Chapter Nine
Managing Shop Floor Improvement
Activities
Goal Setting
Traditionally, goals were set by top
management
No lower people involvement
Not clearly explained to people
Goals are conflicting
People focus on individual goals, instead of
total organization goals
Goal Setting
To link individual goals to total goals;
Goal setting at the shop floor I critical.
For goal setting at the shop floor, the role of
supervisor is important
The more supervisors develop skills to
handle goals, the better the function of
organization
Goals of Supervisors at the Shop Floor
Goals are related with QCDSM
Goal setting at different stages:
Level 1: Schedule compliance (Delivery)
Level 2: Q & D, or Q & C
Level 3: QCD are major goals
Level 4: QCDSM are major goals, realize the
importance of people involvement
Level 5: More than QCDSM, much more
closely the company’s overall goals
(As people’s skills are upgraded, the goal setting
process will also be upgraded.)
Key points of goal setting
Challenge to people
Persuasive for people to buy in and have ownership
Measurable
Compare with benchmarking
Consider the necessities of business
Suggested by people
Review past performance
Provide problem solving techniques
Use people’s creativity
Help achieve the mission
Benchmarking
We cannot close our eyes and be internally focused
Analyse who are the best? (Who is the best one in
Q, or C, or D, or S and M)
Criteria may be sales volume, profitability, market
share, defect rate, inventory level, space, and so
on…
If our company is rated low, a major rethinking of
approaches will be needed before it is too late
Set performance targets (challenging goals) by
benchmarking others, for continuous improvement
Even if it is difficult to obtain direct information about
competitors, we can visit other departments or non-
competitors to pick up ideas
Management Cycle
Among the means to achieve goals, the basic
management discipline is PDCA cycle
Set a course by considering current situations (Plan)
Follow the course (Do)
Review progress by comparing with plan (Check)
State reasons for deviation (Act)
Recalculate the course (Plan)
Follow new plan (Do)
The cycle may be daily, weekly, monthly,
semiannual, or annual depending on the nature of
the work and the needs
Stages of Supervisor’s PDCA Cycle
Level 1: Everything is decided on an ad hoc basis, the process of
PD-PD…
Level 2: There is little check on operations. However, people
tend to think there is no time to analyze problems
Level 3: Regular meetings to review performance indicators.
Follow PDCA. However, it typically requires more than three
cycles of PDCA before it is internalized by everyone. Strong
leadership is needed.
Level 4: Discuss a number of subjects (Q, C, D, new product,
design change, and so on). People can see big picture after
going through several PDCA cycles. Good habits and confidence
are developed and communication is smoother.
Level 5: Committees to plan and review performance )efficient
meetings). Many events to share successes and recognize
improvement.
Developing The Rhythm of PDCA
Developing the rhythm of PDCA is similar to developing muscles
through regular exercises
Every revolution of PDCA cycle propels the organization forward.
When cycling stops, the progress stops and the organization
loses its momentum.
PDCA rhythm may be compared to human heartbeat.
There are different levels of PDCA cycles within an organization
(shop floor level and other levels)
All cycles must be coordinated
When everybody’s cooperation and dedication are gained, the
organization will become totally integrated entity
When each PDCA cycle is established and treated independently
from the rest, it is very difficult to gain the integrated power of
different operations. There may be a lack of clarity, confusion,
and a lack of discipline.
Developing The Rhythm of PDCA
We should ask ourselves:
Are our organization’s PDCA cycles clear to
everybody?
What are these PDCA cycles?
Is everybody in our organization practicing
the discipline of “following through” in the
PDCA cycle?
How are these PDCA cycles tied together?
Developing The Rhythm of PDCA
High Strategic Plan
Level Business Plan
of
Organization Short/Mid-Term
Plan
Daily
Low Management
Short Long
PDCA Cycle
Managing Time on The Shop Floor
How supervisors spend their time on the shop floor?
Daily activities: preparation for morning meeting, conduct
morning meeting, review of startup operation (safety,
maintenance, repairs), review of operation with manager and
peers (meet and report on the status of operation), dealing with
abnormal conditions (delayed deliveries), lunch time, break time,
and after-hour activities (share time with employees, take part in
recreational activities), end of shift (plan for the next day),
miscellaneous jobs (walking around)
Weekly or Monthly activities: participate in production schedule
meeting, safety and housekeeping tour, shop floor improvement
meeting, meetings on engineering changes and new product
introduction, team project and task force meeting, conduct
education and training, attend training course for supervisors
Annual or Semiannual activities: review of past year’s
performance, develop new year’s plan, assess the need for
additional employees, assess pay and bonuses, and discuss with
manager (Appendix 9.1)
Managing Time on The Shop Floor
There are many activities to be covered by
supervisors.
Supervisor can be seen as a general manager or
president of his or her shop.
Managers and support people should realize the
importance of these supervisors’ and shop floor
people’s work.
However, we should ask the questions: Are
supervisors of these activities effectively controlling
the shop floor situation? Have they developed a
certain rhythm with little interruption from fire
fighting?
Managing Improvement Activities with
Control Points
Just as we may frequently check car speed,
our location on the map, or fuel level during a
trip, we should practice similar concept when
running business/ mini-company.
Control points or management points must be
set to provide adequate monitoring and
feedback system.
Control points are set by considering QCDSM.
Control points are divided into control items
(effect) and check items (cause)
Control Points
Examples of Control Points for a Car Journey
Control Items: Car Speed, Direction
Check Items: Man Driver (Tired, bored, sleepy, etc.)
Machine Car (Engine temperature, oil pressure,
etc.)
Method: Steering, gear selection
Material: Fuel level
Examples of Control Points in Business
Control Items: Production Volume, Sales Volume
Check Items: Production capacity, machine breakdowns,
attendance of operators, as applied to production, and number of
sales calls, skill level, product knowledge of sales people
Key Considerations for Applying
Control Points (Control Items)
Control Items selected from QCDSM
Number may vary (higher responsibility means more
items to deal with)
Chosen from representative measurements
Display of charts for ease review
To act quickly when abnormalities are identified,
consider clear criteria to indicate abnormalities,
analyse potential root cause, develop procedure to
take action, define people’s roles and
responsibilities for reporting and taking action
Key Considerations for Applying
Control Points (Check Items)
Items selected from items that influence the
outcome
Analytical capability is required to select items
The number may vary (the lower the risk, the fewer
there are)
Judgment or trial-and-error process in selection
Chosen from representative measures
Use of check sheets, control charts, and other visual
displays for ease of review
Control Points
Whenever abnormalities are observed, in
order to control over situation, problem
solving should take place following PDCA
cycle.
A good network of control points throughout
the company can act the nervous system of
the organization.
By monitoring the control points, we should
be able to tell whether or not we are on the
right track to accomplish our mission.
Organizing our mini-company meeting
area
We need to steer our organization so that we
can accomplish our vision.
One of the specific tools we can use at shop
floor is mini-company meeting.
However, we need to set ore mini-company
meeting area.
Features of a well-organized meeting area
(Exhibit 9.17)
Name of mini-company
Mission
Names and pictures of people
Customer-supplier relationship chart
QCDSM measurements (Defect rate %, productivity: unit/hour, On-time
shipment %, Days without accident, number of suggestions)
Customer survey results
Plans of action
Samples of defects (with comments)
Skill matrix
Status of team projects
Improvement of the month (before and after pictures)
Attendance chart
Safety clock (number of days without accident)
Quality clock (number of days without defects)
Status of suggestions, number of suggestions with name of person
Awards received
Focus item of the month; slogan of the month
Documents, reference books (eg., annual report)
Features of a well-organized meeting
area
Items in the meeting area should indicate the level
of control by themselves, making it easy for
everyone to find critical information related to mini-
company’s operation – who is to do what, when,
where, why, how, and how much (5W2H).
Every day, people meet at this mini-company
meeting area to review key points of operation
(QCDSM).
People’s comments are transmitted upward,
management concerns are shared in the meetings
as well, assuring two-way communication.
Organizing the Work Station
We should clarify key control points at each work station.
There are number of ways to organize an efficient work station.
1. Name and description of work station
2. Name and picture of operator
3. SOP
4. Trouble light to call for supervisor’s help
5. Line stop button
6. Sample board to check the quality of product
7. Explanation of poka-yoke (instruction for installation with picture)
8. Machine checklist for self maintenance
9. Machine downtime log
10. Safety checkpoint
11. Description of recent improvement (before and after pictures)
12. Layout of the area
13. SPC (statistical process control) chart
14. QC process table (control points and control methods)
15. Sample product
16. Production control board
17. Marking of floor (a place for everything)
Organizing the Work Station
As a person’s responsibility or span of control
increases, checking, analysing, and updating
the control points become a critical part of his
or her job.
If we can practice the idea of control points
using glass wall management, everyone in
the whole organization will be able to see
how the company is running and be able to
contribute ideas much more freely.
Learning to use control points
The number of control points should increases as we delegate
our ability to machines, tools, poka-yoke, color-coding, SOP, and
the like).
There are three different phases to learn how to use control
points.
Introduction phase: Selling the ideas and developing ownership.
We may do without knowing why.
Critical phase: At some point we may become tired of using
control points. This period is critical for future outcome. Sharing
the progress among the group, reaffirming the vision, and
addressing the problem directly are keys for success.
Stabilization phase: Success starts to breed more successes. As
we begin to taste success, the whole organization starts to
internalize the idea and to move forward in a coherent fashion.
Control points may be viewed as key management indices.
When there are many different indices, each person or each
level can focus on a few important ones.
Developing the network of control points
Control points at the top level and those of
each unit are related.
Coordinating all of them becomes a very
important task for top management.
Developing the Network of Control Points
Control points reflect cause-and-effect relationships in
the company
President Control Item A Check Items A1, A2,…
Department
Manager: Control Item A1 Check Items A11, A12,…
Line
Manager: Control Item A11 Check Items A111, A112,…
Objectives (Effects) Means (Causes)
A: Defect rate of company A11, A12: Defect rates of work stations
A1, A2: Ref-
Defect rates
page of assembly lines
253-254 A111, A112: Machine conditions at work
stations
Developing the Network of Control Points
Control points as Viewed Horizontally (Example: Quality)
Customer
Complaints
Marketing
Research Assembly
Tooling
Material Design
Selection Fabrication
Quality
Marketing Design Manufacturing Products to
the
Customers
Developing the Network of Control
Points
As more people understand and practice the
concept of control points, the company’s
management structure will become stronger.
Communication throughout the company will
be vastly enhanced and teamwork will be
more closely coordinated.
Thus, education and feedback of progress to
people remain very important.
Developing documentation and
Presentation Skills
To clarify control points and establish a
comprehensive management framework to
achieve shop floor excellence, we need to
streamline overall communication process.
Not just in meetings and conversations on the
floor but also in documentation and
presentations.
Key points of making presentation
Know the purpose of the presentation
Identify the main ideas
Know your audience’s level of understanding and
interest in the subject matter
Develop the story of the presentation; follow logical
steps
Pick out interesting points to catch the audience’s
attention
Practice with dry runs as appropriate
Use visual aids effectively
Time the presentation and stick to the schedule
Developing documentation and
Presentation Skills
Similar guidelines should be applied to writing documents.
We also need to reflect realistic ideas by using real parts,
pictures, charts, and exhibits in delivering message.
These exhibits should be talking to us by themselves.
In order to involve more people in making effective presentations
and documentation, special consideration should be given to
keeping things simple and to the point.
As each of us gets used to making presentations and writing
documentations, communication within the organization will be
streamlined.
If we are disorganized or self-centered, communication can be
exhaustive and time consuming.
Examples of Effective Communication
Techniques at The Shop Floor
Three-minute presentation: executive briefing at
shop floor to report on improvements to managers
(Quick review)
One-minute talk: In daily floor meeting, a team
member is asked to talk about anything he or she
wants (Breaking the psychological barrier)
One-page progress report: Daily, weekly, monthly
report on key tasks or QCDSM indicators for
management review (Forces people to think in an
organized manner)
Use of story board: Make management information
visible, used for people to write ideas (Idea
notebooks of all team members on display)
Reviewing The Progress Of
Improvement Activities
A periodic review of improvement activities is an important
checkpoint in our management cycle.
Self-managed team does not mean that its members have a free
hand.
Teams need to check their performance themselves by using
checklists and so on.
Each mini-company needs to make sure that bankers and
managers are properly informed about the progress by periodic
meetings and reports.
Even though some bankers may not require a detailed progress
report, it should be considered an important duty of mini-
company president to prepare proper documentation for his or
her own sake.
When reports are well organized with proper support data, logic,
analysis, and evaluation of benefits, managers will develop much
more confidence, just as bankers develop confidence in those
with good credit records.