While on the quest to do more with less, manufacturers may not have a clear link between their strategy and the day-to-day operations. Without proper guidance and a regular feedback loop, the risk of missed steps, poor visibility, and reactionary actions only increase.
In the first part of a 3 part series, learn how a Tiered Management System helps to enable all team members, from the plant floor to the top floor, to identify operational issues, address root causes, and continuously course correct.
Key questions manufacturers will get answered include:
Why should a Tiered Management System be a critical component to daily operations?
What are the four tiers of an effective management system?
How are daily meetings structured and what are the outcomes?
What’s needed to effectively prepare for each meeting?
Avoiding Risk: Using a Tiered Management System to Improve Daily Execution
1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
Avoiding Risk:
Using a Tiered Management System to Improve Daily Execution
David Hicks
Vice President
Tim Nickerson
Client Manager
3. ✔Ask questions! (Q&A at end)
✔Only panelists are displayed
✔Recording link will be shared
✔Audio issues: use call-in number
BEYOND COMPLIANCE
// Before We Get Started
4. BEYOND COMPLIANCE
David Hicks
Vice President, Maintenance Excellence Practice Leader
• Leads large-scale client engagements and
operational diagnostics.
• Strong background in analytics, quality, asset utilization,
management system, and lean transformation.
• Maintenance Excellence Practice Leader.
Tim Nickerson
Client Manager and Management System SME
• Former Chief Operations Manager, Plant Manager,
Business Unit Manager, and Director of Lean
Manufacturing.
• Designs, implements and installs management systems
at large, multi-site organizations.
• Regularly conducts operational diagnostics, implements
go-forward plans, and leads turnarounds.
Meet the Speakers
5. BEYOND COMPLIANCE
Our Fundamental Belief: Speed Wins Every Time
Contenders
Challengers
Leaders
Depth
of
Consulting
Capabilities
Breadth of Consulting Capabilities
High
Low
TBM
Consulting
R&G Global
Consultants
EFESO
A.T. Kearney
PWC
BCG
EY
McKinsey & Co.
Deloitte
Note: Challenger and Contender names omitted for improved readability.
High
TBM recognized as a Production Operations Consulting
leader for client impact & depth of expertise.
Global Operations
Management
Consulting Firm
150+ operations consultants globally positioned,
delivering services in nine different languages
LATIN AMERICA OFFICE
(Mexico City)
NORTH AMERICA OFFICE
(Raleigh, NC)
EUROPE OFFICE
(Nottingham, UK)
ASIA PACIFIC
OFFICE
(Shanghai)
SOUTH AMERICA
OFFICE
(Santiago)
Proven Results Track Record
with thousands of case studies delivering
a minimum 3X annualized ROI within
12 months
Seasoned Consultants
who have a minimum of 25+ years
of senior operations management
and lean implementation experience
Global Footprint
serving hundreds of clients on four continents,
in nine languages
Recognized Leader
driving business excellence and end-to-end business
process transformation since 1991. Work with
Shingijutsu documented in book ‘Lean Thinking’.
Comprehensive Management System
to align strategy through execution & sustain
improvements
| The Global Lean Transformation Leader Since 1991
6. BEYOND COMPLIANCE
Objectives:
● Management System Overview
○ What is it?
○ Why is it important to have one?
● Tiered System Overview
• What is it and why it improves execution
• Four tiers of an effective management system
• Tier Meetings – what happens
• How to prepare for meetings
Session Overview
BEYOND COMPLIANCE
9. Strategy Deployment
Corporate Vision and Direction - Long
term horizon to annual objectives with
monthly status checks.
Top Down
Tactical Execution
Plant level pursuit of the Strategy – real time, front
line pulse checks and course correction.
Bottom Up
Strategic Planning
Level III Review
Who: Operating Units’
Leadership Team
What: Review Plants’/Site Performance
on SQDC
(Monthly-On Site)
Level II Review
Who: Business Unit/Division
Leadership Team
What: Review Plants/Site
Performance on SQDC
(Yearly – On Site)
Level I Review
Who: Executive Team
What: Review Company Performance
on Safety, Quality, Delivery, & Cost
(Monthly)
Strategy
Deployment
Tactical Execution
Tier 1 Meetings (10-15 min.)
Who: Outgoing & Incoming Shift Supervisors and
TLs
What: Review Safety/Quality and Unresolved
Abnormalities of orders (each Shift Change)
Tier 1A Meeting (5 min.)
Who: Shift Supervisor and Hourly
What: Review Safety/Quality and Assignments
(each Shift Change)
Tier 2 Meetings (30 min.)
Who: Site Leadership Team
What: Review SQDC, open actions items from
previous meetings (using Accountability and A3
boards ( ~2 hrs. into shift on weekdays)
Tier 3 Meetings (30-60 min.)
Who: Ops Manager, Wave Planner,
Reg. CI & Project Leaders
What: Review Key Initiatives, Projects, Financials,
People & A3
Tier 4 Meetings (45-60 min)
Who: Site leadership
What: Review Safety, One Pager, Ops Plan, Projects,
A3, & Priorities for the month
SQDC
Strategy Deployment Meets Daily Management
10. • Design Your Co.
management system
• Coordinated
implementation
• Develop team capability
• Skillsets
• Bootcamp for leadership
• Mini bootcamps for
supervisors/team leaders
Audit, Coach
& Mentor
Implement
Training
Methodology: Management System Implementation
11. BEYOND COMPLIANCE
Performance and Project Tracking
KPIs & Escalation
Why?
(Paretos)
Problem
Solving
Accountability
Resource
management,
actions, who, when
Definition: What is a Tier System?
A series of meetings at different site/organizational
levels intended to review, track, trend, and respond
to operational performance in real time
12. Project Status & Countermeasure:
Leverage Strengths & Improve Weakness
High Impact Trends Confronted;
On Time & On Target Execution
Support Resources To Provide Proactive Actions
Shift Handoff And Reactive Actions
Plan For The Day
Capture Performance & Misses In Real Time
Site Level Tiered Daily Management: Control Structure
Tier 4
Tier 3
Tier 2
Tier 1
Tier 1A
Hr x Hr Hr X Hr Charts are
like the Vital Signs
of a Patient
13. Overview: Tier Meeting
Tier
Meetings
Frequency Attendees Key Inputs Key Outputs
Tier 1
Shift Handoff
1/shift
• Interfacing Shift
Supervisors, Support
Staff, Ops Leadership
• Previous Shift issues/ concerns
• 5S
• Resources assigned based on
line priorities & Accountability
Tier 1A
Shift Start-up
1/shift
• Supervisor
• Team Leaders
• Operators
• Support Groups
• Notes from Tier 1/Daily Planning
• Key Highlights from Prior Shift
• Safety & Quality Issues
• Staffing/Location plan execution
• Plan for the day
Tier 2
Tier Board Review
Daily
• Plant Manager
• Leadership Team
• KPI Metrics
• Tier 1 Escalation
• Tier 3 Escalation
• Performance and
Countermeasure effectiveness
Tier 3
Problem Solving &
Project Management
Weekly
• Plant Manager
• Key Support Group
Management
• Deep Dive Problem Solving
• Project Management
• Countermeasure effectiveness
• Accountability
Tier 4
Monthly (minimum)
-
Twice Monthly
• Site Senior
Leadership
• Site AOP & Performance
Dashboard
• Project Status
• Project Countermeasures
• Strategy Deployment
• Leverage Strengths
• Improve Weaknesses
14. Tier Room Layout: Tier 1 & 2 Combined
Tier 1 Hr x Hr
Safety
Tier 1
Staffing, 24 Hr Board
Tier 2 Plant KPIs
SQDC-5S
Accountability Board
A3 &
Projects
Problem Solving Kaizen
(Optional)
CO
(Optional)
TPM
(Optional)
Leader Standard Work
Impact/ Difficulty
The room flows displaying the linkage between TARGET savings
and supporting quick hit and major projects
Depending on your situation:
• In the tier room – or –
• In the shop near production lines
• Might need multiple tier 1 meetings feeding
a single tier 2
15. BEYOND COMPLIANCE
Escalation Process: Tier 1 to 2 to 3
• Problem keeps recurring
• “Obvious fixes” failed to
have the desired result
• Major issues
• Not a “same day” fix
• Escalate to Tier 2
Tier 1
• Support staff not able to
resolve the issue
• Requires additional data
collection and root cause
problem solving,
reengineering, supplier
involvement, etc
• Escalate to Tier 3
Tier 2
• Assign an A3 owner and
identify Team
• A3 problem solving
approach applied
Tier 3
16. Typical Results: 5-15% Sustainable Productivity Improvement
• Paper products manufacturer improved output by 11%;
increased from 9.2 MM units to 10.2MM units
Greater awareness among site employees regarding performance and achievement of targets
Continuous Improvement Leader
at Candy Manufacturer
The combination of high
schedule attainment along
with increased pounds
produced each week
allowed us to cancel
Saturday production. This
was a huge win for the
shop floor.
“
”
Employees appreciate consistent handoffs,
clear expectations, timely reporting
of issues, and accountability
• Printing operation improved make ready from 4.6 hours
to 3.2 hours (40%+)
• Candy maker eliminated weekend overtime and
maintained a 10% increase in performance to standard
17. BEYOND COMPLIANCE
Key Takeaways: What You Can Do Differently
Talk to your people…when we leave for the day, do we know if we had a good day or bad day
Implement hour by hour tracking
Review your KPIs—are they driving improvement
● Are we measuring what’s important or what’s easy
Gauge the level of problem-solving expertise in your organization
Assess how you currently communicate and hold each other accountable
1.
2.
3.
4.
5.
19. BEYOND COMPLIANCE
David Hicks
Vice President & Practice
Leader Maintenance Excellence
610.662.3489
dhicks@tbmcg.com
Tim Nickerson
Client Manager and Management
System SME
801.391.7974
tnickerson@tbmcg.com
Contact the Speakers
Find out more at: www.tbmcg.com
20. White Papers & Surveys
Webinars & Videos
Product & Partner Info
Solution Consultation
BEYOND COMPLIANCE
If you like this event, consider attending follow-on sessions later this
fall.
safetychain.com/resources/webinars-events/
More Resources at www.safetychain.com
Register for the full series:
• Today: How to Use a Tiered Management System
for Effective Daily Execution
• September 29: Transition from Fire Fighting Mode
Using Leader Standard Work and Layered Audits
• November 10: How to Solve Problems and Keep
them Fixed