Achieving Higher Performance Resultsilqsolutions.com/live/wp-content/uploads/2014/06/OMTEC-2014-BPD... · Achieving Higher Performance Results and Greater Employee Engagement Through

Achieving Higher

Performance Results

and

Greater Employee Engagement

Through Business Plan Deployment

Joe Mazzeo

Integrated Lean and Quality Solutions, LLC

June 12, 2014

Business Plan DeploymentTopics Discussed:

• Your Business Plan Objectives

• Lean Manufacturing Overview

• Defining BPD

• The BPD Process

• The Planning Cycle

• The Role of Leadership

• Making BPD Visible and a Daily Process

• Summary

Presentation Take-Aways:

• An understanding of what Business Plan Deployment is and how to apply it

to your business environment

• How BPD fits within Lean Manufacturing Principles

• BPD can help improve a company’s operational and financial performance

• Think about the concepts:

- How can I apply this idea to my business?

- How can I make this work for my business?

• Everything discussed can be scaled to fit

Business Plan Deployment




• Defining BPD

• The BPD Process




• Summary

Lean Manufacturing and Business Plan Deployment….

...Applies to all Industries/Businesses/Services

Heat Treating

High Precision/Clean Room Environment- Medical/Orthopedic- Automotive- Electronics

Hotel / Services

Transportation

Hospitals

Machine Shops /Short Runs

Your Business Plan Objectives:

• Do your employees know and understand your

company's objectives?

• How effectively are the top line goals communicated?

• Would your employees be able to communicate how they are directly

contributing to the achievement of those objectives?

• Are your employees able to measure their performance and directly

link it to the company's overall performance metrics?

• What does "Achieve Market Quality Leadership" mean to a production

operator?


Your Business Plan Objectives:


NOT BEING ABLE TO PROPERLY ANSWER THESE QUESTIONS RESULTS IN A LOSS OF OPPORTUNITY FOR EMPLOYEE

ENGAGEMENT

Translating Your BPD

• “Translate" the goals into specific objectives and actions down through the

organization in a manner that is appropriate to all levels.

• Business Plans need to be "translated" and into the language of the

production floor

• Allows everyone to understand how they can directly impact and

contribute to the achievement of the stated objectives





• Defining BPD

• The BPD Process




• Summary

System for:

• Eliminating Waste

• Build Value

• Support for the Operator

Lean Manufacturing System

Lean Manufacturing Principles

An effective Lean Manufacturing System is:

• A single, common manufacturing system

• Integrated / Inter-dependent principles

• Scalable to fit the needs and size of the

organization

Lean Manufacturing Principles

How Do All the Principles

Fit Together ?

People Involvement

Author:

(Group Leader)Job

Number1 2 3 4 5 6

Group:

ACE AREA Dept

156 Maching

Issue

Date:

Jan-11

Group

Leader

Shift

Leader

Shift Req'd Act.Jan

J.M J.W.

1 J.Doe (T/L)Feb

1 T.WhiteMar

1 T.LaCourseApr

1 J.WingMay

1 C.PersallJune

1 T.BellantJuly

Aug

Sep

Oct

Nov

Dec

Plan 3 3 3 3 2 2 Knows steps (in training)

Actual 2 3 2 3 3 2 Can perform job to quality & safety but not in takt time

X X X X Can perform job to quality & safety in takt time with no help

Can teach job with Job Element Sheets

# of people at 3/4 circle per job to meet

coverage requirements

% of group that reached Persons/Job target (%

of boxes checked) ______ %

Check here if target is met

_____ %

SIGN-OFF

Evaluation (O,

, X)

J

o

b

N

a

m

e

Name (Write position if not T/M)

# of 3/4 circle

Jobs per

Person to meet

rotation plan

Check

here if

target is

met

% of

group that

reached

Jobs/

Person

target (%

of boxes

checked)

O

p

1

0

O

p

2

0

O

p

3

0

O

p

4

0

W

h

e

e

l

C

h

a

n

g

e

T

o

o

l

S

e

t

u

p

FLEXIBILITY CHART Ref-2C

Verify quadrants filled in have supporting documentation to match in JIT binder.

If the Actual does not meet the Plan, ensure the team has countermeasures written to close the training gap.

Ensure monthly reviews and sign offs are occuring between TL &

- Engagement

- Communication

- Team concept

- Health and safety

Communication Board Job Flexibility Chart

Standardization

Standardization

- Workplace organization

- Standardized work

5S Workshop Board

Standardized Gage Inspection Bench

5S = Sift/Sweep/Standardize/Self-Discipline/Sustain

Built-In-Quality

Built in Quality

• Process and product validation

• Quality standards

• Quality management system

• Quality feedback and feed forward

Process Control Plan

Product Sample Retention Boards / Tables

Short Lead Time

cart will contain 13 rows with 6 housings in each

(78 pcs) total.

Safety Ergonomics Quality K Knack CriticalSymbol Legend (SYM):

4 Load or unload the buggy.

Doc. No.: DP-785

area for download/upload.

uploaded out of with minimal walking distance.

Stack the housings in stacks of 6 per row. A full

C

machined surface

Will reduce and minimize nicks on the

Select a green buggy for Gen IV. Choose a

B Will help ensure FIFO.

machined surface to a machined surface method.

When loading the cart stack the housings using a

to the line so the parts can be loaded into or

C Will help minimize waste in motion.

the current date before you begin to load.

JOB ELEMENT SHEET Page: 1 of 2

Control

Block

Shift 154 / Truck Oil Pump

Rev. 2

1 FIFO for buffer after Op50

3 Place the buggy into the identified staging Move the cart into the identified staging area next

2 Fill out and attach "O.K. for Use" tag to the Identify on the tag Gen III or Gen IV, and fill in

SYM

downloaded parts into. blue buggy for Gen III.

SEQ

Helps prevent the bodies from being mixed. 1 Select the proper colored buggy to buffer the

N/A

A

Department No. / Name:

Op. No. / Mach. Mfg./ Process:

Job Element or Task Name:

Element Numbers(s):

buggy.

- STEP (What) -

Initial Review & Update Signatures(Final Review & Update - See Training Signature Sheet or Training M atrix)

Group Leader

Team Leaderand/or

Lead Technician

Date

10/22/10

10/20/10Deanna McKay

- KEY POINT (How) -

B.Berry1

REF - REASON (Why) -

C

A B C

REF 12A

Short Lead Time

• Simple process flow

• Supply chain management

• Scheduled shipping/receiving

• Lean containerization

Material Delivery Rack Locations

Job Element Sheet – Showing Color-coded Part-Cart Locations

Continuous Improvement

Dept/Group: 140 PISTON PINS

PACK OFF \ INSPECTION

Reviewer: ______________________________ Date: ______________ Shift: _______ RATING

X or O

1. PPE sheet: present on workstation board, current, and signed off. (Ref 1A or 1B)

2. PPE Sheet: being adhered to by the operator. (safety glasses, gloves, no finger rings, non-slip shoes, etc) (Ref 1C)

3. Walkie Truck Pre-Op Inspection completed if applicable to area. (Ref 1D)

4. Take shelter\evacuation map: needs to be visually located in the work area. (team room) (Ref 1E & 1F)

5. Verify Lockout Placard is posted on operation, is current, (reviewed on an annual basis) and is understood by the operator. ( Ref 1G)

6. Verify if SOP's are being used at the workstation, are listed on the PPE, and are posted at the job. (Ref 1H & 1I)

1. Verify there is JIT documentation for each team member that supports the information posted on the flex chart (Ref 2A, 2B, 2C)

2. Does the JIT have the required signatures: safety, quality, and production (Ref 2B)

3. Flex chart: sign-offs validating monthly reviews; bottom quarter of sheet filled in (target vs plan) (Ref 2C)

MANUFACTURING LAYERED AUDIT

CHECKSHEETWorkstation:

Team Member Name:

PRIORITY CHECKS (Performed by all levels of the organization)

Is the team member (TM) following the posted PPE requirements?

Has the TM been qualified to requirements of the job, documented through JIT, identified on the Flex Chart and rotating in the team?

4. Verify if there are any countermeasures written under "People" on the level 5 board if training plans (target vs actual) are not achieved

according to the flex chart. (Ref 2C)

5. Verify training (Bay City specific) has occurred for those people with full Harvey quadrants (documentation located with JITP sheets)

1

PI

2

X

J. Craig 1/26/11 1st


• Problem-solving

• Process Verification

• Andon - call for help

• Layered Audits

• Business Plan

Deployment

Manufacturing Layered Audit




• Defining BPD

• The BPD Process




• Summary

Where does

Business Plan Deploymentfit into a

Lean Manufacturing System?



fits into Lean Manufacturing’s


Principle


Definition:

• BPD enables the total organization to:

• Set targets

• Develop actions

• Integrate plans

• Remain focused to achieve company-wide goals

• Manage change


Purpose

• Aligns all employees to work on one set of

common objectives

• Allows all employees to help contribute to

the success of a company’s business plan

• Develops a culture of Continuous

Improvement

Manufacturing

Business PlanDeployment

Manufacturing Engineering

Product Engineering

Purchasing

Finance

Personnel

Sales/Marketing

Customer Service

BPD:

• Applies to all functions within an organization

• Can be scaled to fit the size of the organization




• Defining BPD

• The BPD Process




• Summary

Manufacturing Leadership

Functional Area

Plant Level 1

Plant Level 1

Plant Level 1

Plant Level 1Plant

Manager

QualityHR/LR

Finance

Purchasing

The ACME Manufacturing Company

Non- Integrated Manufacturing Plan

ManufacturingPlants

In order for a company to achieve its VISION, it must have the

following in place:

Concrete

GOALS

Specific OBJECTIVES

Clear & Measurable TARGETS

A METHOD to reach the targets / GAP CLOSURE PLAN and Strategies

Common Measurements

BPD Elements

GOALS

Setting BPD Goals

BPD Starts With Senior Leadership:

• Establishing the strategic direction and setting

specific goals for the organization to achieve

• Starts with the company's annual business

planning and implementation cycle

• While a company may select a wide range of

goals, fewer, more focused goals are better

• Allows for successful cascading throughout the

organization and achievement of the objectives.

Example BPD Goals

Safety – Achieve Safety Leadership

People – Develop and Engage a Qualified Workforce

Quality – Achieve Market Quality Leadership

Responsiveness – Meet Customer Demand

Cost – Maintain Profitability

GOALS

Setting BPD ObjectivesFor an effective BPD process, company leadership must

ensure :

• Strategic direction is developed to attain business

results using Lean Manufacturing principles

• Conflicting issues and objectives between strategies

and staffs are prioritized and resolved

• Specific ownership is assigned to implement and track

BPD implementation

• Business Plan initiatives for specific areas such as

quality, cost, etc, are developed and achievable

• Progress and best practices are shared at frequent

performance reviews

Objectives

Are My Targets SMART?

S pecific

M easured

A greed

R ealistic / (But with STRETCH)

T imed

BPD Targets

BPD Actions/Methods

• Activities that are planned to achieve the OBJECTIVE as measured by the TARGET.

• Provides for gap closure

• Methods are:– The “How” of the annual plan

– Specific

– Timed and scheduled on the annual plan

– Assigned to individuals responsible for carrying them out

– Supported by detailed action plans

– Signed by the responsible individuals

METHODS

ACME MANUFACTURING COMPANY

2014 Business Plan Deployment

QUALITY GOAL: Achieve Market Quality Leadership“

OBJECTIVE 1: Implement Process Failure Mode Effects Analysis (PFMEA) across all manufacturing sites

TARGET: 50% of all operations have PFMEAs in place with supporting control plans

RESPONSIBILITY METHOD SUMMARY TARGET

Vice President –Manufacturing

Ensure PFMEA training and Resources are provided

100% of Manufacturing leadership and technical resources trained

Plant Manager

Production Supervisor and Team

Implement plan to trainand identify operations for PFMEA implementation

100% of Staff, production, manufacturing engineering and quality departments trained;50% of operations identified andPFMEAs completed

Implement control plans and dailyprocess monitoring

All department employees trained in Control Plans and performing daily audits

Translating the Business

Plan Objectives

= Meets Expectation

= Needs Improvement

= Not Meeting Target

Business Plan DeploymentPerformance Evaluation System


2014 Business Plan Deployment QUALITY

Achieve Market Quality Leadership through the Implementing a Lean Manufacturing System (LMS)with "Built in Quality" so that we only accept, build and ship defect free products.

Achieve competitive quality costs with AJAX manufacturing

Goal 1

Goal 2

Overall Status

# OBJECTIVE AND METHODS RESPONSIBLE TARGETSchedule & Control Plan Sign StatusJan Feb Mar Apr May Jun off

1.0 OBJECTIVE: Implement LMS to Build Quality Plt Mgr Reduce spills

in Station by 30% EOY

METHODS SUMMARY:

1.1 Implement plan to train for PFMEA implement. Plt Mgr -100% of staff

Eng…..trained May 2014

-50% of OpsPFMEAs comp

Dec 201

1.2 Enhance process control by Q. Mgr 100% comp -using SPC on high risk June 30characteristics

X


Plan Objectives

Supporting Detailed Plans Needs to Exist for

all Methods

2.0 OBJECTIVE: Reduce Cost of Quality Quality Mgr

METHODS:

2.1 Deploy statistical engineering Quality Mgr $10M in resources to support problem savings fromsolving projects –

Dec 2014


2014 Business Plan Deployment QUALITY

Achieve Market Quality Leadership through the Implementing a Lean Manufacturing System (LMS)with "Built in Quality" so that we only accept, build and ship defect free products.

Achieve competitive quality costs with AJAX manufacturing

Goal 1

Goal 2

Overall Status

# OBJECTIVE AND METHODS RESPONSIBLE TARGETSchedule & Control Plan Sign StatusJan Feb Mar Apr May Jun off

X

Signature BlockPlant ManagerProduction MgrQuality ManagerFinance Director

Signature Means Commitment /

Ownership


Plan Objectives

Plant Level 1

Plant Level 1

Plant Level 1

Plant Level 1Plant

Manager

QualityHR/LR

Finance

Purchasing

The ACME Manufacturing Company

Integrated Manufacturing Plan

ManufacturingPlants

Manufacturing Leadership

Functional Area

Integrated Manufacturing Plan

Strategic Direction

Who is involved in BPD?The ACME Company

Manufacturing Engineering

Purchasing

Quality

Human Resourcses

Finance

Plant Managers

Business Unit Manager

Department Supervisor

Team #1

Team Board


Plan Objectives

Performance Reviewsat all Levels

Who is involved in BPD?Plant Manager

Business Unit Manager

Department Supervisor

Team #1

BPD Initiatives Posted as Team Actions and Targets


Plan Objectives




• Defining BPD

• The BPD Process




• Summary

Company/Mfg Leadership

Mfg Teams &Staffs

Mfg Leaders

Plants

Sept Oct Nov Dec Jan

Complete SWOT

Analysis

Develop first draft of BPD Objectives

/ Methods

Complete BPD one page

Summaries

Gain approval of BPD content

Establish Annual Goals and Objectives

Plt Mgr Meetings

Initial set of Mfg/Staff

Requirements

Communicate BPD to Plants

Plants develop BPD’s

Provide Input Mfg Staff

SWOT Analysis

Complete Plant SWOT Analysis

Business Plan Deployment Planning Cycle –Development Timing

Plants beginimplementationof BPD’s

Staffsbegin

implementation of BPD’s




• Defining BPD

• The BPD Process




• Summary

Senior Leadership

• Establish and maintain vision and strategy

• Help eliminate barriers to BPD implementation

• Facilitate regular / frequent reviews with a focus on development / achievement of the business plan

• Assure that countermeasures are:– Assigned

– Tracked

– Implemented

• Ensure Best Practices are

converted to common systems/procedures

BPD Implementation: Role of Leadership

Manufacturing Plants

• Provide leadership to achieve the specific objectives

• Communicate / rollout the plan throughout the plant

• Develop /cascade the required supporting actions

• Use visual management to make the business plan visible

• Hold regular / frequent reviews with focus on status toward

achievement of the business plan

• Assure that countermeasures are:

– Assigned

– Tracked

– Implemented

• Best Practices are converted to common systems/procedures

BPD Implementation: Role of Leadership




• Defining BPD

• The BPD Process




• Summary

Milestones

Items

Post the Plan in an accessible location

Check progress to the Plan often

Make updates and notations to Plan directly

on the original Plan in a different color

Do not delete items from the Plan

Review countermeasures

BPD: Visualize and Update

BUSINESS PLAN DEPLOYMENT

ACME Plant

PeopleSafety Quality Responsiveness Cost

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

0

10

20

30

40

50

60

70

80

90

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Goal

No.

Department Goals/

Section Methods

Target/

TimingHighlighted Activities Eval. Problems/ Reasons

Future Actions

CMs

Status of Objectives

S

A

F

E

T

Y

2)

Reduce 1st time incidents per

200,000 working hrs.

Use safety tracking system to make incidents visible, use problem solving to improve accident rate.

Reduce lost work day cases by

25% in 1996.

Show safety video, and institute safety audits to heighten awareness.

52

2.3

in '96

1)

Head Injuries excessiveIntroduce hard hat policy by next quarter review

Strains and Sprains

keep TMs from coming

back to job.

Hire Ergoniomic expert to suggest improvements by end February

Exceeds Expectation Meets Expectation Needs Improvement X Below Expectation

Resp.

S. Klein

D. Gärtner

Department:Date:

F irst A id In c id e n ts

0

10

20

30

40

50

60

70

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target

Lost W ork Da y Ca se s

0

0.5

1

1.5

2

2.5

3

3.5

4

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target

X

MFD PlantGoal

No.

Department Goals/

Section Methods

Target/


Future Actions

CMs


S

A

F

E

T

Y

2)





25% in 1996.


52

2.3

in '96

1)


Strains and Sprains


back to job.



Resp.

S. Klein

D. Gärtner

Department:Date:


0

10

20

30

40

50

60

70

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target


0

0.5

1

1.5

2

2.5

3

3.5

4

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target

X

MFD PlantGoal

No.

Department Goals/

Section Methods

Target/


Future Actions

CMs


S

A

F

E

T

Y

2)





25% in 1996.


52

2.3

in '96

1)


Strains and Sprains


back to job.



Resp.

S. Klein

D. Gärtner

Department:Date:


0

10

20

30

40

50

60

70

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target


0

0.5

1

1.5

2

2.5

3

3.5

4

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target

X

MFD PlantGoal

No.

Department Goals/

Section Methods

Target/


Future Actions

CMs


S

A

F

E

T

Y

2)





25% in 1996.


52

2.3

in '96

1)


Strains and Sprains


back to job.



Resp.

S. Klein

D. Gärtner

Department:Date:


0

10

20

30

40

50

60

70

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target


0

0.5

1

1.5

2

2.5

3

3.5

4

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target

X

MFD PlantGoal

No.

Department Goals/

Section Methods

Target/


Future Actions

CMs


S

A

F

E

T

Y

2)





25% in 1996.


52

2.3

in '96

1)


Strains and Sprains


back to job.



Resp.

S. Klein

D. Gärtner

Department:Date:


0

10

20

30

40

50

60

70

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target


0

0.5

1

1.5

2

2.5

3

3.5

4

av

g.

9

5

Fe

b-

96

Ap

r-

96

Ju

n-

96

Au

g-

96

Oc

t-

96

De

c-

96

Ta

rg

et

9

8

A ctual

Target

Target

X

ACME Plant

Visual Management

PLAN

DO

CHECK

ACT

STATUS




• Defining BPD

• The BPD Process




• Summary

Business Plan Deployment Summary:

BPD is a management tool to:• Provide focus and direction

• Establish clear and quantifiable targets

• Align business activities focused on objectives

• Challenge the organization to develop action plans to meet objectives

• Track performance

• Allow all employees to contribute to the success of the plan

• Drive Continuous Improvement

• Improves company performance and profitability

Thank you!

About Joe Mazzeo• Owner of Integrated Lean and Quality Solutions, LLC

• Broad experience in manufacturing and quality

• Providing Leadership, Lean Manufacturing and Quality Management services

• Member of: ASQ / SME / SEMA

To download a copy of this presentation, visit:

www. http://ILQSolutions.com/presentation

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