A system of Daily Management (based on the work of Luftig & Warren International) that enables management of the day-to-day operation of departments or cells at the lowest possible level by the process owner. It provides the means to improve performance on an ongoing basis and lock in the hard won gains.

1. Daily Management –
D il M t
Engaging the Workforce for
Continual Improvement
Ed Gillespie
February 8, 2010
F b 8 2010
Based on work copyrighted by Luftig & Warren
Based on work copyrighted by Luftig & Warren
International in 2000. Used with permission.

2. Do These Sound Familiar?
• Recurring Problems (solved over and over)
bl ( l d d )
• Inability to maintain Kaizen gains (backsliding)
– 5S Kaizens
5S Kaizens
– SMED Kaizens
• “Operator error” or “Training” as root causes
• Inability to meet “established” specifications
• Surprises
• End of month syndrome
End of month syndrome
– Why the extra effort during the last week of the month to “Save the
month” ?
• ISO di
ISO audit cram

3. Milliken & Company
Milliken & Company
There are three things a company must
g p y
improve every year to assure its future
p p y
prosperity:
1) The execution of the
basics of its business
2) Its strategic position in
its markets
3) Its competitive fitness
for the future

4. Improvement Hierarchy
 Improvement built on a
foundation — a weak
foundation leads to collapse Improve‐
ment
of improvement
Control
 Higher levels require
increasing discipline Standardization
 Must start with lowest levels Maintenance
needing work
Housekeeping
 Upon reaching the top,
U hi th t Management‐Employee
lower levels are then further Trust & Respect
strengthened Management Self‐Discipline

5. These things aren’t difficult…
These things aren’t difficult
but easy can be hard.
y

6. The Basics
The Basics
The improvement efforts of some
h i ff f
organizations resemble trying to
win a Sprint Cup race with a
“beater”.

7. Assumed Results
Assumed Results
Innovation
I ti
Assumed Performance ‐
Improvement with
Innovation

8. Actual Results
Actual Results
Backsliding
B k lidi
Actual Performance ‐
Improvement with
Innovation

9. Reality
If you are not strengthening
the basics, you are probably
backsliding

10. Innovation with Daily Management
Continuous Improvement
Performance Improvement with
Innovation, Control,
and Continuous Improvement
and Continuous Improvement

11. Three Management Systems
Three Management Systems
Functional Improvement (DM)
Horizontal Alignment (CFM)

12. Daily Management
Daily Management
Daily Work
il k
Daily Management is the
Data‐Based Communication
system that provides the
y p
ability to manage
Daily Daily Work
departments, functions,
Control Improvement
and processes wherein
and processes wherein
processes are defined,
Define & Standardize
standardized, controlled,
and improved by the Establish Ownership of Area Roles
process owners. & Responsibilities

13. Daily Management is the system that
prevents backsliding by making control and
improvement the norm.
C A
D S
DM

14. Daily Management Vision
• Systems are in place that facilitate improvement
y p p
within the designated area and strengthen the
infrastructure supporting the area’s performance.
• Continuous improvement of the area’s outputs
and associated processes is an accepted way of
d i t d i t d f
life.
• These systems should facilitate sound business
management within the area.
management within the area.

15. Daily Management Vision
• More specifically...
p y
– The area’s purposes, roles and responsibilities are clearly
understood.
– KPI’s are in place to understand all aspects of an area including
KPI s are in place to understand all aspects of an area including
safety, quality, delivery and cost.
– Systematic control methods are in place for area KPI’s.
– There is clear understanding of the needs of the internal and
There is clear understanding of the needs of the internal and
external customers.
– Those needs are translated into improvement priorities and
operational practices.
operational practices
– Systems in place that maximize associate involvement.
– Sound plans are developed to continuously improve area
performance in the context of the company’s overall direction.
f i th t t f th ’ ll di ti

16. The Elements of Daily Management
Daily Work
Daily Work
Data‐Based Communication
Daily Daily Work
Control Improvement
Daily Work: The day to
day activities which are
day activities which are
Define & Standardize
the primary purpose of
the area Establish Ownership of Area Roles
& Responsibilities

17. The Elements of Daily Management
Establish Ownership:
Daily Work
Defining the roles and
responsibilities for the Data‐Based Communication
area
Daily Daily Work
Control Improvement
Establish Ownership of Area
Establish Ownership of Area
Define & Standardize
Roles & Responsibilities

18. Ownership
• Documented roles and responsibilities with defined
Documented roles and responsibilities with defined
boundaries
• Knowledge and skills for required roles and
responsibilities
• Defined accountability
• Defined authority within span of control
• Knowledge of expected results and ability to regulate
performance
• Personal commitment made to the outcomes
• External acknowledgment of the ownership
External acknowledgment of the ownership

19. Four Core Systems Drive Daily Work
Process Quality
Management: The Data‐Based Communication
Daily Work
systems of Daily
Management that Daily Daily Work
Control Improvement
p
bring about
bi b t
definition, control
Define & Standardize
and continuous
and continuous
improvement of the
area Establish Ownership of Area Roles
& Responsibilities

20. The Elements of Daily Management
Define & Standardize:
Define & Standardize:
Defining of the area's
Daily Work
p
processes and the
development and Data‐Based Communication
implementation of
common operational Daily Daily Work
Control Improvement
practices
Define & Standardize
Establish Ownership of Area Roles
& Responsibilities

21. Standardize the Process
Standardize the Process
• Standardization helps
minimize variation in
materials, methods,
equipment, and strategies
• Establishes the base from
bl h h b f
which to launch
improvement
• Locks in improvements
after they are made
after they are made

22. The Elements of Daily Management
Daily Control: The
Daily Control: The
monitoring, control, and
Daily Work
reaction activities of
important processes to Data‐Based Communication
maintain performance
levels and prevent Daily Work
Improvement
backsliding
Daily
y
Control Define & Standardize
Establish Ownership of Area Roles
& Responsibilities

23. Purpose of Daily Control
Purpose of Daily Control
Daily Control
counteracts this
• Maintain
Performance 100
90
80
• Prevent
ance
70
60
Backsliding
k ld Performa
50
40
30
20
10
0
Time

24. Elements of Daily Control
Elements of Daily Control
• Control Item
Control Item
Identification
100
90
• Monitoring 80
ance
70
Performa 60
• Evaluation 50
40
30
20
• Reaction 10
0
Time
• Prevention

25. Linkage of Metrics
Linkage of Metrics
Your Manager’s Measures
g
ures
You Measu
ur
 Metric
 Target
g
 Who Monitors
 Who Owns
 Update Period
Update Period
 Tracking Method

26. Evaluation of Daily Control
Evaluation of Daily Control
• Critical characteristics are not backsliding
Critical characteristics are not backsliding
• Signals are well understood
• Reaction plans are well executed
• Roles and responsibilities are clearly defined
p y

27. The Elements of Daily Management
Daily Work
Daily Work
Improvement: The
Daily Work
system that takes system
y y
input, prioritizes Data‐Based Communication
opportunities, and
deploys and monitors Daily
Control
improvements using Daily Work
local resources
local resources Improvement
Define & Standardize
Establish Ownership of Area Roles
& Responsibilities

28. Daily Work Improvement
Daily Work Improvement
Daily Work Daily Work Improvement
drives improvement in
p
Data‐Based Communication the other elements of
Daily Management
Daily
Daily Daily Work
Daily Work
Control Improvement
Define & Standardize
D fi & St d di
Establish Ownership of Area Roles
& Responsibilities
& Responsibilities

29. Continual Improvement
Continual Improvement
Policy
y
Deployment
Cross‐
Functional
Functional
Problem Management
Daily Daily Work
identification Control Improvement
Recommend
for CFM
Reaction Plan or PD
Execution
Prioritized and
Deployed Local No
Improvements
p
Chronic No Yes Only Local
Fix Resources?
Problem?
Improvement
Ideas
d
Yes

30. The Elements of Daily Management
Daily Work
Data‐Based Communication
Data‐Based
D t B d Daily Daily Work
Communication: The on‐ Control Improvement
going communication to
going communication to
Define & Standardize
provide system feedback,
focus, and alignment within
g Establish Ownership of Area Roles
& Responsibilities
and between areas

31. Data Based Communication
• Plan for value‐added, effective,
and efficient communication
• Tailor the communication to the
audience
• Provide for horizontal and
vertical communications
• Remember ‐ Communication
without value is NOISE

32. Interaction of System Elements
Daily Work
Improvement
The Daily Management
system elements work
l k Daily Control
Define &
Standardize
together and support
each other
each other
Data-based
Daily Work
Communication
Establish
Ownership

33. Guiding Principles
• Definition and continuous improvement of area processes.
• High energy focus on successful, consistent and timely execution.
• Direct linkage between subordinate, area and senior level KPI’s,
g , ,
coupled with controls on the key inputs to those metrics.
• Vehicle for associate involvement deployed to lowest possible level
Vehicle for associate involvement ‐ deployed to lowest possible level.
• Enabler for 80/20 focus on Policy Deployment breakthroughs.
• Data based communications and performance assessments.
• Effective problem solving to resolve performance gaps.

34. Daily Work Comments
Daily Work Comments
• Daily Work can be
performed as:
– a highly efficient
g y
“well‐oiled”
machine, or
– a random series of
ineffective events

35. Ineffective Daily Management
The components of Degradation
Process Management are continues
without sustained
often missing or neglected. infusion of
energy and
resources.
Data‐based Communication Without these
components
Daily Work Improvement
Daily Work Improvement operating effectively,
operating effectively
Daily Control
D il C l
control and
Define and Standardize improvement will be
difficult.
Establish Ownership

36. Daily Management Applies at All Levels
Operations Staff
Plant Staffs
Sub‐Plants
Cells

37. Steps to Daily Management
Establish system to:
•Define roles and responsibilities •Prioritize opportunities
Daily Work
within and between organization
Improvement •Apply resources and methods
Apply resources and methods
units.
•Relationships with other system
elements
•Include elements of TAI
“The Work”
Establish Define and Data‐based
(The product of
(The product of
Ownership Standardize Communication
the Unit)
•Define supplier/customer relationships
•Define processes
•Define targets, specifications and expectations Establish systems to:
y
•Establish measurement systems y
•Monitor and control key
Daily
D il
•Maintain and improve standard methods processes
Control
•Develop and codify process knowledge •Respond to performance
shortfalls

38. Implementation Approaches
• Incremental implementation
– Long delay before results visible
– Maintaining management dedication and discipline key
– Over coming inertia of current practices.
• Kaizen (3 5 days for 1 3 work centers)
Kaizen (3‐5 days for 1‐3 work centers)
– Focused training and implementation
– Basic system “under roof” to “trim” out in a defined period
“ d f” “ ” d f d d
• Continued support and development

39. Daily Management Implementation
Yes Define
Management
Management
Do It? Organization Form Teams Audit Area
Overview Form Teams
& Structure Form Teams
Form Teams
No
Define, Link,
Support from higher levels Stop SIPOC Model
Set Ownership &
will likely be required. Flow Diagrams
Establish Methods
Area Basics: Define &
Establish &
Gaps & Document Write Mission
Link Metrics
Actions Process
Establish Establish Daily Work Standardization
Transfer
Communication Daily Control Improvement Review &
Accountability
System System System Plan

40. Challenges to Implementation
• Management discipline and consistency is key.
• Not a quick fix… Not “Fire and forget”
• Invert the pyramid
Invert the pyramid
• Identify leaders within the work group.
• Must maintain stability for the team.
• Must develop team management/meeting skills
Must develop team management/meeting skills.
• Must develop basic data management and problem solving
skills

41. Prerequisites Empowerment
q p
Knowledge
Knowledge
and
Tools
Authority
Responsibility
Responsibility
Within a
and
Span of Control
Accountability

42. Daily Management Results
For a Machining & Assembly Cell
 Increased productivity 43%
Increased productivity 43%,
 Reduced scrap 30%,
Reduced scrap 30%,
 Reduced set‐uptime 38%, and
 Reduced temporary worker training 50%.

43. Daily Management
Daily Management
“Business, we know, is now so complex and difficult, the
, , p ,
survival of firms so hazardous in an environment
increasingly unpredictable, competitive, and fraught with
danger, that their continued existence depends
danger that their continued existence depends
on the day‐to‐day mobilization of
every ounce of intelligence.”
Konosuke Matsushita
Founder, Matsushita Electric
Founder Matsushita Electric

44. Questions?
2/9/2010 44