Operations Performance Management

To maintain or improve productivity in manufacturing, especially when there are complex processes combined with a team of individuals, possibly across multiple shifts, there is an absolute need for frequent and ongoing management.  A lack of a habitual performance management will almost guarantee a steady decline in results.

In other words; when a manufacturing process is measured and managed it is possible to maintain and improve performance.  However, when a manufacturing process is not measured or measured poorly and not managed there is every chance that performance will decline.
To effectively manage a manufacturing facility there are a number of different approaches that can be taken.  The results achieved will be proportional to three factors, namely:
  • the accuracy of data (that identifies current losses)
  • the level of focus (the amount of time spent understanding and formulating decisions)
  • the quality of actions/fixes that are taken (that target resolution of the underlying losses)

Any approach that is under consideration also faces a common challenge to maximise limited resources, normally both people (time) and revenue (money) to achieve the optimum results.

A structured approach that can be used is; short interval control and tactical management (multiple events within a shift/day), Daily/24hrly tactical reviews, and Weekly/Fortnightly strategic reviews.  The tactical reviews (up to 24hrs) focus on reacting to what is happening and ensuring that the team and engineers are focusing on the current biggest issues.  The strategic reviews are about targeting continuous and incremental improvements, identifying trends and patterns and tackling root cause and cause of cause issues.

The approach outlined is very reliant on good quality data that is analysed in a specific way that ensures maximum understanding of losses and therefore likely potential solutions.  The specific measures are:

1. Overall Equipment Effectiveness (OEE) and The Six big losses (Breakdowns, Planned downtime, Minor Stops, Speed, Quality in Process, Quality on Start up)

2. Machine downtime - split down by major stops and minor stops, Mean time between failure (MTBF) and individual equipment faults

3. Waste (quality losses) by machine area

NB. Note that when capturing data and losses on a production line, it is critical to measure OEE based on the critical (slowest) machine on the line. In a similar way, machine downtime is useful; however knowing the effect it has had on the critical machine is invaluable.

This data could be collected manually at the end of each shift and put into Excel (or similar), however the ultimate, is to have electronically collected pinpoint accurate data that is available in real time, from each machine. This data can then be analysed and displayed the on the shop floor, in team meeting rooms, in fact anywhere in the manufacturing facility.

Decisions and resource planning that lead to action that are based on good quality data will yield results, whereas if based on perception, there is not necessarily a link between action and performance improvement. When this approach is followed habitually, and built into the daily routine and the laid out practices executed to an excellent standard, combining this with utilising quality data and taking action on issues identified, resolving them in a timely way, performance maintenance and improvement is almost guaranteed.

One way this can be supported is by providing assistance with understanding how well the review structure is working.  Auditing the meetings, reviews and outputs is one good way of doing this.  When this auditing is done purely to check effectiveness and to learn, it can be a very powerful tool to assist the change journey.

The table below gives the overall Purpose, Objectives, minimum Standards and Measures of the various Operations Reviews:

Mini Reviews within Shift

Tactical Review within shift

24 Hour review

Weekly Strategic Review
Purpose Analyse data over a short timeframe to provide focus. Analyse data since the last review to provide focus area until the next review. Analyse data over the last 24 hours and provide focus for the next 24 hours. Review the week’s performance of each line to identify improvement opportunities.
Objectives
  • Identify the greatest loss and provide focus
  • Review action effectiveness
  • Identify greatest losses to the line and allocate actions and targets
  • Review effectiveness of completed actions
  • Review any planned downtime event identify actions if not within target
  • Identify any planned downtime event due and plan to make it as effective as possible
  • Plan any maintenance activities by looking for the next available opportunity
  • Identify the top losses and provide focus for the day allocating corrective actions
  • Review the effectiveness of actions
  • Check compliance and effectiveness of the tactical reviews
  • Review any internal and external planned downtime events and allocate actions if required
  • Identify any asset care opportunities in the next 24 hours
  • Review the weeks performance of each line and an 8 week trend of data
  • Identify the top focus areas and provide corrective actions to resolve the greatest loss areas
  • Review medium/long term action list
  • Confirm effectiveness of closed actions
  • Plan for any improvement projects by allocating targets, timeframe and resource
Minimum standards and measures
  • Ensure identified actions from the tactical review are having a positive effect
  • Review current situation to ensure there is focus on the greatest loss area
  • Agreed structure and attendance
  • Top loss identified
  • Improvement target set
  • Responsibility or accountability assigned
  • Agreed structure and attendance
  • Top losses for the last 24 hours identified
  • Review correlation of top losses identified in shift tactical reviews with the 24hour review
  • Review effectiveness of actions
  • Assign accountabilities, targets and timeframes
  • Agreed structure and attendance
  • Top focus areas for each line identified
  • Improvement targets and accountabilities assigned
  • Review action completion and effectiveness

Click here to download the detailed pdf version of the Operations Peformance Reviews.