A process Improvement project with NDA.

1. Performance Improvement
Report

2. Contents
Introduction .......................................................................................................................................4
Productivity .......................................................................................................................................4
Approach...........................................................................................................................................5
1. Organizational structure...............................................................................................................5
Low Productivity:...........................................................................................................................5
Unequal workload ...................................................................................................................5
Unclear.................................................................................... Error! Bookmark not defined.
Lack of teamwork....................................................................................................................6
Slow Decision Making.............................................................................................................6
Lack of innovation...................................................................................................................6
Organizational chart............................................................................................................................6
Job description ...................................................................................................................................8
Defining the position ...............................................................................................................8
Performance standards.............................................................................................................8
Job- related skills.....................................................................................................................8
Scope and limits of authority & responsibility ...........................................................................8
Management Expectations........................................................................................................9
Relationships Structure ............................................................................................................9
Process Flow Chart.............................................................................................................................9
Visual Clarity........................................................................................................................10
Instant Communication ..........................................................................................................10
Efficiency Increase................................................................................................................10
Process Mapping ..............................................................................................................................11
3s ....................................................................................................................................................12
Sort..............................................................................................................................................12
Set in order...................................................................................................................................12

3. Shine............................................................................................................................................12
Gantt chart.......................................................................................................................................12
KPI and KRA...................................................................................................................................13
Count................................................................................................................................13
Reject ratio........................................................................................................................13
Rate..................................................................................................................................13
Target...............................................................................................................................13
Takt time...........................................................................................................................13
Downtime .........................................................................................................................13
Key Result Area (KRA)................................................................................................................14
How KRA were derived?...........................................................................................................14
Data Recording.................................................................................................................................14
2. Training Module .......................................................................................................................15
Analysis................................................................................................................................16
Goals....................................................................................................................................16
Content.................................................................................................................................16
Templates .............................................................................................................................16
Timeline: .........................................................................................................................................16
Results:............................................................................................................................................17
Cost of the project: ...........................................................................................................................17
Benefits: ..........................................................................................................................................18
Conclusion.......................................................................................................................................18

4. Introduction
This report aims to illustrate how we formulated strategies for XYZ Company to improve their
revenues and decrease the operating costs. This report also explains how we succeeded in
developing employee’s skill base thus increasing both the productivity and motivation level. As
we know organizational structures reflect the intensity of the growth in the company, hence this
report analyses the strategies to enhance the importance of skills training. The report defines
tasks and determines information flow within the company. This organizational mapping ensures
that the company’s goals and objectives are achieved as per the projections.
We assisted the production department to improve the number of unit production. Our project
was also able deliver a decrease in the rework time. Techniques like re-skilling and cross skilling
were implemented to create an efficient and better workforce. The ultimate outcome of our
productivity improvement project with XYZ Company resulted in their increased productivity
and motivated workforce.
Productivity
Productivity is the ratio between output and input. It is quantitative relationship between what we
produce and what was used to produce it. Higher productivity can be achieved by reduction in
wastage like manned hours, material, machine, time, space and capital. It can be expressed as
human efforts to produce more goods with the use of less input. This will result in maximum
distribution of outcome among maximum number of people. Productivity denotes relationship
between output and one or all related inputs.
Pollutants
Physical goods and
services
Employee
Satisfaction
Customer
Satisfaction
Impact on
Environment
Quality of Work Life
Quality of
lifeProductionResource

5. In the current times of economic development, planning, production and control are one of the
most important concerns. Increase in productivity leads to reduction in cost of manufacturing and
increase in output. This report illustrates different approaches which were utilised to increase the
productivity in the manufacturing plant. The importance of the productivity growth is more
important in connection to market relations because it helps the company to stay competitive on
the market.
Approach
The approach we focused on for understanding and researching was simple and appropriate for
the plant setup. We employed qualitative analysis to measure, analyze and improve productivity.
1. OrganizationalStructure
Organizational Structure guides that how the people are arranged in different designations and
departments in the company. It helps the employees to understand the hierarchy in the
organisation hence supports the improvement in the performance. Formal structures are not
necessary in the companies wherein work force is small; face to face communication is frequent.
However, in big companies delegation of various tasks is required and thus proper procedures
must be established to assign responsibilities. We discovered some inconsistencies in the
organizational structure of XYZ Company. The absence of a sound organizational structure in
XYZ Company was leading to:
Low Productivity: Due to inefficient resource allocation, poor vertical communication and
employee empowerment limitations, employees were not able to complete their job in a timely
manner. This resulted in low productivity levels.
 Unequal workload: Unequal allocation and distribution of work between departments
indicated that the organizational structure has not been fully optimized for business
requirements. Some areas of the company were regularly understaffed and worked
overtime to meet the workload requirements, while other areas did not had sufficient
work to keep employee busy hence keeping the staff idle.

6.  Ambiguous Hierarchy: The employees were not following the standard operating
procedures. For example- an employee should provide feedback to their manager but
instead in some cases they felt the need to go directly to a department head, vice
president or even the president to put across concerns or recommendations.
 Lack of teamwork: Employees focused on their individual tasks and did not offer
assistance to others unless directed to do so by their supervisor.
 Slow Decision Making: The organizational structure needed a change because decision
making authority was not given to the managers, or travelled through multiple layers of
management before a decision could be made.
 Lack of innovation: A pipeline for new ideas did not exist, and even if it did exist,
poor communication meant that the idea never reaches the right person who is liable for
development and implementation. As a result, employee who comes up with new ideas
kept them to themselves or took them to a new employer.
All these problems exist due to lack of proper organizational structure. We used different
techniques and tools to overcome these problems
Organizationalchart
In order to rearrange the organizational structure of XYZ Company, we prepared an
organizational chart of the company. It showed the structure of the company and allowed us to
see where each employee of the company stood in the hierarchy. Steps involved in making an
org chart:
 We prepared a preliminary list of all the employees at the company: We included their
name, titles and job description. Starting from top of the company i.e. Owner till the
helper in the company. So, if a manager in the company reports to the owner, he
becomes a level two employee.
 We formed hierarchy from the owner to the level two employees. Level two employees
report directly to the owner.

7.  In next step, lower level hierarchies were formed from level two employees to their
juniors (Level three). This process was continued until we reached the last department
(Last level).
C.E.O
General Manager
Construction &
Outsource
Manager
Operations
Manager
Equipment
Rental
Manager
Quality
Manager
Finance
Department
Site
Supervisor/
Foreman &
Field Staff
Manpower/
Resources/
Equipment
Maintenance
Technicians
QA/QC
Engineers
Purchase
Manager
H.R &
Administration
Manager
Purchase
Assistants
Government
Relations
Officer
Site Manager
Operations
Coordinators
Marketing
Manager
Executives
Safety
Officer/Safety
Supervisor
Account Staff

8. As we charted an effective organizational chart the following benefits were realised by the
company:
 Guided the employees to know their rights and responsibilities.
 Made everyone clear within their organizations and improved employee performance.
 Helped to build and design the organization structure to meet the business' objectives.
 Made it easy to find whether the employee's workload was too heavy.
 Helped to divide the functions of the company.
Managers now can easily analyze budget, design work team and generate reports by their own.
Job description
We believe job description is an integral part of the performance development planning process.
A job description recognizes essential and non-essential tasks that are assigned to a specific
position. It guides an employee to know what their job role is within the overall department in
the company. JD also helps us to understand what results to expect from an employee doing a
particular job. In some cases, lack of a job description caused employees to stress on the wrong
aspects of their jobs. A written job description not only includes the tasks an employee is
expected to perform but also a ranking of importance of each task. We provided job descriptions
for each staff members and also head of departments. The elements included in providing job
descriptions:
 Defining the position: We started profiling of job descriptions by stating the title of
the position in the company. The key responsibilities of the position were stated
subsequently. This way employer came to understand which employees were qualified
for the job. A recognizable job title is always helpful for recruitment process.
 Performance standards: We indicated productivity and quality standards required for
the employee to be successful in his role.
 Job- related skills- We listed the level of knowledge, skill, experience and capability
demanded by the job, including any technical or physical skills.
 Scope and limits of authority & responsibility: The areas of responsibility assigned
to each person, including where duties may overlap and who is ultimately responsible for

9. the completed product or service were outlined. Also, described the level of authority the
employer or employee has over other employee or the product specifically.
 Management Expectations: It included expectations for availability like overtime,
holidays, etc.; flexibility in scheduling off days; restrictions on vacation time; policies for
absenteeism; and expected employee behaviors with colleagues, customers, managers
and others.
 Relationships Structure: Clarified the reporting structure for each department, stating
to whom the employee reports or who reports to the employee, if applicable.
These elements helped in overcoming the various problems related to mismanagement and
communication between different departments in the company.
ProcessFlow Chart
Processes are the fundamental building blocks of all companies. In simple terms, set of process
changes input into output. A process flowchart is a powerful tool because it compiles
considerable amounts of information about a process into a consistent format. It also identifies
important steps within each process unit. To completely understand the flow of processes and
prepare a flow chart we studied all the key elements of the process: Title, Purpose, Scope, Inputs,
Outputs, Controls and Resources. Using all the data collected from the study, we prepared a flow
chart which illustrated all the steps of the process in a sequential order. Our Process Flow chart
included:
 Sequence of actions.
 Inputs and Outputs: Materials or services entering or leaving the process.
 Decisions that must be taken.
 People involved.
 Process measurements: Time involved at each step.

10. The process flow chart served many purposes for XYZ:
 Visual Clarity: It enabled the company to visualize multiple progresses and their
sequences into a single document. Steps which were unnecessary and progress which
needed improvement were easily detected.
 Instant Communication: Teams could use flowcharts to replace meetings. Team
members could understand what they should do step by step by visual method easily.
 Efficiency Increase: The flowchart helped in removing unnecessary steps in a process,
as well as errors. This increased the efficiency as only those steps were included that
were essential for the successful end of the process.
Environment
 Customers
 Suppliers
 Competitors
 Regulation
Inputs
 Capital
 Materials
 Equipment
 Facilities
 Labor
Transformation System
 Alteration
 Transportation
 Storage
 Inspection
Monitoring and Control
Outputs
 Facilitating goods
 Services

11. ProcessMapping
The process mapping in business is part of workflow management, which also includes business
process modelling. Mapping provides a more detailed representation of a process that generally
incorporates additional company’s material. Process mapping is a tool to identify all the steps
and decisions in a process in diagrammatic form. It is the structural analysis of a process flow by
differentiating how work is actually done from how it should be done. We started by creating a
SIPOC (supplier, input, process, output, customer) diagram to understand the company’s
processes. The diagram defines the processes at a high level, showing the flow from supplier to
customer. We started from determining a process. Next, we documented what was delivered to
whom (O and C). Finally, we identified what input was necessary to perform that process (I) and
the supplier of that input (S). This way we plotted the process map. Process mapping benefitted
the company in:
 Eliminating unnecessary tasks.
 Clarifying roles within the process.
 Reducing delays and duplication.
 Reducing the number of staff required.
Benchmarking System & People
Suppliers Mission, Vision Clients/Customers
BUSINESS EXCELLENCE MODEL (Sustains)
SERVICE
PROCESSES
Inputs
Output/Outcomes-
KPIs
Other StakeholdersFeedback

12. 3s
We focused on the most important 3 ‘S’ of the 5s: Sort, Set in Order and Shine. XYZ Company
needed to implement the 3s as soon as possible.
Sort: We went through all the tools, furniture, raw material, Work in progress material, finished
goods and equipment etcetera in the work area of XYZ to determine what needs to be present
and what can be removed. When we analysed and determined that some items were unnecessary,
we projected some options:
 Giving the items to a different department.
 Recycling or selling the items.
 Storing the items.
Set in order: With all the unnecessary items removed, next step was to organize the necessary
items in the work area. While keeping flow of tasks in consideration, we prepared a report to
structure the work area accordingly. We introduced storages, shelving and organizational
systems so that the employees didn’t had to waste time searching for equipment.
Shine: Once the work area was sorted and organized, we demonstrated how each employee must
be assigned an area of responsibility to keep the equipment and the work area clean. We
proposed a routine visual inspection of machinery and equipment whenever the staffs clean the
area in order to allow the employees to identify problems as soon as they occur.
Gantt chart
Gantt Charts is a project management tool to graphically show progress of a project and project
schedule. All subtasks of a task can be viewed graphically. We started the process by collecting
all the sub tasks. Our procedure to build a Gantt chart for the activities of the labours in XYZ
included:
 Identification of steps needed to complete the project.
 Identification of milestones within the project.
 Identification of the expected time required to complete each task.
 Identification of the sequence of tasks and the order of preference of tasks.

13.  Selection of a proper time scale to represent the length of tasks on the x- axis.
 On the y- axis, writing down of each activity and milestone of the project in their order of
occurrence.
We represented the activities or milestones that occurred at a specific point in time by using a
diamond under the time the activity must happen. When the activities occurred over a
determined period of time, we drew horizontal bars, or an empty rectangle starting from the first
day the activity would take place and finishing the day the activity ends. Rectangle was not filled
inside. We filled up the diamond or the rectangle as each activity was being performed. A weight
was used to as a marker to illustrate the progress of the project.
KPI and KRA
A Key Performance indicator (KPI) is a quantifiable value for evaluating factors that are crucial
to the success of the company. The purpose of using KPIs is to focus attention on the processes
that management has established are most important for making progress towards declared goals
and targets. KPIs are variables that we use to access, analyze and track manufacturing processes.
We determined the KPIs firstly, and then we refined the indicators to ensure they reinforce each
other. We used KPI for ---- department to measure success based on specific targets. We listed
six indicators of the department:
 Count: The count referred to the amount of product produced since the last machine
changeover or the production sum for the entire shift or week. This helped in comparing
individual worker and shift output to raise a competitive spirit among employees.
 Reject ratio: The scrap produced in the processes is measured in reject ratio. We
minimized the scrap to meet profitability goals of the company.
 Rate: We illustrated that it is important for operating speeds to remain consistent.
 Target: We proposed to display target values for output, rate and quality to motivate the
employees to meet targets.
 Takt time: Takt time is the amount of time for the completion of a task. Employees were
able to determine the bottlenecks in the processes.
 Downtime: When machines are not operating, money isn’t being made. So reducing
downtime is a way to increase profitability.

14. We proposed visual management in consideration of the above KPIs. It involved displaying this
information in the work area. This enabled the employees to have a better sense of production
levels and tend to strive for higher performance.
Key Result Area (KRA) is the area identified as most crucial where a result will assist in the
achievement of the set objectives. Key result areas (KRAs) capture almost 80% of a work role.
We determined the KRAs for the employees to make them understand their roles. This helped in
developing specific goals, objectives and plans to reach them. This also enabled employees to
take control of their time and work management strategies.
HowKRA were derived?
Data Recording
We developed a data base for all the data and information collected through research and
examination of the processes in the company. Also, the different strategies and solutions
Individual
KRA
Individual
KRA
Individual
KRA
Mission and Vision Derived
Company Objective
Management Goals
Dept. Goal / Manager KRA

15. regarding a particular issue in the department were stored there. Data records made a data file
and data files made the database. The data monitoring template was used for a variety of
purposes:
 As a guide book to state standards.
 As a monitoring plan for specific standards aligned to the company improvement goals.
 As a monitoring plan for the employees who were not working effectively on selected
standards.
2. Training Module
We understand training requirement is not only for new employees. In --- Department of XYZ,
training for employees was required for them to adjust to rapidly changing job and objectives
requirements.
We came across many reasons which made training module a necessity:
 To create a pool of adequate replacements for employees who leave or move up the
company.
 To enhance the company’s ability to adopt advances in technology.
 To ensure adequate human resources for expansion into new programs.
 To build a more efficient, effective and highly motivated team.
Our training process included training management programs like:
 Policies and procedures
 Career development plans
 Job Skills Assessments
 Competency Assessments
 Delivery Management
 Training Effectiveness
Training Module: Our module had a theme listed in the contents. It outlined the key issues and
gave examples of those issues affected work. The module also suggested ways of handling the

16. issues. The purpose of the training module was to increase the knowledge and skills of the
employees. The training module was made up of:
 Analysis: We designed a compelling and engaging training module. It started with
analysing the need for the training. We interviewed employees who worked effectively to
identify the characteristics of successful performance. We determined the prerequisites
that must be completed before starting a training module.
 Goals: We specified goals in the module which were required to be achieved at the end
of the training. These goals included enhanced knowledge, skill-sets and technical
expertise.
 Content: The content of the module included instructional text, visuals and a list of
resources for further details. It started with a topic and then introduced specifics. It
included case studies, examples and testimonials from experts. We used electronic
learning development tools, such as Captivate, Articulate and Moodle, to generate
interactive training modules that could be published on website.
 Templates: We developed a template to design a complete set of training modules. It
provided instructions on how to use the template so that others could use our design in
producing their own training modules.
Timeline:
We work on a tight and a set schedule. We understand that time matters most in productivity
improvement plans. Therefore, we work time efficiently to provide our best services. We started
by meeting the entire workforce of different departments of XYZ. This was in the presence of
COO of XYZ. It helped in the understanding of the job profiles of the employees. Next day, we
started preparation for Job Descriptions. Then we visited the plant to understand the flow of
processes. This helped us in preparing process maps and process flow chart. The whole process
of process mapping was completed in 6 days. Next, we started with understanding of the work
area to assist us in implementing 5s techniques. This needed plant visit. This assessment took us
4 days. After this, the necessary 5s techniques were applied. The whole management and
template formation of 5s was completed in 3 days. Then, we moved our focus on Gantt chart for
the activities of labor in the department which took another 3 days. Understanding and

17. formulation of KPIs and KRAs of the department was completed in next 4 days. The next 3 days
were spent in understanding of training requirement and creation of training module. In next 2
days, the pending work in documentation was completed. The total time duration for the project
was 5 weeks.
Results:
Our project activities identified 170+ issues which hampered productivity or decreased
satisfaction. During the course of the project, our practices resolved 128 of those issues. Our
mid-project interviews indicated improvements in both productivity and morale which was
attributed to our work force management techniques. Another method was to decrease the
manpower by 30%+ which resulted in decrease in output by only 10% but the productivity
increased by 38%. There was also a decrease in the cost of labour and materials per item thus
making the product more profitable and competitive.
Daily productivity figures:
SYSTEM OUTPUT REJECTS % NET OUTPUT
MAN-
HOURS
PRODUCTIVITY
Old 60 10 16 50 24 2.1/hour
New 48 2 6 45 16 2.8/hour
The improved organizational functioning realized some major cost savings. The cost savings
totalled approximately $127,000.
Costof the project:
Our project staff did an excellent job of describing budgeting issues. The whole project was
divided into Start-Up period, Demonstration period and Follow-Up period. And costs were
managed accordingly.

18. Benefits:
We provided consultation to XYZ for all areas concerning productivity.
 We ensured that the business planning is sound, focused and cohesive and
communicated.
 We helped in increasing productivity by changing costs to productive investments.
 We targeted those actions that will produce the most effect in the shortest time possible.
 We measured performance results and monitored changing market conditions and
applied the feedback to make further improvements.
 We fulfilled the critical need for effective information and communication.
Conclusion
A company is dependent on increased productivity for self-development and also of the
economy. We provided our services to XYZ aiming to improve productivity and develop a
motivated work force. We proposed new technologies, automation and modernization of
production. The organization of labour and production management, improved the structure of
the company. Therefore, using different methods of quality management and techniques we
saved costs of personnel, production, capital, energy and other resources in the company and
thus increased the productivity.