Learn what's needed to stop “fighting fires” on the plant floor and acquire the capabilities to grow and sustain your hourly, daily, monthly, and yearly gains. Part 2 of a 3 part series.
Three Ways to Transition From “Fire Fighting” Mode to Boost Gains
1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
Three Ways to
Transition from “Fire Fighting” Mode
David Hicks
Vice President
Tim Nickerson
Client Manager
to Boost Gains
3. ✔Ask questions! (Q&A at end)
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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
● Quick Recap: Tiered Management System
● Layered Audits
Transition from “Fire Fighting” Mode: Session Overview
BEYOND COMPLIANCE
● Shop Floor Auditing
● Gemba Walks
● Leader Standard Work
Sustaining Lean Improvements
7. Part 1: Quick Review
Using a Tiered Management System to Improve Daily Execution
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
11. BEYOND COMPLIANCE
Why Audit?
Conducting effective audits:
• Demonstrates what is important to the organization
• Creates accountability
• Defines performance expectations
• Actively involves the management team
• Provides opportunities to reinforce and clarify desired behaviors and performance
• Identifies best practices and improvement opportunities
• Process observation & coaching with a purpose…
Not Management by Wandering Around
12. BEYOND COMPLIANCE
Who Conducts the Audit
Plant Manager
Production Manager
Supervisor
Team Leader
Operator
Company/Department Level Checks
Complete Area Checks (Inc. All Levels)
Line/Total Zone Checks (T.L.)
Area Checks (Workstations)
Process Checks & Standard Work
Applies to any level:
13. BEYOND COMPLIANCE
When to Perform Layered Auditing
● Performed on a regular basis
● Predetermined frequency
● Audited by multiple layers of management
across the manufacturing process
16. BEYOND COMPLIANCE
Tier Boards Audit Benefits: Area & Plant-Wide KPIs
● Key Points – Layered Audits
● Actual performance becomes immediately visible to everyone
● Highlights the area(s) that need improvement
● Brings focus for deciding on next steps
● Builds consensus
● Promotes Leadership interaction (teaching and coaching)
17. BEYOND COMPLIANCE
Layered Auditing: Other Items to Consider
• Are Leadership members completing their Standard Work as documented?
• Are critical operational equipment and process tasks completed as documented?
• Are Hour by Hour charts and countermeasures up to date and detailed regarding
target abnormalities?
• Is operator standard work reviewed on a periodic basis to ensure compliance in
safety, quality and takt?
• Are production and support tasks completed before, during and after shift
completion as documented?
• Are Leadership Katas conducted as documented?
19. BEYOND COMPLIANCE
Gemba Walks Defined
• Gemba = “actual place”
• Gemba traditionally refers to the manufacturing floor
or support area offices and business processes
• In the eyes of the customer these work areas are where
true value is established
• Getting more involved with Gemba allows key personnel
to better understand how to satisfy and exceed
customer expectations
• Gemba should be viewed as an improvement and
staff development tool
20. BEYOND COMPLIANCE
Gemba Walk Process
• Led by a leadership team member or mentor, a Gemba is literally a scheduled walk
through an area of responsibility with a purpose
• An opportunity for one-on-one or team mentoring, skill / expectation leveling and
accountability
• Points out process opportunities, questions what the “student(s)” observe,
and establishes follow up items to be completed prior to the next Gemba
• A “cascading” tool from Leadership management down through the ranks
• Each level mentors (teaches & coaches) members of their work group
Gemba is not “Management By Walking Around”
21. BEYOND COMPLIANCE
How Gemba Walks Change Behavior
• Spreads lean knowledge and encourages learning – develops people
• Provides “Learning by Example” opportunities to demonstrate improvement
• Demonstrates Leadership commitment and accountability to continuous
improvement through visibility and involvement
• Allows leadership to be viewed as teachers, not just managers
• Models desired behavior and ensures accountability – if you want your direct
reports to know what is important to YOU… then tell them:
Watch My Feet!!! What I do is more important than what I say
23. BEYOND COMPLIANCE
Developing Leader Standard Work
Similar to Operator Standard Work, Leader Standard Work:
• Identifies activities to be performed
• Specifies when the task should be completed
• Reduces variation, increases consistency
• Sustains the process
• Highlights opportunities
• Leads to new standard work - process improvement
24. BEYOND COMPLIANCE
Overlap of Standard Work
Overlap is Critical because it:
• Provides consistency and alignment
• Establishes an audit mechanism
• Identifies improvement opportunities
• Provides training/coaching opportunities
• Provides visibility to all employees – together, we walk the talk
• Prevents ‘leaks’
25. Example: Standard Work Overlap
BEYOND COMPLIANCE
Line Leader:
Fills out
Hour x Hour
chart every
60 minutes
Supervisor:
Checks at least
4 times daily
Insures
abnormalities
are documented and
countermeasures
assigned
Plant Manager:
Participates in a
daily walk through,
assures counter-
measures are
completed on time
by the supervisor
and the support
departments
Value Stream Manager:
Set goals through
Policy Deployment,
insures systems are
driving desired
behavior & performs
weekly audit
Creates Consistency & Discipline!
26. BEYOND COMPLIANCE
Who Should Have Standard Work?
…In a Lean organization, EVERYONE!
Role
% of Work (time) that
should be standard
Executives
Value Stream Manager
Support Department Managers
Supervisors
Team Leaders
Operators (Associates)
10-15 %
25 %
50 %
50 %
80 %
95+ %
30. BEYOND COMPLIANCE
Key Takeaways:
Leaders fall into the trap of managing day to day – i.e. “fire fighting”
Organizations plateau or don’t sustain because the emphasis is on the people
and issues vs. the system and culture
To improve results Management needs to change the system
Leader standard work must be aligned with the new system and key
management objectives
Overlapping standard work will change behaviors and ensure consistency which
will change our culture and results
1.
2.
3.
4.
5.
32. 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
33. 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:
• Part 1: How to Use a Tiered Management System for
Effective Daily Execution
• Part 2: Transition from Fire Fighting Mode Using
Leader Standard Work and Layered Audits
• Part 3: How to Solve Problems and Keep Them Fixed