What is operational performance management?
What is performance management?
The implementation of daily performance monitoring meetings is undoubtedly the starting point for anyoperational excellence approach and the foundation of a culture of continuous improvement in the company. Remember that continuous improvement is above all "a state of mind and a culture for everyone that makes it possible to improve the way things are done, day after day, by little touches".
At fabriq, we measure it daily during the exchanges with our users and interlocutors, whether they are site directors, production supervisors or managers of support functions (Safety, Quality, Logistics, Maintenance, etc.): these meetings really serve as a backbone for the smooth running of the production site's operations (taking decisions, implementing corrective actions, etc.)
This is where information is communicated, where good collaboration between the different teams takes place and, above all, where decisions are made to solve problems or escalate them to the next level.
What is a Daily Management System? 🤓
The Daily Management System (DMS) comprises all these good practices, often called routines or workshop rituals which ensure that the operational objectives of the production site are in line with the results measured in the field. A methodology that allows for reliable and efficient operational performance development.
The main interest of the DMS is that it allowsa quick and efficient response to observedperformance deviations at all levels of the problem resolution cascade. It is based on 4 pillars:
- Visual management - Clearly visualize whether performance is good or bad on a given day and propose corrective measures in a timely manner;
- Workshop lathe routines - See for yourself how well the defined standards (safety, quality, etc.) are respected;
- The action plan - Follow the defined action plan on a daily basis to ensure that the objectives are achieved;
- Escalation -Escalating information and more generally involving in the process the people capable of making quick decisions to restore the expected level of performance.
Deploy at all levels of the performance cascade ⛰
Deploying the DMS at all hierarchical levels makes it possible to start from a cardinal objective (often referred to as a "mission statement") that defines the organization's priorities in detail and to apply it to all levels of decision-making and execution.
This cardinal objective is then translated into strategic macro performance indicators which are themselves cascaded to levels closer to the field and translated into more operational performance KPIs: the OTD of the site, the TRS of a machine or the number of quality anomalies in a production cell.
Each participant in the performance monitoring rituals can be aware of the company's objectives and priorities and the impact they can have in achieving them at their level. This promotes employee commitment and ownership of the performance objectives.
The importance of visual management in the factory 📊
Visual management is one of the techniques of Lean Management (Source: Michael Ballé, Dan Jones, Jacques Chaize and Orest Fiume in La Stratégie Lean, Eyrolles, 2017).
In this respect, visual management helps to reveal problems to the teams. Here, is considered a problem: a performance gap which is itself due to a discrepancy between an expected situation and the actual situation.
Visual management is based on the collection of factual data that highlights discrepancies. This data can be collected during field trips or daily meetings using a DMS deployed throughout the workshop. They can also be synchronized with other digital solutions such as ERP, MES, CMMS or Business Intelligence (BI) solutions to enable real-time monitoring of performance indicators and operational incidents.
This is where the transition to a digitalized DMS (Daily Management System) can bring you enormous gains in operational efficiency and ease in team collaboration .
Theimplementation of a digital management tool for your workshops allows you to collect and consolidate data that is often lost in multiple Excel files, to automate their update and to distribute them on digital boards available in real time to help employees to manage.
Also read on our blog: The essential methodologies and tools for problem solving
Why digitalize your routines, rituals and visual management? 🖥
- A single source of reliable information for your entire production site: data is updated in real time, enriched (photos, videos, tags) and scaled between the levels of your performance cascade.
- Significant time savings in the preparation and running of morning meetings: on average, we measure a time saving of 30 to 45 minutes per team leader per day at fabriq by avoiding double entries and retrieving data "by hand".
- Problems solved twice as fast thanks to faster and more efficient communication between the production and support teams and faster escalation of information to the right decision level.
- Improve the ownership and commitment of the production teams: they benefit from greater autonomy in problem solving but also from a stronger accountability, the process being transparent and visible to all at all levels.
- Capitalise on data to better understand the origin of problems and risks, share it internally and reduce the recurrence of problems. Historising this data creates a very rich operational knowledge base that teams can share and feed into (within a site, from one site to another, etc.).
- This fosters a culture of continuous improvement as every small step, every problem solved in the field, serves the whole organisation and reduces the recurrence of operational problems. All this allows for better risk monitoring and promotes collaborative working.
Would you like to find out more or discuss these exciting topics with us? Contact us 😊