Virginia SHRM State Conference Virginia Beach, Virginia September 25-27, 2005
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Transcript of Virginia SHRM State Conference Virginia Beach, Virginia September 25-27, 2005
People Powered Lean
Integrating a Modernized Human Capital Management Program with
the Lean Manufacturing Journey
Virginia SHRM State Conference
Virginia Beach, Virginia
September 25-27, 2005
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TMG Core Beliefs
• We are in the business of making hard things easy…not easy things hard.
• Start with the end in mind!• Take a Systems Approach• 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• Our employee’s “Vote” counts more than ours
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SS
OPS
F
LM
M
PM
OPS OPS
SSSS
F F
LM LM
M
Organizational Map
PM: Plant ManagerOPS: Operations ManagerSS: Shift SupervisorF: ForemanLM: Lead MechanicM: Mechanic : Vertical Dyad Linkage
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Linkage Power Depends On…
1. Creating a Shared Goal.– The Employee’s Goals and Needs
– The Organization’s Goals and Needs as articulated by the Supervisor
– Requires continuous Goal Alignment within context of Individual Developmental Plans
2. Leaders Managing Personal Relationships– Vertical Dyad: Leader Led x number of direct reports
– Employee productivity and commitment depends on their relationship with their IMMEDIATE Supervisor
Begin with the end in mind…
“Build more quality products faster to improve market share and increase profit.”
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Lean Enterprise Goals• Improve Quality• Eliminate Waste• Reduce Lead Time• Reduce Total Costs
Through…• Near real time visibility over…
– Process– Materials– Cost– Equipment
And…
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People
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Small Manufacturing Shop Features
• Small Headcount requires more skills agility and situational flexibility
• Peaks and valleys in Production Requirements.
• Multiple Shifts• Insufficient Support Staff…• Lack of development programs• Lack of resources
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REQUIRED Level of Performance
CURRENT Level of Performance
Options:• Re-allocate Current Employees• Hire Experience • Hire New People• Work Overtime• Hire Temporary Labor• Outsource• Increase Productivity• Change the Process (Lean/Six Sigma)• Increase Capacity (Automate)
Performance
Gap
Measu
res
of
Perf
orm
an
ceSenior Management Team
Labor Resource Strategy Development
ResourcesRequired
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Business Metrics
If we fully implement People Powered Lean we will:– Reduce Lead Time to Increase Market Share
– Improve Production to Headcount Ratio to Reduce Labor Cost per product and…
– Improve PROFIT margin
…by optimizing the plant’s physical production to labor capacity.
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Production Identifies
Requirement
HR PostsRequisition &Sends to OET
HR Receives
Applications
HR SchedulesInterviews
Welding TestHiring
Decision
Drug Screen and
Physical
Applicant Given Report
Date
HR AdminInprocessing
8 Hours of Video
OSHA Training
OJT Training
Hiring Process July 2004
Offer Sent
ProductionInterviews
Cycle Time: 10.3 WeeksCost: $2,008 per new hire (Labor costs only)
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The Hiring Process“Opportunity for Improvement”
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People Powered Lean Policy Statement
Our plant builds to order, only producing those products they have orders for.
Therefore, we must have the capability to acquire employees quickly and move them between assembly lines to support production needs.
A flexible workforce drives down credible delivery time and improves our bottom line profit.
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People Powered Lean Mission
Provide our production supervisors the right people in the right numbers in the right skills at the right time to improve business performance.
The Goal:
An agile, competent workforce capable to move at the speed of business.
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Concept of Operations“A Systems Engineering Approach”
Phase 1Current State &
Good Ideas
Phase 2Future State Design,Plan of Action with
Resources
Phase 3Creation andDevelopment
Phase 4Pilot and Evaluation
Phase 5Production and
Roll Out
Phase 6 – nContinuous
Improvement People Powered
Lean
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Project ScopeEnrich the Lean Manufacturing Continuous Improvement
Process by developing and implementing a Human Capital Management Program called People Powered Lean…
Featuring:1. Improved Employee Acquisition Process2. Modernized Orientation Program3. Integrated Skills Development Program (starting
with Welders)4. Embedded PPL Skills Management System
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Acquisition of New Team Mates
Goal: Create a New Hire “Pull System”
– When Production needs people they “create an order”– Production demand “cues” the PPL system.– Maximize our best source of New Hires (Pipelines)– Optimize use of Government Employee Services to Outsource
as much as possible – Reduces cost of Hiring by utilizing Subject Matter Experts to
recruit, identify, and evaluate skills of recruits
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College Transfers
Adult Education
Current Employees
Community Colleges
High SchoolsCommon
SkillsTraining
Tech Schools
InitiallyOrient,Screen
&Identify
Candidates
Life CycleSkills
Development
Building PipelinesBusiness Focus:
- Reduce Turnover- Improve New Hire Job Match- Focus on actual job skills- Reduce Cycle Time
Military
State Employment Offices
Temp Agencies
Other Companies
Interview&
Skill Test
GenerateLabor Req’s
HiringDecision
Increase Cost Decrease Cost
Realistic Job Preview
Link to full RJP
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Welding Skills Assessment(Interview)
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:1. Plant Tour (Informal Discussion)2. Scenario Based Welding Skills Assessment3. Job Based Attitude Assessment4. Hiring Decision5. New Teammate Skills Development Plan
NOTE: HR is not involved other than scheduling
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New Teammate Orientation
Goal: Create a “world class” first day.– New Employee Leaves after his 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 get with it!
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SHIP
CUSTOMER
IDEAL STEEL
Plant 3
WAREHOUSE(CASTINGS
BUSHINGS & BOSSES)
BURN
LIP ASSEMBLY
BRAKEBEVEL BEAMS
LUG TACK
SIDE ASSEMBLYROUNDO
SIDE REINF.
DAYS5
LINE 1
LUG CONNECTION
LINE 2
LUG CONNECTION
LINE 1
TACK
LINE 2
TACK
LINE 1
WELD 1
LINE 2
WELD 1
LINE 1
WELD 2
LINE 2
WELD 2
LINE 1
WELD 3
LINE 2
WELD 3
BORE
ADAPTERS
DAYS5
FINAL ASSEMBLY/BLAST/ PAINTFIFO
BOSSES
DAYS10
POINTS
DAYS5
MISCELLANEOUSBUCKETS
Cycle Time Mins45
Production mins/shift Mins540
Operators Staff1
Cycle Time Mins90
Production mins/shift Mins540
Production shift
Shfts1
Operators Staff1
Cycle Time Mins108
Production mins/shift Mins540
Production shift Shfts1
Operators Staff1
Cycle Time Mins108
Production mins/shift Mins540
Cycle Time Mins90
Production mins/shift Mins540
Production shift
Shfts1
MRP
ProductionControlSTEEL SUPPLIER
BUCKETS DAYS11
SHROUDS
DAYS5
BUSHINGS
DAYS5
Cycle Time Mins50
Uptime (%) %95
Operators Staff2
Cycle Time Mins45
Production mins/shift Mins540
Cycle Time Mins90
Production mins/shift Mins540
Production shift Shfts1
Operators Staff2
Cycle Time Mins45
Production mins/shift Mins540
Production shift Shfts1
Operators Staff2
Cycle Time Mins45
Production mins/shift Mins540
Operators Staff2
Production shift Shfts1 Production
shift Shfts1
Production shift Shfts1
BARREL
ESCO SALES
FORECAST (30-60-90)
FAX/SALE ORDER
FLOOR SHOP SCHEDULER
OXOX
FORECAST (30-60-90)
PURCHASE ORDER
FORECAST (30-60-90)
FIRST SHIFT PROCESS03/23/04
PURCHASE ORDER
Operators Staff1
Operators Staff1
Production shift Shfts1
A10
A20
A30
A40
B10 B20 B30 B40 B50
C10 C20 C30 C40 C50
D10
F10 F20 F30
Frequency
PER DAY1
Frequency
PER WEEK1
Frequency
Per Week2
Frequency
Per Week1
Cycle Time Mins90
Production mins/shift Mins540
Production shift
Shfts1
Operators Staff1
Cycle Time Mins90
Production mins/shift Mins540
Production shift
Shfts1
Operators Staff1
Cycle Time Mins90
Production mins/shift Mins540
Production shift
Shfts1
Operators Staff1
Cycle Time Mins108
Production mins/shift Mins540
Production shift Shfts1
Operators Staff1
Cycle Time Mins108
Production mins/shift Mins540
Production shift Shfts1
Operators Staff1
Cycle Time Mins108
Production mins/shift Mins540
Production shift Shfts1
Operators Staff1
Operators Staff1
Production shift Shfts1
5.00 DAYS
50.00 Mins
5.00 DAYS
108.00 Mins
0 DAYS
108.00 Mins
0 DAYS
Uptime (%) %98
108.00 Mins
10 DAYS
108.00 Mins
0 DAYS
108.00 Mins
0.50 DAYS
90.00 Mins
5.00 DAYS
45.00 Mins
0 DAYS
WIP
DAYS.5
PLATE STEEL
DAYS5
4
WKS
DAYS
2
DAYS
SHIFTS
9.25
SHIFTS
HRS
60
HRS
Mins
60
MINS
Secs
F40
Production mins/shift Mins540
Develop In-Line Boring Capability
Completed Parts from Ideal
Develop Kanban Replenishment
SystemDevelop Kanban Replenishment
System
Develop Kanban Replenishment
System
Reduce Plate Inventory by 20%
Develop Kanban Replenishment
System
Develop Misc. Flow Line
Add Welding Capability at Final
Assembly
Develop New Scheduling Tools for
Flow Lines
Frequency
Per Week1
WIP
DAYS.5
WIP
DAYS.5
Frequency
PER DAY1
Operators Staff3
Production shift Shfts1
WIP
DAYS.5
WIP
DAYS.5
0.50 DAYS
45.00 Mins
TOTALS
Non-Value Days26.00
Value-Added Mins770.00
Operators Staff25.00
T10
Shift Shfts11
Buckets Shfts5 Buckets Shfts5 Buckets Shfts5
Buckets Shfts11
Buckets Shfts11
Buckets Shfts5Buckets Shfts5
Buckets Shfts6Buckets Shfts6 Buckets Shfts6 Buckets Shfts6 Buckets Shfts6
Qty/Assy (pcs) Shfts11
Qty/Assy (pcs) Shfts11
Qty/Assy (pcs) Shfts11
2
Shfts
DAYS
LARGE BUCKETS
Operators Staff2
Production shift Shfts1
E10
2nd SHIFT ONLY
Value Stream Map toTasks List
Lips Assemble/ TackLug and Beam
WelderWeld 1 Weld 2 Weld 3
Fit Materials
Welding
Quality Assurance
Use a Ruler
Read Blueprint
Bevel
Operate Brake
Operate Saw
Operate Glibert
Operate Lathe
Burn Table
Operate T1
Operate T2
Tasks
Cells
Value Stream Map
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Right Person/Right Job Move the Employee in the Right Direction
High QuantityLow Quality
Quantity of Work
Quality of Work
Low QuantityHigh Quality
Low QuantityLow Quality
High QuantityHigh Quality
New Person
Go To Person
What is our plan to move our people along the correct developmental path?
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Welding Common Skills Training
Goal: Using Subject Matter Experts bring all new Welders to competency on all Common Tasks
Welding Trainer implements the tailored Individual Development Plan developed at the Welding Skills Interview.
Computer Assisted Instruction Lesson Outline:1. Personal Protective Equipment (PPE)2. Reading Measurements to the 1/16” Detail3. Parts of a Weld and Weld Bead Placement4. Weld Quality5. Blueprints and Weld Symbols6. Welding Equipment/Maintenance7. Quality Assurance8. Product Terms and Language
NOTE: Web Based so can be reviewed and pre-trained prior to Welding Skills Interview or Training. Also, post hiring support tool.
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Cell Training
Goal: Improve Welder “Time to Competency”
Features:– Common Skills developed during Common Welding Training– Train “just in time and just enough” for 1st job requirements– Uses 1st Line Supervisors as Trainers– 30-60-90 Feedback to assess performance and update skills
development record
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Soft Skills Development
Employee Career
Complex Tasks
Life Cycle Skills Development Program
ManagementSkills
Basic Skills
Intermediate Skills
Leader Development
Training
Leader Skills
Training
Advanced Skills
Initial Entry
Skills Training
I
MentorSkills
V
Competency Level
Experienced Personnel
Employment Skills
Skills Evaluation
BasicTraining
Practical Application/
Coaching Evaluation
Practical Application/
Coaching Evaluation
Practical Application/
Coaching Evaluation
III
II
IntermediateTraining
AdvancedTraining
IV
Pre-Employment
“A Guide”
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ExampleLifecycle Skills Development Program
Pre-Hire Initial Intermediate Advanced Mentor
We
lde
rM
ac
hin
e O
per
ato
r o
r O
the
r S
kill
Basic
TABE
KMSS
WeldTest
TABE
KMSS
Orientation
CommonWeldingTraining
CommonESCO
Training
Orientation
CommonESCO
Training
Bucket 101
Cell Cell
Cell Cell
MFP 101
Cell Cell
Cell Cell
Bucket 101
Cell Cell
Cell Cell
MFP 101
Cell Cell
Cell Cell
MasterBucket Welder
MasterMFP
Welder
MasterBucket
Machinist
MasterMFP
Machinist
MasterBucket Builder
Master MFP
Builder
MasterESCO Builder
SkillsTest
PPL Management System 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
– Aligns PPL with Labor Resource Planning– Measures Head Count to Production– Predictive Measures Focus
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The Depth Chart
Visual Employee Management Tool– Employee Name and Picture
– Skills they have demonstrated
– Cell they are assigned too and qualified to work in.
– Cell they are cross-trained in (Self Motivated Training)
– Backed up by Web Based Tracking System
Keith Teegarten
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Production Identifies
Requirement
HR PostsRequisition &Sends to OET
OETScreening
HR Receives
Applications
HR SchedulesInterviews
InterviewsConducted;
Welding Test
Hiring Decision
Drug Screen and
Physical
Applicant Given Report
Date
HR AdminInprocessing
Plant Manager Meeting
Shift Supervisor
OSHA Training
Process/Quality
Training
Hiring Process September 2004
Offer;New Hire
Packet Sent
Cell Training
Structured Orientation and Training Process
Cycle Time: 5.8 Weeks - 43.7% reductionCost: $1,420 per new hire (Labor costs only) – 29.3% reduction
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Step 6Common Weld
Training
Step 8Next Training
Path/AdvancedSkill
Step 9Employee Evaluation
Step 7Cell
Training
WELDINGSKILLS
“End to End”Human Capital Management
Step 3 Interview/Employee
Hire
Step 4Orientation
Step 2Pre Hire/Recruit/Assess
Step 1Generate
Labor Requirement
Step 5World Class
First Day
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FinalAssembly
Skills
MachinistSkills
After the Welders…
WeldingSkills
Blast & PaintSkills
Sales &Scheduling
Skills
Team LeaderSkills
“If I only have one guy show up for work I want to be
able to build an entire bucket”
Dick Dale
Operations Manager
ESCO Covington
Strategic Goal
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Human Capital Management ProgramSuccess Features
1. Matching Candidates Expectations with Work Realities2. Matching the Person to the Job3. Matching the Task to the Person4. Providing Training, Coaching, and Feedback5. Providing Career Advancement and Growth Opportunities6. Making Employees Feel Valued and Recognized7. Reducing Stress from Work/Life Imbalance and Overwork8. Inspiring Trust and Confidence in Senior Leaders
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Human Capital ManagementChallenges
• No silver bullet…People are a complex problem with a lot of moving parts in a dynamic business environment
• Our commitment is to provide some real analysis to focus our efforts…not a “Good Idea of the Day” approach.
• Our recommendations must make good business sense • We must be realistic and “eat the elephant” one bite at a time.• We must be long range thinkers… People are multi-year projects-- if fact Life Long
Projects• We must create a SYSTEM to:
– Accomplish Big Goals and Objectives – Synchronize and integrate our Projects and Programs with the normal business
operations. – Better communicate with our primary clients: the Line Managers– Give the Line Managers predictable yet responsive support
• Do not be a part of the problem!
Golden Rule of Leadership
Treat your subordinates how you would like to be treated.
…1 at a time!
…and it can not occur without a conversation between the Leader and the Led about them with them!
they
Training Goals• Decrease the cost of training by reducing the time
to train—• Decrease time to competency (improve the
quality of training) – provide an early success• Decrease HR Risk (Safety, Litigation, etc.) • Empower the most effective and efficient training
environment possible… and Expert and a Novice on the job.
• Improve support to 1st Line Supervisors…the responsible person
• Align training capacity with Human Resources Labor Resource and Hiring Plan
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High Performance Organizations Mission First– People Always
Organizational Goals– Revenue
– Productivity
– Compliance
– Market Share
– Readiness
Individual Goals– Compensation
– Opportunities
– Responsibility
– Work Environment
– Recognition
Communication
Leader LedLedLedLed
AwarenessGoal
Alignment
Individual Development
Plans
Individual Development
Plans
Individual Development
Plans
ResourcesRequired