SCORE Productivity Training

Addis Ababa, Ethiopia

- Sustaining Competitive and Responsible Enterprises

Day 1

SESSION 0

INTRODUCTIONS, OVERVIEW
OF SCORE & PRODUCTIVITY
2
Session 0 objective

 Get to know each other

 Gain an in-depth understanding of SCORE and
Productivity concepts

3
Welcome/Getting to know each other

Introduce yourself covering the following issues

 Name you would like to be called this week
 Your role in the enterprise

 Your training expectations

4
What is SCORE?

 Launched in 2009, SCORE is a training and in-factory

consulting programme that aims to improve productivity and
working conditions in small and medium enterprises
 SCORE Training covers the following thematic areas:

 Workplace cooperation, 5S and measuring

performance improvement
 Quality management
 Clean production and industrial engineering
techniques to productivity improvement
 Human resource management
 Occupational safety and health

5
SCORE Training method

 Based on Kaizen and lean manufacturing practices, that are

used by world-class factories across the globe
 More than theory. Classroom training and in-factory consulting.
Supports enterprises to take concrete practical actions
 Provides simple and practical tools that can be implemented
immediately
 Improvement Teams lead the continuous improvement efforts
in enterprises and implement action plans
 Support provided by local and international experts

6
Good practices are interlinked

7
 Consider, for example

o Excess work in progress o Reduced work in progress

o Production flow constraints o Proper storage
o Safety risks o Better OSH
o Communication barriers o Open work space 8
 SCORE relies on methodologies tested and
refined in many countries
China - A knitting firm
introduced anti-
discrimination policies and
transparent hiring practices
Results: Improved morale
and reduced absenteeism
by 12%

India – A metal works

firm implements Vietnam - A factory
production changes producing steel structures
Results: scrap materials established factory
reduced by 80% improvement teams
Results: Raw material
wastage decreased by
Sri Lanka - A garment Indonesia – An auto- 60%, on-time delivery
factory introduces 5S parts firm reduces increased by 24% within 9
and quality assurance defects by 50% in 3 months
Results: 50% reduction months Productivity improvements
in defects in 4 month allowed for wage increases
and improvements in by 40%
staff motivation 9
SCORE Productivity Training

 Designed to provide a training package on three thematic

areas covered by SCORE: workplace cooperation, 5S, quality
management, clean production.

 Additionally, it covers industrial engineering techniques to

productivity improvement that includes how to improve
standard work time and set standard operating procedures.

 HR and OSH are not covered in this training.

10
Productivity Training sequence
 1 day workshop, led by module trainer/consultant
Training workshop 1 (1 day)  Participants from all levels of the enterprise
 Enterprise self-assessment and list improvement actions

 3 x 1-day visit by trainer/consultant

Enterprise visits (3 visits):  Develop and review of Performance Improvement Plan (PIP)
Action planning  Identification of areas for improvement (PICC and Workplace Cooperation
Focus)

 1 day workshop, led by module trainer/consultant

Training workshop 2 (1 day)  Participants from all levels of the enterprise
 Enterprise self-assessment and list improvement actions

 3 x 1-day visit by trainer/consultant

Enterprise visits (3 visits):  Develop and review of Performance Improvement Plan (PIP)
Action planning  Identification of areas for improvement (Quality Focus)

 1 day workshop, led by module trainer/consultant

Training workshop 3 (1 day)  Participants from all levels of the enterprise
 Enterprise self-assessment and list improvement actions

 3 x 1-day visit by trainer/consultant

Enterprise visits (3 visits):  Develop and review of Performance Improvement Plan (PIP)
Action planning  Identification of areas for improvement (Flow and Productivity Focus)

 1 day workshop, led by module trainer/consultant

Training workshop 4 (1 day)  Participants from all levels of the enterprise
 Enterprise self-assessment and list improvement actions

 3 x 1-day visit by trainer/consultant

Enterprise visits (3 visits):  Develop and review of Performance Improvement Plan (PIP)
Action planning  Identification of areas for improvement (Flow and Productivity Focus)

11
How can you maximise the return from
Productivity Training

 Be committed and embrace change:

o CEO and senior management commit to making sustainable
improvements
o Appoint a project champion and appoint a dynamic W-M
performance improvement team
o Value every employee’s ideas and respect every individual
o Evaluate actions for social, financial and environmental benefits
o Recognise and reward achievement, encourage efforts

“An organisation’s ability to learn and translate that learning into

action rapidly, is the ultimate competitive advantage.” Jack Welch
12
How will your enterprise benefit……

By the end of the Productivity Training, you will be able to:

 Have a robust process to improve your business.
 Understand workplace cooperation and how employees and
management can improve quality and productivity. Reduce
material waste, cycle time and inefficient costs.
 Implement actions using proven tools and techniques.
 Measure improvements in the workplace effectively

13
Day 1 agenda
Time Day 1
08:30 – 9:00 Session 0: Introductions, Overview of SCORE and Productivity
09:00 –10:30 Session 1: Fundamentals of Workplace Cooperation
10:30 – 11:00 Tea/Coffee Break

11:00 –12:30 Session 2: Involving Everyone Through 5S

12:30 – 13:30 Lunch

13:30 – 15:00 Session 3: Measuring KPIs

15:00 – 15:30 Tea/Coffee Break

15:30 – 17:00 Session 4: Daily Meetings & Daily Improvements; & Taking Action

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Ground rules

 What rules should guide us?

 What penalties do you suggest

Other given rules

 Attending each session of the workshop is mandatory

15
 Why change?
1. What does Productivity mean to you?

2. What are the internal and external drivers of

productivity in your enterprise?

3. Do you know enterprises that have gone out of

business? Why did it happen?

Workshop exercise 1

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What is Productivity?

 Productivity is the relationship between

the quantity and quality of goods or
services produced (output) and the
quantity of resources used to produce
them (input).

17
What is Productivity?
Productivity

Output: can be measured in gross terms (how many cars are produced, how much money total
production is worth) or as value added (what we have produced minus the inputs we got from other
companies).

On the denominator there can be one input (labour, capital, land, raw materials, energy,
information, etc.) or a combination of inputs.

Higher productivity means accomplishing more with the same amount of resources or achieving
higher output in terms of volume and quality for the same input.

18
Enterprise productivity factors

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ILO Approach to Productivity: Kaizen

K A I Z E N = Continuous Improvement

 Focuss on internal enterprise productivity factors, which require minimal or

no capital expenditure and can be improved more frequently.

 Kaizen principles:

 Everyday: Improvements are made every day by streamlining existing

production and service processes

 Everyone: Improving processes is everyone‘s responsibility

 Everywhere: Improvements are not confined to the shop floor and involves
the entire enterprise.
 Fortune 500 companies
2004 list 2014 list
Rank Company Rank Company

1 Wal-Mart 1 Wal-Mart
2 Exxon Mobil 2 Royal Dutch Shell
3 General Motors 3 Sinopec
4 Ford Motors 4 China Petroleum Corporation
5 General Electric 5 Exxon Mobil
6 Chevron Texaco 6 BP

7 Conoco-Phillips 7 State Grid Corporation China

238 of 500 largest companies in the 8 Volkswagen
8 Citigroup
world in 2004 did NOT appear on the 9 Toyota
9 IBM
same list of 2014. 48% turnover in 10 Glencore
10 AIG
just a decade!

Even the largest companies with vast resources at their disposal struggle to remain
productive over an extended period of time and lose their competitive edge.

21
Remaining productive: why?

 Customers’ expectations keep changing

 better quality, lower price, on-time delivery, after sales service, etc.
 To retain customers, your organisation needs to improve continually
 Your competitors are increasing and improving
 New competitors (domestic and international)
 New or better products, cheaper prices, better service

22
 Productivity Training
Workplace Cooperation, 5S &
Measuring Performance

- Sustaining Competitive and Responsible Enterprises

Day 1

SESSION 1

FUNDAMENTALS OF
WORKPLACE COOPERATION
24
Session objectives

 At the end of the session, you will be able to:

 Understand the concept of workplace cooperation
 Understand workplace cooperation tools
 Identify few improvement ideas that you could implement in
your enterprise for creating a better workplace culture

25
What is workplace cooperation?

A process whereby
employees and management
resolve issues of common concern
together through involvement and discussion
to the mutual benefit of employers and employees.

26
Workplace cooperation is based on:
Shared interests and priorities
Workers Employers
o Good wages & benefits
o Productivity
(e.g. health insurance)
o Good profits
o Job security
o Motivated workers
o Fair treatment and
o Quality products and
recognition of efforts
services
o Safe workplace
o Good company image
o Training
Shared interests and priorities
Enterprise profit and job security
Safe workplace, fair treatment leading to motivated workers
Training for staff leading to more quality products

27
 Why you need workplace cooperation
Problem! Problem!
Problem!
Problem!

Problems!

Problem!

o Factories are complex operations o Even smaller operations require

that constantly create problems teamwork
that need to be solved

28
Benefits of workplace cooperation
 Improves company performance
o Employee satisfaction linked to customer
satisfaction
o Improves decision-making
o Encourages innovation and information
sharing
o Decreases time needed to implement changes

 Improves working environment

o Increases morale, motivation and
commitment
o Minimises conflicts and disputes
o Facilitates agreements on policies/practices

29
Forms of workplace cooperation

 Basic forms:
o Information sharing
o Two-way communication

 More advanced:
o Consultation
o Negotiations

 Advanced:
o Joint problem-solving
o Joint decision-making
o Collective bargaining

30
 Workplace cooperation in your
enterprise?
1. What forms of workplace cooperation exist in your
enterprise?
2. Discuss the strengths and weaknesses of workplace
cooperation in your enterprise

Workshop exercise 2

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Workplace cooperation basics:
Minimum requirements for enterprises

 Compliance with national laws

 Contributions to the realization of the fundamental principles
and rights at work
o Freedom of association and collective bargaining
o Effective abolition of child labour
o Elimination of discrimination
o Elimination of all forms of forced or compulsory labour
 Regular consultation with workers and their representatives
and mechanisms for the resolution of disputes and grievances

32
Workplace cooperation essentials

• Workplace
Communication
cooperation is
based on
Workplace
trust, mutual cooperation
respect and
Respect
confidence Trust
built on a
history of
good
communicati 33
Removing communication barriers

 Reduce physical barriers to communication

 Consider noise-levels in your production
 Using language familiar to your audience
 Avoid making statements that could be misinterpreted
 Always ask for feedback and provide further clarification
when needed
 Encourage communication between different work areas /
departments

34
Improving communication

 Talk to your employees! Ask them how they are and if

anything bothers them
 Establish channels of communications so that problems can
be addressed early on
 Keep communications open to encourage ongoing feedback
and commitment
 Communicate that everyone is part of the team
 Be inclusive – don’t exclude anyone

35
Respect in your enterprise

 Respecting each other involves acknowledging efforts and

taking the opinions of colleagues seriously.
 Disrespect among workers or between managers and workers
often leads to
o mistrust,
o low productivity, and
o possibly conflict.

 Includes respect of community standards whether they are

o written (national labour laws and International Labour Standards; or
o non-written (local norms and practices).

36
Building trust

Both workers and managers need to:

 Be open, keep promises, tell the truth
 Managers also need to:
o implement policies fairly and consistently
o encourage open communications at all levels
o recognize achievement and effort
o clarify expectations of workers and what workers can expect from
management

37
The person doing the job knows best!

 Machine operators know their machines

 Sales people know the customers
 Quality control teams knows the quality problems
 Etc.

=> Do you engage everyone in solving your problems?

=> Do you value their ideas and contributions?

38
 ‘No blaming’ culture
Blaming/Judging Empowerment/Leadership
• • Fact-finding;
Fault-finding;
• • Focus on process;
Focus on individual;
• • Ask “Why?”;
Ask “Who?”;
• • Look for system issues;
Zero in on function;
• • Determine needs;
Make assumptions;
• • Hold accountable;
Blame;
• • Assist;
Control;
• • Improve capability.
Inspect/sort.

• Judges after-the-fact • Evaluates system with data

• Lets “who is wrong” override “what is wrong” • Allows “real” issues to emerge
• Drives people into defensive positions • Decreases negative blaming activity
• Submerges issues for years • Increases trust
• Creates crisis orientation • Increases quality of communication
• Increases capability

39
Welcome problems

 Organizations improve continually by solving problems on a

daily basis. If problems are not identified, there can be no
improvement
 Problems are opportunities for improvement
 People are not problems
 Increase people’s capability to solve problem: turn people
into problem-solvers

The 1st time management gets angry

is the last time it will get good data about what´s going on!
40
Some companies have a long way to go

FROM CONFRONTATION

TO COOPERATION 41
 Are the basics in place?
1. Does your enterprise have the basics in place?
Which areas need improvements?

2. How can you improve communication, respect and

trust in your enterprise?

Workshop exercise 3

42
Workplace cooperation tools:
Bulletin / notice boards

 Can be used to communicate a wide range of information

such as
o Work targets and progress
o Announcing job or training opportunities
o Announcing arrival of new employees
o Praising the good performance of a worker/team/department
o Expressing concerns about issues that require particular attention
from all staff
o Announcing changes in the business (new machines, different working
hours, changes in the management team, etc.)
o Special events (social / professional)

43
 Bulletin / notice boards

 In notice boards, clearly demarcate general information, production specific information,

newsletters etc.
 Define frequency of updating each type of notice and assign responsibility for updating
and maintaining the notice boards.

44
After action review

 To analyze what happened, why it happened, and how it can

be done better
 Conduct an After Action Review for example after a delivery is
completed
 Ask:
o Did everything go according to plan?
o Did unforeseen problems arise?
o How did the team address these problems?
o What can you learn? How would you do it next time?

45
 My idea
is………

Employee suggestion schemes

 Different ways to capture employee’s improvement ideas:
o Formal system such as suggestion box, email or SMS system
o Daily Kaizen / informal idea sharing & brainstorming
o Kaizen teian – suggestions to improve safety, quality and productivity
in one’s span of control

 Key success factors for any system:

1. Top management support
2. A clear, simple and efficient system
3. Recognition for participation
 Encourage the use of formal and informal idea sharing
46
Guidelines for ESS
 Create mechanism of gathering employee suggestion. Need
not be through suggestion box!
 Encourage any kind of suggestion that will help the company
 Provide incentives for participation
 Address complaints/negative comments through grievance
procedures
 Develop criteria for selecting acceptable/non-acceptable
suggestions:
o impact.
o originality.
o ease of implementation.

47
ESS Success factors

 Management support is crucial

 Quick response time is key
 Simple system
 Fair and consistent evaluation
 Proper promotion
 Reward contributions
 Explanations for suggestions not implemented
 Workers not penalized for comments

48
Does ESS work?

 Feedback from an earlier programme:

“In all these years we never explored the possibility of looking
to workers for constructive ideas. Implementing the
suggestion box scheme and recognizing and rewarding
workers’ suggestions tapped into our employees’ knowledge,
saved us money, and encouraged workers to participate.”
General Manger of a Sri Lankan Garment Factory

49
Natural Teams

 A team of employees working together on a daily basis at a

common line/cell or area of an enterprise
 Not a specially constituted team, but involves everyone
working at a common area
 An enterprise can (and should) have multiple ‘Natural teams’
 All natural teams must have a leader (possibly the supervisor)
 Natural teams must have KPIs – such as attendance, safety,
quality, productivity

50
 Daily Natural Team meeting
 Production line/cell teams should
meet daily at the begining of the
shift for 10-15 minutes, led by
the natural team leader.
 Previous day‘s performance
(safety, quality, productivity etc.)
and issues should be reviewed
along with that day‘s plan.
 Meeting should be held at team
board and actual data should be
reviewed.

51
 Daily meeting - agenda
Team Meeting Agenda
Time: 07h30
Venue: Team Scoreboard

1 Attendance 1 min
2 Feedback on yesterdays 2 min
performance and outstanding
issues
3 Plan for the day 3 min

4 Company news 1 min

5 Feedback from employees 3 min

Two-way communication CLOSE 10 min

is key!
52
 ‘Natural team’ exercises
1. Design a ‘natural team’ daily team board for your
process.

2. Role play - Conduct a demo ’natural team’ daily

meeting in front of the team board

Workshop exercise 4

53
 Daily Problem-solving
 Targets should exist for each KPI
(such as safety, quality and
productivity)
 If the target was missed the
previous day, brainstorm with
the team to find root causes
 Assign responsibility and
accountability to solve problems
that prevent the team from
acheiving its targets.

54
 Be open to
experimentation!
How to improve – PDCA
 Systematic and iterative step-by-step approach to problem
solving -
• Project objective
• Prevent
• Set target
recurrences • Assess current
• Standardisation 1
4 state
• Reflection
• Develop work–
• Future Act Plan plan
improvement • Identify
targets
checkpoints

• Confirm results
Check Do
• Take urgent • Training
countermeasure (if
needed) 3 2 • Implement action -
plan
• Find basic causes
55
 PDCA– questions to ask
 What is our target?
 What is our actual performance compared to the
target?
 What obstacles are preventing us from achieving our
target?
 Which obstacle should we try to remove today?
 What have we learnt and how do we standardize the
learning to prevent recurrance of this problem?

56
 How to maintain improvements – SDCA
 Systematic and iterative step-by-step approach to problem
solving
• Develop standards
• Improve standards
4 1 - employees and
– if needed
Act Standards managers together

Check Do
• Check whether
standards are • Implement
effective – are they standards – practice
giving the desired following standards
3 2
results? Is there still everyday
too much variation?
57
 SDCA– questions to ask
 Does the standard for this process exist? Has it been visualized?
 Are all team-members aware of the standards? Have they been
trained on the standard?
 Is the standard being followed?
 If not, what is the root cause for the deviation from the
standard?
 Can the current standard be improved?

58
 SDCA – PDCA approach
Process before Process after After Stable process
introduction of introduction of improvement, the on higher level
standards standards process is on a higher after improvements
level, but not yet stable
Process is more stable, S: Standardize
deviations smaller
A S D: Do
C D C: Check
A: Act
Results

A S A P
C D C D

P: Plan
D: Do
C: Check
A: Act

Data collection
Time
Data collection Data collection Data collection
& analysis & analysis & analysis & analysis

59
 Catch-ball game
1. Demonstrate the process of making systematic
improvements through PDCA and SDCA through
catch ball game.

2. Describe the learnings and how the concept can be

implemented at your enterprise.

Workshop exercise 5

60
Workplace cooperation improvement
idea
1. What new tools, techniques and methods have you
learnt in this session?
2. Which ones do you feel the need to be
implemented in your enteprise? Why?
Enterprise:_________________ Date: __________ Group members: __________________
Ranking
What is workplace cooperation – improvement ideas
 
1.  
 

2.  
 
3.  
 
4.  

Workshop exercise 6
61
Day 1

SESSION 2

INVOLVING EVERYBODY
THROUGH 5S
62
Session objectives

At the end of the session, you will be able to:

1. Explain the steps of 5S
2. Take the necessary steps to implement 5S
3. Identify 5S improvement areas

63
 The ‘R’ Game
1. Join the puzzle pieces in the
envelope to form shape of R on
the A3 sheet

Workshop exercise 8

64
What do you know about 5S?

 Japanese housekeeping and workplace organization process

 Simple but effective practices
 The foundation for quality and productivity improvements
 Relies on good workplace cooperation
 Encourages team work AND individual responsibility
 Some call it a way of life!

Workshop exercise 8

65
Candidates for 5S

 How tidy is
your shop
floor?

66
Does it work?

Feedback from previous 5S training:

“After implementing 5S, the management performance has
improved substantially compared to half a year ago. The
workshops are clean and orderly; materials are being well
maintained and more importantly, the morale of employees
has been greatly raised.”
Office Manager, Jiema Coating Fabrics, China

67
Steps of 5S campaign
Seiri Seiso Shitsuke
Sort Sweep Sustain

1. Sort out and separate 3. Clean workplace, equipment 5. Self-discipline

what is not needed and prevent defects and training

4. Standardise, make
2. Put what is needed in sorting,
order, so that they straightening and scrubbing
it’s ready for use when routine
needed

Seiton Seiketsu
Systematic Standardize
1. Seiri - Sort
Separate the unnecessary from the necessary

Waste Special
Scrap iron
paper refuse

Use the red tag system for Action with

unnecessary parts! „Red Tags“

69
 Seiri- Sort (what items to red tag?)

Items that are –

 Not needed at all Sorting should free up floor
 Needed but not here space and eliminate clutter at
the workplace!
 Needed but not now
Scrap iron
 Needed but not this quantity Amount of floor space cleared
can be measured.

General rule of thumb for production floor – only the items that
are used everyday must be stored at the Gemba
Action with
„Red Tags“

70
2. Seiton– Systematic arrangement

 Objective: Provide a proper place for everything that is

needed.
 Decide on a place for everything and label it so that it can be
found and stored quickly when not in use.
 Ask:
o What do I need to do my job?
o Where should I locate this item?
o How many of this item do I really need?

71
Seiton– Systematic arrangement
All items must have a
 Fixed location – to eliminate searching
 Fixed quantity – to eliminate overstocking or stock-outs
 Labeling or marking – for ease of retrieval

Four methods of systematic arrangement -

 Labeling
 Marking
 Colour Coding
 Signage
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Visual communication

73
It’s more than just putting up signs!

 A visual workplace is a self-ordering, self-explaining and self-

regulating work environment.
 Which workplace communicates to you?

74
3. Seiso - Sweep

Objective: A clean work place and eliminating causes of waste.

 Clean and inspect work place.
 While cleaning, observe for early signs of troubles, wastes
etc. and initiate corrective action
 Must:
o Define responsibilities for work areas
o Designate time
o Provide the utilities to do the job

75
Step 3 – Sweep

Develop a zone map for the Develop a ‘seiso schedule’

workplace and assign and follow rigorously
responsibilities
76
4. Seiketsu - Standardise

 Objective: Creating a standardised method and routine to do

the first 3S.
 Preventing conditions from reverting back to previous
undesirable conditions
 Tools:
o Prevention
o Checklists
o Daily 5 Minute 5S

 What standards can you create for Seiri, Seiton and Seiso?

77
5. Shitsuke – Self discipline

 Objective: Make 5S part of your organisational culture

 Self-discipline is required to follow standards
 5S activities are part of the normal work routine – no one
needs to be reminded. Doing 5S must become a habit
 Must:
o Management commitment
o Employee commitment
o Continual evaluation (5S audits)

78
What is the problem? What needs to
happen?

 Sort!
 Set in order /
systematic
arrangement!
 Sweep!
 Standardize!
 Self-discipline

79
Same room after 5S

The initial clean-up is just the first step – key is to keep up to

the new standard!
80
What needs to happen?

 Step 1?
 Step 2?
 Step 3?
 Step 4?
 Step 5?

81
 What actually happened

o u r a t h e r After 5S

e w o u l d y
Wher
work?

o Excess storage o All materials labeled and stored

o Spoilage of raw materials o Workers have proper workspace
o OSH risks
82
What actually happened

=> Less time wasted with

searching for tools

83
 5S in our enterprise
Think about the kind of 5S performance improvement you
would like to implement in your enterprise that will lead to quick
and visible results (low-hanging fruits). Guiding questions for
prioritizing projects are:
1. Can you start the project within a week?
2. Can you implement the idea with no or little investment?
3. Can you have visible results in less than 2 months?
Enterprise:_________________ Date: __________ Group members: __________________
5S – improvement ideas Ranking
1.    
2.    
3.    
4.    

Workshop exercise 9
84
Starting up 5S

 Organize a 5S working team

 Make sure everyone understands 5S
 Have CEO make an official announcement
 Start with a factory wide initial ‘seiri’ (clean-up day).
 Identify 5S pilot areas
 Implement daily the first three levels.
 Regularly carry out an audit of your progress.

85
5S success factors

 Continued commitment from top management

 Training in beginning on how to implement and maintain 5S
 Involve everyone
 Continually repeat the process to reach higher
levels/standards.

86
Day 1

SESSION 3

MEASURING KEY
PERFORMANCE INDICATORS
87
Session objectives

At the end of the session, you will be able to:

1. Understand why measuring key indicators is vital for driving
enterprise improvement
2. Identify indicators to measure the operational performance
of the enterprise
3. Visualize KPIs to share data with staff

88
Why measure?

How full is your tank?

 An enterprise without a measurement system is like a car
without a gas gauge or a tachometer
 You are never exactly sure how fast you are going or when
you are going to run out of gas

=> What have you learned from using the gauge to assess your
company performance?

89
Why measure?

 We cannot improve it unless we measure it

 Measurement system gives accurate state of current scenario
 Enables deciding targets
 Guides improvement direction
 Enables in creating performance history
 Visualizes the need for improvement
 Drives objective decision making

90
Measurement through indicators

 Indicators
o are objective ways of measuring that progress is being achieved
o describe at a specific condition or situation

 Tracking the same indicator over time allows you to measure

changes of that condition or situation
 Start with a baseline of current situation

91
SMART indicators

 Specific - To avoid differing interpretations

 Measurable - To monitor and evaluate progress
 Achievable - To set the targets you want to reach at a
reasonable level
 Relevant - To the problems or improvement process you are
implementing
 Time bound - With specific time for achieving objectives

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What to measure? Some examples

• Workplace cooperation – % Absenteeism, % Labour Turnover

(Attrition), Employee Engagement (Number of improvement
suggestions)
• Quality – Number of customer complaints, % rejections, %
rework
• Productivity – Manpower productivity & Overall Equipment
Effectiveness (OEE)
• Cost – Costs of carrying Inventory, Utilities Costs
• Delivery – On-time; In-full; Error-free Delivery %
• Safety – Number of major and minor accidents; near misses

Presentation name, date page 93

How to measure?
Production output = production output % Scrap = Total production (good
per shift or per day; parts + scrap+ reworked parts) /
number of parts scrapped *100

Manpower productivity = production

output per day (or month) / total labour
man-hours worked that day (or month); % Rework = number of parts
reworked / Total production (good
parts + scrap+ reworked parts) *100
Machine downtime = recorded at each
machine (total mins or hours);

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How to measure?
Customer satisfaction index = No of Accidents = Total number of
dependent on weightage assigned on lost-time accidents per week or per
customer satisfaction survey month

Absenteeism = total number of

% on time delivery = number of mandays missed / total number of
deliveries made to customers on-time, mandays planned *100
error-free, in-full (full quantities) per month
/ (total number of deliveries made + Labour turnover rate = number of
number of missed deliveries)*100 employees to have left in a time period
(a month) / number of active
employees at the beginning of the time
% customer returns/rejections = period *100
number of units rejected / returned by
customer/total number of units delivered to Energy/water use = number of units of
customer *100 energy / water consumed per month /
number of units of production per
month 95
How to measure?
 Measurement system needs to be pervasive till the last
singular entity that produces the output or indicates status
 Let us take for example the KPI – monthly production output
Record data at this Production
level and consolidate output of Jan

upwards
Output of 1st Output of 2nd Output of 31st
Output of
Jan Jan Jan

Production Production
output of out ut of Shift
Shift A B

Output of Output of Output of

machine #1 machine #2 machine #3
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 How to measure?

 Data sheets to be designed for each KPI at process level

 The data sheet should be simple enough to be filled any person
 The responsibility to capture the data should be given to person
closest the process and he/she should be held accountable for it
 The person measuring should be provided with all necessary
tools/instruments for collecting data
 Frequency of data collection should be defined - as hourly/shift
wise

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 Sample Data Sheet
Production Tracking Sheet
Machine Spinning Machine #3
Date Tuesday, December 3, 2013
Shift Day Shift

  Expected Output Actual Output Cummulative Cummulative Reasons (Actual < Expected)
Expected Actual
7:00 - 8:00 100 92 100 92 Material not available (5 min wait)
Machine breakdown - overheating (15
8:00 - 9:00 100 70 200 162
mins)
9:00 - 10:00 75 75 275 237  
10:00 - 11:00 100 100  375 337  
11:00 - 12:00 50   425    
12:00 - 13:00 100   525    
13:00 - 14:00 100   625    
14:00 - 15:00 75   700    
15:00 - 16:00 100   800    
           

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Managing information

 Two main purposes:

o To allow for comparison of performance over time
o Identify trends for business forecasting

 Ways to keep track of your records:

o Manually file the information reporting cards
o A computer-supported measuring system allows you to compare
measuring data along timelines and to visualize your findings in charts
and graphs.
 Set aside time regularly to analyze your data

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Visualization of KPIs
 Display each of the KPIs visually on KPI Board graphically
indicating a trend over a period of time
Percentage of defects
5

0
Mar Apr May June
Product A Product B Product C

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 Visual Display - Enterprise KPI boards
 KPIs critical to business performance to be displayed here
 Consolidate data collected from each line/cell to display them at
enterprise KPI board
 Management team conducts periodic reviews at the factory KPI
board
 Define frequency of review – weekly, monthly
 Assign responsibility of collecting and updating the data on the
boards – each KPI must have an owner, a person accountable for
improving that KPI
 In addition, project progress can be displayed here as well.
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Design of enterprise KPI board - example
Number of Number of
Safety Lost Time Number of
Minor
Accidents Near Misses
Accidents
Number of
Quality customer Scrap cost $ % rework
complaints

Productivity Manpower Equipment % On-time

& Delivery productivity utilization delivery

Cost Energy Cost Water cost

Inventory
per unit per unit

% Number of
Morale Absenteeis % Attrition improvemen
m t ideas
Sample of KPI Board

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Using data to analyze problems

 A South Causes of Absenteeism (Jan - Mar 09)

African 40

company 35

facing % of Total 30

25
problems of 20
high 15

absenteeism 10

counted the 5
0
reasons to Transport
Problems
Illness Child Care Marital
Problems
Financial
Problems
Substance
Abuse
Accidents

identify major Cause

causes:

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 What indicators are you measuring?
1. What indicators do you currently measure at your
enterprise?
2. What indicators must you measure to assess the
operational performance of your enterprise?
3. Discuss and plan how you will keep track of the
indicators
Enterprise:_________________ Date: __________ Group members: __________________
Measuring progress against workplace cooperation, 5S and other aspects of continuous Ranking
improvement
1.    
2.    
3.    
4.    

Workshop exercise 10
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Day 1

SESSION 4

GETTING STARTED/TAKING
ACTION
106
Performance Improvement Consultative
Committees (PICCs)

 Joint worker/manager team

 Team size will depend on factory: minimum of 5 members,
maximum of 10
 At least the same number of workers as managers
 Need a senior manager as team leader to approve tasks and
to provide top management support
 Cross hierarchical and cross-functional
 Encourage gender balance

107
PICC tasks

 Forms a Performance Improvement Plan (PIP) based on the

improvement ideas identified
 Leads implementation of the PIP
 Shares learning from SCORE Training
 Meets on a regular basis (weekly) to
o Encourage open dialogue between workers/managers
o Solve problems
o Implement employee suggestions
o Monitor progress

108
Step 1 - Identify team members
 Determine the size of the team (5-10)
 Team is formed with equal representation of workers and
managers
 Team is gender balanced
 Select team members on the basis of skills and personality
strength – select those individuals who have the ability to
influence and coach others in the enterprise
 Team is cross-functional and cross-hierarchical
 Select a senior manager who will have the power to approve
tasks to lead the team
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Performance Improvement Consultative
Committee(PICC) Structure

Ms. XXXXXX Mr. XXXXX

Mr. XXXXX Mr. XXXXX
PICC
Member Member
PICC Leader Secretary

Ms. XXXXXX Ms. XXXXXX Ms. XXXXXX

Mr. XXXXX
Member
Member Member Member

Mr. XXXXXX Mr. XXXXXX Mr. XXXXXX Mr. XXXXXX

Member Member Member Member

Step 2 – Establish rules and procedures

 Agree on team objectives

 Determine frequency and duration for meetings
 Identify tasks
 Create step-by-step procedures for accomplishing tasks
 Determine procedures to reporting tasks (who and how)
 Ensure workers’ representatives have sufficient time to
discuss with the workers

111
Step 3 – Start action

 Start with improvement projects

 Solve problems together
 Prioritize – no more than 4 projects at the same time
 Collect data to review the impact of actions implemented
 Review project progress regularly and suggest course-
correction where necessary
 Team will grow and learn with challenges

112
 Initiating actions: where do you want
to start?
1. Review all the outputs from previous exercises:
o Workshop exercises
o Improvement ideas identified for workplace cooperation, 5S,
and indicators
2. Compile your improvement suggestions in the
Performance Improvement Plan
3. Anything else you want to add?

Workshop exercise 11
113
 Prioritising actions
1. Identify the “low-hanging fruits” by asking:
o How likely is it going to be achieved?
o Can you start implementing immediately?
o Can you implement without major investments?
o Are first results visible within 1 month?
2. For each improvement, award 0, 1 or 2 stars per question
3. Pick 4 - 6 improvements from the list you want to make
o Discuss and agree with your whole team
o The stars give you an indication of “quick-wins” improvements

Workshop exercise 11 contd.

114
Fill Performance Improvement Plan
 Transcribe prioritized projects and necessary actions into the
PIP template with the assistance of your Trainer

115
How can you make your meetings
productive?

 Attendance : Place a high priority on attendance

 Punctuality : Begin and end on time
 Participation: Every team member's viewpoint is valuable and
everyone can make a valuable contribution to projects
 Conversational courtesies: Listen attentively and respectfully
to others without interrupting
 Action list: Record agreed actions on an action list and assign
responsibilities
 Brainstorming: Solve problems together
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Management support for PICC

 Top management support is imperative to ensure PICC’s

success
 PICC leader should spend a minimum of 1 hour per week with
the top manager (CEO/MD) to review progress on projects
 The review must happen not only in the office, but also at the
Gemba (to show the physical improvements).
 Top management is responsible for providing time, resources
and (when required) funds to support improvement activities.

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Follow-up on-site enterprise visits by your
Expert / Trainer

 Make sure you are aware of the date and time of your
Trainer’s scheduled visit and be prepared
 Form your PICC and obtain your CEO’s formal approval
 Prepare a meeting room with adequate front row chairs for
your PICC members
 Have available your PIP, worksheets and a white board / flip
charts with marker pens
 Adopt a ‘change compliant’ enterprise attitude

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THANK YOU!

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