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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
  2. // Meet Your Host ✔Improve Yield ✔Maximize Productivity ✔Ensure Compliance Plant Management Platform hello!
  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
  7. Poll Question Which statement BEST describes your organization?
  8. BEYOND COMPLIANCE Three Critical Components of a Management System Daily Management System Framework & Tools Metrics Capability
  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.
  18. Questions? BEYOND COMPLIANCE David Hicks Vice President TBM Tim Nickerson Client Manager TBM
  19. BEYOND COMPLIANCE David Hicks Vice President & Practice Leader Maintenance Excellence 610.662.3489 Tim Nickerson Client Manager and Management System SME 801.391.7974 Contact the Speakers Find out more at:
  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. More Resources at 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