PRACTICES ASSESSMENT TOOL

Focus of this assessment tool

Technical System Management Infrastructure

Planning and internal logistics
Loss elimination
Maintenance system
Quality system
Manpower system
Safety and housekeeping
Management Organization design
Infrastructure Contractors and suppliers
management
Performance management
Operating Support function processes
Capability building processes
System
CI infrastructure

Mindsets &
Behaviors

Mindsets, capabilities and behaviours

1
Technical System planning and internal logistics
1 2 3 4 5

Material flow
(The movement of product
along the value stream
(both within and between
value-adding process
steps)
Production processes Production processes are
are isolated islands departmentalised, but
with large amounts of there are efforts to reduce
WIP between operations WIP between various
(i.e.departmentalized). stations
Lot of movement and Complex conveyance
systems is in place to
hand handling of
material takes place optimise material
outside normal process movement, but theres lot
flow of handling outside
conveyance
Production processes are There is not Coordinated 1X1
departmentalised, but departmentalization. WIP production occurs for all
there is an orchestrated is always minimized. operations, as well as
effort to reduce WIP coordinated shutdowns
for planned downtime.
Material movement is There is minimized
Material movement is
through conveyance through conveyance transportation of people /
systems, with minimum materials through the
systems and there are
manual handling / plant
efforts to minimize
transportation conveyance requirements
(eg planning / redesign)

Material enters and is There is some concept of

pull at the bottleneck There is a notion of pull, Production system is Production is driven by
pushed down-stream on but the system is not driven by Pull system. Pull signal from
forecast only. Over- stations, but there is lot of
visual, and controlled WIP at bottle neck and downstream process.
production is the norm to overproduction in the
daily counts/adjustments change over points in WIP is strictly limited &
mask downtimes. system
system system highly disciplined

Current bottleneck Bottleneck known from Detailed fact-based

experience. Bottle neck
unknown. Equipment
productivities are not equipment capacities
known are recorded but values
are not used
Detailed fact-based
analysis of bottleneck has
been conducted.
Equipment
productivities are
benchmarked against
Industry leader
Detailed fact-based
analysis of bottleneck has analysis of bottlenecks is
been conducted. Bottle regularly updated.
neck equipment Equipment productivity
uptime schedule are in best practice
place but not adhered
to strictly standards are
established and known

Information flow
(Production control
processes for logistics,
production instruction, and
conveyance)
Complex production Production planning Production planning Pull production system Simplified production
planning processes that continues to be forecast process are simple, and driven by customer planning processes that
promote push and only push system promote pull production, demand for made to translate actual customer
production (start based based however there is a degree order products. demand (throughout the
on forecast as early as of overproduction built processes) into
you can and make as into the planning system production instruction;
much as you can) to deal with production build only whats
inefficiencies consumed or ordered

Production volumes and Production volumes and Visual signals vs.

WIP are controlled WIP and volumes are
controlled on weekly basis.
weekly through an MRP
Theres a target inventory
system. Inventory is
level but varies a lot
uncontrolled no target,
depending on production
no planning
(reactive vs proactive
inventory)
WIP are controlled daily
through an MRP system.
Target inventory is based
on minimum safety buffer
required.
Some built in over complex order
production is there to instructions are deployed;
account for fluctuation is flow of product volume is
demand. Target inventory dictates production order.
is based on minimum Inventory seldom varies
safety buffer required and from buffer inventory.
is usually met.
2
Technical System loss elimination
1 2 3 4 5

Waste reduction
(Anything which adds
cost but no value in the
eyes of the customer)
No clear understanding
of what adds value and
what does not.
There has been some Moderate understanding Value addition from Value in the eyes of the
education / analysis on of customer value customer perspective is customer is clearly defined &
what adds value and the clearly defined. understood throughout the
sources of loss in organization. 7 types of waste
manufacturing processes are well understood throughout
the organization

Concept of waste (eg 7 A systematic approach is used

Theres a lot of waste (eg
energy waste through
leaks, multiple start-stop)
although employees are
not aware. Improvement
focus on large capex
projects only.
types) is understood but There is evidence of Concept of waste is to identify & eliminate sources
no to little efforts are waste elimination, but clearly understood by of waste. Energy or spare parts
made to eliminate it the effort is neither everyone and regular waste is at a minimum
except for capex. vigorous nor systematic. improvement happen.
Efforts to minimize
energy / spare parts
loss have mixed results.

Variability reduction
(Deviation from the target
value)
Performance is not
measured at machine
level
Variability is accepted as
the norm and dealt with
through overcapacity,
large WIP, overttime
Equipment speed limits
are not known. No
recording of actual speed
Efforts are made to the Performance measure
root cause of the problem
but problem solving
approach is not followed
Variability reduction is
partly tackled through
project approach
Equipment speed limits
are known from
experience. Recording of
speed information but
patchy and unreliable
Daily address system for
by department with
paper/computer reports
Variability reduction
approach is project
based only (e.g. 6
Sigma) and takes a long
time. Engineers analyse
the root causes of
variability.
Equipment speed limits
are known from facts.
The speed performance
is well recorded and
reviewed regularly
Visual management is used to
crucial processes
Root cause analysis is
used by engineers to
solve the problems in
projects and in daily
shopfloor activities.
A technical study have
identified the technical
limit and improvement
levers to increase
speed. The speed is well
recorded.
highlight current condition or
performance versus the target
value
Root cause analysis is used by
all. People distinguish between
common cause and special
cause, 80% effort is daily, 20%
project based
Regular technical study to
identify new speed
improvement opportunities.
Very detailed record of speed
and review every day

Inflexibility reduction
(The inability to provide
exactly what the
customer wants when the
customer wants it)
New product introduction
leads to months of
quality and delivery
issues in both new and
existing product lines
New product introduction The disturbance caused
takes around 2 months to by new product
be debugged introduction is dealt with
in a relatively effective
manner
Staff is trained for crucial New products are
processes before job systematically debugged, the
one on the new line line adapted and the staff
trained before job 1, there is
almost no disturbance to
production

In the eyes of the The value of flexibility is There is a common

organization, flexibility is
something to suppress to
improve unit cost
There is some
understanding of value of
flexibility but it is still
viewed as an added cost.
Flexibility is highly understanding the flexibility is
recognized versus unit valued by everyone
cost (e.g., in investment indispensable and costs less
decisions)
3
Technical System maintenance system (1/2)
Maintenance Planning
and scheduling
(The processes which
ensure the people with right
information, skills, and
resources are doing the
right job at the right time)
Maintenance strategy
(Execute low total cost
equipment strategies
focused on preventing
failures)
1 2
<50% planned work 50% planned work (man-
(man-hours) hours)
Most of the work done in Maintenance team has to
emergency and parts / deal with a lot of
tools are often missing emergency
High backlog (>6 months) Backlog of ~3 months
No detailed advanced A distinct planner function
planning or scheduling prepares plans for all jobs
(scope, responsibility and
resources)
Planned shutdowns often
Planned shutdowns
always run over run over
No or over-aged Preventive maintenance
preventive maintenance plan defined and use
plan some condition
monitoring (but mainly
visual inspection).
Preventive plan not
defined for all equipment
and/or not fully
implemented
Critical equipment known
Critical equipment from experience
unknown
No clear equipment
No equipment strategies strategy
Some information
No records of equipment recorded (history, work
history (work done, order) even if patchy and
breakdowns, etc.) unreliable
3 4 5
75% planned work (man- 90% planned work >95% of work is planned
hours) and scheduled in details
1 week in advance
Number of emergencies Number of emergencies Almost no emergencies
is manageable is manageable
Backlog is < 6weeks Backlog is less than 3
Backlog is <4 weeks
weeks
Detailed planning and Complete work package Kitting and work package
schedule development: are prepared for most preparation for all jobs.
clear critical path for jobs before they start Schedule adherence is
shutdowns, 1 week (tools, spare parts). >90%
schedule for routine Schedule adherence is
maintenance. Schedule 80-90%
adherence is <80%
Planned shutdowns Planned shutdowns never Planned shut down never
seldom run over
run over run over
Use of condition Preventive plan for all A specific reliability
monitoring, preventive equipment regularly engineering function
plan for all equipment updated and 100% continuously seeks to
implemented. Advanced optimize cost and
condition monitoring downtime by reviewing
extensively used (when equipment strategies and
cost effective) updating all preventive
plans
Critical equipment Critical equipment
Critical equipment analysis conducted analysis conducted
assessed from facts and
FMEA conducted
FMEA conducted and FMEA conducted and
Some calculation of MTBF calculated for MTBF calculated for
MTBF 100% equipment
>75% of equipment
A single CMMS is used CMMS extensively used
Use of computer system by maintenance for by everyone (incl.
to record complete equipment history, technicians)
reliable equipment history planning, W/O tracking
4
Technical System maintenance system (2/2)
1 2 3 4 5

Work execution Operators not involved Operators dont Operators do daily Daily involvement of Operators extensively
(Utilize best practice in maintenance the participate but clean and check (but operators in and proactively
efficiency tools -- (e.g. equipment is yours to communicate and mainly visual maintenance: clean, participate in
SMED, standardized repair and maintain cooperate with inspection) check (not only visual) maintenance (incl.
work, 5S etc. to maintenance lube, simple changes assist in preventive
execute maintenance jobs and repairs,
jobs without waste) problem solving)

Some record of job Clear SOPs and target Regular job have an
No tracking of job Time to complete SOP that is strictly
execution time but patchy and jobs / MTTR measured time for all regular
unreliable maintenance jobs followed
and tracked

-- Tracking of MTTR / Each job has a target

-- SOPs and target time time and actual vs.
for some jobs time to complete jobs
target is tracked

Root cause problem No root cause problem Ad-hoc analysis on Systematic root cause All issues are Equipment fixed right
solving solving repeated problems but problem solving systematically the first time through
(The processes to Maintenance only do mainly involving methodology used for analyzed to the root systematic cross-
continuously improve quick-fix and problems maintenance / major issues involving cause using a functional-problem
equipment reliability reoccur engineering only. ooperators, engineers, standardized process. solving issues never
through root cause Simple problem maintenance, Involvement of repeat themselves.
problem solving) solving tool (eg 5 equipment supplier operators, engineers, Very high employees
whys) together maintenance, involvement in
equipment supplier etc problem elimination

Maintenance downtime Maintenance Aggressive OEE and OEE and maintenance

No tracking of is measured but downtime is measured maintenance downtime target are
downtime / production patchy and unreliable and reviewed weekly downtime target set regularly reviewed and
loss and chart of actual vs chart of actual vs
target visible in control target visible in control
room room
Pareto analysis has Pareto analysis of top
Small list of identified Pareto analysis has identified and provided issues updated
No list of identified issues, but no identified and provided
issues data on top 10 issues regularly
prioritization data on top 10 issues on each machine
on each machine

5
Technical System quality system
1 2 3 4 5

Quality assurance Customer complaints are Customer complaints Production is actively Production is actively Production is actively
handled by marketing or are well communicated involved in dealing with involved in dealing with involved in dealing with
quality department, not by and timely addressed customer complaints and customer complaints customer complaints
production developing solution

No efforts to record or No problem solving Ad-hoc quality tools are Proper quality tools are PDCA* action plans are
take care of customer culture for customer used to solve problems used in a structured initiated and conducted
complaints complaints problem solving approach by production team
No record of customer Rework, scrap and Complete rework, scrap Rework, scrap and Quality knowledge and
feedback is kept in Customer complaints are and customer complaints customer complaints are ownership in every step
production department recorded in production are kept in production visually displayed in of production value chain
department but not 100% area production area
complete / accurate Operator well aware of
quality issues

Quality control No Standard Operating SOP and Quality control SOP and Quality control
Procedure (SOP) and procedure are
Quality control Procedure documented but not
easily accessed
High defect rate in daily Quality KPIs are defined
and tracked weekly. No
production, but no clear
major focus on solving
tracking of quality KPIs
quality problems
In case of deviation from
procedure are
documented and easily
accessed
Quality KPIs are tracked
and reviewed daily.
Quality problems are
prioritized at least on a
weekly basis
Clear SOP and trouble
quality standard, shooting guidelines
operators follow clear Process audits are
instructions given by a performed and corrective
standard trouble-shooting action plans are set up
guide, record and report systematically
timely
Quality KPIs are tracked Operators own quality
and reviewed daily.
KPIs and drive review
Source of the variance
and improvement action
are analyzed weekly and
plans by themselves
actions are
taken to improve

SPC is properly used for

No real process control
No plan for testing / some equipment for is not
measurement equipment
maintenance
Clear process mapping in SPC is used for some
processes but could be
place and KPIVs/
improved
KPOVs** are
identified Incomplete record
Done only 1/ shift
Done on the computer,
not on the shopfloor
Periodical measurement
system analysis and
calibration plan for testing
Periodic plan exist for
equipments
rigorously followed
key processes SPC properly used for all
process
Records are complete
and accurate
Data plot on SPC charts
several times per shift
Periodic MSA and
calibration is done for Periodical measurement
most testing equipment- system analysis and
calibration plan for testing
equipments. Error
proofing systems are
established by type of
products and machines

6
Technical System manpower system
Work standards
(The way that the most
efficient and safest way to
get the job done is defined)
Manpower allocation
(Method for optimizing
labour productivity)
1 2
Primitive work standards
exists. But adherence is
poor
Workload planning is
based on historic
achievements (perceived
capacity)
New hires are trained
through apprenticeship
only
There is little or no multi-
tasking due to lack of
training, layout
constraints or union
agreements
3 4
Work standards are Manual processes have
adhered to but not work standards (25%)
improved developed by engineers.
The standards are not all
up-to-date or rigorously
followed
Work standards are one
Occasional use of the of the factors for planning
work standards to do
(other factors: e.g.
macro level workload
Individual operator
planning
capability) and labour
efficiency measure
There are trainings for
There are some trainings new comers including
for new comers, these problem solving
trainings are not methodology training, but
comprehensive (e.g. no some are outdated
problem solving
methodology training)
Majority of the work force Some critical processes
is trained to work on a have multiple people
single process. Only a trained, the skill matrix is
couple of processes are used scarcely
based on multi manned
based on ease of training
5
More than 60% manual Almost 100% manual
tasks have defined work tasks have defined work
standards, developed or standards, developed or
finalised by shop-floor. finalised by shop-floor.
Audit system exists to Multiple methods exist
ensure standards are including audits to ensure
followed standards are followed
Work standards used as Work standards used as
basis for planning and basis for planning and
evaluation to improve evaluation to improve
work loading (balance to work loading (balance to
demand rate) and demand rate) and
improve labour efficiency improve labour efficiency
Effective, visual training Effective, visual training
tools that enables quick tools that enables quick
new hire training of best new hire training of best
practice methods practice methods
Skill matrix is used to Manpower are flexible
man critical processes. (cross skilled workforce)
and the processes are
regularly rebalanced to
face up to changing
customer demand
7
Technical System safety and housekeeping
Priority on people, health
and safety
(Anything that can effect
health or safety of the
people)
1 2
No personal protection
equipment available
No safety training
No safety communication
Accidents are the
responsibility of the
safety manager, he
records and reports them
No or little housekeeping:
dust and trash
everywhere, lot of unsafe
conditions
3 4 5
Personal protection Personal protection Personal protection Personal protection
equipments are available equipments are used by equipments are used by equipments are used by
but not used by all all operators all operators all operators
operators
Employees have been Anybody entering the site Safety protocol for Mandatory safety training
trained for safety (employee, visitor) needs visitors and training for all for all, with graduation
regulations before they to pass a safety induction employees is a must and regular refresher
start their work in the course
company
Visual safety indicators Visual safety indicators,
(eg number of incidents) Visual safety indicators, Visual safety indicators,
Regular safety every shift meeting safety part of the culture,
communication mention safety issues / every meeting, even
observations. Regular management, start with a
safety audits safety discussion
Accidents are reported by Accidents are captured Accidents and near
Accidents are measured misses are actively
the safety manager, but and acted upon by the by the line management
there is good debrief with and root cause problem measured and acted
line management. Near
the front line employees solving is done in due upon by the line
misses are not captured
course of time. Near management, any
misses are captured but accident report can not
not dealt with thoroughly be closed unless the root
causes identified and
counter-measured, all
potential unsafe areas
and activities are
eliminated through
systematic FMEAs
Plant is very clean: no
Plant is very clean: no dust, everything is at the
Awareness of No unsafe conditions. dust or trash can be right place, employees
housekeeping issues: lot Lots of effort on pro-actively take initiative
found
of efforts to clean but housekeeping but still to improve work
impact is minimized by doesnt result on plant environment /
leaks / poor practices. being very clean housekeeping
Still some unsafe
conditions
8
Management Infrastructure organisation design
Line organisation
structure
Design and structure of the
front line size
Functional organisation
structure
Design and structure of the
functional organizations,
including integration with
the front line
Job design
Specific content of the
positions within the
hierarchy, e.g., job
descriptions, roles and
responsibilities
Decision process
The decision rights and
responsibilities (who
decides, who has a say,
and who is involved) and
decision-making protocols
(e.g., individual authority
versus committee
consensus)
Communication
Formal mechanisms by
which information is shared
and actions are
coordinated, e.g., regular
meetings, dissemination of
executive committee
minutes, etc.
1 2
There are no team leaders
on some or all shifts. Only
supervisors exist
The production
organisation is by function,
the primary objective of
functions to self optimise
Functional support
departments are silos that
optimise themselves
before serving front-line
Decision for centralised
versus decentralised
depts are based on history
or individual managers
preference
Jobs are not clearly
defined at any level
There are no team leaders
Decision rights are not
defined
Group decisions are made
by the senior managers
Decisions are made that
the highest level
There is little awareness of
important information at
the front line
Senior management hardly
ever go to shopfloor
3 4 5
Team leaders are in Team leaders span of There is an appropriate There is an appropriate
position along with control is inadequate (i.e. spans of control for team spans of control for team
supervisors stretched) leaders leaders
The production The ops organisation is The operation has The operation organis-
organization is organised by function, the links started to organize like ation is by value stream or
by function but linkages between functions are value stream and cross if by function, links are
are not defined defined but not fully functional teams are clearly defined and
implemented available promote value streams
Functional support of Functional supports Explicit linkage of Explicit linkages (e.g.,
day to day working linkage to front-line are immediate support dotted lines) show
requirements are linked well defined functions is fully defined. important relationships,
to the front line. such as between service
providers and internal
customers
Decision of centralized Proper mix of central-ized
Decision for centralised Good mix of centralized and decentralized support
versus decentralized of versus decentralised and decentralized help maximize service
direct support depts are based on support help maximize quality efficiency &
department is need production needs but cost service quality efficiency responsiveness
based primarily & responsiveness of
certain support functions
Jobs are defined at top Jobs are clearly defined Jobs are not defined at Comprehensive job
management level for managers only engineer level, with no descriptions articulate
description of direct each employees duties,
working staff roles & responsibilities
Team leaders dont have Team leader position is Team leaders roles are Team leader/supervisor
amply clear with clear roles are clearly defined
clearly defined teams defined but no resources
team structure
are provided
Decision rights are Decision rights are Decision rights are Decision rights are clear
defined at managerial defined at some functions defined for all functional and codified
level only levels
Group decisions at Group decisions are Group decisions by Group decision are based
middle mngmt made by dept managers majority consensus
Decision making is Lower levels feel
associated to position empowered to make
with no inputs from
Lower levels do not decisions in their area of
Decisions tend to be made
always feel easy to use at the lowest possible
functional level. expertise
their decision rights levels
Information is not Important info reach the Important information is Communication channels
classified as important front line, but in amply displayed ensure people are aware
and otherwise and there inadequate intervals of important information at
are no channels for all levels
propagation
Senior managers don't Senior Managers carry Comms. channels are
have regular visit to Communication designed to maximize
out some commun- meetings are held for
shop floor contact between
ications but this is often interaction at regular
short & one way managers & operators
intervals
9
Management Infrastructure contractors and suppliers management
1 2 3 4 5

Contractors management Trade-off between internal
and contract resources
are not evaluated (make
vs. buy). Anyone in the
facility can bring in a
contractor and use any
firm of their choosing
No input from the line
(production/maintenance)
in contractor selection.
Contractors not involved
in work scoping
Contractor presence in
plant is not monitored.
No evaluation procedure
for contract performance
in place.
No reviews of overall
contractor performance
Trade-off evaluated for Trade-off between Trade-off between Continuous trade-off
some jobs based on price internal and contract internal and contract between internal and
only. Contractors resources only done for resources only done for contract based on price,
requirement go through major jobs. There is major jobs. The availability, performance,
selection/need process rigorous control of the contractors used must be possible loss of capability.
procurement of pre-qualified and on an Contractors used must be
contractors approved list pre-qualified
Full partnership between
Line management input Line management input the line. purchasing and
Some input from the line the contractor in well
in contractor selection. systematically asked by systematically asked by
purchasing for contractor purchasing for contractor defined contractor
Contractors not involved
selection. Contractors are selection. Contractors are selection process
in work scoping.
involved in major scope involved in major scope
decision decisions
Contractors leader has
Site team leaders review Site team leaders review daily interactions with site
Contractor work is contractor work in most contractor work as part of personnel on status of
informally monitored cases and react to normal standard daily work being performed
problems rounds
Every job is completely
Major jobs are evaluated Major jobs are evaluated evaluated and
Major jobs are evaluated, with performance criteria with performance criteria performance criteria is
with little feedback to based on preset based on preset part of contractor
contractor. agreement on a job-by- agreement on a job-by- agreement.
job basis. job basis.
Contractors productively
Full scope of contractor Full scope of contractor establish program to
performance vs. improve performance and
performance vs.
Contractor performance established KPIs established KPIs share improvement ideas
reviews only held when conducted quarterly with across site
conducted yearly
major concerns/ action plans for
issues arise improvement

Suppliers management Equipment/sub-
components purchased
on lowest up-front cost
Some purchasing on Equipment/sub- Equipment purchased on Equipment purchased on
direct life-cycle cost components purchased total life-cycle cost (direct total life-cycle cost (direct
where maintainers insist on total direct and throughput loss). and throughput loss).
upon it, Equipment maintenance life-cycle Equipment spares costs Equipment replacement
spares replacement cost costs. Equipment spares negotiated after cost negotiated with
reduced by using costs negotiated after equipment purchased supplier when equipment
secondary suppliers equipment purchased purchased

No vendor rating system
Vendor rating system for
some vendors
Vendor rating system for Vendor rating system for Vendor rating system for
most vendors most vendors and all vendors with corrective
corrective action action and continuous
requirement improvement
expectations
10
Management Infrastructure support functions
1 2
HR HR function is only
HR supports the involved in recruitment,
manufacturing systems disciplinary actions and
union negotiation
HR does not actively
support capability building
and talent management
IT The IT group is not
IT supports the responsible for supporting
manufacturing systems manufacturing systems
IT investments often run
contrary to manufacturing
future needs
Finance Finance department and
Finance supports manufacturing
manufacturing group with management track spend
appropriate data and and revenue separately
working capital (no trust)
Investment decisions are
based on financial return
only and have no link to
manufacturing strategy
(which is often unknown)
Sales There is little or no
Manufacturing works in working communication
collaboration with sales with sales apart from at
the highest level
Sales regularly
compromise prod needs
(e.g. level production) to
fulfil their KPIs (e.g end-
month targets)
3 4
HR is involved in HR function supports all
capability building but in necessary people related
a limited way issues, but in a reactive
manner (wait for
complaints or requests by
line managers)
The IT group is resp- The IT group is resp-
onsible for supporting onsible for supporting
manufacturing systems, manufacturing systems,
but not held accountable but not held accountable
IT investments are IT investments are
reviewed in-line with reviewed in-line with
manuf. Strategy but manuf. Strategy but often
often based on cost / based on cost / payback
payback
The financial tracking The financial tracking
tech/processes are well tech/processes are well
defined but the defined but the
responsibility left to responsibility left to both
finance department finance and operations
department
Investment decisions are Investment decisions are
based on manufacturing based on manufacturing
strategy but have to strategy but have to
payback within short payback within short term
term (e.g. 1 year) (e.g. 1 year)
There is some There are some channels
communication between setup to provide sales
sales and manufacturing feedback to production,
but sparsely used
Sales try to respect the Sales try to set a balance
production schedule but between respecting
their own KPIs are top production needs and
most priority their KPIs
5
HR is actively involved The HR group proactively
in all the activities but supports 4 key processes:
there is no genuine Recruiting, orientation
follow up. Staffing, scheduling
Training
Payroll, benefits
The IT group is held The IT group is held
accountable for accountable for assessing
assessing and meeting and meeting the hardware,
the hardware, software, software, and training
and training needs of needs of the manufacturing
the manufacturing system
system IT reports are generated at
Strategic IT decisions value stream levels, KPIs
(e.g., ERP) are linked are directly obtained from
with and support the the IT system, shop floor
manufacturing strategy has IT displayes supporting
manufactuing system
Technology/processes Technology/processes
created for financial created for financial
tracking provide line tracking provide line
managers needed managers needed
information on spend information on spend,
and revenue revenue and other
Finance provides management accounting
working capital as information (cost variance,
needed by the utilization, efficiency etc)
manufacturing system,
and the manufacturing Finance accounts cost by
system is consistent value stream and guides
with the financial operations through flow
strategy manufacturing accounting
Manufacturing receives Manufacturing will get
feedback from sales constant feedback form
periodically (every 2-3 sales and improve product
months) spec/quality/
Sales force ensure that Sales work to ensure the
the production schedule manufacturing system
is respected without parameters are respected
effecting their own KPIs
to a very large extent
11
Management Infrastructure performance management
Clear KPIs, linked to
business objectives, are
defined and cascaded
and used at the front line
Performance monitoring
and review mechanism
are in place and adequate
countermeasures are
taken
1 2 3 4 5
There are too few or too Important KPIs are Clear KPIs measuring Shop floor linkage of Clear KPIs, linked to
many KPIs with weak identified and their linkage performance (and bottle neck equipment business objectives, are
link to business to the business need is partially health) are and process KPI is clear, defined & cascade to
objectives and even clear. No shop floor KPI defined and cascaded; with tracking system. frontline with balance of
weaker link to shop-floor are defined the link to shopfloor KPIs leading and lagging
metrics are weak indicators to track
Data collection at performance & health
There is little or no There is performance Data collection starts at important stations by Data collection starts at
performance tracking or tracking or data collection shopfloor by supervisors operators and input shopfloor and is visual, It
data collection on the on the shop floor only for and input directly into IT. directly into IT. Wide use is supported by IT
shopfloor. No visual few or critical processes. Some visual of visual management. systems . Wide use of
mamagement. No visual management. management. visual management.
Targets at each
There are no real shop- There are shop floor There are targets set at hierarchical level match Performance and health
floor targets, the targets at some levels, but each level of hierarchy, targets are set & casca-
operational targets do they do not match the BP the targets do not match ded throughout hierarchy
not match the BP
There are no shop-floor Occasional shop floor Regular and constructive Effective performance
The performance reviews performance reviews are
reviews, management reviews, but they are held are open and systematic. reviews (using visual tools)
held regularly
reviews are adhoc and systematically. Everyone They are held at every are held at every level
not fact based, everyone protects their silos level but shopfloor using calendared meeting
protects their silos process and with a
constructive but
challenging dialogues
No or little corrective Corrective action plan is
action planning. Most of used effectively. 50% of Corrective action planning
Some corrective action Corrective action actions are planned & is used effect-ively. 80% of
the effort is spent fire planning in place (in some planning is common executed within the actions are planned &
fighting critical areas). place, the improve-ment review cycle executed within the review
lead-times exceed cycle
reviews cycle
People below managers Front line operators have There are personal Personal objectives are Personal objectives are
have no real personal no personal objectives set. objectives set for most set for everyone in the set and linked to
objectives discussed or Personal reviews happens people in the organization. operations objectives.
agreed. There are no but the frequency is low. organisation, however Performance reviews Personal review processes
personal reviews in failing objectives has little take place at right are mostly executed with
place. consequence. intervals, however there appropriate coaching,
Performance is reviewed is no coaching for the development and
but the improvement identified corrective corrective action in real
levers are vague. actions. time
There are no or little Financial or non-financial Motivation system is Effective motivation
performance related pay Financial or non financial incentives (e.g. bonus) more related to financial system design allows
or non-financial incentives are linked to have little link to people rewards, no system for management of rewards
incentives to promote performance only at the performance (individual or punishing and consequences for
people performance top level. No incentive at team) underperformers underperformance
lower levels. 12
Management Infrastructure capability building processes
Training & development
Formalized programs
(content) and processes,
and infrastructure for
training and developing the
skills, knowledge, and
abilities of employees
Knowledge management
Codification and
dissemination of constantly
evolving best practices;
guardian of the production
system
Talent review
Formalized activities to
attract, develop, and retain
talented staff
1 2
The only real training is
for new starters and is
brief (days)
Skill requirement not
clarified
All training is class-room
based
There is no system to
share best practices
No one owns the exiting Know how capturing exists
know-how within the
organisation
There is no value
proposition defined for
employees
People performance is
not reviewed
No periodic reviews
There are some basic
trainings that are given to
everyone without realising
the applicability
Skill requirements are
practically defined to meet
job needs and are
documented in a job
description
Concept of coaching
doesnt exist
Best practices are codified
but there is no system of
sharing
Knowledge is owned
but is not thorough.
Employee value
proposition is defined only
for very few employees
Employee evaluation is
linked to performance
Reviews are not
transparent and one way
3 4 5
The are trainings at The process of need There is formal process to
engineers/managers based training identify training needs
levels, which is identified identification doesnt Trainings are immediately
by the indi-vidual based exist applicable
on his/her preference and
less by business needs
Regular skills evaluation
and tracking
A skill matrix is used A skill matrix is visually
and reviewed at least displayed and updated
every 6 months to track regularly
skills
Most trainings are class-
room based Emphasis is there on Trainings are through
coaching as well
classroom & coaching
Best practices are Best practices are Best practices are codified
codified but known only codified but sharing is and effectively shared with
to engineers not regular across all related
different levels
Dissemination of Evolution and dissemination
centrally but the knowledge not rigorous of knowledge is managed
dissemination is weak but managed centrally centrally
and not systematic
Employee value Employee value Employee value proposition
proposition is defined but proposition is clearly is clearly articulated
not known outside HR defined
Employee evaluation is Reviews are based on Employee evaluation is
linked to performance 360 degree feedback linked to performance and
but process is not health (e.g. values)
rigorously followed.
Reviews are top-down Reviews are 360 based Reviews are based on 360
but not frequently done degree feedback
13
Management infrastructure CI infrastructure
CI resource
Dedicated continuous
improvement resources to
drive improvement from
shop floor base
Problem solving
methodology
Systematic problem solving
methodology and process
supported by a strict
implementation tracking
mechanism
Improvement ideas
CI organization translates
ideas into new front-line
and management practices
1 2
No continuous
improvement resource
No involvement of
employees in CI
No root cause problem
solving. No clear process
for improvement idea
generation
Action plans informal and
not documented (oral
commitment)
No tracking of initiatives
Peoples ideas for Idea capturing is not
improvement are not
captured
3 4
There are some There is a dedicated The CI team runs
resources responsible for cross-functional CI team
continuous improvement At least 1 person per
department has been
trained in improvement
tools (e.g., SMED,
6Sigma, etc.)
Managers / supervisors
Mainly managers / are key drivers of CI
supervisors are involved activities
in CI Some efforts to involve
Some operators involved operators in CI activities
in CI but on a case by on a regular basis
case / project basis
Employee suggestion Improvement process Standardised, company
scheme is a primary and root cause problem
source of CI. Ad-hoc solving methodology
analysis on key problems. used (eg DMAIC, PDCA)
Use of some problem but limited to a few
solving methodology (eg selected key projects.
5 whys) Problem solving is only
through brainstorming
Action plans recorded in
meeting minutes but not Action plans are recorded
easily available to all and centralised
Tracking is informal and Action plans include
highly depends on the responsibilities and
area manager deadline but KPIs and
financial targets not
clearly defined
Manager review and track
implementation
Systematic idea capturing Idea capturing is a well
systematic and no system in place where
collection point is there important ideas are
implemented
5
More than 90%
improvement workshop at improvement activities
least once every three driven by CI team are
month in each flow implemented on time
The CI team supports 25% of all personnel
problem solving on the trained on improvement
shop floor to deal with tools (e.g., 25% of staff is
daily issues raised a 6Sigma GB/BB)
~50% employees are >90% of employees are
involved in regular CI actively involved in CI
activities activities to reach the
Operators own CI improvement goals
activities themselves, not
driven by management
Standardised
tailored improvement improvement process and
process and root cause root cause problem
problem solving solving methodology
methodology used by widely used by all
50% of employees employees, incl.
operators, technicians in
day to day activities
All action plans well
All action plans well
recorded and documented with KPIs,
documented (incl. targets, deadline, and
responsibilities
financial impact)
Monthly review of project Action plans and their
progress progress visually
Management more available to all
involved in pushing Deadlines are met
implementation (holding Management involved
the whip) than problem more in problem solving
solving mode than progress
supervision
CI org. captures and
established system, but syndicates the
implementation is not improvement ideas and
business need based ensures implementation
14