of day-to-day
problems.
• Aligning our command, control, and communications
structure from General Manager to 1st Line Supervisor to
clearly define "line of sight" accountability, responsibility,
235
and authority.
Common Current State Issues
• Operational Responsibilities have exploded yet no clear
articulation of those roles and responsibilities
• Leader’s can’t see the process through the data haze
• Lots of stick if you mess up the data; very little carrot to
be out in the patch
• Cultural bias for solving today’s problems right now – not
necessarily in priority order based upon biggest bang.
• “5 Year Old Soccer” Crisis Management Culture creating
waste in the Leadership Bandwidth
236
Saying or Doing Leaders
ACTIVITIES
RESULTS
I called the customer.
I made the sale.
I did the research, I wrote the report.
I got the grant.
I took the class.
effective
I learned how to give an
presentation.
I stayed on my diet.
I lost 13 pounds.
I tried.
“Do or not do; there is no try.”
-Master Yoda
- From “The Speed of Trust,” By Stephen
Covey
237
and Rebecca Merrill
What Triggers Cultural Change?
…changed Behaviors!
• Target Leader Training:
– Stop Doing a bunch of things not adding value
– Start doing new things to add value
• Senior Leader Training:
– Setting the conditions for Target Leaders to succeed
– Not forcing non-value added behaviors
• Coaching to attain high performance
238
The Elephant
Systemic Culture Change
Operations
Manager
1st Line
Supervisor
2007
Senior
Executives
Shift
Supervisor
Support
Leaders
2008 ?
2009 ?
2010 ?
2011 ?
239
1st Line Supervisor Commitment
“Win-Win” Terms
• If the Senior Leaders support the changes
to become Lean Leaders then…
– I will change my behavior to reflect the Lean
Leader Behaviors taught to me in the Training
Program
– I will identify and eliminate waste in my area
of responsibility
– I will improve my business performance
240
Senior Leader Commitment
“Win-Win” Terms
• If the 1st Line Supervisors change their
behaviors to become Lean Leaders then…
– The Senior’s will create a better condition for the 1st
Line Supervisor by also identifying and eliminating
waste from their position in the organization.
– The Senior’s will present their proposal for the 1st Line
Supervisors for their approval.
– Once approved the Senior’s will report out to the 1st
Line Supervisors on the same program management.
241
“End State”
• Increased Trust between the Leader and
the Led
• Increased Trust, increases SPEED and
decreases COST!
242
Lean Leader
Mission Essential Tasks
1.
2.
3.
4.
5.
Knows their Process
Knows their Customers and Suppliers (SIPOC)
Identifies Day to Day and Systemic Waste
Prioritization
Eliminates Waste & Improves Business
Performance
6. Engages Team Mates
243
Creating the Lean Leaders
System
Senior Leader Involvement
“What’s Different”
Development
Training
Structured
Gemba
Structured Coaching
244
Training and Gemba Outline
Tell Me
Show Me
Training
•
•
What do I need to Change?
Examples:
– SIPOC out of Desk Drawer on
onto Desk Top
– Creating a Stable Process
– Knowing how to Identify waste
– Attacking waste in Priority order
•
Tools required to make the
Change
Structured
Gemba
•
How do I make the Change?
– 10 Meter Circle with Lean Sensei
and Leader
– Structured Scenario
– Model the Behaviors
– Defined Outcomes for each
Attribute
•
•
Ensure the Leader can use the
tools
Link the Outcomes of each
session to follow on sessions –
build the correct mind map
245
Senior Leader Involvement Structure
Senior Leader Involvement
Define
“What’s
Different”
Walk the
Gemba
Walk the
Gemba
“What’s Different”
Development
Vet the
Training and
Gemba
Training
Walk the
Gemba
Structured
Gemba
Senior Leader
Level Waste
Identification
Training
Walk the
Gemba
Structured
Gemba
Senior Leader
Level Waste
Identification
and Elimination
Training
Structured
Gemba
Senior Leader
Level Waste
Identification
and Elimination
Goal: Build the Trust
• Contracts between Senior Leaders and
Process Supervisors
• You work your lane and I will support you by
doing the same in mine
Training
Structured
Gemba
Senior Leader
Level Waste
Identification
and Elimination
Structured Coaching
Senior Leader
Level Waste
Elimination
246
Coaching Structure
Senior Leader Involvement
Training
Structured
Gemba
Training
Waste Elimination and
Data Collection
Structured
Gemba
Training
Structured
Gemba
Training
Structured
Gemba
Coaching
(Steps 1 - 4)
•
•
•
•
Goal
Alignment
Session
Coaching
Matching/LineUp and
Resource
Session
Line-Up and
Resource
Review
Approval
Coaching
Group Kick
Off Meeting
Coaching
(Steps 5 – 7)
• Individual Coaching
Event Focus
•
Sessions
• Attribute Focused
•
Coaching
• Vice President
Gemba
•
•
Coaching
(Steps 8 – 11)
Individual Post
Coaching Sessions
Leaders Coaching
Results Presentation
to VPO
Leaders (2 levels up)
out brief with Coached
Leader
Coaching Process
Continuous247
Improvement
discussions
• TRUST
Keys to Success
– Character and Competency
– Speed and Cost
– Communication and Commitment
• Buy In:
– 1st Line Supervisors: Willing to change.
– 1st Line Supervisors Leaders : Accept responsibility to lead the change
(Culture and Change)
– Senior Executive Team:
• Engagement and Management Rigor via the Coaching Process
• Demonstrate our Commitment to the PS.
• Execution Flexibility
– Recognize Opportunities
– Avoid Minefields
• Document 1st then Train and Coach
• Hard Core Program Management Measuring:
–
–
–
–
Cost
Schedule
Quality
Return on Investment
248
Golden Rule of Leadership
they
Treat your subordinates how you
would like to be treated.
…1 at a time!
249
The Organization Takes on the
Personality of it’s Leaders!
250
Quick Look Idea
In order to “Get Better,” you might consider doing one of the following:
•
Go talk to your direct reports, to your customers, to members of your team, or members
of your family. Ask three simple questions:
1. What is one thing we are now doing that you think we should continue doing?
2. What is one thing we are now doing that you think we should stop doing?
3. What is one thing we are not now doing that you think we should start doing?
• The next time you make a mistake, rather than agonizing over it, reframe it as
feedback. Identify the learnings from it and ways you can improve your
approach to get different results the next time.
251 Covey
- From “The Speed of Trust,” By Stephen
and Rebecca Merrill
Take a Blue Slip
• Where is your challenge?
– New Leaders
– Current Leaders
• What is your new leaders time to competency?
• Is that acceptable?
• Do your subordinates Trust You with the biggest
decision you will ever make about them... Who
they work for and who works for them!
252
Take a Blue Slip
• When was the last time you had a Goal
Alignment Session with your direct
reports?
253
Closing
“I can’t control what they do on the field but I
can control who does it…”
Joe Gibbs, Washington Redskins
“…And never give that away”
Joe Barto
254
Keith Hornberger
Lean Sensei
255
Keeping Score
“Putting it all Together”
256
When the CEO/CFO says…
OK… we see all the pieces, we understand
the problem, we know this is critical to our
business…
“How much money do you need and when
do you need it, and how will we know it
made our business better?”
257
Running the Business
Income Statement:
• Revenue:
• Costs:
– Direct and Indirect Labor Costs
–
–
–
–
–
Direct and Indirect Materials Costs
Facility and Operational Costs
Production Systems
Information Systems
Inventory
Line of Sight Cost/Benefit Impact
258
Waste Targets
1. Labor Costs
2. Production
3. Systems
259
Labor Costs
What % of your revenue is associated with
labor?
• Direct Labor = 15%
• Indirect Labor = 10%
• Total Labor = 25%
260
Labor Cost Analysis
2006 Expected Revenue = $220 Million
Projected Labor Cost (25%) = $55 Million
Direct Labor
•
•
•
Total Direct Labor = $33 Million
Direct Labor Headcount = 1000
Annual Cost Per Full Time Equivalent = $33,000
Indirect Labor
•
•
•
Total Direct Labor = $22 Million
Direct Labor Headcount = 500
Annual Cost Per Full Time Equivalent = $44,000
261
Human Capital Management Program
Components
1.
2.
3.
4.
5.
On Boarding
Current Workforce
Leader Development
Building Benchstrength
Executive Development
Where do we start?
262
Start where you get the biggest
bang for the buck!
CFO Speak:
Return on Investment
263
Human Capital Managers
#1 Goal
Strategic Goals: Improve Our Business Performance by:
• Increasing Available Direct Labor
• Decreasing Overhead Labor
Tactical Goals:
• Be Courageous
• Put your money where your mouth is…
• Become “Guerilla Budgeters” to demonstrate value
• Obligate the $$$ before they you lose it!
264
Budgeting
• Know the Budget Cycles
• Timing is critical to access to resources
• Keep the Years Straight
– Implementation Year
– Budgeting Year
– Planning Year
– Programming Year
• New Start or Next Year?
265
The Numbers
Cost/Benefit - Present Value
(attach details as necessary)
Non-Recurring Indirect Cost
Recurring Indirect Cost
Total Indirect Cost
Non-Recurring Indirect Benefit
Recurring Indirect Benefit
Total Indirect Benefit
Net Indirect (Cost)/Benefit
Net Direct (Cost)/Benefit
266
ROI Examples
1. On Boarding
2. Production Skills
3. Employee Engagement
267
EXAMPLE #1
On Boarding
Return on Investment Analysis
268
Retention
Process
Hiring
Process
Initial
Training
Probationary
Period
First Year
Subsequent
Years….
1. Reduce Hiring Process Cost
2. Reduce Attrition Cost
269
New Hire Release Breakout
120
100
80
Number
Released
60
40
20
0
120 Days
120- 365 Days
More than 365 Days
Quit
30
18
13
Released
97
3
Released for Cause
4
29
18
Calendar Days
Total Hired
482
Total Released
Total Released
in first 120
Days:
Total Released
120-365 Days
Total Released
365(+) Days:
225
131
50
31
27%
10.4%
6%
Percent of Total Hired
270
Attrition Reduction Savings
Replacement Costs: $13,899
–
–
$747 hiring cost (wages for hiring staff)
$4,452 in Training Costs.
$168 per training day multiplied by 26.5 training days
–
$1,950 in wages that were not productive hours.
Based on an estimate of 37.5 days on the job learning what to
do. Assumption that new employee was only 50% productive
during this initial period.
–
$6750 in replacement costs
Cost rolls up benefits, testing costs (drug, physical, skills)
Workers Compensation, COBRA, and lost productivity during
transition.
271
Example Analysis
$10,000 ~ Estimated new hire costs (training, overhead, and
HR admin costs, etc.)
$5,000,000 ~ 500 new hires per year
$2,000,000 Walk Out Cost ~ 40% New Hire Attrition Rate
$250,000 ~ for every 5% Reduction of New Hire Attrition Rate
272
ROI Analysis
ROI Model based upon a combination of:
– Overall Retention Rate
– Earlier Attrition Time
Overall Attrition Example:
– $250,000 cost savings through a 5% reduction
– 12 weeks = Average weeks to attrition
Earlier Attrition Time:
– If we can move the time to release earlier by 2 weeks due to better
pre-hiring assessment, job awareness, and initial training then…
– $1,000,000 ~ $1,000 per week per employee x 2 weeks x 500
employees
Total Potential Annual Savings: $1,250,000
273
Manufacturing Turnover Cost Breakout
Annual
Costs for
100 Worker
Site
Annual
Costs for
1000
Worker
Site
Annual
Costs for
10000
Worker Site
Manufacturing
Turnover
rate
Voluntary
Quits
Retirement
Fired
Replace
-ment
Costs
Turnover
17.0
%
14.0%
2.0%
1.0%
$14,000
$238,000
$2,380,000
$23,800,000
Voluntary
Quits
17.0
%
14.0%
2.0%
1.0%
$14,000
$196,000
$1,960,000
$19,600,000
Retirements
17.0
%
14.0%
2.0%
1.0%
$14,000
$28,000
$280,000
$2,800,000
Fired
17.0
%
14.0%
2.0%
1.0%
$14,000
$14,000
$140,000
$1,400,000
$476,000
$4,760,000
$47,600,000
TOTAL
82.4% of Turnover Costs are in the Voluntary Quits Category
11.8% of Turnover Costs are in the Retirement Category
5.8% of Turnover Costs are in the Fired Category
274
EXAMPLE #2
Production Skills Program
Return on Investment Analysis
275
Understand the Cost of Training
Overwhelming Cost of Training is Student Labor
Student Labor
Instructor Contact
Time
Materials
Classroom Instruction
Time
Admin Labor & Other
%
0
10
20
30
40
50
276
Production Skills Development
Goals
• Decrease the cost of training by reducing the
time to train.
• Decrease time to competency (Improve the
quality of training)
• Decrease Risk (Safety, Litigation, etc.)
• Align training capacity with Human Resources
Labor Resource and Hiring Plan
277
Current OJT Assumption
• 64 Hours OJT per year for Four Years
– Anecdotal reports from 1st Line Supervisors
– 2080 hours per year – 64 hours represents 3% of the
time for OJT
– Non-Structured OJT much less efficient
• Burdened Labor rate of $18.00 per hour
278
Current and Future State
• Current
–
–
–
–
161.5 Hours Skills Training
40 hours initial Training
64 hours of OJT each year for Four Years
Total of 457.5 Hours x $18/Hour = $8,235
• Future
–
–
–
–
–
–
137 Hours of Skills Training (15% Reduction)
40 hours initial Training
40 hours of SOJT Following Initial Training
40 hours Intermediate Training
40 hours of SOJT Following Intermediate Training
Total of 297 Hours = $5346
• 35% Reduction
279
By Year Savings
2003
2004
2005
2006
2007
2008
Total
Savings
Hours
8632.5
-300
13560
25560
12160
7680
Total
Savings
Dollars
$155,385
-$5,400
$244,080
$460,080
$218,880
$138,240
Hours returned to Production 2004 – 2008: 48,630 Hours
Savings 2004 – 2008: $875,340
Note: 2003 Numbers on this chart represents savings that would have been
realized this year if the program had already been implemented. 2003 numbers
280
have not been included in any future ROI predictions.
Intervention
Estimated Costs
•
1 ea Primary Level 1 Instructor
–
•
1 ea Scenario Evaluator (Part Time)
–
•
$112,000
Automated Support Tool/IT Support
–
•
$84,000
Program Management
–
•
$234,000
Metrics, Data Capture and Evaluation
–
•
$50,000
Total Costs of
Intervention:
$670,000
Courseware Design and Implementation
–
•
$30,000
5 Scenario Work Areas
–
•
$25,000
10 (+2) Computer Lab
–
•
$50,000
Recurring cost:
• Instructors
• IT Support
• Materials
$5,000
1st year Labor Costs
–
–
40 hours x 100 New Hires x $20/Hour
$80,000
281
Return on Investment
$1,207,261:
Total Projected Savings
$670,000:
Total Intervention Costs
$537,261:
2006 Savings
Break Even: Q3/2005
282
Other Tangible Benefits
• Aligned Training with actual Job Requirements
• Production Skills Training will be aligned with
production needs
• Embedded competency evaluation process
throughout
• Complete review and updating of body of knowledge
• Can be transferred to other areas as a Performance
Support Tool for employees
• Can be transferred to local Technical Schools
283
EXAMPLE #3
Employee Engagement
Leader Development Program
Return on Investment
284
Employee Engagement
• Difficult to measure outright BUT…
• It is NOT what they say but what they DO!
• There are industry standard measures to reflect improved
employee commitment
–
–
–
–
–
–
–
less process waste
decreased turnover
decreased safety incidents
decreased maintenance expense
fewer grievances
decreased absenteeism
reduced error rates, etc
• We can calculate a cost for each one of these.
285
Company Baseline
Number of Employees
Average Hourly Rate (Loaded)
Hours Worked per Year
Salary per Individual
Workforce Salary
3000
$40
2080
$83,200
$249,600,000
How can I get to this kind of Savings?
Total FTE Savings
Total Savings in Dollars
51.8
$4,308,000
286
Reduce Grievances
(Union Shop)
Grievance
Grievance Hours lost (e.g. 30 hours due to other
workers making up, management time, lost
employee productivity)
Loss for each Grievance
30
$1,200
Average number of grievances per year Company
Wide
100
Annual Grievance Cost for the company per year
$120,000
Estimate of Intervention Effects (Percent
Reduction in Grievances)
Intervention Savings
FTE Savings
50%
$60,000
0.7
287
W2 Turnover Analysis
Average
Monthly
Headcount
Total W2’s
issued
Churn
Annual Turnover
Rate
Hourly
176
352
176
100%
Salaried
73
72
(1)
1.4%
Hourly
189
334
145
76.7%
Salaried
82
87
5
6.1%
Hourly
257
451
216
75.5%
Salaried
91
97
6
6.6%
2003
2004
2005
288
Reduce Voluntary Turnover
Turnover
Turnover Cost (Percent of Salary - 15% - 200%)
15%
Turnover Rate
25%
Individual Turnover Cost
Total Workforce Turnover Costs
Employee Turnover due to voluntary separation
Cost for Employee Turnover due to voluntary
separation
Estimate of Intervention Effects
(Percent Reduction in Voluntary Turnover)
Intervention Savings
FTE Savings
$12,480
$9,360,000
80%
$7,488,000
25%
$1,872,000
22.5
289
Reduce Absenteeism
Absenteeism
Absenteeism Hours lost (e.g. 12 hours due to other
workers making up, management time, lost employee
productivity)
Loss for each day an employee lays out
Average number of lay outs per employee per year
12
$480
5
Annual Absenteeism Cost per Employee per year
$2,400
Number of Company wide lay outs per year
15,000
Annual Absenteeism Cost for Company per year
Estimate of Intervention Effects (Percent Reduction in
Absenteeism)
Intervention Savings
FTE Savings
$7,200,000
33%
$2,376,000
28.6
290
THINK Strategically….
2007-2010
PPL Strategy
Project Management
and
Measuring Business Impact
…ACT Tactically
2006
PPL Program
291
Strategy Development
“A Systems Engineering Approach”
• What is the current process and cost? (Current State Map)
• What does the perfect system look like? (Perfect State
Map)
• How do we get from here to there? Plan of Action and
Milestones with Resources Required and Return on
Investment Prediction
• What does the future system(s) look like and how will we
measure progress? Future State Map(s)
292
PPL Strategy Development
Must Do’s
• Choose early programs wisely. Early failure hurts
credibility and damages morale.
• Choose a Program core to the business to gain and
maintain senior leader focus.
• Define metrics to measure progress and sign up for goal
accomplishment.
• Develop detailed Plans of Action and Milestones.
• COMMUNICATE the PLAN!
• Execute, execute, execute…
293
PPL Strategy
Must Not Do’s
•
•
•
•
Try to make us a training company
Break the bank
Make unrealistic promises
Have a negative impact on production
294
Strategy
Supporting Documents
• Planning Years: 2008-2009
– A “year by year” plan of how to move from current state to
future state.
– Accounts that most Human Capital Programs require multiyear implementation to determine Pay Back/Return on
Investment
• Budget Year Proposals: 2007
– A more detailed “Budget Year” plan in order to justify and
defend resource requirements.
– Includes a business review of the current programs as
related to performance outcomes
– Included New Start Proposals
• Action Year Programs: 2006
– Detailed Plan of Action and milestones for current year
activities and events
295
Human Capital Management Strategy
2006-2009
An Example
296
Strategic Initiatives
1.
2.
3.
4.
On Boarding
Leader Development
Productivity Improvements
Team Building: Application of Lean Concepts
to Cell Manufacturing
297
1. On Boarding
Components
• Requisition Review
• Realistic Job Preview
Creation
• Math and Reading Test
• Orientation Update
• Common Skills Training
Program Development
• Word Class First Day
Creation
• Structured OJT, 30-60-90
Evaluation
• 180 Day Evaluation
Timeline
• Analysis
– Complete Aug 2005
• Design
– Complete Sep 2005
• Development
– Complete Oct 2005
• Test
– Complete Dec 2005
• Roll Out
– Q1-Q3 2006
• Continuous Improvement
– Q4 2006 – Q4 2010
298
2. Leader Development
Components
• Identification of Leader
Levels
• Leader Developmental
Plans
• First Line Supervisor
Training
• Manager Training
• Succession Planning
Timeline
• Analysis
– Complete Dec 2005
• Design
– Q1 2006
• Development
– Q2-Q3 2006
• Test
– Q4 2006
• Roll Out
– Q1 2007
• Continuous Improvement
– Q2 2007 – Q4 2010
299
3. Production Skills Improvements
Components
•
•
•
•
Depth Chart
External Training Courses
Formal Cross Training
Automated Tracking skills to job
• Hip Pocket Training
• Skills Assessment of
Current Workforce
Timeline
• Analysis
– Q2 2006
• Design
– Q3 2006
• Development
– Q4 2006
• Test
– Q1 2007
• Roll Out
– Q2 2007
• Continuous Improvement
– Q3 2007 – Q4 2010
300
4. Team Building: Application of Lean
Concepts to Cell Manufacturing
Components
• Production Teams/Cells
• Team Based Operations
• Cross Functional Teams
Timeline
• Analysis
– Q3 2007
• Design
– Q4 2007 – Q1 2008
• Development
– Q2-Q3 2008
• Test
– Q4 2008 – Q1 2009
• Roll Out
– Q2-Q3 2009
• Continuous Improvement
– Q4 2009 – Q4 2010
301
Human Capital Management Strategy
Q2/2005 – Q4/2008
Q2/2005
On Boarding
Q3/2005
Leader Development
Q2/2006 Production Skills Improvements
Q3/2007
Team Building
Roll Out Q1/2006
Roll Out Q1/2007
Roll Out Q2/2007
TBD
302
The Bottom Line…
• To Win and Win Big is the Business of People.
You must play the game.
• To play you must know the rules.
• Understanding and applying ROI Evaluation
Analysis is a core skill to play the game.
• Skills, Knowledge, and a detailed Plan =
Courage
• Turf, Ego, and Money and at the end of the
day…
303
End of Day 1
“Whew”
304
Welcome to Day 2
305
Creative Memories
Overview and Plant Tour
Bruce Boulton
Operations Manager
306
Plant Tour
Feedback
Your “Gift” to Creative Memories
307
Let’s Wrap It Up
Review Workshop Outcomes
Blue Slips…
308
What Did You Want To Learn
From This Work Shop?
309
Human Capital Challenges
• No silver bullet…Big Problem with a lot of moving parts in
a dynamic business environment
• The commitment is to provide some real analysis to focus
our efforts…not a “Good Idea of the Day” approach
• The recommendations must make good business sense
• We must be realistic and “eat the elephant” one bite at a
time.
• We must create a SYSTEM to:
– Better communicate with our primary clients: the Production
Managers
– Synchronize and integrate our Projects and Programs with the
normal business operations.
– Give the Managers predictable yet responsive support
310
Human Capital Managers
Goals
• Be the Plant Managers best resource for support
• Shift our focus to becoming Human Capital
Planning and Support experts while maintaining
the “HR Administrative Mechanics”
• Link the Corporate Strategy to the Human
Capital Management Program
• Must be long range thinkers… People are multiyear projects-- in fact Life Long Projects
• Do not be a part of the problem!
311
Human Capital Management
Success Principles
1. Business Focus (People, Process, Equipment + Material =
Products)
2. Centralized planning as a team, but execute as close to the
floor as possible
3. Senior Leaders must personally engage ensuring business
affect
4. P&L Managers must be the focus of our efforts
5. The organization provides the P&L Managers with a robust
performance improvement “toolkit”
6. Leaders must be empowered to ensure responsibility
and accountability for the performance and development
of their team.
312
Business of People
The Mission:
Provide Leaders with right people in the right
numbers, in the right skills, at the right time, at
the right cost to meet business needs.
The Goal:
An agile, competent workforce capable to move
at the speed of business.
313
Thanks… and Good Luck!
314
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