June 17, 2015 Industry Forum Blog Whether you have chosen TPM, lean, EFQM, 6 Sigma or another method, you need to ensure it supports the achievement of your operational targets and your strategic goals. But each organisation has finite resources in terms of the people, time and money that can be dedicated to achieve these. Typically we find that 99% of a managers’ time is spent dealing with items on the operational side, leaving the strategic decisions and improvement programme as bolt on or additional activities. The secret to balancing all of these demands is to not overburden the organisation with numerous different plans and to ensure that there is no conflict between managing daily business, achieving the vital few stretch goals and introducing an improvement programme. To do this you need to carefully consider and then merge the review systems used to manage these aspects of your business. This then gives you the framework to position your chosen improvement methodology and maximise the benefits. At Industry Forum we developed what we call the Integration Model that has helped organisations to do just this. Click here for an overview of the Integration Model. Central to the Integration Model are: Having performance measures for both operational and strategic management in one place An effective steering and governance system Operational and strategic performance measures in one place The best way of doing this is to set up visual communication boards within the organisation and use them for reporting daily, weekly and monthly progress. We usually place these at plant, area and team level. The plant board is often called the Obeya and is developed over time to incorporate these key features: The annual plan and daily performance measures, X-Matrix and SQCD in this example Current performance vs. targets for both sets of information Demonstrated links between the annual policy targets and daily measures Action plans for gaps between actual and target performance A method to limit the number of open actions This Obeya schematic shows the maximum number of corrective actions and activity trackers, A3s, allowed to be open at any one time. The link between operational and strategic targets and the number of ongoing actions are critical. If there is no link or there are too many open actions then your resources will be swamped and few goals will be achieved. Effective steering and governance This encompasses the rules that state who meets, when, at what frequency, what they do at each meeting and what the expected outputs are. In order to eliminate duplication and other forms of waste your steering and governance system should be designed to use joint resources, people and physical report formats. Now that the operational and strategic goals are linked you are in an excellent position to embed your chosen improvement methodology. Do this by using direct references to the tools and techniques to be deployed on the plans and action trackers on the visual management boards. Planning, deployment and review of your improvement programme becomes part of the daily, weekly and monthly reporting structure. Conducting specific improvement activities becomes the way to achieve operational and strategic targets. Have you benefited from using a system like this? Let me know how you have got on.
June 10, 2015 Industry Forum Blog Today’s managers are under tremendous pressure to meet delivery targets with less and less resource, let alone meet the changing demands of the customer. Shorter deadlines, smaller delivery quantities, tighter quality standards and all of that cheaper please! Who needs the added pressure of lean improvement programmes or a Kaizen event? Releasing people from their day job and equipment from production is a tough ask when the customer is breathing down your neck. Unfortunately continuous improvement activities, just like training activities, are usually the first casualties in a pressured environment. However, while your brilliant trouble shooting may have saved the next delivery, has it really helped you longer term? Ask yourself “Did we really solve the problem or will it come back to hit us again?” To break out of fire-fighting mode you have to bite the bullet and start to solve the recurring issues. Don’t think of continuous improvement as a cosy training session, used cleverly it will make it easier for you to hit your daily targets and make all those improvements required to boost your competitiveness. I’m not pretending it’s easy to make a start. As a shift manager I was very proud of my trouble shooting ability, but in hindsight I realise how limiting that was. However, with some basic preparation and a plan ready to go you can break the fire-fighting cycle. Collect some figures on what is stopping you achieving your daily targets. Analyse them to find out what the biggest problem is. This analysis may be by cash, downtime or quality. Break the biggest problem down into smaller categories. Find out what the most appropriate improvement tools or techniques are to resolve your problem. You may have an internal improvement team to help you or you can find an external specialist who can work with you to deploy the techniques you need. Now you are ready for when you get a slight lull in the fire-fighting, or if worst comes to worst it’s a few extra hours! Display the figures and analysis on a board in the workplace area with the biggest problem. Handwritten is fine. Brief the whole area team round the board. Select a small team and deploy the tool or technique. At the start of your improvement journey the tools and techniques are easy to pick up and deploy. Have a go, learn by doing and next time you use the tool you will be more experienced. Show your results on the board and keep briefing the wider team. You can show results not only in the original analysis format but with before and after pictures, graphs and monetary savings. Different people will be looking at your results; you need to show them in different ways. The finance department love money – they want to see savings on the bottom line! Your team are probably more interested in how much easier the job has become without all the problems and hassle. When you have reduced the first problem pick the next biggest and keep going! It takes time and perseverance but if you keep plugging away you will break out of the fire-fighting mode and release time for more improvement. Achieving daily targets becomes possible as you tackle each of the problems that exist now. Once stable you can concentrate on making those improvements you need to be competitive. This is how I did it, but let me know how you have broken out of the fire-fighting cycle
June 3, 2015 Industry Forum Blog Do your team leaders need to lead, manage and motivate their team as well as improve the quality, cost and delivery performance of their area? If so, do they have the necessary team leadership skills? Team leader training is a very popular request from clients and courses are usually bespoke to the client’s needs. However over the years a clear pattern has emerged in the core topics chosen to start the team leader’s journey for leading in a lean environment. These are a mix of continuous improvement techniques and key interpersonal skills. They are designed to work together to give the team leader the ability to change behaviours and improve performance. They are also the foundation on which to build a sustainable improvement culture. Quality, Cost and Delivery Data Analysis to assess performance Eliminating waste using 7 Waste Effective communication, whether sending or receiving this is an essential core skill Visual Management of performance and workplace conditions Effective team working techniques 5S to organise the workplace Managing people through change Standardised Work to analyse work and capture current best methods Delegation Motivation The most effective way to train people in these techniques is learning by doing. A short theory session followed by practical deployment in the workplace ensures the team leader learns about what they are aiming to achieve and the whole team see the benefits. Bear in mind that for some of the interpersonal skills role playing simulations can be a safer way to practise and build confidence before launching yourself on the team! As I said, this is just the start of the journey in a lean environment and no doubt you are already thinking of other essential techniques and skills that the team leader needs, probably Problem Solving, Time Management and Health and Safety are near the top of your list. To get a good grounding in the 10 skills listed would typically take 3 weeks of training sessions phased over a 3 to 4 month period with ongoing practical deployment. My advice is to discuss your specific needs with your training provider and tailor the content of the sessions to meet your own requirements. For more interpersonal skills and how to use them in the workplace read Deploying the 12 Interpersonal Team Leader Skills. Let us know what skills you would need in your environment or which skills you have found most useful to you. If you want to understand more about lean techniques visit our Lean Transformation page or contact the Industry Forum team today.
May 27, 2015 Industry Forum Blog There are over 200 Computerised Maintenance Management Systems on the market and these asset management applications are changing all the time. The danger of just buying a system off the shelf without considering what your business really requires is shown by the results of a survey (A.T. Kearney 1993). Out of 3300 CMMS users, 80% of CMMS did not meet the expectations of the user. This was despite 74% reporting improved equipment history, 58% improved maintenance productivity, 58% improved stores and inventory control and 45% controlled and reduced maintenance costs! Use these 10 tips to help you select the best option for your business. 1. Establish why you need a maintenance system and what you want from it A useful start point is to map what you have now and assess how effective it is. Mark up any problem areas as well as areas you would like to be strengthened now and in the future. Be as prepared as possible before you start your search for a supplier. List what you want in terms of: Maintenance planning functions Asset and inventory management Analysis and reporting 2. Define who will use the system and their requirements Decide who is going to use the system as well as who will implement it. It is vital to get user buy in so involve as many of the stakeholders as possible and agree the primary goals of the system. You may want to: Speed up the analysis of Emergency Work Orders to prevent reoccurrence of identical or similar failures. Reduce the amount of time required to collect and analyse maintenance data. Improve the management of the maintenance budget. Improve the issuing of work orders. 3. Define budget and timescales Understand the budget available to you and the savings you expect to make as a result of introducing the CMMS. What is your target Return On Investment? 4. Search for suitable suppliers Armed with your requirements you can now assess the different suppliers and applications available to find the best fit for your functionality requirements and value for money. Comparison websites and reports are widely available and most vendors offer demonstrations or free trials of their product. Then ask these 6 questions. 5. Is the application user friendly? It must be simple to use for every level of user. From data entry and raising requests to planning work and running reports. Look for; a range of data entry devices, drop down options, diagrams and pictures. 6.Will it interface with your existing business management systems? This is vital. To make the system as effective as possible it must improve information flows across the whole business and eliminate wasteful activities. If it doesn’t then you will probably make these worse. 7. Is full training is available for all user levels. Key to achieving your ROI is that everyone uses and adopts the system. 8. Is the supplier stable? This system is going to be in use for some years, you need a partner. Check their history, case studies, experience and references. 9. Is there ongoing customer support? Can the supplier offer prompt issue resolution for the whole time your plant is operating? 10. What about future developments? Over time you will need to expand your CMMS and make improvements to it as you review its ongoing use. Ensure the supplier can show their competence here. Let us know your top tips for selecting the best CMMS system.
May 16, 2015 Industry Forum Blog We all know how easy it is to get bogged down creating detailed guidelines, slavishly following stepped structures and learning new terminology. Over the years I have deployed many lean and Total Productive Maintenance techniques across a wide range of businesses. Recently it occurred to me that instead of creating ever more complicated explanations it’s sometimes better to get back to basics. Can we describe what we want to do in very simple terms? Light bulb moment – all of our successful improvement methodologies are based on just 4 key principles! Understanding these allows us to move forward and ensure our lean implementation is successful. Think of the task you are improving as a process. Eliminate what does NOT add value. Pursue your implementation with unrelenting rigour and discipline. Involve everybody in the implementation programme. 1. Think of the task you are improving as a process It doesn’t matter if you are machining a piece of metal or writing code for a program. What you are doing is transforming something from one form into another. This could be metal pipe into an exhaust, ideas into a computer programme, or telephone enquiries into quotes. Once we can identify the inputs to our process then we can observe it, capture it and improve it. 2. Eliminate what does NOT add value When we observe our process, anything that doesn’t help convert our inputs closer to the required output does not add value to our process. I started by learning to identify and eliminate the 7 Wastes, then someone added an 8th waste. Later I learned about the 16 Losses in TPM and all the phrases we use to describe waste in transactional processes like disconnects, threats and back flows. It doesn’t matter what you call it, but it is vital that you eliminate it. 3. Pursue elimination with unrelenting rigour and discipline Easy to say, much, much harder to do. I don’t think there is any substitute for leading by example and personally ensuring that everybody is doing their bit. Always follow up the improvements your team make. Ensure physical changes are completed and behavioural changes become daily habits. This will prevent the hard won improvements fading away. Once you’ve embedded that improvement you need to do it all again. And again. Improvement is infinite and better is not good enough! All of the well known improvement programmes, like the Toyota Production System, are an accumulation of small steps in learning built up over time. They started with simple waste elimination tools that gradually became more specialised as the waste became harder to eliminate. Dogged perseverance is the name of the game. 4. Involve everybody in the improvement programme Not only do you get more ideas by involving more people but you spread the word more effectively. The benefits of working in teams is a subject in its own right, but this quote sums it up for me “A single arrow is easily broken, but not ten in a bundle”. My recommendation If the technique you are using has become overcomplicated look back at these four basic principles. At least one of them will explain the aspect you are trying to understand. Start with the simple and then build on it as you learn. Let me know about your experiences in mastering improvement techniques.
May 13, 2015 Industry Forum Blog Check if your New Product Introduction process features these 6 basic success factors. Before you start buying expensive design software or other automated tools to speed up your NPI process, have you examined your process procedures? Having studied and helped a variety of manufacturers, from build to print suppliers to innovators who launch to market, I have found that these 6 factors are an essential base for any robust NPI process and will result in reduced lead times and spend. 1. Use a gated process A gated process consists of sets of tasks, called stages, and review gates. See the Guide to NPI Terminology. At the end of each stage the project review board MUST formally review progress and decide if the project is still worth investing in. They need to establish: Will the customer be satisfied? Will it make us money? I’ve found that companies who don’t have a clear gated process are more likely to deliver late, allow costs to spiral and develop a firefighting regime. 2.Ensure the gates have “teeth” This is a great phrase that has been borrowed from the work done by Robert G Cooper. If the answers are NO to the questions above then be brave and either terminate or redefine the project and concentrate your precious resources on more promising ones. 3. Use cross-functional teams It’s worrying how many times I find that people and functions involved in a project have limited contact with other project members. Even though each individual believes they are working hard for a successful outcome, in reality they could bring in a better product, quicker and cheaper by working in cross-functional teams. 4. Appoint a project manager Having 1 person in charge of the day to day running of the project is more likely to result in project success (on time and in budget), but additional benefits are gained if the project manager also has strong team leadership skills. This is something I have found in organisations making improvements to established NPI processes. They improve the communication flows and engage and motivate individuals, which contribute to a better new product and improved project results. Although smaller companies may find it difficult to appoint a full time project manager, there are other options. Whichever option you choose, ensure that their role and responsibilities are well defined. 5. Have a clear set of rules for running your NPI process At the beginning these are the key elements you need to be clear on. How you will identify, assess and control risk to the project. A system for delegating authority to the different project team members. A system to escalate issues outside the levels of authority they have. A system to formally manage changes to the project. The more developed your NPI process becomes the more detailed these rules will become. 6. Set up a system to improve your process Formally manage the capture of solutions to issues that occur during each run of the process as well as team observations for improvements. Ensure these points are turned into actions for the next project to create a true Lessons Learned system.
February 2, 2015 Industry Forum Blog Government is joining forces with leading UK automotive manufacturers to boost skills across the sector, inspire the next generation of vehicle makers and create new routes into automotive careers. Business Secretary Vince Cable announced £11.3 million of government funding alongside £2.8 million cash investment and £16.4 million in-kind contributions from industry. The project, developed through the Automotive Council’s Business Environment and Skills Group, brings together major automotive businesses to ensure future skills needs are met for UK vehicle manufacturers and supply chain companies. It follows a successful bid from the group for funding through government’s Employer Ownership Pilot. Business Secretary Vince Cable said, “This investment puts our automotive sector in the driving seat to design the skills our manufacturing companies need. There is a risk that without adequate investment in skills, the industry will run into serious skills bottlenecks. “Through our industrial strategy we are working in partnership with the automotive sector as it goes from strength to strength. We are providing businesses with the confidence to invest, and to create high skilled jobs.” Employment in the automotive industry is set to grow in the coming years, with multi-billion pound investments taking hold and production volumes on course for record levels. With developments such as connectivity and advanced manufacturing taking the sector into exciting new territory, recruitment is a major challenge facing the industry. Manufacturers will work together to identify and meet the skills needs for their current and future workforces, ensuring the UK automotive industry is in pole position. Young people will also gain first-hand experience of the industry in action, inspiring future generations of engineers and technicians. Jo Lopes, Chair of the Automotive Industrial Partnership and head of Technical Excellence, Jaguar Land Rover, said, “The Automotive Industrial Partnership brings together industry’s employers on an unprecedented scale. By working collaboratively and taking an innovative and sector-wide approach, we are ensuring that the UK’s automotive sector can grow and retain the skills talent that is so vital for the industry’s continued success.” Aston Martin, Bentley, BMW, Ford, General Motors, GKN, Honda, Jaguar Land Rover, Nissan and Toyota represent some of the UK’s biggest automotive employers, and will work together with government, SEMTA and SMMT through the Automotive Council to boost workforce skills, now and for the long term. This includes creating an industry standard “jobs framework” and identifying job “hot spots”, to encourage more young people into automotive manufacturing careers and to deliver clear development pathways to help them to progress. Initiatives include: Giving 4,500 nine year olds an experience of working in the industry through a one day production simulation. Taking on 960 11-16 year old Industrial Cadets, to develop vital industry skills in team working, communications and problem solving over a six day programme. Providing a route to work for 225 19+ year olds, with a 15 day programme offering vocational training and simulated work activities designed by their potential future employers. Assessing functional and employability skills will lead to further work experience at a host company, helping young people with little or no workplace experience and vocational skills on a route to possible future apprenticeships. Existing employees at all levels will also benefit from industry collaboration to strengthen their technical, management and leadership skills. Small and medium-sized enterprises (SMEs) will be supported in gaining access to industry standard skills development. Meanwhile talented, qualified engineers from other professions, such as the Armed Forces, will be able to train to apply their knowledge and skills in the automotive industry.
