metrics for process excellence - opex...
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Leader Strategy SessionMetrics for Process Excellence
DuPont, Houston & AustinConducted by:
CenTex OpEx Consortium
Martin Nazareth April 2015
Executive Summary
A three-hour Leader Strategy Session was conducted on April 23rd in Houston and April 24th in Georgetown, TX. The focus of both sessions was Metrics for Process Excellence. Sixteen leaders from nine organizations participated in the sessions. The session agenda included:
• Introduction
• Focus Topic Presentation
• Leader Discussion on Sub-topics I – V
• Consortium Business & Open Forum
The topic was introduced using a presentation to clarify the scope of the discussion. Five sub-topics were chosen for discussion based on typical problems faced in strategic planning.
Leaders from different organizations shared their successes and lessons learned indicating what works and what to avoid. Live discussion and feedback forms revealed an extremely positive feedback.
The session concluded with announcements of the next few events of the Consortium and training sessions available for complimentary seats:
– May 21, 2015: Benchmarking Session — Focus: Workplace Organization & Visual Mgt. .— Location: Entegris, Burnet
– July 16, 2015: Benchmarking Session — Focus: TBD— Location: TBD
– Leader Strategy Session: Topic: Metrics for Process Excellence : Apr 23, 2015, Houston — Apr 24, 2015, Austin/Georgetown
– Training (COC Members may use their complimentary training seats for any of these)
• Week of June 15: Leader Training Week, India
• July 15, 2015: Theory of Constraints — (Leader Training)
LEADER TRAINING WEEK (Location: Houston, TX)
• Oct 13 – 14, 2015: Integrated Management System — (Facilitator Training)
• Oct 15, 2015: Enterprise Transformation for Leaders — (Leader Training)
• Oct 16, 2015: Strategic Metrics for Leaders — (Leader Training)
WEBINARS
• Webinar — Advanced Process Excellence: May 28 — Capacity Verification and Run at Rate
• Webinar — Back-to-Basics of OpEx Webinar Series: May 29 — Rapid Improvement Workshops (Kaizen)
• Webinar — Product Development Process Webinar Series: May 27 — Excellence in Sustaining Engineering
• Webinar — Theory of Constraints Webinar Series: Restarts Aug 28 — Foundations of TOC
Participants
Organization First Name Last Name
Austin Water Benyamin Ayman
Austin Water Bruce Coe
Dupont John Gay
Dupont Ray Nelson
Entegris Craig Ragaglia
OpEx Solutions Gary Johnson
OpEx Solutions Ken McClymonds
OpEx Solutions Martin Nazareth
OpEx Solutions Vivian Sullivan
Optibelt Vernon Rego
PEMEX Procurement, Inc. Patricia Shepherd
TAM International John Babineaux
TAM International Fernando Guirola
TECO Westinghouse Garison James
Wolfram Mfg Steven Resnick
Wolfram Mfg Katherine Satterwhite
Topics Covered
Metrics for Process Excellence Overview
Introduction
Sharing of Knowledge & Experience Discussion Topics
Consortium Business & Open Forum
Adjourn
Agenda – Austin/Georgetown
1:00 – 1:15 Introduction
1:15 – 1:40 Focus Topic Presentation
1:40 – 2:00 Leader Discussion on Sub-topic I
2:00 – 2:20 Leader Discussion on Sub-topic II
2:20 – 2:30 Break
2:30 – 2:50 Leader Discussion on Sub-topic III
2:50 – 3:10 Leader Discussion on Sub-topic IV
3:10 – 3:30 Leader Discussion on Sub-topic V
3:30 – 4:00 Consortium Business & Open Forum
4:00 Adjourn
Note: Houston session began ½-hour earlier to compensate for traffic.
Leader Strategy Session (LSS) Objectives
Learn by sharing
Enterprise transformation
Successful Strategies
TransformMetrics
Motivating people
Extending enterprise
Topics Covered
Metrics for Process Excellence Overview
Introduction
Sharing of Knowledge & Experience Discussion Topics
Consortium Business & Open Forum
Adjourn
Operational Excellence ExecutionKey Factors
Execution
Resources
Strategy
Follow through
• Strategy helps you identify critical metrics
and link them to performance
Link to Specific Metrics
Metric Performance
Business Strategy
System Design
Metric Metric
Topics Covered
Metrics for Process Excellence Overview
Introduction
Sharing of Knowledge & Experience Discussion Topics
Consortium Business & Open Forum
Adjourn
Topics
• Sub-topic I: How well are your metrics connected with your
process? Have your metrics helped you move the needle -
your key goal metric is steadily improving?
• Sub-topic II: What are the top three metrics you use to
ensure process control that work well?
• Sub-topic III: What are some of the gaps in your current
metrics that make them not so effective?
• Sub topic IV: What is the review cadence for your
performance metrics?
• Sub topic V: How do you react to variations from plan or
target?
Sub-topic I: How well are your metrics connected
with your process? Have your metrics helped you movethe needle - your key goal metric is steadily improving?
Houston Session:
• KPI flow-down by engaging shop people
• Key is to connect to primary goal
• Quick or short-term fixes have consequences
• Measured differently in different areas and connection was not the best
• Some metrics are useful — must watch the ones that move the needle
• Mature companies have metrics with better connections
• Pick significant few
• Service level watched closely
• OTD is lagging and drives less actions
• Watch our internal performance — that makes sense — not driven from top
Sub-topic I: How well are your metrics connected
with your process? Have your metrics helped you movethe needle - your key goal metric is steadily improving?
Austin Session:
• Metrics moving them in the right direction (3)
• Data quality not accurate due to collection method
• Developed automatic system health check evaluated daily
• Data analysis of meantime to repair
• Focus on 8 key/critical metrics (selected from 50 to 60 performance metrics)
• Safety and property damage are key determining factors
• Cut down considerably on response time for priority 1 breakdowns
• #1 metric is final test (functional)
• Product time can be a year and have fluctuations in process
• Ongoing electrical measurements are manual/operator dependent — moving to more automated (sensors) for process
measurement
• Metrics aligned to customer service level — 98% OTD (DOT).
• Process control must be within 3 of specs
• Must be provided electronically during process
• Used to be focused on end-result metrics vs now leading-edge indicators
• In-process data has shifted to electronic data gathering and now is leading versus lagging in past
• Correlating behaviors to process — looking for key metrics that lead to issues on output metrics
• Customer requiring leading indicators
• Redefining what matters
Sub-topic I: How well are your metrics connected
with your process? Have your metrics helped you movethe needle - your key goal metric is steadily improving?
Austin Session (cont’d.):
• Key metrics monitored closely from several views: $/MT (metric ton), safety
• Variations stemmed from stop/start operations
• OTD metrics and escapes (bad parts getting to customers) and weekly sales numbers were good when
they had hi-volume orders — with the current oilfield downturn, starting to look at process and production
times (predictors) to lower lead time
• Escapes and paperwork/documentation must be ready at time of delivery — sales result of quality & OTD
• Lagging indicators — metrics work well but need adjustment to lead a bit more.
Sub-topic II: What are the top three
metrics you use to ensure processcontrol that work well?
Houston Session:
• Scrap, Non-conformance Report (NCR), OTD, Total Recordable Incident Rate (TRIR)
• Improvement is due to volume going down
• TRIR worse with low volume
• X-Dept. audit
• Observation cards
• Cost (lagging), sales/capacity, safety, RCA
• Delivery, quality, logistics, time to PO
• Delivery to promise
• Delivery to request
• Material availability (on time to shop)
• Repeat customer complaints
• Safety near-misses, First-pass Yield (FPY), OTD, lead-time monitoring
• Service levels, inventory rations, reserve stock for customers
• Inventory data quality
• Overall equipment effectiveness (OEE)
• KPI flows down to leading indicators
• More frequently
• With good targets
• Tool costs
Sub-topic II: What are the top three
metrics you use to ensure processcontrol that work well?
Austin Session:
• Quality, escapes, OTD, sales, tool-life & other in-shop processes (setup time, etc.)
• Sampling of product throughout process and distribution system • Process adjusted accordingly (lagging, even though there are leading indicators)
• Error notices triggering corrective action
• Field warranty
• Service-level tracking, inventory levels, critical stock
• First-pass yield to process, sampling, analytical testing (proper testing w/out contamination)
• Purity checks of baked anode density, green anode density
• Bench time, training numbers (incl. ), new contacts
Sub-topic III: What are some of the
gaps in your current metrics that makethem not so effective?
Houston Session:
• OTD lagging (2)– Look at supply chain control
– Leading indicator DVM
– Schedule changes
• Slow cycle on review and adjustment due to lagging indictors
• Short-term actions affecting long term
• Manual metrics — non-standard large spreadsheets
• Hidden capacity
• Downtime
• Too much time to transition between products — not running fast enough
• Only finance numbers count — lagging
• Better monitoring and improvement
• Cost of unreasonable delivery — hot jobs
Sub-topic III: What are some of the
gaps in your current metrics that makethem not so effective?
Austin Session:
• Lack of leading indicators (3)
• Metrics not drilled down to daily activity
• Lack of reporting tools
• Data manually recorded in QA folders—lack visibility of QA metrics (2)
• Monitoring and implementation has room for improvement
• Too many metrics to track
• Metrics not visual to right people
• Need to have correct metrics for shop vs. corp. (parts per hr., etc.)
• Lack of data compilation—trending is lacking
• Only high level metrics reviewed weekly
• Need more metrics for a longer period
• Challenging to add metrics w/o impeding work
Sub-topic IV: What is the reviewcadence for your performance metrics?
Houston Session:
• TRIR and OTD monthly • Tool cost weekly
• Schedule performance daily
• Results metrics monthly• Leading weekly/daily
• Shop floor daily and by hour
• Company level monthly• Departmental level weekly
• Operational daily
• Leading by shift• Lagging monthly
Sub-topic IV: What is the reviewcadence for your performance metrics?
Austin Session:
• Monthly (improving leading indicators), weekly for lagging indicators
• Daily & hourly for leading and monthly for lagging indicators
• Weekly or biweekly (lagging), ongoing for operational (mgmt.)
• Monthly high level performance, daily sampling, leading indicators for NH3
• Financial, booking & sales daily — sufficiency errors, warranty is monthly
• Leading daily, weekly and lagging monthly depending on stats
Sub-topic V: How do you react tovariations from plan or target?
Houston Session:
• Love honesty but hate the truth
• Why several times• What to do about it
• Gap is systems thinking
• Engage the messenger
• Drives reactive changes
• Address the top issue
• Ask the doers and immediate supervisors whether they see a problem
• See where variations come from and make adjustments
• Brute force
• See as opportunity
• Visually manage — juggle between silos
Sub-topic V: How do you react tovariations from plan or target?
Austin Session:
• Redundancy — chemical and air monitoring
• RCA, cause and effect, problem solving, bring in right personnel (1) and BONUS!!! for
good variations
• Realistic analysis — system or human, then take corrective action
• Red, yellow green—monthly review that drives action to turn around red
• Assign SPA to solve
• Use area RASIC for metrics to identify who will fix problem
• Go back to revising process on operating floor (training, what went wrong with assumption
that employee did not mean to make a mistake, so training is studied)
• Escape parts brought in and replaced immediately and bad part studied to determine
problem and find root cause
• Adjust metrics
• Red metric has action items assigned
Key Takeaways
80% of all participants feel their organizations have failed to move the
needle with current initiatives and metrics!
• Houston Session: Everyone has 11th-hour problems
Metrics must have a reason
Metrics must be meaningful
Metrics should derive from customer noticing
There should be a connection between lagging & leading metrics
Have right metrics aligned to your goal and use them the best way possible
• Austin Session: ID key leading indicators and develop control action plans to stabilize situation and make it a sustained
reaction instead of an event (3)
Different businesses need different metrics
Challenge to evolve to determine the key indictors to focus on
Competition is forcing continuing improvement
Making metrics visible to people who need them (2)
Make people more involved so more angles viewed/problems solved
Prioritizing and reduce key indicators
Independent metrics vs dependent metrics (interdependencies)
Group communications
No emotions — use data and facts rather than emotion
Focus on the right metrics
Don’t cut-and-paste
Topics Covered
Metrics for Process Excellence Overview
Introduction
Sharing of Knowledge & Experience Discussion Topics
Consortium Business & Open Forum
Adjourn
Announcements — COC Events
— July 16, 2015: Benchmarking SessionFocus: TBD
Location: TBD
— Leader Strategy SessionFocus: Strategic Planning for 2016
Sept 17, 2015 Houston, TX
Sept 18, 2015 Austin, TX
— May 21, 2015: Benchmarking SessionFocus: Workplace Organization and Visual Management
Location: Entegris, Burnet
— Oct 21, 2015: Benchmarking SessionFocus: TBD
Location: TBD
Announcements — Training Courses
Please note that COC Members may use their unused complimentary
training seats for any of these courses.
Leader Training Week, India — Week of June 15, 2015
Theory of Constraints — July 15, 2015 Location TBD
Next US Leader Training Week — Oct 13-16, 2015, HOU
– Integrated Management System — Oct 13-14, 2015
– Enterprise Transformation for Leaders — Oct 15, 2015
– Strategic Metrics for Leaders — Oct. 16, 2015
Customized working sessions to help organizations solve issues
they may have in different areas. COC Members may substitute their complimentary
System Review for a one-day workshop.
• Setup Reduction
• Engineering Process Analysis
• Failure Modes and Effects Analysis
• Capacity Analysis
• System Review
Announcements — Live Webinars
Please note that COC Members may use their unused
complimentary training seats for any of these webinar
series. All series restart in August.
• Advanced Process Excellence Series
May 28: Capacity Verification & Run-at-Rate
• Back-to-Basics of OpEx Series
May 29: Rapid Improvement Workshops (kaizen)
• Product Development Process Series
May 27: Excellence in Sustaining Engineering
• Theory of Constraints (TOC) — Sequential
Restarts August 28, 2015 Foundations of TOC
Upcoming Professional Org. Events
AME Cincinnati 2015
ANNUAL CONFERENCE & EXPO
October 19 - 23, 2015
Cincinnati, OH
ANNUAL CONFERENCE & EXPO
May 30 - June 2, 2015
Nashville, TN
World Conference on Quality and
Improvement
May 4 - 6, 2015
Gaylord OpryLand Resort and
Convention Center
Nashville, TN
Publication Opportunities
Industrial Engineer is a practitioner magazine, not a journal. As
such, content is more geared toward the “real-world” and less technical
than journals.
– Submissions should range from 2,000 to 3,500 words, be non-
copyrighted, original work, and include practical ways to help our
readers make improvements in their professional lives. IIE prefers
submissions written in third-person narrative that concentrate on
process, not products. Articles that focus on future trends, thought
leadership and/or that take a how-to tone are more likely to be
accepted. Graphics, charts and photos are encouraged but not
mandatory.
– Deadlines are two months in advance. So anything received by April 1
could be considered for June, etc.
Topics Covered
Metrics for Process Excellence Overview
Introduction
Sharing of Knowledge & Experience Discussion Topics
Consortium Business & Open Forum
Adjourn