Understanding, Measuring, and Improving Daily Management: How to Use Effective Daily Management to Drive Significant Process Improvement

Understanding, Measuring, and Improving Daily Management explains the critical parts of a continuous improvement strategy to achieve Operational Excellence and where reactive improvement through effective daily management fits in. In addition, it shows the consequences to your Operational Excellence journey if daily management is not performed well. Reactive improvement develops the capability and discipline within the organization to be able to rapidly recover from an event or incident that stops you from achieving your expected or target performance for the day, shift, or hour and most importantly -- your ability to capture the learning and initiate corrective actions so that the event or incident will not re-occur anywhere across the organization. As such, reactive improvement focuses on improving daily management through your daily review meetings, your information centers supporting the daily review meetings, and your frontline problem-solving root cause analysis capability at all levels. The book introduces the seven elements of reactive improvement that must work in concert for effective daily management and allows the reader to rate their site or department to determine their starting point compared to best practices: 1. Supportive organization structure to support development of your people so they have ownership and accountability for the performance of their area of responsibility; 2. Effective frontline leaders to ensure everyone else in the leadership structure are not working down a level; 3. Appropriate measures with expected targets that are linked to the site’s Key Success Factors for Operations to ensure goal alignment, and are relevant to the area being focused on; 4. Structured daily review meetings to identify opportunities (problems/incidents) and monitor progress of their solution so they don’t happen again; 5. Visual information centers that visually display daily and trending performance along with monitoring of actions to address problems/issues raised; 6. Frontline problem-solving root cause analysis capability across the site; and 7. Rapid sharing of learning capability across shifts, departments, and the organization. The author outlines in detail why each of the seven elements are important to achieving Operational Excellence, and most importantly, how to implement each element supported with many templates and tools.

Table of Contents:
Contents Introduction: The Importance of Effective Daily Management................. xi 1 Supportive Organisation Structure – Element 1................................. 1 The Causes of Equipment Failure and the 5 Whys........................................... 2 What Is the Pathway of Mechanical Equipment Failure?................................... 3 Failure Mechanisms of the Parts that Make Up Our Plant and Equipment...... 4 Failure Mechanisms......................................................................................... 4 Example of the Impact of the Laws of Physics on the Failure Mechanisms of Working Items....................................................................... 5 The Pendulum of Change – the History of Ownership within the Workplace............................................................................................................ 7 Area Based Team Structure................................................................................ 8 The 4 Stages of Area Based Team Development............................................. 13 Further Learning from Area Based Team Structure.........................................17 The Need to Address All Failures, Not Just Equipment Failures..................... 20 2 Effective Frontline Leaders – Element 2........................................... 23 What Do We Mean by Frontline Leader?......................................................... 23 The New Approach....................................................................................... 23 What Should Be the Allocation of Time for a Frontline Leader Supporting Operational Excellence?............................................................. 25 What Structure and Rosters Should We Have to Support the Development of Our Frontline Leaders?...................................................... 26 What Should Be the Roles and Responsibilities of a Frontline Leader?...... 28 Possible Key Roles......................................................................................... 28 Coaching of Team Members..........................................................................31 What Attributes Should We Develop in Our Frontline Leaders?..................31 What Skills Should We Develop in Our Frontline Leaders?........................ 32 1. Knowledge of Responsibilities (Policies and Procedures)................... 34 2. Knowledge of Work (Base Skills)........................................................ 34 3. Skill in Instructing (Teaching Skills).................................................... 35 4. Skill in Improving (Mastery Skills)....................................................... 35 5. Skill in Team Work (Team Skills)......................................................... 35 6. Skill in Leading (Leadership Skills)...................................................... 35 Team Skills, Teaching Skills and Leadership Skills Training....................... 35 Team Skills................................................................................................. 35 Team Skills Assessment.................................................................................... 39 Teaching Skills and Leadership Skills........................................................... 42 What Should Be a Typical Day/Week of a Frontline Leader?...................... 43 What Is the Best Way to Develop the Desired Attributes and Skills of Our Frontline Leaders?.................................................................................. 44 Use of Skills Matrices.................................................................................... 44 Summary Checklist for Developing Frontline Leaders.................................... 45 Note................................................................................................................... 46 3 Appropriate Measures – Element 3: Key Success Factors for Operations........................................................................................ 47 Order Is Important............................................................................................ 49 Establishing Performance Measures................................................................. 50 Displaying Your Performance Measures.......................................................... 50 Establishing a Baseline and Targets..................................................................51 Call to Action.................................................................................................... 55 Note................................................................................................................... 55 4 Structured Daily Review Meetings – Element 4............................... 57 Naming of Your Daily Review Meetings.......................................................... 58 What Should Be the Reason and Purpose of a Daily Review Meeting?......... 59 What Makes an Effective Daily Review Meeting?............................................ 60 What Information Should Be Reported at Daily Review Meeting?..................61 What Information Does the Production Manager Require on a Daily Basis?...............................................................................................................61 Selecting Performance Measures for Review at a Daily Review Meeting........61 Developing the Format and Agenda of a Daily Review Meeting................................................................................................. 62 Determining the Rules for a Daily Review Meeting........................................ 65 Setting Triggers and Policies to Initiate Frontline Problem-Solving Root Cause Analysis.................................................................................................. 66 Start of Shift Review Meeting............................................................................67 5 Visual Information Centres – Element 5........................................... 69 What Should Be Displayed?.............................................................................. 70 Setting Up Your Information Centres............................................................... 70 Example Layout of Basic Concern Strip........................................................... 75 Example Layout of a Root Cause Analysis Concern Strip............................... 76 6 Frontline Problem-Solving Root Cause Analysis Capability – Element 6.......................................................................................... 81 PLAN: Understand the Problem and Develop an Action Plan................................................................................................... 83 DO: Implement Solutions (the Action Plan) (Step 5)....................................... 83 CHECK: Evaluate Results (Step 6).................................................................... 84 ACT: List Future Actions (Step 7)...................................................................... 84 Introducing Frontline Problem-Solving Root Cause Analysis.......................... 84 Identifying the Initial Frontline Problems for Your Development Program... 87 Finding the Resources for On-Going Frontline Problem-Solving Root Cause Analysis.................................................................................................. 89 Outline of the 7 Step Frontline Problem-Solving Root Cause Analysis Process............................................................................ 90 Step 1: Define the Problem............................................................................... 93 Problem Statement:....................................................................................... 95 1.1 Establish Problem Statement in Object-Deviation Format................. 95 Problem Description:.................................................................................... 95 1.2 What Is the Problem?.......................................................................... 95 1.3 Where Did We Find the Problem? (Point of Observation)................ 95 1.4 When Did It Happen?......................................................................... 96 1.5 Size or Measure of the Deviation from Standard or Extent ofthe Problem ......... 96 1.6 Point of Observation or Where Did You First Identify You Had a Problem .............. 96 1.7 Point of Occurrence or Where Do You Believe the Problem Is Originating From .............. 96 1.8 Problem Definition = Problem Statement + Problem Description....... 97 1.9 Problem History or the Sequence of Events Leading Up to the Problem ............... 98 Step 2: Contain Problem................................................................................... 99 2.1 Identify a Containment Action............................................................. 100 2.2 Enact the Containment Action..............................................................101 2.3 Communicate the Containment Action................................................101 2.4 Verify the Effectiveness of the Containment Action............................101 Step 3: Analyse Problem..................................................................................101 3.1 Confirm the Effect Statement................................................................103 3.2 Identify Those to Be Involved..............................................................103 3.3 Identify Questions and Information Required.....................................103 3.4 Prepare Materials...................................................................................104 3.5 Select the Initial Categories to Promote the Brainstorming.................104 3.6 Populate the Cause & Effect Diagram..................................................104 3.7 Conduct Quality Check of the Causes..................................................105 3.8 Eliminate or Confirm Causes................................................................105 3.9 Select the Most Significant Possible Causes......................................... 106 Step 4: Develop Root Cause Solutions............................................................107 4.1 Extend Main Causes into Cause Statements.........................................109 4.2 Identify Those to Be Involved..............................................................109 4.3 Identify Questions and Information Required.....................................110 4.4 Prepare Materials...................................................................................110 4.5 Enter Cause Statements and Populate the Why-Why Diagram............110 4.6 Verify Each Answer to a Why with Data or Observational Evidence.................111 4.7 Summarise the Root Cause Pathways that Will Best Address the Problem............112 4.8 Identify Possible Solutions to Each Cause in the Two Pathways.........112 4.9 Select All the Solutions You Can Work On..........................................112 4.10 Select All the Remaining Solutions You Can Recommend to Others...............112 Step 5: Implement Solutions............................................................................114 5.1 Establish Appropriate Criteria for Developing Solutions......................114 5.2 Identify and Select the Most Appropriate Solution or Solutions...........115 5.3 Develop a List of Proposed Key Actions for Each Solution.................118 5.4 Gain Approval or Permission Including All Sign-Offs Required to Implement the Key Actions.........118 5.5 Obtain the Necessary Resources to Complete the Proposed Actions within the Required Timeframe...........118 5.6 Identify the Remaining Gaps to Achieve the Agreed Expectation Once the Initial Actions Have Been Completed.........118 5.7 Test or Measure the Effectiveness of the Actions in the Short Term......119 Step 6: Evaluate Results...................................................................................119 6.1 Ensure Your Actions Are Having the Required Impact...................... 120 6.2 If Appropriate, Conduct an Acid Test.................................................. 120 6.3 Lock in the Improvements................................................................... 120 6.4 Review Containment of Problem..........................................................121 Step 7: List Future Actions...............................................................................121 7.1 Adjust or Refine Solutions......................................................................121 7.2 Recommend Future Action....................................................................122 7.3 Complete Frontline Problem-Solving Root Cause Analysis A3 Summary Sheet........122 7.4 Conduct Horizontal Deployment Where Appropriate..........................123 Reflection on the 7 Step Process.....................................................................124 Key Learning from Frontline Problem-Solving Root Cause Analysis.............124 7 Rapid Sharing of Learning Capability – Element 7........................ 127 The Need for a Learning Organisation...........................................................127 Actions to Help Create a Learning Organisation............................................129 Establish Standards for Documenting Outcomes........................................129 Establish a Continuous Improvement Library and Knowledge Base.........129 Establish an Effective Daily Review Meeting Plan..................................... 130 Create the Right Environment to Promote Adult Learning........................ 130 8 The Way Forward............................................................................ 133 Preparation Action Plan...................................................................................133 Implementation Action Plan............................................................................135 Daily Review Meeting Rating......................................................................... 138 Reference List of Articles and Books.....................................................141 Index..................................................................................................... 143

About the Author :
Ross commenced his working career in 1970 at the Port Kembla Steelworks (12 yrs); followed by Cable Makers Australia (5 yrs) and David Brown Gear Industries (3 yrs). Over these 20 years he gained hands-on manufacturing and operational experience covering maintenance (14 years), production, operations and executive roles before moving into management consulting. In 1985, Ross developed his passion for Lean Production following his involvement in the Value Added Management (JIT) initiative by the NSW Government. Ross quickly and effectively applied the new Lean principles and practices firstly at the CMA Foam Group Lullaby Bedding Factory while Factory Manager, then CMA’s Cable Accessories Factory as Site Manager before moving to David Brown Gear Industries as Manufacturing Manger to establish and oversee the relocation of the company from Sydney to Wollongong to a new facility set up on Lean principles and practices. In 1989 after the new facility was well established and recognised for its leading edge improvements based on Lean, Ross was invited to join the new JIT / Lean practice being established by the Manufacturing and Operations Group of Coopers & Lybrand's International Management Consulting Practice based in Sydney. Over the next 5 years Ross had the opportunity to work on major assignments with some of the firm’s leading Lean practitioners from USA, Canada and the UK. It was also during this time that he first came across TPM (a critical missing link in the Lean tool kit) in 1990 when he led one of the first implementations of TPM in Australasia under the guidance of John Campbell who was Partner-in-Charge of Coopers & Lybrand’s Global Centre for Maintenance Excellence based in Canada and author of the internationally recognised maintenance book – Uptime. In August 1994, Ross established his own consulting practice specialising in TPM. He organised and chaired Australasia’s first TPM conference in 1995 and, at the request of the delegates at the conference, Ross with several colleagues founded The Centre for TPM (Australasia) in January 1996 to provide a membership-based organisation to support Australasian industry and academia. After extensive research including a trip to Paris in 1997 to attend Europe’s first World-Class Manufacturing & JIPM-TPM Conference and associated workshops with leading TPM practitioners from throughout the world, The Centre for TPM (Australasia) launched its TPM3 methodology in January 1998, which is an enhanced and expanded Australasian version of the Japan Institute of Plant Maintenance (JIPM) 3rd Generation TPM embracing the Toyota Production System and spanning the entire Supply Chain. Since then CTPM has been involved with a wide range of leading manufacturing, mining, processing, utilities and service companies. For example from Sept 1998 to June 2003 CTPM assisted Telstra roll-out their TPM initiative to over 200 teams servicing their Customer Access Copper Network in 16 Regions throughout Australia resulting in over $110m in savings. Ross has been actively involved with Lean Production since 1985, TPM since 1990 and Australasian TPM & Lean (TPM3) since 1998 and has delivered publicly over 200 workshops and papers on the subjects both within Australia and overseas. CTPM, under the direction of Ross with his team of experienced CI Specialists, is presently assisting over 30 sites located in Australia, New Zealand, Thailand, Indonesia and China on their TPM & Lean / CI journeys to Operational Excellence and World Class Performance.