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The Association of Manufacturing Excellence Presents…. People Powered Lean “Business is a Team Sport” March 14-15, 2007. Or People are Better Than Materials!. Core Beliefs. Start with the end in mind! …Take a Systems Approach

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Presentation Transcript

The Association of Manufacturing

Excellence

Presents…


People Powered Lean

“Business is a Team Sport”

March 14-15, 2007


Or

People are Better Than Materials!


Core beliefs
Core Beliefs

  • Start with the end in mind! …Take a Systems Approach

  • Be in the business of making hard things easy…not easy things hard.

  • People are good and want to do the right thing

  • It is the organizations responsibility to create an environment for its’ people to be successful…and our people’s vote counts more than ours.

  • Our People’s “Vote” counts more than ours

  • Every organization has a limited bandwidth for change

  • Culture vs. Change and Leading

  • Turf, Ego, and $$$ and the end of the day it is about…


Business is a team sport
Business is a Team Sport

  • Think Hard: Are we organized for success and doing the right things?

    • Right Plays

    • Right Rules

    • Right Positions

  • Work Hard: Are we executing the plays?

    • Putting the right people with the right skills in the game to run the plays

    • Motivating them to produce and Win!

  • Talk: Communicate

    • Everything is constantly changing

    • Providing Aggressive Leadership



Task force 2 4 cavalry tactical operations center team feb 21 1991 northern saudi arabia
Task Force 2-4 Cavalry Tactical Operations Center TeamFeb 21, 1991 - Northern Saudi Arabia


Workshop learning objectives
Workshop Learning Objectives

  • Allow you to “see” People from a business perspective

  • Understand and Define the Lean Value Stream from a People Perspective

  • Link your People programs to the business

  • Understand how Senior Leaders evaluate People investments

  • Learn from others like you

  • Take a Good Idea home with you…



Session feedback
Session Feedback

Start with the end in mind!


Business card exchange
Business Card Exchange

  • Position on the Team?

  • Type of Company? Manufacturing; Services; Other

  • Product?

  • Number of Employees?

  • Number of Locations?


Agenda march 14 2007
AgendaMarch 14, 2007

8:00 – 8:20 Welcome

8:20 – 9:45 “Seeing the Big Picture”: Organizing for Success-- The Theory

9:45 – 10:00 Break

10:00 – 11:00 Recruiting: Finding the Right Athletes (Scenario Exercise)

Trying Out: Verifying Skills and Attitude

Making the Team: Right Fit; Finding Your Seat on the Bus

11:00 – 11:30 STIHL Case Study: Simon Nance

11:30 – 12:00 Lunch

12:00 – 1:00 Pre-Season Training

Building Your Depth Chart

Improving the Performance of Your Current Team.

1:00 – 3:00 Playing to Win

Leaders Executing the Plays: Current Leader; Current Job (Scenario Exercise)

Building Bench Strength: Future Leaders (Scenario Exercise)

3:00 – 3:15 Break

3:15 – 4:00 Speeding the Lean Journey: Keith Hornberger (Lead Sensei and 6 Sigma Black Belt)

4:00 – 5:00 Keeping Score: Putting it All Together

Wrap Up and Closing


Agenda march 15 2007
AgendaMarch 15, 2007

8:00 – 8:30 Welcome: Bruce Bolton, Operations Manager, Creative Memories

8:30 – 10:30 Creative Memories Plant Tour

10:30 – 11:00 Conference Wrap Up

11:00 – 12:00 Lunch

Optional

1:00 – 6:00 Golf Outing



Take a blue slip

Take a Blue Slip

Our Way to Communicate and Facilitate Our Journey!


Take a blue slip1
Take a Blue Slip

What do you want to learn today?


Break out product information
Break-Out Product Information

  • Realistic Job Previews

  • Training Program Design

  • Electronic Performance Support Module Development

  • Learning Management Systems

  • Depth Charts to Manage “Right Person; Right Job.”

  • Deriving Job Descriptions from Value Stream Maps

  • Attrition Analysis

  • Building Human Capital Budget Request

  • Aging of the Workforce

  • Others:

    Name:

    Company:


Getting out of the box big picture thinking

Getting Out of the Box… Big Picture Thinking!


It is all about business performance
…It is All About Business Performance!

REQUIRED Level of Performance

CURRENT Level of Performance

Resources

Required

Performance

Gap

Measures of Performance


Business metrics
Business Metrics

If we completely align our Lean Journey with our People SYSTEMs we will:

  • Improve Quality

  • Improve Production to Headcount Ratio thus Reducing Labor Cost per product

  • Reduce Defects through focused Continuous Improvement

  • Reduce Lead Time to Increase Market Share

  • Increase production capacity and…

  • Improve PROFIT margin

    …by optimizing the plant’s physical production capacity to our production process.


Business of people
Business of People

The Mission:

Provide Leaders with right people in the right numbers, in the right skills, at the right time, at the right cost to meet business needs.

The Goal:

An agile, competent workforce capable to move at the speed of business.


Alternative roles for corporate learning
Alternative Roles for Corporate Learning

  • Training

    Did the Learner accomplish the Learning Objectives efficiently?

    Business Metric: Time Invested vs. Skills Outcome

  • Performance Improvement

    Did the Leader receive “improved job performance” as a result of the investment?

    Business Metric: Overhead Cost to Improved Job Performance

  • Human Capital Management

    Do we have a system to provide the Manager’s with Right People in the Right Numbers with the Right Skills at the Right Time?

    Business Metric: Headcount to Productivity

  • Organizational Effectiveness

    Are we organized, labor resourced and costed correctly to accomplished the business objectives?

    Business Metric: Full Time Equivalents vs. Profit Margin


Team sport value stream
Team SportValue Stream

  • Organizing for Success

  • Recruiting

  • Trying Out

  • Making the Team

  • Pre-Season Training

  • Playing to Win

  • Keeping Score


Business is a team sport building high performance teams
Business is a Team Sport! Building High Performance Teams

  • Organizing for Success: Aligning Production Process with People

  • Recruiting: Finding the Right Athletes

  • Trying Out: Verifying Skills and Assessing Attitude

  • Making the Team: Best Player or Best Athlete: Right Fit?

  • Pre-Season Training:

    • Learning Your Position and the Depth Chart

    • Developing Leaders at every Level

    • Current Workforce Skills Development: Building Benchstrength

  • Playing to Win:

    • Leaders emerge: Leader Performance Improvement: Identifying and empowering leaders with the right behaviors

    • Teams play smart and hard: Continuous Improvement

  • Keeping Score: How do you know you are Winning?


Organizational scheme
Organizational Scheme

GM

OM

OM

OM

GM: General Manager 10

OM: Operations Manager 30

SS: Shift Supervisor 60

1S: 1st Line Supervisor 160

MU: Make Up Supervisor 100

GT: Go To Employee 500

E: Employee 1600

NE: New Employee 600

SS

SS

SS

1S

1S

1S

GT

MU

GT

NE

NE

Based Upon a Total Operational Headcount of 3060

Vertical Dyad Linkage


Building Pipelines

Recruiting

Trying Out

Making the Team

Adult

Education

Temp

Agencies

Community

Colleges

College

Transfers

Generate

Labor

Req’s

Orient,

Screen

&

Identify

Candidates

High Schools

Interview

&

Assess

Skills

Common

Skills

Training

1st Job

Skills

Development

Tech Schools

Other

Companies

Current

Employees

Hiring

Decision

Increase Cost

Decrease Cost

State Employment Offices

Military


Life cycle skills development program
Life Cycle Skills Development Program

Management

Skills

Complex Tasks

Supervisor

Development Training

Supervisor Practical Application/

Evaluation

VI

Pre-Employment

V

Employment Skills

Mentor

Skills

Basic

Skills

Intermediate Skills

Advanced Skills

Soft Skills

Development

IV

Initial Entry

Skills Training

Basic

Training

Intermediate

Training

Advanced

Training

III

Practical ApplicationCoaching/ Evaluation

Practical ApplicationCoaching/ Evaluation

Practical ApplicationCoaching/ Evaluation

Skills Evaluation

II

Experienced Personnel

I

Competency Level

Career


Leader development program

Current State

Leader Development conducted informally or not at all.

Usually best operators promoted to Supervisors

Experience gained over time

Many training courses available but not mapped to critical tasks.

Undocumented program that is dependent on individual Management implementation

On the Job Training is ad hoc with few Training Materials available on the Job Site.

Perfect State

Systematic Approach to Leader Development

Manager’s are Responsible as the Primary Trainers of their Supervisors

Manager’s are responsible to tailor skill development to each individual supervisor and each operational area.

Leader Development Programs mapped directly to Performance Review System

Leader Development Program


Bench strength is working the blue lines
Bench Strength is Working the Blue Lines

Operations Manager

Current Shift Supervisor – Future Operations Manager

Current Shift Supervisor– Current Job

Current 1st Line Supervisor – Future Shift Supervisor

Current 1st Line Supervisor – Current Job

Current “Go To” Operator – Future 1st Line Supervisor


Putting it all together when the ceo cfo say
Putting It All TogetherWhen the CEO/CFO say…

“OK… we see all the pieces, we understand the problem, we know this critical to our business…”

“How much money do you need and when do you need it, and how will we know it made our business better?”


Human capital management success principles
Human Capital ManagementSuccess Principles

  • Business Focus (People + Process + Material = Products)

  • Senior Leader “Hands On” Business with embedded Metrics and Regular Reporting

  • Centralized Planning while Executing Program as close to the work area as possible.

  • Managers are responsible and accountable for the performance and development of their people…

  • Be the P&L Responsible Managers best resource for support by providing them the processes and programs to do better meet their business objectives.

  • Do not be a part of the problem by putting HR mechanics ahead of business support.

  • Constantly Link the Corporate Strategy to the Human Capital Management Program…be proactive


Human capital management program design challenges
Human Capital ManagementProgram Design Challenges

  • No silver bullet…Big Problem with a lot of moving parts in a dynamic business environment

  • Focused effort based upon real analysis…not a “Good Idea of the Day” approach.

  • Recommendations must make good business sense

  • Design Executable Programs and be good Program Managers (Cost, Schedule, Quality)

  • Be realistic in execution and “eat the elephant” one bite at a time.

  • Focus on PEOPLE first; then FTE.

  • Requires long range thinking… People are multi-year projects-- if fact Life Long Projects

  • Do not be a part of the Profit and Loss problem!


What group represents the biggest risk for the future of your business? (Rank Order with 1 the Highest Priority)

__ Hourly Workforce

__ 1st Line Supervisors

__ Plant Middle Management

__ Plant Managers

__ Executive Staff

__ Administrative Support staff

__ Temporary Workforce


Which part of the People Life Cycle requires the most urgent attention? (Rank Order with 1 the Highest Priority)

__ Organizational Scheme

__ On Boarding (e.g. Acquiring New Employees)

__ Incumbent Production Workforce

__ Line Supervisors Performance Improvement

__ Executive Leadership Development Program


Workshop participant snapshot take a blue slip
Workshop Participant attention?Snapshot“Take a Blue Slip”

  • Title:

  • Company:

  • Type of Business:

  • #1 Challenge:


Organizing for success

Organizing for Success attention?

Theory and Application


People powered lean assumptions
People Powered Lean attention?Assumptions

  • Sound Business Model: Crisis?

  • Value Stream Map is Present


Business process
Business Process attention?

Sales/Quoting

CustomerOrders

ReceivingComponentsAssembly

Finished GoodsProcessing

Sampling

Scheduling

Planning

Staging

Sequencing

PurchasingComponents

Pulling Components

Sterilizer

Ship toDistributor/Customer


Value stream map
Value Stream Map attention?

How do we create value?


Value-Adding Activities attention?

….transform materials and

information into products the customer pays for

Non-Value-Adding Activities

….consume resources, but don’t

directly contribute to the product and/or the customer

Non-Value-Adding but Required

….consume resources, but are required

by government regulation or company policy


Team sport defining positions
Team Sport: Defining Positions attention?

Mold Maker &

Maintenance

Mold Setter

Mold/Part Designer

Sales Representative

Quality Control

Customer Order

and Materials

Machine

Finished Products

and Satisfied Client

Machine Operator/

Packer

Material

Handler

Process

Technician

Assembly Operator

Press Maintenance

Technician


Value stream to cell map
Value Stream to Cell Map attention?

Production Cells

Who is going to do it?


Horizontal labor planning considerations
Horizontal attention?Labor Planning Considerations

  • Job Complexity

  • Production Tempo

  • Level of Manual Labor

  • Level of Intellectual Labor

  • Quality Standards

  • Availability and Skill Set of Labor Pool

  • Availability of Leaders (Leader to Led Ratio)


Vertical labor planning
Vertical Labor Planning attention?

Senior

Management

P & L Responsible Leaders

Sales

IT/HR/

Accounting

Engineering

1st Line Supervisors

Production Workforce

Machine 1

Machine 2

Machine 3

Machine 4

Machine 5


Creating the conditions for success
Creating the Conditions for Success attention?

  • Owner: Creating the Business Model (Profit and Loss)

  • General Manager/Front Office: Runs the Business

  • Head Coach: Decide the Game Plan (Players and the Plays)

  • Coordinators: Call the Plays

  • Coaches: Ensures the Players know how to run the Plays

  • Leaders: Read the current situation and execute the Plays

  • Players: Execute the Plays


Vertical labor planning considerations
Vertical attention?Labor Planning Considerations

  • Span of Control (Leader to Led Ratio)

  • Physical Environment

  • Tempo

  • Hourly or Salaried

  • Complexity

  • Same Labor Categories or Mixed

  • IT/ERP System Granularity

  • Support Staff Availability (Production Control, Planning, Quality Control, Engineering, Training, HR, etc.)


Business is a team sport1
Business is a Team Sport attention?

  • Think Hard: Is our business model sound, are we organized for success and doing the right things?

    • Right Plays

    • Right Rules

    • Right Positions

  • Work Hard: Are we executing the plays?

    • Putting the right people with the right skills in the game to run the plays

    • Motivating them to Produce and Win!

  • Talk: Communicate

    • Everything is constantly changing

    • Providing Aggressive Leadership


Business is a team sport mission
Business is a Team Sport attention?Mission

Provide our leaders and teammates with the tools, skills, training, and procedures to improve our production processes through continuously identifying and eliminating waste.


Lean goals
Lean Goals attention?

  • Improve Quality

  • Eliminate Waste

  • Reduce Lead Time

  • Reduce Total Costs

  • Process

  • Materials

  • Cost (People)

  • Equipment

Through Near Real Time Visibility over:


People powered lean
People Powered Lean: attention?

A SYSTEM to Align

People to Process obtaining

Employee Ownership

Process

Materials

Cost

Equipment

People


Linkage to business outcome
Linkage to Business Outcome attention?

  • Ownership is the Outcome

  • Engagement is the Behavior

  • Lean is the process

  • Lean training provides the skills at every level.

    PPL System

    Metrics + Process + Training + Resources =

    Expected Business Outcomes


Business goals
Business Goals attention?

  • Create an atmosphere of ownership

  • Identify and close productivity gaps to increase profitability

  • Create a condition that produces “First Time Quality”

  • Continuously improve our safety rates

  • Improve customer satisfaction through increased responsiveness to critical customer concerns

  • Continuously identify and eliminate waste


Employee ownership requires trust

Leaders will provide: attention?

Clear direction

Appropriate Resources

Expert Advice

Feedback and Coaching

Growth Opportunities

Reward and Praise

Fair Treatment

Led will:

Treat the company like their own

Hold each other accountable for doing the right thing

Give early warning of problems

Have the courage to ask questions

Employee Ownership Requires Trust


Goal alignment

Organizational Goals attention?

Cost

Schedule

Quality

Safety

Individual Goals

Compensation

Opportunities

Responsibility

Work Environment

Recognition

Goal Alignment

Led

Led

Leader

Led

Led

Goal

Alignment

Awareness

Communication

Can only occur when there is a conversation

between the Leader and the Led about the Led!


Gallup path to business success
Gallup Path to Business Success attention?

Real Profit

Increase

Stock

Increase

Sustainable

Growth

Engaged

Employees

Business Success

Measures:

Productivity,

Profitability,

Employee Retention

Customer Satisfaction

Engaged

Customers

Great

Leaders

Identify

Individual

Strengths

The

Right Fit

People

Enter

Here


Finding the right questions to assess leader performance
Finding the Right Questions to attention?Assess Leader Performance

Project:

  • Human Sigma: Gallup conducts 30 years of research (70’s, 80’s, 90’s)

  • Thousands of different questions

  • More than 1 million employees

    Task:

  • Identify the factors common to the most productive workplaces

  • Identify the best questions to measure these factors

  • Validated through meta-analysis

    Result:

  • Q12 Survey


Are my needs being met
Are my needs being met? attention?

SA/A/D/SD Answers:

  • Do I know what is expected of me?

  • Do I have the materials, equipment, and skills I need to do my work right?

  • Do I have the opportunity to do what I do best everyday?

  • In the last seven days, have I received recognition or praise for good work?

  • Does my Supervisor, or someone at work, seem to care about me as a person?

  • Is there someone that encourages my development?

  • At work, my opinions seem to count?

  • The mission or purpose of my company makes me feel my job is important?

  • My associates or fellow employees are committed to doing quality work?

  • I have a best friend at work?

  • In the last six months, someone at work has talked to me about my progress?

  • This last year, I have had opportunities at work to learn and grow?

  • Do I trust my leader?

Source: Gallup


Signs of engaged employees
Signs of attention?Engaged Employees

  • Psychologically committed to the company

  • Consistent levels of High Performance

  • Innovative and a drive for efficiency

  • Intentionally build supportive relationships

  • Clear about role outcomes expected

  • Passionate, high energy, and enthusiastic

  • Never run out of things to do

  • Loyal to workgroup and company

  • Broaden what they do and build on it

  • Positive constructive criticism


Signs of not engaged employees
Signs of attention?Not Engaged Employees

  • Meeting the Basics

  • Confusion or inability to act with confidence

  • Low risk response

  • No real sense of achievement

  • Making up their own game

  • Not always committed

  • Show negativity but not underground


Signs of actively disengaged employees
Signs of attention?Actively Disengaged Employees

  • Physically present but psychologically absent

  • “What can I take” rather than “what can I give”

  • Share unhappiness about work with peers

  • “I’m OK but everyone else is not”

  • Service prevention rather than service provision

  • Not productive but always has excuses

  • Inability to move from problem to solution

  • Normal reaction starts with resistance

  • Low commitment to company

  • Might sabotage or manipulate solutions

  • Isolation, low trust


Can we prevent this type of attention?

waste from happening?


Opportunity for improvement
Opportunity for Improvement attention?

  • 25% of the working population are ignored by their supervisor

    • Actively Disengaged: 40% of them are in their workplace

    • 58% are Not Engaged

    • 2% are Engaged

Source: Gallup


Example attention?

Employee Handbook

Welcome to Nordstrom

WE’RE GLAD TO HAVE YOU WITH OUR COMPANY

Our number one goal is to provide outstanding customer service.

Set both your personal and professional goals high.

We have great confidence in your ability to achieve them.

So our employee handbook is very simple.

We have only one rule.......

The other side of the card says:

One Rule

Use good judgment in all situations.

Please feel free to ask your Department Manager, Store Manager,

or Human Resource office any question at any time.

- From “The Speed of Trust,” By Stephen Covey

and Rebecca Merrill


Business performance leading indicators
Business Performance attention?Leading Indicators

1st Line Supervisors:

  • Responsible for producing “Customer Value”

  • Are held accountable for production requirements

  • They are responsible for getting “8 for 8” from the hourly workforce

  • Usually in their first leadership position

  • Work all shifts

  • Blending of technical and people skills is required

  • Performance is directly related to their Manager’s ability to lead them.


Vertical dyad linkage theory the linkage power depends on
Vertical Dyad Linkage Theory attention?The Linkage Power Depends On…

1. Leaders Managing Personal Relationships

  • Vertical Dyad: Leader Led x number of direct reports

  • Employee performance, productivity, and engagement depends on their relationship with their IMMEDIATE Supervisor

    2. Leader and Led continuously Creating Shared Goals.

  • The Employee’s Goals and Needs

  • The Organization’s Goals and Needs as articulated by the Supervisor

  • Requires continuous Goal Alignment within Developmental Plans and continuous Feedback


Group breakdown

Leader attention?

Led(I)

Led(O)

Led(M)

Group Breakdown

In Group:

  • High Trust

  • Good Communications

  • “Let ‘em Run” Goal Setting

  • Low Task Definition Needs

  • High Relationship Needs

Out Group:

  • Low Trust

  • Stressful Communications

  • “By the Numbers” Goal Setting

  • High Task Definition Needs

  • Low Relationship Needs


High performing team development strategic goal
High Performing Team Development attention?Strategic Goal

  • Increase the In-Group

  • Decrease the Out-Group

    Facts:

    • Out Group is Actively Disengaged or Physically Present but Psychologically Disruptive. Unhappy and Insist on sharing their unhappiness with others. Doing positive harm to the organization.

    • Little movement from Out to In

    • More movement from In to Out due to Leaders breaking the Goal Alignment Contract/Agreement


Middle group the key to success
Middle Group attention?The Key to Success

  • New Employees make a decision within first 48 - 72 hours from introduction to immediate supervisor.

  • Not Engaged Employees are those “…just putting in my time” but not actively doing harm. They can be influenced by Leaders.

    Strategy:

    Focus on the Middle Group to move them into the In Group as quickly as possible.


Organizational scheme analysis

Organizational Scheme Analysis attention?

Current State


Org Chart attention?


Organizational scheme1
Organizational Scheme attention?

GM

OM

OM

OM

GM: General Manager

OM: Operations Manager

SS: Shift Supervisor

1S: 1st Line Supervisor

MU: Make Up Supervisor

GT: Go To Employee

E: Employee

NE: New Employee

SS

SS

SS

1S

1S

1S

GT

MU

GT

E

NE

NE

E

Vertical Dyad Linkage


Organizational scheme2
Organizational Scheme attention?

GM

Self Motivated Tasks

OM

OM

OM

GM: General Manager

OM: Operations Manager

SS: Shift Supervisor

1S: 1st Line Supervisor

MU: Make Up Supervisor

GT: Go To Employee

E: Employee

NE: New Employee

SS

SS

SS

1S

1S

1S

GT

MU

GT

E

NE

NE

E

Directed Tasks

Vertical Dyad Linkage


Who gets to play matching leaders to people to jobs
Who gets to Play? attention?Matching Leaders to People to Jobs

Considerations

  • Past Performance

  • Technical Experience

  • Strengths and Weaknesses

  • Work Area Complexity

  • Leader-to-Led Ratio

  • Lead Times

  • Crew Make-Up

  • Shifts

OM

PC

SS

PLANNING

1S

1S

GTM

M1S

GTM

NE

M

M

NE


PC attention?

PC

PC

PC

PC

PC

MPL

MPL

MPL

MPL

MPL

MPL

WF

WF

WF

WF

WF

WF

FF

FF

FF

FF

FF

FF

GTM

GTM

GTM

GTM

GTM

GTM

MUF

MUF

MUF

MUF

MUF

MUF

GTM

GTM

GTM

GTM

GTM

GTM

M

M

M

M

M

M

M

M

M

M

M

M

Example:

Running Your Business Chart

MPO

PLANNING

Every Bubble has a Name!

…linked to their Developmental Plan


Turnover attention?

Fit with

Supervisor

Quality

Source: The Gabriel Institute (2006, June) www.thegabrielinstitute.com From Maximizing Human Capital


Core daily business activity

Job attention?

Packages

Materials

Products

Foreman

People

Core Daily Business Activity

Success = Job Packages Completed within Cost, on Schedule, Safely, with no Re-Work

  • Foreman Provide:

  • Clear Goal Definition

  • Materials and Equipment to accomplish the task

  • People with the Right Qualifications and Skills

  • Leadership: Organizational Energy and Momentum


Core business data element
Core Business attention?Data Element

Project Plans

and

Labor Estimates

Leader

Assigning

Charge #s &

Approving Time

Assigning Work to Crew in Discrete Increments and Measuring Goal Accomplishment


Planning execution

Job Packages attention?

Job Description

# Hours Planned

Materials Available

ERP Tools

Worker Capabilities

Qualifications

Capacity

Skills

Physical Limitations

Planning & Execution

Foreman

Cost, Schedule,

Quality, Safety


Organizational scheme3
Organizational Scheme attention?

Does it Support the Core Daily Business Activity?

SDO

SDO: Senior Director, Ops

DP: Director of Production

DW: Director of WarehousingDM: Director of MaintenancePM: Production ManagerPSP: Production SupervisorTLMU: Teal Leader Make-UpTL: Team LeaderSU: Set UpBU: Back Up

CRA: Clean Room AssemblerNCRA: New Clean Room Assembler

DP

DW

DM

PM

PM

PSP

PSP

PSP

PSP

TL

TL

TL

TLMU

SU

BU

NCRA

CRA

NCRA

CRA


Analytical methodology
Analytical Methodology attention?

  • Evaluate Responsibilities of each level

  • Look for Common Themes that flow from level to level

  • Look for Unique Responsibilities on each level

  • Evaluate interactions between Levels

  • 5. Evaluate Planning Horizons at each level

  • Evaluate Communications Techniques at each level (Message and Method)

  • Remove echelons one at a time and re-assess.


Scope of responsibilities
Scope of Responsibilities attention?

  • Team Leader:

  • Works on a Process

  • Planning Horizon 1 Day

  • Focuses on today and working with People

  • Quality

  • Speed

  • Communicates Verbally to Team

  • Communicates Verbally and via Data System to Supervisors and Managers


Scope of responsibilities1
Scope of Responsibilities attention?

  • Supervisor:

  • Runs multiple Teams/Processes

  • Planning Horizon 1-2 Days

  • Focuses on near term

  • Allocates People across Teams to increase speed

  • Monitors daily workflow

  • Communicates Verbally


Scope of responsibilities2
Scope of Responsibilities attention?

  • Production Manager:

  • Manages the System

  • Planning Horizon: Up to 2 weeks

  • Develops Supervisors and Team Leaders

  • Levels the Lines, Maximizes Productivity

  • Monitors and determines headcount

  • Communicates Verbally and Electronically

  • Accesses and analyzes metrics to manage Production Flow.

  • Maintains Situational Awareness


THINK Strategically… attention?Continuous Improvement“Changing the Conditions”…ACT Tactically: “Day to Day” operations to meet business objectives

  • Cost

  • Schedule

  • Quality

  • Safety


Apollo 13 houston we have a problem example

Apollo 13 attention?Houston… We Have a Problem! Example


Continuous improvement over time
Continuous Improvement attention?Over Time

Success = Job Packages Completed within Cost,

on Schedule, no Re-Work, Safely

TIME

Current

State

Future

State

Perfect

State


Leader lanes

Job attention?

Packages

Materials

Products

Foreman

People

Leader Lanes

Current

State

Future

State

Perfect

State

Leader?

Leader?

Leader?

Leader?

Leader?

Time

Leader?


Summary
Summary attention?

  • Start with the end in mind…

  • Organization Charts show reporting relationships

  • Organizational Scheme describe how you run your business and it changes by itself

  • Is there Waste in your organizational scheme?

  • Do your leaders know their lane and more importantly does everyone else?

  • Are you Organized for Success?

  • You MUST get this right!


Break

Break attention?


The on boarding program recruiting trying out making the team

The On Boarding Program attention?RecruitingTrying OutMaking the Team

Getting the Right People on the Bus…


Our people s vote counts more
Our People’s Vote Counts More… attention?

  • Create a system that enables both the company and the applicant to make a “Win-Win” commitment…

    • First day should be a “commitment” day; not a “let’s see how this goes day”

  • It is Management’s responsibility to create an environment for our employees to be successful…

    • Not an environment that encourages them to fail


Are you forecasting your labor as you forecast your business
Are you forecasting your labor as you forecast your business?

Production needs drive labor requirements…

  • How far out are you looking?

  • What skills will you require? Current or New?

  • Lead Time from labor requirement to competency?

  • Who is responsible for managing it?

  • What models do you use?

  • What options do you have?


Labor acquisition options best recruiting pipelines
Labor Acquisition Options business?Best Recruiting Pipelines?

REQUIRED

CURRENT

  • Options:

  • Re-allocate Current Employees

  • Hire Experience

  • Hire New People

  • Work Overtime

  • Hire Temporary Labor

  • Outsource

  • Increase Productivity

  • Change the Process (Lean)

  • Increase Capacity (Automate)

Resources

Required

Measures of Performance


Four Keys to On Boarding Success business?

Identify the best candidates for jobs

Select the best candidate; then teach them what you expect from them and what they can expect from their leader

Provide technical training to build self-confidence and greater job proficiency as they grow (Career Path)

Leaders manage the process based upon predictive, production-based systems and reliable data



  • Building Pipelines business?

  • Business Metrics:

    • - Decrease Cost of Hiring

    • - Reduce Attrition (pre- and post- hiring)

    • - Reduce Hiring Cycle Time

    • - Improve New Hire Integration

    • - Improve New Hire Job Performance

    • - Decrease New Hire Time to Competency

Adult

Education

Temp

Agencies

Community

Colleges

College

Transfers

Generate

Labor

Req’s

Orient,

Screen

&

Identify

Candidates

High Schools

Interview

&

Assess

Skills

Common

Skills

Training

1st Job

Skills

Development

Tech Schools

Other

Companies

Current

Employees

Hiring

Decision

Increase Cost

Decrease Cost

State Employment Offices

Military


Employee acquisition
Employee Acquisition business?

Create a New Hire “Pull System”

  • When Production needs people they “create an order”

  • Production demand “cues” the Employee Acquisition SYSTEM.

  • Reduce cost of Hiring by utilizing Subject Matter Experts to recruit, identify, and evaluate the skills of applicants.

  • Optimize the use of Government Provided Employee Services to Outsource as much as possible.

  • Reduce hiring cycle time to improve responsiveness.

  • Reduce touch time to reduce cost.


Forecast by labor category
Forecast business?By Labor Category

Minimum: ___

Maximum: ___

Generate

Labor

Req’s

What is your Labor Forecast?

What is your capacity to on board new employees?


Example hiring forecast and schedule
Example business?Hiring Forecast and Schedule

Month# Hires

July: 10

August: 5

Sept: 0

Oct: 10

Nov: 5

Dec: 0

Total: 30



Lean enterprise initiative
Lean Enterprise Initiative business?

Continuous improvement in products and processes to provide customers with superior quality, value and speed.

(Cultural Change)(Never Ending Journey)(All Aspects of the Business)


Begin with the end in mind… business?

“Build more quality steel products faster to improve market share and increase profit.”


Lean enterprise goals
Lean Enterprise Goals business?

  • Improve Quality

  • Eliminate Waste

  • Reduce Lead Time

  • Reduce Total Costs

    Through…

  • Near real time visibility over…

    • Process

    • Materials

    • Cost

    • Equipment

      And…


People
People business?


Concept of operations

Phase 2 business?

Future State Design,

Plan of Action with

Resources

June – July 2004

Phase 4

Pilot and

Evaluation

Phase 3

Creation and

Development

August – October 2004

July – August 2004

Concept of Operations

“A Systems Engineering Approach”

Phase 1

Current State &

Good Ideas

People

Powered

Lean

April – June 2004

Phase 6 – n

Continuous

Improvement

July 2005 – Present

Phase 5

Production and

Roll Out

November 2004 – June 2005


Hiring process july 2004
Hiring Process business?July 2004

Production

Identifies

Requirement

HR Posts

Requisition &

Sends to OET

HR

Receives

Applications

HR

Schedules

Interviews

Production

Interviews

Welding Test

Hiring

Decision

Drug Screen

and

Physical

Offer Sent

Applicant

Given Report

Date

Cycle Time: 10.3 Weeks

Cost: $2,008 per new hire

(Labor costs only)

HR Admin

Inprocessing

8 Hours of

Video

OSHA Training

OJT

Training


The hiring process opportunity for improvement
The Hiring Process business?“Opportunity for Improvement”


Hiring process august 2004
Hiring Process business?August 2004

Production

Identifies

Requirement

HR Posts

Requisition &

Sends to OET

OET

Screening

HR

Receives

Applications

HR

Schedules

Interviews

Interviews

Conducted;

Welding Test

Hiring

Decision

Drug Screen

and

Physical

Offer;

New Hire

Packet Sent

Applicant

Given Report

Date

HR Admin

Inprocessing

Plant

Manager

Meeting

Shift

Supervisor

OSHA Training

Process/

Quality

Training

Cell Training

Structured Orientation and Training Process

Cycle Time: 5.8 Weeks - 43.7% reduction

Cost: $1,420 per new hire (Labor costs only) – 29.3% reduction


Policy statement
Policy Statement business?

Our company’s employees build to order, only producing those buckets they have orders for.

Therefore, we must have the capability to acquire employees quickly and move them between assembly lines and departments to support production needs.

A flexible workforce drives down credible delivery time and improves our business performance.


Scenario exercise

Scenario Exercise business?

Recruit Profiles


Establish candidate profiles
Establish Candidate Profiles business?

  • Working at another company doing similar work

  • Must have minimum Skills

  • At least 18 years old and eligible to work in the United States

  • Proven Positive Work Habits

  • Willing to work at Flat Standard Starting Rate of $14/hr. or $11/hr for training pay

  • Willing to work 2nd Shift only (no 1st shift hires)

  • Reliable Transportation


Identify recruiting differentiators
Identify Recruiting Differentiators business?

  • Working Condition

    • “My boss tells me what to do and then lets me do it.”

  • Work Environment

    • Inside vs. Outside

  • Pay and Benefits

  • Workforce Stability

  • Shift Schedule

  • Free and convenient parking

  • Overtime Opportunities


Potential pipelines
Potential Pipelines business?

  • Adult Education

  • Employment Agencies

  • Military

  • Community Colleges

  • High School Graduates

  • Technical School Graduates

  • College Transfers

  • College Graduates

  • Other Companies

  • State and Local Agencies

  • Current Employees


Example business?

Pipeline Capacity Analysis

  • Community Colleges (65 identified)

    • Tidewater (50)

    • Paul D. Camp (15)

  • Adult Education (108 identified)

    • Norfolk Tech (12)

    • New Horizons (20)

    • Pruden (1)

    • Richmond Tech (75)

  • Local Companies Laying Off Workers (50 Identified)

    • Information from Virginia Employment Commission

  • Technical High Schools (56 identified)

    • New Horizons (20), Pruden (4), Norfolk Tech (10), Virginia Beach (16), Chesapeake (6), Badger (0)

      Total Identified as of 5/11/2005: 279

1. Community

Colleges

2. Adult

Education

3. Other

Companies

(VEC)

  • Tech

  • Schools


Example business?

Orientation and Screening

  • Conduct Initial Orientation by providing Realistic Job Preview to each interested person.

  • Candidates passing minimal screening criteria are provided applications.

  • Validates Pre-Requisite Experience as required and provides copy of skills assessment/test.

  • Ensure application completion

  • Classifies Recruit

  • Provide Recruit with Hiring Process Information and Tracking Sheet

Orient,

Screen

&

Identify

Candidates


Example candidate classifications
Example business?Candidate Classifications

  • Hire Now: Exceeds All Criteria

  • Hire: Meets All Criteria

  • Near Hire: Will meet All Criteria within 30 days with self-directed development

  • Far Hire: Will meet All Criteria within 120-180 days with self-directed development

  • No Hire: Will not meet minimum criteria for at least 6 months

  • Best Athlete

  • Has unique skills outside of current Job Search Requirements


Realistic job previews

Realistic Job Previews business?

Link to full RJP


Interview or try out
Interview or “Try Out” business?

Goal: Create a situation where the employee and the company can determine if the new employee has the skills and attitudes to be successful.

Features:

  • Plant Tour

  • Skills Assessment

  • Attitude Assessment

  • Hiring Decision

  • New Teammate Skills Development Plan


New teammate orientation
New Teammate Orientation business?

Goal: Create a “world class”first day.

  • New Teammate Leaves after first day thinking:

    • Wow! These guys really know what they are doing.

    • I’ve talked to the Plant Manager and my Boss.

    • I understand what we do here and how I fit in.

    • I know the how to work safely. OSHA Training.(Plant Focused)

    • I know what I need to do to be successful in this company.

    • I have a hard hat and a locker with my name on it.

    • I know I will get paid.

    • I know what I need to do tomorrow.

    • Let’s go to work!


World class 1 st day
World Class 1 business?st Day

Thursday’s

9:30 AM: Arrive at Plant

  • Met by Production Manager

  • Turn HR New Hire Packet to HR Rep

  • Issued Locker with Name on it

  • Issued Helmet with Name on it

  • Digital Picture taken

  • Issued Equipment

  • Check Employee provided PPE

    9:45 AM: Plant Tour and Safety Training with Production Manager

  • OSHA Safety Training Checklist Completed and placed in Employee Training File

    11:45 AM: Meet Plant Manager

  • Lunch

  • Introduction to company and general information about the corporation, history, products, markets, and facilities

  • Expose the new employee to Culture, Values, what the company does, how the company makes money, and where the employee fits in the bigger picture


World class 1 st day1
World Class 1 business?st Day

Thursday’s

1:00 PM: Quality Overview

  • Plant Tour with Quality Manager

  • General training on quality

  • Individual expectations, metrics, quality control, quality process

    2:00 PM: Process Overview

  • Plant Tour with Continuous Improvement Manager;

  • Walks the Value Stream; Sees the Big Picture

  • Introduction to Lean Training.

  • Continuous Improvement Responsibilities

    4:00 PM: Administrative Questions and Answers

  • Verification of In-processing with HR Manager


Value stream map to tasks to cell map
Value Stream Map to Tasks to Cell Map business?

Cells

Tasks

Value Stream Map


Common skills training
Common Skills Training business?

Goal: Using Subject Matter Experts to bring all new Welders to competency on all Common Tasks

Feature:Welding Trainer creates Individual Training Plan between interview and 1st training day.

Subject Areas:

  • Production Terms

  • Use a Ruler

  • Cranes Safety and Operations

  • Equipment/Tools Operations and Maintenance

  • Visual Inspection

  • OSHA (Job Focused)

  • Quality Assurance


Cell training
Cell Training business?

Goal: Improve “Time to Competency”

Features:

  • Common Skills developed during Common Welding Training

  • Train “just in time and just enough” for 1st job requirements

  • Uses Team Leaders as trainers

  • 30-60-90 Feedback to assess performance and update skills development record


Management system

Management System business?

  • Goal: Develop Data Driven Systems to Manage the Process

  • Features:

    • Monthly Reports and Management Meetings

    • Specific Metrics Reported:

      • Cycle Time (Responsiveness)

      • Touch Time (Cost)

      • In Process Flow

      • Turnover

      • Absenteeism

    • Measures Head Count to Production

    • Predictive Measures Focus


Focus on the applicant
Focus on the Applicant business?

Interview and Test Schedule

  • Pre-schedule appointment times to reduce cycle time.

  • Understand you company’s interview and test capacity.

  • Must support the Applicants Schedule NOT just making things easy for the interviewers.

  • May require 2nd Shift/Weekend availability for interviews and tests to support currently employed workers.


Example common skills training
Example business?Common Skills Training

Trainer implements the tailored Individual Development Plan developed at the Interview and Skills Assessment.

Example Learner Based Training Lesson Outline:

  • Production Terms and Language

  • Use of Personal Protective Equipment (PPE)

  • Reading Measurements to the 1/16” Detail

  • Parts of a Weld and Weld Bead Placement

  • Weld Quality

  • Blueprints and Weld Symbols

  • Welding Equipment/Maintenance; Use of Cranes and Rigging

  • Quality Assurance

    NOTE: A Web Based Platform so that New Hires can review and pre-train prior to Welding Skills Interview or Training. Can also be used as a post hiring support tool.


1 business?st Job

Skills

Development

Example

Cell Training

Goal: Seamlessly integrate new Hire into the production line and reduce “Time to Competency”

Sequence List:

  • New Team Mate meets with 1st Line Supervisors/Cell Trainers

  • 1st Line Supervisor uses Welder Skills Development Record to develop Cell Training Program

  • Supervisors use 30-60-90 day Feedback System to assess performance and update skills development record.

  • New Team Mate and 1st Line Supervisor conduct a Goal Alignment session and agree on initial Career Path and Production Skills Training Plan.


Management system1

Management System business?

  • Goal: Develop Data Driven Systems to Manage the Process

  • Features:

    • Monthly Reports and Management Meetings

    • Specific Metrics Reported:

      • Cycle Time (Responsiveness)

      • Touch Time (Cost)

      • In Process Flow

      • Turnover

      • Absenteeism

    • Measures Head Count to Production

    • Predictive Measures Focus


Applicant Flow business?

Dec. 12Nov. 7Delta

Applicant Flow: Page 1 of 2


Applicant Flow business?

Dec. 12Nov. 7Delta

Applicant Flow: Page 2 of 2


Hiring cycle times
Hiring Cycle Times business?

- All Cycle Times measured in Calendar Days -


Hiring cycle attrition
Hiring Cycle Attrition business?

Total Hiring Cycle Attrition: 72 of 104 Candidates



Successful program results
Successful Program Results business?

March 2004/July 2006

  • Labor Requirement to 1st Day (Lead Time):

    • 10.3 weeks / 1 week

  • Cost per Hire:

    • $2,008 / $500

  • 1st Year Attrition Rate:

    • 59% / 6 %

    • Overall Attrition Rate reduced by 31%

  • Production Efficiency: Labor Hours/Bucket

    • 29.42 / 23.98


Big picture goal

Big Picture Goal business?

If you design and implement a good On Boarding Program you will put yourself out of the On Boarding business…

For all the right reasons!


Take a blue slip2

Take a Blue Slip! business?

What data to you regularly receive during your company’s on boarding process?

What is one way you could change your “on boarding” process today?

If you changed the process, how do you know it would be better?


The lie of modern manufacturing

The Lie of Modern Manufacturing business?

Simon Nance

Manager, Training and Development

STIHL

Virginia Beach, Virginia


Lunch and networking

Lunch business?and Networking


Production skills development building the depth chart

Production Skills Development business?“Building the Depth Chart”

How to…

Increase Productivity,

Control Head Count,

and Improve Capacity


Or… business?

If you have $1 dollar to spend…

  • Hire a new employee.

  • Invest in your current high potential employee.


To answer this question
To answer this question… business?

If after my first 12 weeks on the job; I am the best person you have ever hired tell me the story of the next 12 years of my life…


The depth chart
The Depth Chart business?

Visual Employee Management Tool

  • Employee Name and Picture

  • Skills they have demonstrated

  • Cell they are assigned to and qualified to work in.

  • Cell they are cross-trained in (Self Motivated Training)

  • Backed up by Web-Based Tracking System


Total distribution by job title
Total Distribution by Job Title business?

38 Labor Categories



Skill paths
Skill Paths business?

42 Labor Categories

8 Skill Paths

  • Aircraft Mechanic

  • Avionics/Electronics

  • Sheet Metal

  • Armament Mechanic

  • Technical Inspection

  • Test Pilot

  • Maintenance Support

    • AMSS (Hydraulics, Machinist, etc.)

    • Specialized Mechanics

    • Records Clerks/Production Control

    • Supply and Logistics

  • Other Support

    • Human Resources

    • Information Technology

    • Finance

    • Administration

    • Environment Health and Services

    • Training

    • Facility Support (Monitors, Service Attendants, Janitors)


  • Training management system
    Training Management System business?

    • Allow Supervisors to get a real-time oversight of the training status of each of their workers.

    • Coordinated effort between IT, HR, the Training Staff, and Production Leaders.

    • The goal is to create a system where all the training and job experience of each employee is retained and accessible to Supervisors and Managers for better job matching.


    Life cycle skills development program1
    Life Cycle Skills business?Development Program

    Management

    Skills

    “A Guide”

    Leader Development Training

    Complex Tasks

    Leader Skills Training

    Pre-Employment

    V

    Employment Skills

    Mentor

    Skills

    Basic

    Skills

    Intermediate Skills

    Advanced Skills

    Soft Skills

    Development

    IV

    Initial Entry

    Skills Training

    Basic

    Training

    Intermediate

    Training

    Advanced

    Training

    III

    Practical Application/Coaching Evaluation

    Practical Application/Coaching Evaluation

    Practical Application/Coaching Evaluation

    Skills Evaluation

    II

    Experienced Personnel

    I

    Employee Career

    Competency Level


    Right person right job move the employee in the right direction
    Right Person/Right Job business? Move the Employee in the Right Direction

    Go To Person

    High Quantity

    High Quality

    High Quantity

    Low Quality

    Quantity of Work

    Low Quantity

    Low Quality

    Low Quantity

    High Quality

    New Person

    Quality of Work

    What is our plan to move our people along the correct developmental path?


    Strategic objectives
    Strategic Objectives business?

    • Training is NOT about INDIVIDUAL CHOICE. We Care!

    • Job Performance and Training are Seamless

    • Train on the Same Equipment, with the Same People, Under the Same Conditions, to the Same Standard on the Job Site

    • Reduce Time and Effort Between Subject Matter Experts and Users

    • Get the Most Value from Training/Education Dollars

    • People drive Skills Based Requirements

    You can be perfectly trained and absolutely unproductive!


    People focused training
    People Focused Training business?

    • Every employee is on a Career Path

    • The Career Path is agreed to by the employee and the supervisor based upon needs of the company, the potential of the individual and the employee desires and aspirations

    • The Career Path drives skills required:

      • To Meet required training, certifications, licensing for current job.

      • To Improve Productivity on Current Job

      • To Meet minimum competency level for Future Job

      • To provide for Employee Driven Self-Development Training and Education

  • Training does not exist unless a Manager creates an “order”

  • The Manager then selects the most appropriate delivery method based upon their specific operational circumstance.

  • The Training is delivered via the most resource efficient and effective method.

  • The Training is evaluated and recorded

  • The Employee’s Skills Record and Career Path Map is updated.


  • Goal alignment system

    Organizational Goals business?

    Cost

    Schedule

    Quality

    Safety

    Individual Goals

    Compensation

    Opportunities

    Responsibility

    Work Environment

    Recognition

    Goal Alignment System

    Led

    Led

    Leader

    Led

    Led

    Goal

    Alignment

    Awareness

    Communication

    Performance Reviews

    Individual

    Development

    Plans

    Individual

    Development

    Plans

    Individual

    Development

    Plans

    Resources

    Required


    Developmental plans
    Developmental Plans business?

    • Everyone has them!

    • Consider education, experience, training

    • Aligns Team Mate potential with organizational needs

    • Focused on the Mission Essential Tasks derived directly from the Value Stream Map

    • Provides measurable outcomes to monitor individual progress.

    • Are the “White Space” between Performance Reviews

    • Drive Training and Development budgeting and resources requirements based upon People NOT Program Focus


    Training program overview
    Training Program business?Overview

    Employee Skill Path

    Hiring

    On Boarding

    • Skill Paths

    • Mechanic

    • Assembly

    • Sheet Metal

    • Material Handler

    • Technical Inspection

    • Maintenance

    • Production Control

    Common Skills

    Training

    What every employee

    needs to know

    Cell

    Training

    Skills to do 1st Job

    Intermediate Skills

    Training

    Skills to do second and

    third job

    Lead/Advanced

    Skills Training

    Skills to Teach Others

    the Job

    Master Mechanic

    Mentor

    Tech Specialist


    Production skills training guidelines
    Production Skills business?Training Guidelines

    • Leaders are responsible for the training of their subordinates.

    • Training programs must be based on the tempo of operations and the resources available to train.

    • The majority of the training must occur on the job in conjunction with production work.

    • Lengthy training events that take the employee away from the worksite cannot be considered.

    • Movement from Process to Process must be closely monitored and linked to Skill Path tracking. A Skills inventory must accompany each transfer – just like a tool box.

    • There must be a clear articulation of what skills the employee has when the transfer is made.


    Effort vs competency in learning
    Effort vs. Competency in Learning business?

    • “I know” skill:

      • Exchange of Information

    • “I can do” skill:

      • Performance based Instruction

      • Skills transfer

      • Subject Matter Experts observe and validate competency

    • “I can adopt and apply” skill:

      • The actual performance requirement

      • Linked to Skills Based Performance Assessments


    Skills transfer
    Skills Transfer business?

    Training

    System

    Subject Matter Experts

    Standardized Work

    Training

    Audience

    Those Who Have

    the Information

    Those Who Need

    the Information


    Common training
    Common Training business?

    • Skills required by every person regardless of Process 

    • May be hiring pre-requisites

    • A Skills Demonstration Checklist validates performance prior to arrival in production area

    • 1st Line Supervisor verifies


    Basic skills training
    Basic Skills Training business?

    • Those Baseline Skills required by the specific process or production area

    • Trainer creates Individual Training Plan between interview skills assessment and during Common Training

    • Train “just in time and just enough” for 1st job requirements

    • Use Production Subject Matter Experts as trainers

    • 30-60-90 Feedback to assess performance and update skills development record


    Basic skills training outline
    Basic Skills Training Outline business?

    • Cell Specific Terms

    • Cell Specific Procedures and Job Instructions

    • Material Handling Equipment Safety and Operations

    • Tools Operations and Maintenance

    • OSHA (Job Focused)

    • Lean for Hourly Workers; Identifying Waste and Continuous Improvement

    • Quality Assurance


    Intermediate training
    Intermediate Training business?

    • Training to develop Competency. 

    • Focused on creating agile workforce

    • Training based on normal workplace opportunities

    • Under the direction of the 1st Line Supervisor who is “Recognizing Teachable Moments”

    • 1st Line Supervisor recording increased skills proficiency by process.  


    Advanced training
    Advanced Training business?

    • Training to develop Masters 

    • Training based on normal workplace opportunities and focused coaching events

    • Under the direction of the current Master

    • 1st Line Supervisor recording increased skills proficiency by process

    • Requires movement across processes  


    If i only have one guy show up for work i want to be able to build an entire bucket

    Strategic Goal business?

    “If I only have one guy show up for work I want to be able to build an entire bucket”

    Dick Dale

    Operations Manager


    Churn

    Churn business?

    Sucking Cost Invisibly!


    Churn1
    Churn business?

    Definition: Percentage of Workforce scheduled to work that day are present to perform the work in the assigned areas.

    • Scheduled: The reaction time to prepare on “On Boarding” Plan to accelerate the transition time to competency of new teammate. Usually caused by external churn factors; Promotion, Transfer, Expansion, or Downsizing Initiatives

    • Unscheduled: The Leaders confidence level that the teammates they planned to work that day actually showed up to work. Usually caused by internal churn factors; sickness, vacation, and absenteeism.

    Unmanaged Churn Reduces Trust!


    Causes

    Individual Induced: business?

    Sick

    Appointment

    Work Schedule

    Lifestyle

    Apathy

    Vacation

    Don’t Like My Boss

    Looking for New Job

    Family Crisis

    Organization Induced:

    Promoted

    Re-assigned

    Training

    Personnel Policies

    Required Meetings

    Additional Duties

    Business Travel

    Process Changes

    Transferred

    Causes


    Churn good news bad news
    Churn business?Good News - Bad News

    • Bad News:

      • Reactively; Taken Individually or “One at a Time”

      • Crisis of the Day approach

      • Just get through…

      • “Do No Harm” is measure of success

    • Good News:

      • Proactively; Taken Systematically

      • Opportunity to Change Culture

      • Increases Informal Communication Networks

      • Builds Trust

      • Every “Churn” is a Developmental Opportunity

      • Lean Training Opportunity: Understanding the Value Stream both Horizontally and Vertically.


    Transition acceleration
    Transition Acceleration business?

    Time

    Quality

    Level of Effort

    Future Job

    Current Job

    Current State:

    How long from assignment to competency?


    Leading and lagging indicators
    Leading and Lagging Indicators business?

    • Leading:

      • Scheduled vs. Unscheduled Churn Data

      • Benchstrength Depth

      • Engagement Levels

    • Lagging:

      • Cost, Schedule, Quality, Safety

      • Workforce Attrition

      • Increased Absenteeism


    Churn impact
    Churn Impact business?

    Do the Math!

    • Increased Cost

    • Behind Schedule

    • Reduced Quality

    • Increased Safety Risk/Incidents

    • Increased Leader Job Redundancy

    • Decreases Confidence in Senior Leadership


    Churn happens
    Churn Happens! business?

    Churn Impact Reduction Strategy

    Every Teammate who is not performing their normal work in their normal area requires an “On Boarding” event.

    On Boarding:

    Start: Identifying “Churn”

    Stop: Teammate Competent in New Job

    Metric: Time to Competency

    Best Case: Minutes

    Worst Case: Never


    Early interventions
    Early Interventions business?

    • Better Job Matching

    • Leverage Developmental Opportunities

    • Increase reaction time where possible

    • Understand Churn caused internally and externally

    • Information System informed “Depth Chart”


    Scheduled churn pipelines
    Scheduled Churn business? Pipelines

    • Work Overtime

    • Dual Task

    • Assign from within the same Process

    • Assign from within the Company

    • Temp Labor

      Key Questions:

      What is the Volume of each Pipeline?

      What is the Lead Time of each Pipeline?

      What is the organizational Cause and Effect?


    Each pipeline has a different mean lead time
    Each Pipeline has a different business?Mean Lead Time

    Considerations:

    • Expected Competency Level

    • Distribution of Labor within organization

    • Expected assignment of new employees

    • Work Area Complexity

    • Availability of High Performers as resources during “On-Boarding” period

    • Match-Up with Leader


    Working the sums
    Working the Sums business?

    • Ramp Up Schedule by Area

      • Future State Requirement (Available)

    • Baseline Current State

      • Current State (Available)

    • Pipeline Volume

      • How many in each pipeline? (Available)

    • Define Expected Competency Level at First Hour

      • Time and Resources Required Pre-Assignment

    • Define On-Boarding Plan

      • Focus in reduce “Time to Competency”


    Leader churn
    Leader Churn business?

    Definition: Percentage of Leaders assigned to work that day are present to perform the work in the assigned areas.

    • Scheduled: The reaction time to prepare on “On Boarding” Plan to accelerate the transition time to competency of new leaders. Usually caused by external churn factors; Promotion, Transfer, Expansion, or Downsizing Initiatives

    • Unscheduled: The Leaders Leader confidence level that the Leaders they planned to work that day actually showed up to work. Usually caused by internal churn factors; sickness, vacation, and absenteeism.

    Unmanaged Leader Churn Reduces Trust!


    Early interventions1
    Early Interventions business?

    • Better Leader Job Matching

    • Leverage Developmental Opportunities

    • Increase reaction time where possible

    • Understand Churn caused internally and externally

    • Information System informed “Depth Chart”


    The leader development challenge playing to win

    The Leader Development Challenge business?“Playing to Win!”


    If people are hard leaders are harder
    If People are Hard! business?Leaders are Harder!!

    • Everyone is at a different place developmentally

    • Everyone must take responsibility for their own Development; It is a High Performance Behavior

    • Everyone will not always meet our standards

    • We must set behaviorally defined high standards

    • Create a “Top Down Culture” of continuous improvement and communications

    • Bell Curves are unacceptable


    Business performance leading indicators1
    Business Performance business?Leading Indicators

    1st Line Supervisors:

    • Responsible for producing “Customer Value”

    • Are held accountable for production requirements derived directly from the Value Stream

    • They are responsible for getting “8 for 8” from the hourly workforce

    • Usually in their first leadership position

    • Work all three shifts

    • Blending of technical and people skills is required

    • Performance is directly related to their Manager’s ability to lead them.


    Agenda
    Agenda business?

    • The Theory

    • Improving Current Leader Performance

    • Building Future Leaders


    The leading indicator of future business performance

    The business? Leading Indicator of Future Business Performance…

    …the strength of the Leader to Led Linkage.


    The gallup path to business success
    The Gallup Path to Business Success business?

    Real Profit

    Increase

    Stock

    Increase

    Sustainable

    Growth

    Business Success

    Measures:

    - Productivity,

    - Profitability,

    - Employee Retention

    - Customer Satisfaction

    In-Group/Engaged

    Employees

    Engaged

    Customers

    Great

    Leaders

    Identify

    Individual

    Strengths

    The

    Right Fit

    People

    Enter

    Here


    Opportunity for improvement1
    Opportunity for Improvement business?

    • 25% of the working population are ignored by their supervisor

      • Actively Disengaged: 40% of them are in their workplace

      • 58% are Not Engaged

      • 2% are Engaged

    Source: Gallup


    Core business data element1
    Core Business Data Element business?

    Project Plans

    and

    Labor Estimates

    Leader

    Assigning

    Charge #s &

    Approving Time

    Assigning Work to Crew in Discrete Increments and Measuring Goal Accomplishment


    The 1 st line supervisor challenge
    The 1 business?st Line Supervisor Challenge

    Orders

    Success = Orders Completed within Cost, on Schedule, Safely, with no Re-Work

    Materials

    Products

    1st Line

    Supervisor

    Machines

    People

    • 1st Line Supervisors Provide:

    • Clear Goal Definition derived from Work Packages or Orders

    • Materials and Equipment to accomplish the task

    • People with the Right Qualifications and Skills

    • Leadership: Planning, Organizational Energy and Momentum


    The rubber meets the road
    The Rubber Meets the Road business?

    Work

    Packages/

    Orders

    Equipment

    and Tools

    Success = Orders Completed within Cost, on Schedule, Safely, with no Re-Work

    New Folks

    “Go To”

    Operators

    Products

    Materials

    Training

    and

    Qualifications

    Machines


    1st line supervisor challenge
    1st Line Supervisor Challenge business?

    Create an situation for the Go To Operators to be successful by ensuring all factors

    are present at the same time or….THEY BECOME PROBLEM SOLVERS

    Work

    Packages/

    Orders

    Equipment

    and Tools

    New Guys

    “Go To”

    Operators

    Products

    1st Line Supervisor =

    PROBLEM

    SOLVERS

    Materials

    Success = Orders Completed within

    Cost, on Schedule, Safely, with no Re-Work

    Training

    and

    Qualifications

    Machines


    Goal alignment system1

    Organizational Goals business?

    Cost

    Schedule

    Quality

    Safety

    Individual Goals

    Compensation

    Opportunities

    Responsibility

    Work Environment

    Recognition

    Goal Alignment System

    Led

    Led

    Leader

    Led

    Led

    Goal

    Alignment

    Awareness

    Communication

    Performance Reviews

    Individual

    Development

    Plans

    Individual

    Development

    Plans

    Individual

    Development

    Plans

    Resources

    Required


    Gallup path to business success organizing for success
    Gallup Path to Business Success business?Organizing for Success

    Real Profit

    Increase

    Stock

    Increase

    Sustainable

    Growth

    Business Success

    Measures:

    - Productivity,

    - Profitability,

    - Employee Retention

    - Customer Satisfaction

    Engaged

    Employees

    Engaged

    Customers

    Identify

    Individual

    Strengths

    Great

    Leaders

    The

    Right Fit

    People

    Enter

    Here


    Employee ownership requires trust1

    Leaders will provide: business?

    Clear direction

    Appropriate Resources

    Expert Advice

    Feedback and Coaching

    Growth Opportunities

    Reward and Praise

    Fair Treatment

    Led will:

    Treat the company like their own

    Hold each other accountable for doing the right thing

    Give early warning of problems

    Have the courage to ask questions

    Employee Ownership Requires Trust


    Organizational scheme leader is a big word
    Organizational Scheme business?“Leader is a BIG Word”

    GM

    OM

    OM

    OM

    GM: General Manager 10

    OM: Operations Manager 30

    SS: Shift Supervisor 60

    1S: 1st Line Supervisor 160

    MU: Make Up Supervisor 100

    GT: Go To Employee 500

    E: Employee 1600

    NE: New Employee 600

    SS

    SS

    SS

    1S

    1S

    1S

    GT

    MU

    GT

    NE

    NE

    Based Upon a Total Operational Headcount of 3060

    Vertical Dyad Linkage


    Leader development program1

    Current State business?

    Leader Development conducted informally or not at all.

    Usually best operators promoted to Supervisors

    Experience gained over time

    Many training courses available but not mapped to critical tasks.

    Undocumented program that is dependent on individual Management

    On the Job Training is ad hoc with few Training Materials available on the Job Site.

    Perfect State

    Systematic Approach to Leader Development

    Manager’s are the Primary Trainers with the right tools kit to develop their Supervisors

    Manager’s are responsible to tailor skill development to each individual Supervisor and each operational area.

    New Supervisors are methodically created so their First day is a High Performance Day top reduce time to competency

    Leader Development Programs synchronized and integrated directly with the Performance Review System

    Leader Development Program


    Behavior focus
    Behavior Focus business?

    • Skills and Attitudes are extremely difficult to describe, measure, or observe.

    • Behaviors are observable actions that can be replicated.

    • We KNOW how the Best Performers Behave!

    • Behaviors change Leads Culture change!


    Defining the current state
    Defining the Current State business?

    • Go find the High Performers

    • Find out what they do and don’t do everyday

    • Write it down

    • Agree on the Mission Essential Task List and High Performance Behaviors

    • Ensure Alignment with Business Goals and Value Stream

    • Compare all the Leaders behaviors to the High Performer behaviors

    • Manager’s and Supervisors Conduct Goal Alignment Sessions to validate current behaviors and identify improvement areas.

    • Analyze to define, defend, and distribute Performance Improvement resources

    • All Leader’s Continuously Improving Systematically



    Observable behavior example
    Observable Behavior business?Example

    Technically Competent:

    • High: 9/10 times when asked a question gives the right answer immediately and work continues.

    • Developmental: 5/10 times gives the right answer and tells the person they will get back with them with the right answer causing waste.

    • Dysfunctional: Gives the person the wrong answer causing positive harm to the organization.


    Tell me about the best 1 st line supervisor you know

    Tell me about the best 1 business?st Line Supervisor you know…

    Take a Blue Slip


    High performer 1 st line supervisor mission essential tasks
    High Performer business?1st Line SupervisorMission Essential Tasks

    • Demonstrates Leadership

    • Understands Manufacturing Process

    • Seeks Continuous Improvement

    • Plans Work

    • Communicates up the Chain

    • Communicates to Subordinates

    • Builds Teams

    • Technically Competent

    • Uses Technology

    • Develops Crew

    See Hand Out


    Develops subordinates
    Develops Subordinates business?

    • Recognizes Teachable moments: Constantly stopping and talking to subordinates with tips and best practices

    • When asks who is responsible for the training of their people says “Me!”

    • Realizes the “best training” occurs on the job when highly skilled people work with less skilled people: Matches novices with experts by design

    • Uses normal work flow as training opportunities

    • Has scheduled and record of formal counseling/feedback sessions with subordinates outside of normal job interface

    • Knows the Leadership Pipeline - their replacement; future leaders


    Designing leader development systems senior leader guidance
    Designing Leader Development Systems business?Senior Leader Guidance

    • Managers are the Primary Supervisor Trainers, Assessors, and Developers

    • Focuses on single value-added behaviors, techniques and procedures key to each Supervisor’s Success

    • Events will occur on the job site (If any, classroom should be reserved for only the most high value requirements)

    • Focus will be to provide Managers with tools to more effectively train Supervisors (Performance Support System)

    • Focus on sharing High Performer “Best Practices” with others

    • Ensure we get feedback directly from the Supervisors

    • We are ALL about helping our leaders be better at their work


    Goal alignment system2

    Organizational Goals business?

    Cost

    Schedule

    Quality

    Safety

    Individual Goals

    Compensation

    Opportunities

    Responsibility

    Work Environment

    Recognition

    Goal Alignment System

    Led

    Led

    Leader

    Led

    Led

    Goal

    Alignment

    Awareness

    Communication

    Performance Reviews

    Individual

    Development

    Plans

    Individual

    Development

    Plans

    Individual

    Development

    Plans

    Resources

    Required


    Developmental plans1
    Developmental Plans business?

    • Everyone has them!

    • Consider education, experience, training

    • Aligns Leader potential with organizational needs

    • Focus on the High Performer Mission Essential Task List

    • Provide measurable outcomes to monitor individual progress.

    • Are the “White Space” between Performance Reviews

    • Drive Training and Development budgeting and resources requirements based upon People NOT Program Focus


    Program objective move employee to the left
    Program Objective business?Move Employee to the Left

    HIGH:

    All Leaders should be High Performing and displaying the behavior traits in this column. Developmental Plan to focus on sustaining performance

    DEVELOPMENTAL Leaders displaying the behavior traits in this column should be involved in a defined developmental plan. Focus on moving them to the left

    DYSFUNCTIONAL

    All Managers displaying the behavior traits in this column are creating harm in the organization. Behavior needs to be changed ASAP or the manager needs to leave.


    Does Not Know How to do the Task business?

    Send to Established Training Course

    Supervisor Developmental Strategy Matrix

    Task Coach – High Performing Supervisor/ Manager

    Knows How to do the task – needs On the Job Help

    Task Coach – High Performing Support Staff

    Initial Assessment

    Reassessment

    Knows the Job but has trouble “putting it all Together”

    Spend the Day with High Performing Supervisor at their Job Site

    ID Developmental Positions either up or down stream

    Knows their area but needs to Understand entire Value Stream

    ID Support Shadowing Opportunity


    Building the tool kit
    Building the Tool Kit business?

    Goal

    Alignment

    Session

    Developmental

    Assignments

    Access

    Procedures,

    Manuals,

    References

    Customized

    Courses

    Independent

    Study

    Mission

    Essential

    Task

    Commercial Off

    The Shelf

    Courses

    Tips and

    Best

    Practices

    Subject

    Matter

    Experts

    Scenarios

    EPSMs

    Coaches

    On the Job

    Low Cost

    Medium Cost

    High Cost

    ** Electronic Performance Support Modules


    Managers or first line supervisor who is first

    Managers business?orFirst Line SupervisorWho is First?

    Get the Managers on the right page first, then have them develop the First Line Supervisors


    Building future leaders

    Building Future Leaders business?

    Developing Bench Strength


    Leader churn1

    Leader Churn business?


    2 nd squadron 4 th cavalry squadron staff march 22 1991
    2 business?nd Squadron 4th Cavalry Squadron Staff - March 22, 1991


    2 nd squadron 4 th cavalry squadron staff january 1 1991
    2 business?nd Squadron 4th Cavalry Squadron Staff - January 1, 1991


    Foreman scheduled churn overview
    Foreman Scheduled Churn business?Overview

    Sep 2003: 69 Foreman

    Aug 2004: 61 Foreman

    • 8 Foreman rated in 2003 but not in 2004(Transferred, Promoted, Demoted, Retired)

    • 8 Foremen rated in 2004 but not in 2003 (New)

    • 16/61 = 26% Churn Rate

      Jun 2005: 45 Foreman

    • 15 Foremen rated in 2004 but not in 2005 (Transferred, Promoted, Demoted, Retired)

    • 1 Foremen rated in 2005 but not in 2004 (New)

    • 16/45 = 35% Leader Churn Rate

      Jan 2006: 33 Foreman

    • 14 Foremen rated in 2005 but not in 2006 (Transferred, Promoted, Demoted, Retired)

    • 4 Foremen rated in Jan 2006 but not in 2005 (New or returned from on loan)

    • 18/33 = 54% Leader Churn Rate


    Foreman internal unscheduled churn data
    Foreman Internal business?(Unscheduled)Churn Data

    Total Foreman = 33

    # of General Foreman Changes = 19 (58%)

    # of Area Changes = 9 (27%)

    Both General Foreman & Area = 7 (21%)


    Why dream teams fail
    Why Dream Teams Fail… business?

    • Lack of Trust

    • How do you build Trust?

      • Do what you say you are going to do

      • See the Big Picture

      • Continuous Goal Alignment

      • Communication

      • By playing the Game…Operations

    • Paradox: Trust by Nature Builds Slowly…We don’t have the time!


    Transition acceleration1
    Transition Acceleration business?

    Time

    Quality

    Level of Effort

    Future Job

    Current Job

    Current State:

    How long from assignment to competency?


    Leader lead time
    Leader Lead Time business?

    • Example Goal: Ensure Leaders come to competency with 4 weeks of 1st Day on the Job.

    • Factors:

      • Hiring Cycle Time: Job Requisition to 1st Day

      • Skills Requirements

      • Minimum Training Requirement

      • Coach/Mentor Availability

      • Hourly Labor Hiring

      • Job Flow/Production Schedule

      • Team Dynamics


    Working the blue lines
    Working the Blue Lines business?

    Operations Manager

    Current Shift Supervisor – Future Operations Manager

    Current Shift Supervisor– Current Job

    Current 1st Line Supervisor – Future Shift Supervisor

    Current 1st Line Supervisor – Current Job

    Current “Go To” Operator – Future 1st Line Supervisor


    Leadership pipelines
    Leadership Pipelines business?

    • Former Leaders

    • Transfers with Area Experience

    • Transfers without Area Experience

    • Pre-identified Emerging Potential Leaders (Succession Plan)

    • High Performing Mechanics/Employees

    • Product of the Hiring Process (Announcing Position, etc.)

    Each Pipeline has a different mean Lead Time


    Developmental phases
    Developmental Phases business?

    • Do the right things

    • Do the right things right

    • Do the right things better, faster and more effectively

    • Are we doing the right things? Re-defining the right things

    • Prepare for next career path position

      It is our Choice on when to place the New Leaders 1st Work Day…

    } Prior to 1st Day on Job


    New Leader On Boarding Program business?OVERVIEW

    “Bull Pen”

    “Warm Up”

    “Throwing Ks”

    “I Can Apply”

    “I Can Do”

    “I Know”

    • START: Individual Development Plan

    • Required Common Training Courses

    • Designated Training Courses depending on assignment

    • Orientation to AOR

    • Work with High Performer NOT in assigned area

    • Assigned to Manager

    • Coach performs 1st Skill Assessment

    • Orientation to Work Flow in 1st 30 days

    • Orientation to Job Site and Support Activities (PC, Planning, etc.)

    • Rehearses 1st Day and Chalk Talks 1st Week with Manager and Coach

    • KEY EVENT:

    • Leader First Day with Crew in Charge!

    • 90 Day Coaching Event

    • 30-60-90 Day Skills Assessment (Coach, Self, Manager)

    • Integrated with Performance Review Process

    Normal

    Developmental

    Process

    Competency

    Check

    Competency

    Check

    Gaining Manager Involvement


    Scenario exercise2

    Scenario Exercise business?

    A Leaders Perfect 1st Day


    Foreman Warm Up Scenario business?Scripting a High PerformanceFirst Day on the JobFirst Day is a Performance Day not a let’s see how it goes day


    1 st day preparation warm up
    1 business?st Day Preparation “Warm Up”

    1. Task: Plan Work – Conduct an analysis of the current jobs; current “checkbook” and schedule status; and who is working the jobs;

    • Warm Up Event: Works with Coach to “catch the bubble”, develops Work Plan, develop “Hot Jobs” List

    • Supporting Tasks: Understand Work Packages, Network with Key Players, Technically Competent

    • 1st Day Event: Issue Job Assignment for each mechanic at Start Up.

      2. Task: Lead by Example – Conduct 1st Day Start up Briefing with Crew; communicate personal style, establish ground rules, and goals.

    • Warm Up Event: Prepares first day speech and rehearses it with the Coach.

    • Supporting Tasks: Live the Values of the Company; Demonstrate Ownership of Work (Quality), Understand Union Contract, Gives Clear Direction to Subordinates.

    • 1st Day Event: Give 10 minute Start Up Briefing to entire crew.

      3. Task: Job Assignment (Match Jobs to People) – Conduct 1 on 1 assignment sessions with every mechanic on crew

    • Warm Up Event: Coach creates “role playing scenario” with own crew and rehearses/observes 1 on 1 session and provides feedback.

    • Supporting Tasks: Crew Development and Performance and Set Expectations and Provide Feedback (Pulls available personnel data and personal background information on entire crew prior to first day.)

    • 1st Day Event: Interact 1 on 1 with every mechanic on crew during first day to Assign Jobs, Set Expectations and Provide Feedback.


    1 st day preparation warm up1
    1 business?st Day Preparation “Warm Up”

    4. Task: Network with Key Players – Interface with Planning and PC

    • Warm Up Event: Coordinates/pre-briefs 1st Week Work Plan with Planning and PC under the direction of the Coach.

    • Supporting Tasks: Innovate, Understand Work Packages, Communicate Laterally, Network with Key Players, Technically Competent, Understand the Manufacturing Process

    • 1st Day Event: Before end of 1st Day update Key Players on “Hot Jobs” List

      5. Task: Communicate Up the Chain – Pre-Brief Supervisor prior to 1st Day and Out-Brief at end of day.

    • Warm Up Event: Meet with Supervisor to receive Supervisor guidance and direction with Coach. Conduct and analysis and back-brief Supervisor on 1st Day Plan.

    • Supporting Tasks: None

    • 1st Day Event: At end of first day report progress to Supervisor.

      6. Task: Administer Time and Accounting System – Pay crew

    • Warm Up Event: Pay Coaches Crew

    • Supporting Tasks: Use the Computer

    • 1st Day Event: Successfully Pay Crew

      7. Task: Job Assignment and Give Clear Directions to Subordinates, Setting Expectations

    • Warm Up Event: Complete focused Training and practice preparing Job Assignment Sheets

    • Supporting Tasks: Give Clear Directions to Subordinates

    • 1st Day Event: Issue Job Assignments and have a face-to-face conversation at the job about setting goals and stretch goals.


    1 st day preparation warm up2
    1 business?st Day Preparation “Warm Up”

    8. Task: Understands How to Train

    • Warm Up Event: Work with expert Coach on how to identifying teachable moments within the crew and understanding how to coach his/her crew to improve individual and crew performance

    • Supporting Tasks: Crew Development and Performance

    • 1st Day Event: Within 1st week conduct a goal alignment session with each hourly and then prepare an individual training plan.

      9. Task: Crew Development and Performance – Preview/Prepare Hourly Annual Performance Feedback Form

    • Warm Up Event: MPL/Foreman will go over the Hourly Performance Feedback Form

    • Supporting Tasks: Lead By Example, Network With Key Players, MOS Feedback

    • Prior to first day Foreman will contact SER and review employees attendance record

    • 1st Day Event: Within 1st Week go over the Hourly Performance Feedback form individually with each employee and discuss expectations

  • Task: Adhere to the Spirit and Intent of Union Contracts

    • Warm Up Event: Review Union Contract Articles with Coach or MPL

    • Supporting Task: Lead by Example

    • 1st Day Event: N/A


  • 1 st day preparation warm up3
    1 business?st Day Preparation “Warm Up”

    11. Task: Demonstrate Technical Competence

    • Warm Up Event: Review Leader Playbook

    • Supporting Task: Refer to and Explain Procedures, Interpret Work Packages, Interpret and Explain Drawings

    • 1st Day Event: N/A

  • Task: Innovate: Understand the Value Stream

    • Warm Up Event: Walk the Value Stream, Meet other Foreman in Area and visit like work centers. Review the Performance Improvement Process

    • Supporting Task: Network with Key Players, Communicate Laterally, Integrate Job into Shipbuilding Process

    • First Day Event: N/A


  • Break1

    Break business?



    Hypothesis
    Hypothesis business?

    If we transform our current Leaders into Lean Leaders with new responsibilities and behaviors; we will eliminate waste and improve business performance measured in “line of sight” savings.

    Outcome Metric:

    WASTE Identification and Elimination

    Process Metric:

    Improving Leader Behaviors


    1 st line supervisors
    1 business?st Line Supervisors

    “We have Leaders who are busier than ever but don’t seem to be making any progress.”

    Expected Outcomes:

    • Increase our leader's ability to solve more day-to-day problems correctly the first time.

    • Increasing our capacity to identify and eliminate Day-to-Day Waste.

    • Increasing our capability to identify and eliminate Systemic Waste to reduce the number of day-to-day problems.

    • Aligning our command, control, and communications structure from General Manager to 1st Line Supervisor to clearly define "line of sight" accountability, responsibility, and authority.


    Common current state issues
    Common Current State Issues business?

    • Operational Responsibilities have exploded yet no clear articulation of those roles and responsibilities

    • Leader’s can’t see the process through the data haze

    • Lots of stick if you mess up the data; very little carrot to be out in the patch

    • Cultural bias for solving today’s problems right now – not necessarily in priority order based upon biggest bang.

    • “5 Year Old Soccer” Crisis Management Culture creating waste in the Leadership Bandwidth


    Saying or Doing Leaders business?

    ACTIVITIESRESULTS

    I called the customer. I made the sale.

    I did the research, I wrote the report. I got the grant.

    I took the class. I learned how to give an effective presentation.

    I stayed on my diet. I lost 13 pounds.

    I tried. “Do or not do; there is no try.”

    -Master Yoda

    • From “The Speed of Trust,” By Stephen Covey

    • and Rebecca Merrill


    What triggers cultural change changed behaviors
    What Triggers Cultural Change? business?…changed Behaviors!

    • Target Leader Training:

      • Stop Doing a bunch of things not adding value

      • Start doing new things to add value

    • Senior Leader Training:

      • Setting the conditions for Target Leaders to succeed

      • Not forcing non-value added behaviors

    • Coaching to attain high performance


    The elephant systemic culture change
    The Elephant business?Systemic Culture Change

    Operations

    Manager

    Senior

    Executives

    1st Line

    Supervisor

    Shift

    Supervisor

    2007

    Support

    Leaders

    2008 ?

    2009 ?

    2010 ?

    2011 ?


    1 st line supervisor commitment win win terms
    1 business?st Line Supervisor Commitment“Win-Win” Terms

    • If the Senior Leaders support the changes to become Lean Leaders then…

      • I will change my behavior to reflect the Lean Leader Behaviors taught to me in the Training Program

      • I will identify and eliminate waste in my area of responsibility

      • I will improve my business performance


    Senior leader commitment win win terms
    Senior Leader Commitment business? “Win-Win” Terms

    • If the 1st Line Supervisors change their behaviors to become Lean Leaders then…

      • The Senior’s will create a better condition for the 1st Line Supervisor by also identifying and eliminating waste from their position in the organization.

      • The Senior’s will present their proposal for the 1st Line Supervisors for their approval.

      • Once approved the Senior’s will report out to the 1st Line Supervisors on the same program management.


    End state
    “End State” business?

    • Increased Trust between the Leader and the Led

    • Increased Trust, increases SPEED and decreases COST!


    Lean leader mission essential tasks
    Lean Leader business?Mission Essential Tasks

    • Knows their Process

    • Knows their Customers and Suppliers (SIPOC)

    • Identifies Day to Day and Systemic Waste

    • Prioritization

    • Eliminates Waste & Improves Business Performance

    • Engages Team Mates


    Creating the lean leaders system
    Creating the Lean Leaders System business?

    Senior Leader Involvement

    “What’s Different”

    Development

    Training

    Structured Gemba

    Structured Coaching


    Training and gemba outline

    What do I need to Change? business?

    Examples:

    SIPOC out of Desk Drawer on onto Desk Top

    Creating a Stable Process

    Knowing how to Identify waste

    Attacking waste in Priority order

    Tools required to make the Change

    Training and Gemba Outline

    Tell Me

    Show Me

    Training

    Structured Gemba

    • How do I make the Change?

      • 10 Meter Circle with Lean Sensei and Leader

      • Structured Scenario

      • Model the Behaviors

      • Defined Outcomes for each Attribute

    • Ensure the Leader can use the tools

    • Link the Outcomes of each session to follow on sessions – build the correct mind map


    Senior leader involvement structure
    Senior Leader Involvement Structure business?

    Senior Leader Involvement

    Define “What’s Different”

    Walk the Gemba

    Walk the Gemba

    Walk the Gemba

    “What’s Different”

    Development

    Training

    Structured Gemba

    Walk the Gemba

    Senior Leader Level Waste Identification

    Training

    Structured Gemba

    Senior Leader Level Waste Identification and Elimination

    Vet the Training and Gemba

    Training

    Structured Gemba

    Senior Leader Level Waste Identification and Elimination

    Training

    Structured Gemba

    Structured Coaching

    Senior Leader Level Waste Identification and Elimination

    • Goal: Build the Trust

    • Contracts between Senior Leaders and Process Supervisors

    • You work your lane and I will support you by doing the same in mine

    Senior Leader Level Waste Elimination


    Coaching structure
    Coaching Structure business?

    Senior Leader Involvement

    Training

    Structured Gemba

    Waste Elimination and Data Collection

    Training

    Structured Gemba

    Training

    Structured Gemba

    Training

    Structured Gemba

    Coaching

    (Steps 1 - 4)

    Coaching

    (Steps 5 – 7)

    • Goal Alignment Session

    • Coaching Matching/Line-Up and Resource Session

    • Line-Up and Resource Review Approval

    • Coaching Group Kick Off Meeting

    Coaching

    (Steps 8 – 11)

    • Individual Coaching Event Focus Sessions

    • Attribute Focused Coaching

    • Vice President Gemba

    • Individual Post Coaching Sessions

    • Leaders Coaching Results Presentation to VPO

    • Leaders (2 levels up) out brief with Coached Leader

    • Coaching Process Continuous Improvement discussions


    Keys to success
    Keys to Success business?

    • TRUST

      • Character and Competency

      • Speed and Cost

      • Communication and Commitment

    • Buy In:

      • 1st Line Supervisors: Willing to change.

      • 1st Line Supervisors Leaders : Accept responsibility to lead the change (Culture and Change)

      • Senior Executive Team:

        • Engagement and Management Rigor via the Coaching Process

        • Demonstrate our Commitment to the PS.

    • Execution Flexibility

      • Recognize Opportunities

      • Avoid Minefields

    • Document 1st then Train and Coach

    • Hard Core Program Management Measuring:

      • Cost

      • Schedule

      • Quality

      • Return on Investment


    Golden rule of leadership

    Golden Rule of Leadership business?

    they

    Treat your subordinates how you would like to be treated.

    …1 at a time!



    • Quick Look Idea business?

    • In order to “Get Better,” you might consider doing one of the following:

    • Go talk to your direct reports, to your customers, to members of your team, or members of your family. Ask three simple questions:

      • What is one thing we are now doing that you think we should continue doing?

      • What is one thing we are now doing that you think we should stop doing?

      • What is one thing we are not now doing that you think we should start doing?

    • The next time you make a mistake, rather than agonizing over it, reframe it as feedback. Identify the learnings from it and ways you can improve your approach to get different results the next time.

    - From “The Speed of Trust,” By Stephen Covey

    and Rebecca Merrill


    Take a blue slip3
    Take a Blue Slip business?

    • Where is your challenge?

      • New Leaders

      • Current Leaders

    • What is your new leaders time to competency?

    • Is that acceptable?

    • Do your subordinates Trust You with the biggest decision you will ever make about them... Who they work for and who works for them!


    Take a blue slip4
    Take a Blue Slip business?

    • When was the last time you had a Goal Alignment Session with your direct reports?


    Closing
    Closing business?

    “I can’t control what they do on the field but I can control who does it…”

    Joe Gibbs, Washington Redskins

    “…And never give that away”

    Joe Barto


    Keith hornberger lean sensei

    Keith Hornberger business?

    Lean Sensei


    Keeping score putting it all together

    Keeping Score business?“Putting it all Together”


    When the ceo cfo says
    When the CEO/CFO says… business?

    OK… we see all the pieces, we understand the problem, we know this is critical to our business…

    “How much money do you need and when do you need it, and how will we know it made our business better?”


    Running the business
    Running the Business business?

    Income Statement:

    • Revenue:

    • Costs:

      • Direct and Indirect Labor Costs

      • Direct and Indirect Materials Costs

      • Facility and Operational Costs

      • Production Systems

      • Information Systems

      • Inventory

    Line of Sight Cost/Benefit Impact


    Waste targets

    Waste Targets business?

    Labor Costs

    Production

    Systems


    Labor costs
    Labor Costs business?

    What % of your revenue is associated with labor?

    • Direct Labor = 15%

    • Indirect Labor = 10%

    • Total Labor = 25%


    Labor cost analysis
    Labor Cost Analysis business?

    2006 Expected Revenue = $220 Million

    Projected Labor Cost (25%) = $55 Million

    Direct Labor

    • Total Direct Labor = $33 Million

    • Direct Labor Headcount = 1000

    • Annual Cost Per Full Time Equivalent = $33,000

      Indirect Labor

    • Total Direct Labor = $22 Million

    • Direct Labor Headcount = 500

    • Annual Cost Per Full Time Equivalent = $44,000


    Human capital management program components
    Human Capital Management Program business?Components

    • On Boarding

    • Current Workforce

    • Leader Development

    • Building Benchstrength

    • Executive Development

    Where do we start?


    Start where you get the biggest bang for the buck

    Start where you get the biggest bang for the buck! business?

    CFO Speak:

    Return on Investment


    Human capital managers 1 goal
    Human Capital Managers business?#1 Goal

    Strategic Goals: Improve Our Business Performance by:

    • Increasing Available Direct Labor

    • Decreasing Overhead Labor

      Tactical Goals:

    • Be Courageous

    • Put your money where your mouth is…

    • Become “Guerilla Budgeters” to demonstrate value

    • Obligate the $$$ before they you lose it!


    Budgeting
    Budgeting business?

    • Know the Budget Cycles

    • Timing is critical to access to resources

    • Keep the Years Straight

      • Implementation Year

      • Budgeting Year

      • Planning Year

      • Programming Year

    • New Start or Next Year?


    The numbers
    The Numbers business?


    Roi examples
    ROI Examples business?

    • On Boarding

    • Production Skills

    • Employee Engagement


    Example 1 on boarding

    EXAMPLE #1 business?On Boarding

    Return on Investment Analysis


    Retention business?

    Process

    Hiring

    Process

    Initial

    Training

    Probationary

    Period

    First Year

    Subsequent

    Years….

    1. Reduce Hiring Process Cost

    • Reduce Attrition Cost


    New hire release breakout
    New Hire Release Breakout business?

    Number

    Released

    Calendar Days


    Attrition reduction savings
    Attrition Reduction Savings business?

    Replacement Costs:$13,899

    • $747 hiring cost (wages for hiring staff)

    • $4,452 in Training Costs. $168 per training day multiplied by 26.5 training days

    • $1,950 in wages that were not productive hours. Based on an estimate of 37.5 days on the job learning what to do. Assumption that new employee was only 50% productive during this initial period.

    • $6750 in replacement costs Cost rolls up benefits, testing costs (drug, physical, skills) Workers Compensation, COBRA, and lost productivity during transition.


    Example analysis
    Example Analysis business?

    $10,000 ~ Estimated new hire costs (training, overhead, and HR admin costs, etc.)

    $5,000,000 ~ 500 new hires per year

    $2,000,000 Walk Out Cost ~ 40% New Hire Attrition Rate

    $250,000 ~ for every 5% Reduction of New Hire Attrition Rate


    Roi analysis
    ROI Analysis business?

    ROI Model based upon a combination of:

    • Overall Retention Rate

    • Earlier Attrition Time

      Overall Attrition Example:

    • $250,000 cost savings through a 5% reduction

    • 12 weeks = Average weeks to attrition

      Earlier Attrition Time:

    • If we can move the time to release earlier by 2 weeks due to better pre-hiring assessment, job awareness, and initial training then…

    • $1,000,000 ~ $1,000 per week per employee x 2 weeks x 500 employees

      Total Potential Annual Savings: $1,250,000


    Manufacturing turnover cost breakout
    Manufacturing Turnover Cost Breakout business?

    82.4% of Turnover Costs are in the Voluntary Quits Category

    11.8% of Turnover Costs are in the Retirement Category

    5.8% of Turnover Costs are in the Fired Category


    Example 2 production skills program

    EXAMPLE #2 business?Production Skills Program

    Return on Investment Analysis


    Understand the Cost of Training business?

    Overwhelming Cost of Training is Student Labor


    Production skills development goals

    Production Skills Development business?Goals

    Decrease the cost of training by reducing the time to train.

    Decrease time to competency (Improve the quality of training)

    Decrease Risk (Safety, Litigation, etc.)

    Align training capacity with Human Resources Labor Resource and Hiring Plan


    Current ojt assumption
    Current OJT Assumption business?

    • 64 Hours OJT per year for Four Years

      • Anecdotal reports from 1st Line Supervisors

      • 2080 hours per year – 64 hours represents 3% of the time for OJT

      • Non-Structured OJT much less efficient

    • Burdened Labor rate of $18.00 per hour


    Current and future state
    Current and Future State business?

    • Current

      • 161.5 Hours Skills Training

      • 40 hours initial Training

      • 64 hours of OJT each year for Four Years

      • Total of 457.5 Hours x $18/Hour = $8,235

    • Future

      • 137 Hours of Skills Training (15% Reduction)

      • 40 hours initial Training

      • 40 hours of SOJT Following Initial Training

      • 40 hours Intermediate Training

      • 40 hours of SOJT Following Intermediate Training

      • Total of 297 Hours = $5346

    • 35% Reduction


    By year savings
    By Year Savings business?

    Hours returned to Production 2004 – 2008: 48,630 Hours

    Savings 2004 – 2008: $875,340

    Note: 2003 Numbers on this chart represents savings that would have been realized this year if the program had already been implemented. 2003 numbers have not been included in any future ROI predictions.


    Intervention estimated costs
    Intervention business?Estimated Costs

    • 1 ea Primary Level 1 Instructor

      • $50,000

    • 1 ea Scenario Evaluator (Part Time)

      • $25,000

    • 10 (+2) Computer Lab

      • $30,000

    • 5 Scenario Work Areas

      • $50,000

    • Courseware Design and Implementation

      • $234,000

    • Metrics, Data Capture and Evaluation

      • $84,000

    • Program Management

      • $112,000

    • Automated Support Tool/IT Support

      • $5,000

    • 1st year Labor Costs

      • 40 hours x 100 New Hires x $20/Hour

      • $80,000

    • Total Costs of Intervention:

    • $670,000

    • Recurring cost:

    • Instructors

    • IT Support

    • Materials


    Return on investment
    Return on Investment business?

    $1,207,261: Total Projected Savings

    $670,000: Total Intervention Costs

    $537,261: 2006 Savings

    Break Even: Q3/2005


    Other tangible benefits
    Other Tangible Benefits business?

    • Aligned Training with actual Job Requirements

    • Production Skills Training will be aligned with production needs

    • Embedded competency evaluation process throughout

    • Complete review and updating of body of knowledge

    • Can be transferred to other areas as a Performance Support Tool for employees

    • Can be transferred to local Technical Schools


    Example 3 employee engagement

    EXAMPLE #3 business?Employee Engagement

    Leader Development Program

    Return on Investment


    Employee engagement
    Employee Engagement business?

    • Difficult to measure outright BUT…

    • It is NOT what they say but what they DO!

    • There are industry standard measures to reflect improved employee commitment

      • less process waste

      • decreased turnover

      • decreased safety incidents

      • decreased maintenance expense

      • fewer grievances

      • decreased absenteeism

      • reduced error rates, etc

    • We can calculate a cost for each one of these. 


    Company baseline
    Company Baseline business?

    How can I get to this kind of Savings?


    Reduce grievances union shop
    Reduce Grievances business?(Union Shop)





    Think strategically act tactically

    THINK Strategically…. business?…ACT Tactically

    2007-2010

    PPL Strategy

    Project Management

    and

    Measuring Business Impact

    2006

    PPL Program


    Strategy development a systems engineering approach
    Strategy Development business?“A Systems Engineering Approach”

    • What is the current process and cost? (Current State Map)

    • What does the perfect system look like? (Perfect State Map)

    • How do we get from here to there? Plan of Action and Milestones with Resources Required and Return on Investment Prediction

    • What does the future system(s) look like and how will we measure progress? Future State Map(s)


    Ppl strategy development must do s
    PPL Strategy Development business?Must Do’s

    • Choose early programs wisely. Early failure hurts credibility and damages morale.

    • Choose a Program core to the business to gain and maintain senior leader focus.

    • Define metrics to measure progress and sign up for goal accomplishment.

    • Develop detailed Plans of Action and Milestones.

    • COMMUNICATE the PLAN!

    • Execute, execute, execute…


    Ppl strategy must not do s
    PPL Strategy business?Must Not Do’s

    • Try to make us a training company

    • Break the bank

    • Make unrealistic promises

    • Have a negative impact on production


    Strategy supporting documents
    Strategy business?Supporting Documents

    • Planning Years: 2008-2009

      • A “year by year” plan of how to move from current state to future state.

      • Accounts that most Human Capital Programs require multi-year implementation to determine Pay Back/Return on Investment

    • Budget Year Proposals: 2007

      • A more detailed “Budget Year” plan in order to justify and defend resource requirements.

      • Includes a business review of the current programs as related to performance outcomes

      • Included New Start Proposals

    • Action Year Programs: 2006

      • Detailed Plan of Action and milestones for current year activities and events


    Human capital management strategy 2006 2009

    Human Capital Management Strategy business?2006-2009

    An Example


    Strategic initiatives
    Strategic Initiatives business?

    • On Boarding

    • Leader Development

    • Productivity Improvements

    • Team Building: Application of Lean Concepts to Cell Manufacturing


    1 on boarding

    Requisition Review business?

    Realistic Job Preview Creation

    Math and Reading Test

    Orientation Update

    Common Skills Training Program Development

    Word Class First Day Creation

    Structured OJT, 30-60-90 Evaluation

    180 Day Evaluation

    Analysis

    Complete Aug 2005

    Design

    Complete Sep 2005

    Development

    Complete Oct 2005

    Test

    Complete Dec 2005

    Roll Out

    Q1-Q3 2006

    Continuous Improvement

    Q4 2006 – Q4 2010

    1. On Boarding

    Components

    Timeline


    2 leader development

    Identification of Leader Levels business?

    Leader Developmental Plans

    First Line Supervisor Training

    Manager Training

    Succession Planning

    Analysis

    Complete Dec 2005

    Design

    Q1 2006

    Development

    Q2-Q3 2006

    Test

    Q4 2006

    Roll Out

    Q1 2007

    Continuous Improvement

    Q2 2007 – Q4 2010

    2. Leader Development

    Components

    Timeline


    3 production skills improvements

    Depth Chart business?

    External Training Courses

    Formal Cross Training

    Automated Tracking - skills to job

    Hip Pocket Training

    Skills Assessment of Current Workforce

    Analysis

    Q2 2006

    Design

    Q3 2006

    Development

    Q4 2006

    Test

    Q1 2007

    Roll Out

    Q2 2007

    Continuous Improvement

    Q3 2007 – Q4 2010

    3. Production Skills Improvements

    Components

    Timeline


    4 team building application of lean concepts to cell manufacturing

    Production Teams/Cells business?

    Team Based Operations

    Cross Functional Teams

    Analysis

    Q3 2007

    Design

    Q4 2007 – Q1 2008

    Development

    Q2-Q3 2008

    Test

    Q4 2008 – Q1 2009

    Roll Out

    Q2-Q3 2009

    Continuous Improvement

    Q4 2009 – Q4 2010

    4. Team Building: Application of Lean Concepts to Cell Manufacturing

    Components

    Timeline


    Human capital management strategy q2 2005 q4 2008
    Human Capital Management Strategy business?Q2/2005 – Q4/2008

    Q2/2005 On Boarding Roll Out Q1/2006

    Q3/2005 Leader Development Roll Out Q1/2007

    Q2/2006 Production Skills Improvements Roll Out Q2/2007

    Q3/2007 Team Building TBD


    The bottom line
    The Bottom Line… business?

    • To Win and Win Big is the Business of People. You must play the game.

    • To play you must know the rules.

    • Understanding and applying ROI Evaluation Analysis is a core skill to play the game.

    • Skills, Knowledge, and a detailed Plan = Courage

    • Turf, Ego, and Money and at the end of the day…


    End of day 1 whew

    End of Day 1 business?“Whew”


    Welcome to day 2

    Welcome to Day 2 business?


    Creative memories

    Creative Memories business?

    Overview and Plant Tour

    Bruce Boulton

    Operations Manager


    Plant tour feedback

    Plant Tour business?Feedback

    Your “Gift” to Creative Memories


    Let s wrap it up

    Let’s Wrap It Up business?

    Review Workshop Outcomes

    Blue Slips…



    Human capital challenges
    Human Capital Challenges business?

    • No silver bullet…Big Problem with a lot of moving parts in a dynamic business environment

    • The commitment is to provide some real analysis to focus our efforts…not a “Good Idea of the Day” approach

    • The recommendations must make good business sense

    • We must be realistic and “eat the elephant” one bite at a time.

    • We must create a SYSTEM to:

      • Better communicate with our primary clients: the Production Managers

      • Synchronize and integrate our Projects and Programs with the normal business operations.

      • Give the Managers predictable yet responsive support


    Human capital managers goals
    Human Capital Managers business?Goals

    • Be the Plant Managers best resource for support

    • Shift our focus to becoming Human Capital Planning and Support experts while maintaining the “HR Administrative Mechanics”

    • Link the Corporate Strategy to the Human Capital Management Program

    • Must be long range thinkers… People are multi-year projects-- in fact Life Long Projects

    • Do not be a part of the problem!


    Human capital management success principles1
    Human Capital Management business?Success Principles

    • Business Focus (People, Process, Equipment + Material = Products)

    • Centralized planning as a team, but execute as close to the floor as possible

    • Senior Leaders must personally engage ensuring business affect

    • P&L Managers must be the focus of our efforts

    • The organization provides the P&L Managers with a robust performance improvement “toolkit”

    • Leaders must be empowered to ensure responsibility and accountability for the performance and development of their team.


    Business of people1
    Business of People business?

    The Mission:

    Provide Leaders with right people in the right numbers, in the right skills, at the right time, at the right cost to meet business needs.

    The Goal:

    An agile, competent workforce capable to move at the speed of business.



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