Overall Plant Effectiveness

The Eight Major Plant Losses

  1. Shutdown
  2. Production adjustment
  3. Equipment failure
  4. Process failure
  5. Normal production loss
  6. Abnormal production loss
  7. Quality defects
  8. Reprocessing

Overall Plant Effectiveness

Things to do to improve warehouse productivity

warehouse 4Business may be slow now but before you know it you’ll be jammed again. Want to get more done with the folks you have?  Things to consider:

  1. Keep the lifts in good repair
  2. Batteries getting old?
  3. Stagger shift starts – replenish forward picking before the first wave
  4. Reslot often
  5. Not enough space, then make more – get to 10% empty forwards and 20% empty reserves
  6. Qualify and prioritize the inbound freight – need the trailer now, or later?
  7. Qualify the product going into reserve
  8. Get the inbound current and under control before tackling pick, pack, ship
  9. Fix any and all inventory inaccuracy root causes
  10. Have fresh eyes look at the problem – select different supervisors or warehouse workers look at other areas
  11. Eliminate touches
  12. Minimize travel
  13. Right size the forwards, so inbound doesn’t need to go into reserve
  14. Align the picking method for each product with its order pattern
  15. Can the WMS round up order quantities to an easily picked unit or measure?
  16. Engage the troops
  17. Every DC worker makes thousands of decisions each day; understand and guide discretionary decision-making
  18. Solve the workforce’s boredom problem
  19. Most supervisors spend less than 5% of their time on motivating employees, double that and double productivity
  20. Inbound congestion means waste and extra touches
  21. Housekeeping
  22. Address the annoyances that demotivate
  23. Keep inbound under control and putaway as timely as possible
  24. Recalculate Safety Stock
  25. Update leadtimes
  26. Bust the inbound batch sizes
  27. Increase inbound visibility, smooth the spikes if you can
  28. Publish metrics for all to see and encourage friendly competition between zones, departments, facilities
  29. Create a ‘dog pound’ and move slow movers out of the way
  30. Study and fight outbound congestion
  31. Adjust the number of pick zones; fewer the better
  32. Synchronize order filling across all zones
  33. Keep current on replenishment
  34. Never run out of supplies (totes, pallets, carts, tape)
  35. Adjust the organization chart
  36. Constantly monitor outbound flow; rebalance pick, pack, and loading
  37. Reduce the number of job classifications
  38. Use inbound teams and eliminate staging areas: unload, receive and put away with one touch not two or three
  39. Brainstorm and then brainstorm some more
  40. Be careful what you measure
  41. If you are in a meltdown, get help
  42. Consider postal pick location address scheme; going down an aisle picking on left and right instead of down one side and coming back the other

 

 

 

Levels of Empowerment

Guest author Carmen Brickner of CLEARbrick, Inc.

 

Empowerment_Levels

 

 

©CLEARbrick, Inc. Carmen Brickner is an expert in culture change, specializing in organizations undertaking continuous improvement and team-based approaches.

 

 

 

 

 

 

Helping Organizations OPT for Change

Guest author Carmen Brickner of CLEARbrick, Inc.

“Managing change” is an oxymoron. And anything with ‘moron’ in it can’t be good for the bottom line!

We can’t manage change because we can’t anticipate and control all the variables that are yet to present themselves. And we can’t make people change because each of us has the inalienable right to decide if and when and how we will react to any situation. But we do know why people do or do not choose to change.

We can help them OPT for change by providing Outcome, Path and Tracking.

OUTCOME

People need to know where they are going if you expect them to get there. The difficulty many managers have when implementing a culture change such as Lean or Six Sigma, is that they don’t really know exactly what the outcome will be. Disciplines of engineering and accounting neither attract nor reward people who are comfortable with approximations.

Yet there are principles, models and resources to help you imagine what your organization’s desired future will embody. Most managers share just the results such as bottom line or delivery impacts. That is great, but too high level and does not reduce the fear of the personal impact on them. In order to create an image in which people can see themselves participating, you have to describe what it will actually look like, how you will all work together, how your own job will change along with theirs, and why it is important.

PATH

Once the destination has been defined, you need to build the path for them to get there. This is the tactical level of change. Eisenhower said “Plans are nothing; planning is everything.” Plans can be helpful, but they must be flexible. I agree that the real power is in the process of planning. We refine our vision, we are forced to come up with answers for questions we had overlooked, and we have to face contingencies and risks.

You need to define:

  • Where you are now
  • How quickly you want to move and what is required at each level
  • Who will do what, when and where
  • What the scope of authority and boundaries will be for teams and individuals
  • How you will create the infrastructure – teams, systems, communications
  • What people will need to know and how you will educate them.

TRACKING

Just as an airplane or ship constantly measures its position against plan to make small continuous adjustments, you need to have metrics and milestones to ensure desired progress and timely interventions.

The key metrics for change are all easily tracked in simple logs. Again, I use an acronym to aid memory – KITE:

  • Knowledge – who knows what, can teach what, is certified in what
  • Ideas – how many submitted, how many implemented, originating person/area
  • Teams – participation and roles, leadership, facilitation, what areas are and are not ‘in the game’
  • Events – areas, types of events, dates, results, lessons learned.

Tracking progress allows you to provide feedback, coaching, training, and plan changes. The real payoff, however, comes when this information is used by future teams or if it helps you identify areas and leadership that are rich in talent or resistant to change.

It is hard to succeed if you don’t know the rules of the game. They feel unsafe, lack trust in you and become resentful if they think you will be evaluating their performance on some unspoken and fuzzy target. They feel sandbagged!

If you let people know what a successful OUTCOME will look like, the PATH to get there and support them by TRACKING their progress and sharing constructive feedback, you greatly increase the chances of achieving change.

 

©CLEARbrick, Inc. Carmen Brickner is an expert in culture change, specializing in organizations undertaking continuous improvement and team-based approaches.

 

 

 

It’s time for Hoshin: Annual Operating Plan

Well its getting to be that time of year again… What did I promise to deliver this year, what do we need to do next year?

X-Matrix

The annual operating plan sometimes is developed and displayed using the X-Matrix.  Establish the results of goals for next year, take the strategies and tie them to tactics, make sure the tactics can be measured (targets) and have individuals assigned ownership of tactics and targets.

A3-TeamCharter

Little gets done without marching orders, i.e. a Charter.  The basic document of the hoshin process is the team charter. The A3 format connects the targets (goals) to the tactics and provides another level of critical thinking about execution.  The team charter is a contact between the company to  provide support and resources and the team and team members to do the hard work of problem solving, applying the scientific method, and running experiments on the management operating system.

BowlingChart

What gets measured gets better, and so we set plans and track key performance indicators.

Ready to make your hoshin for next year?