Understanding, Measuring, and Improving Daily Management

This book explains the critical parts of a continuous improvement strategy and where reactive improvement through effective daily management fits in. In addition, it shows the consequences if daily management is not performed well.

Contents Introduction: The Importance of Effective Daily Management................. xi 1 Supportive Organisation Structure - Element 1................................. 1 The Causes of Equipment Failure and the 5 Whys........................................... 2 What Is the Pathway of Mechanical Equipment Failure?................................... 3 Failure Mechanisms of the Parts that Make Up Our Plant and Equipment...... 4 Failure Mechanisms......................................................................................... 4 Example of the Impact of the Laws of Physics on the Failure Mechanisms of Working Items....................................................................... 5 The Pendulum of Change - the History of Ownership within the Workplace............................................................................................................ 7 Area Based Team Structure................................................................................ 8 The 4 Stages of Area Based Team Development............................................. 13 Further Learning from Area Based Team Structure.........................................17 The Need to Address All Failures, Not Just Equipment Failures..................... 20 2 Effective Frontline Leaders - Element 2........................................... 23 What Do We Mean by Frontline Leader?......................................................... 23 The New Approach....................................................................................... 23 What Should Be the Allocation of Time for a Frontline Leader Supporting Operational Excellence?............................................................. 25 What Structure and Rosters Should We Have to Support the Development of Our Frontline Leaders?...................................................... 26 What Should Be the Roles and Responsibilities of a Frontline Leader?...... 28 Possible Key Roles......................................................................................... 28 Coaching of Team Members..........................................................................31 What Attributes Should We Develop in Our Frontline Leaders?..................31 What Skills Should We Develop in Our Frontline Leaders?........................ 32 1. Knowledge of Responsibilities (Policies and Procedures)................... 34 2. Knowledge of Work (Base Skills)........................................................ 34 3. Skill in Instructing (Teaching Skills).................................................... 35 4. Skill in Improving (Mastery Skills)....................................................... 35 5. Skill in Team Work (Team Skills)......................................................... 35 6. Skill in Leading (Leadership Skills)...................................................... 35 Team Skills, Teaching Skills and Leadership Skills Training....................... 35 Team Skills................................................................................................. 35 Team Skills Assessment.................................................................................... 39 Teaching Skills and Leadership Skills........................................................... 42 What Should Be a Typical Day/Week of a Frontline Leader?...................... 43 What Is the Best Way to Develop the Desired Attributes and Skills of Our Frontline Leaders?.................................................................................. 44 Use of Skills Matrices.................................................................................... 44 Summary Checklist for Developing Frontline Leaders.................................... 45 Note................................................................................................................... 46 3 Appropriate Measures - Element 3: Key Success Factors for Operations........................................................................................ 47 Order Is Important............................................................................................ 49 Establishing Performance Measures................................................................. 50 Displaying Your Performance Measures.......................................................... 50 Establishing a Baseline and Targets..................................................................51 Call to Action.................................................................................................... 55 Note................................................................................................................... 55 4 Structured Daily Review Meetings - Element 4............................... 57 Naming of Your Daily Review Meetings.......................................................... 58 What Should Be the Reason and Purpose of a Daily Review Meeting?......... 59 What Makes an Effective Daily Review Meeting?............................................ 60 What Information Should Be Reported at Daily Review Meeting?..................61 What Information Does the Production Manager Require on a Daily Basis?...............................................................................................................61 Selecting Performance Measures for Review at a Daily Review Meeting........61 Developing the Format and Agenda of a Daily Review Meeting................................................................................................. 62 Determining the Rules for a Daily Review Meeting........................................ 65 Setting Triggers and Policies to Initiate Frontline Problem-Solving Root Cause Analysis.................................................................................................. 66 Start of Shift Review Meeting............................................................................67 5 Visual Information Centres - Element 5........................................... 69 What Should Be Displayed?.............................................................................. 70 Setting Up Your Information Centres............................................................... 70 Example Layout of Basic Concern Strip........................................................... 75 Example Layout of a Root Cause Analysis Concern Strip............................... 76 6 Frontline Problem-Solving Root Cause Analysis Capability - Element 6.......................................................................................... 81 PLAN: Understand the Problem and Develop an Action Plan................................................................................................... 83 DO: Implement Solutions (the Action Plan) (Step 5)....................................... 83 CHECK: Evaluate Results (Step 6).................................................................... 84 ACT: List Future Actions (Step 7)...................................................................... 84 Introducing Frontline Problem-Solving Root Cause Analysis.......................... 84 Identifying the Initial Frontline Problems for Your Development Program... 87 Finding the Resources for On-Going Frontline Problem-Solving Root Cause Analysis.................................................................................................. 89 Outline of the 7 Step Frontline Problem-Solving Root Cause Analysis Process............................................................................ 90 Step 1: Define the Problem............................................................................... 93 Problem Statement:....................................................................................... 95 1.1 Establish Problem Statement in Object-Deviation Format................. 95 Problem Description:.................................................................................... 95 1.2 What Is the Problem?.......................................................................... 95 1.3 Where Did We Find the Problem? (Point of Observation)................ 95 1.4 When Did It Happen?......................................................................... 96 1.5 Size or Measure of the Deviation from Standard or Extent ofthe Problem ......... 96 1.6 Point of Observation or Where Did You First Identify You Had a Problem .............. 96 1.7 Point of Occurrence or Where Do You Believe the Problem Is Originating From .............. 96 1.8 Problem Definition = Problem Statement + Problem Description....... 97 1.9 Problem History or the Sequence of Events Leading Up to the Problem ............... 98 Step 2: Contain Problem................................................................................... 99 2.1 Identify a Containment Action............................................................. 100 2.2 Enact the Containment Action..............................................................101 2.3 Communicate the Containment Action................................................101 2.4 Verify the Effectiveness of the Containment Action............................101 Step 3: Analyse Problem..................................................................................101 3.1 Confirm the Effect Statement................................................................103 3.2 Identify Those to Be Involved..............................................................103 3.3 Identify Questions and Information Required.....................................103 3.4 Prepare Materials...................................................................................104 3.5 Select the Initial Categories to Promote the Brainstorming.................104 3.6 Populate the Cause & Effect Diagram..................................................104 3.7 Conduct Quality Check of the Causes..................................................105 3.8 Eliminate or Confirm Causes................................................................105 3.9 Select the Most Significant Possible Causes......................................... 106 Step 4: Develop Root Cause Solutions............................................................107 4.1 Extend Main Causes into Cause Statements.........................................109 4.2 Identify Those to Be Involved..............................................................109 4.3 Identify Questions and Information Required.....................................110 4.4 Prepare Materials...................................................................................110 4.5 Enter Cause Statements and Populate the Why-Why Diagram............110 4.6 Verify Each Answer to a Why with Data or Observational Evidence.................111 4.7 Summarise the Root Cause Pathways that Will Best Address the Problem............112 4.8 Identify Possible Solutions to Each Cause in the Two Pathways.........112 4.9 Select All the Solutions You Can Work On..........................................112 4.10 Select All the Remaining Solutions You Can Recommend to Others...............112 Step 5: Implement Solutions............................................................................114 5.1 Establish Appropriate Criteria for Developing Solutions......................114 5.2 Identify and Select the Most Appropriate Solution or Solutions...........115 5.3 Develop a List of Proposed Key Actions for Each Solution.................118 5.4 Gain Approval or Permission Including All Sign-Offs Required to Implement the Key Actions.........118 5.5 Obtain the Necessary Resources to Complete the Proposed Actions within the Required Timeframe...........118 5.6 Identify the Remaining Gaps to Achieve the Agreed Expectation Once the Initial Actions Have Been Completed.........118 5.7 Test or Measure the Effectiveness of the Actions in the Short Term......119 Step 6: Evaluate Results...................................................................................119 6.1 Ensure Your Actions Are Having the Required Impact...................... 120 6.2 If Appropriate, Conduct an Acid Test.................................................. 120 6.3 Lock in the Improvements................................................................... 120 6.4 Review Containment of Problem..........................................................121 Step 7: List Future Actions...............................................................................121 7.1 Adjust or Refine Solutions......................................................................121 7.2 Recommend Future Action....................................................................122 7.3 Complete Frontline Problem-Solving Root Cause Analysis A3 Summary Sheet........122 7.4 Conduct Horizontal Deployment Where Appropriate..........................123 Reflection on the 7 Step Process.....................................................................124 Key Learning from Frontline Problem-Solving Root Cause Analysis.............124 7 Rapid Sharing of Learning Capability - Element 7........................ 127 The Need for a Learning Organisation...........................................................127 Actions to Help Create a Learning Organisation............................................129 Establish Standards for Documenting Outcomes........................................129 Establish a Continuous Improvement Library and Knowledge Base.........129 Establish an Effective Daily Review Meeting Plan..................................... 130 Create the Right Environment to Promote Adult Learning........................ 130 8 The Way Forward............................................................................ 133 Preparation Action Plan...................................................................................133 Implementation Action Plan............................................................................135 Daily Review Meeting Rating......................................................................... 138 Reference List of Articles and Books.....................................................141 Index..................................................................................................... 143