How to Hit Your Goals

Last week I had several posts on performance measurement systems since this is the time of year when many organization are planning for the next calendar.  While this isn't necessarily the Lean way it provides a good opportunity to talk about these subjects.  This annual organization goal setting process is usually followed closely by the annual individual review and goal setting process.

Today, I want to share a ClarityMap to help you hit your goals.  A clarity map is visual guide to help give you the insight needed to make good choices. 

Click here for a pdf version of this map.

While there a lot of valuable information on this map I quite like this:

Action Creates Clarity - At first the details to achieve a goal may be fuzzy but as you take small actions toward the goal it comes more into focus.

This ClarityMap is the work of Derek Franklin who was gracious enough to allow me to share it with all of you.

Derek is also the creator of the 3 Steps to Get Things Done ClarityMap and The Action Machine, a visual time management software based on the above steps. The goal behind The Action Machine is simple: To give you a way to visually structure your day in a way that you feel absolutely compelled to take action and get things done, once and for all!

I shared the 3 Steps to Get Things Done ClarityMap this past March.

I post both of these documents next to my goals so I can use these tools to effectively focus on what is important when I get lost.  Maybe it can help you, too.

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Lean Quote: Measurement Gets

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"What gets measured gets done, what gets done well gets rewarded, and what gets rewarded gets repeated." - Unknown

There are number of variation of this quote attributable to several notable authors.  It is often recalled in some discussion of performance metrics or motivation.  This is no different but I believe there is a truth to this statement.

Metrics matter! What gets measured gets changed and what gets rewarded gets done. If you don't measure it, you can't change it and if you don't reward change it will not happen.

Some say performance measures are a waste.  I don't agree.  They should be minimized and improved for effectiveness but not skipped entirely.  Regular measurement and reporting keeps you focused — because you use that information to make decisions to improve your results.  Metrics create an environment of accountability throughout the organization.  An organization that closely tracks performance metrics creates a culture where goal achievement is the norm and where there is no room for mediocrity.

Performance metircs also provide a way to convey corporate goals to the organization in a tangible form and get buy-in at all levels.  It also sets an example that the company management is holding itself accountable for success.

It is important to remember performance metrics are one measurement technique in your arsenal. They can be a quick and useful tool to let you diagnose strengths and weaknesses in your process, make strategic decisions, and ensure you are heading in the right direction. Don’t forget: the real value is in the discussion of results with your team, not the numbers themselves.

“Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.” – Albert Einstein

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7 Deadly Sins of Lean Performance Measurement

Michael Hammer wrote a great piece a couple years ago on the 7 sins of performance measurement and how to avoid them.  I thought I would review the list in terms of a Lean measurement system.

Vanity: Using measures that make a particular organization look good.  Measures that are aimed at making the manager look good like a partial lead-time improvement, not end-to-end.

Provincialism: Organizational Boundaries - This happens often with localized process improvement efforts.  Measuring within department boundaries not the value stream.

Narcissism: Measuring things from the company’s point of view rather than the customers’.  Measuring from your point of view like delivery performance against promised date not customer's request date.

Laziness: Not placing enough thought into a company’s stage in the industry, strategy and objectives when deciding on what is important to measure. Assuming one knows what is important to measure like cost when delivery performance is more important to the customer or not going to the Gemba.

Pettiness: Measuring only a small component of what is important.  Measuring only a small part like ontime delivery, but the order is not in full.

Inanity: Measurement itself produces consequences by way of employee behavior.  Measuring  without thought of these consequences like prioritizing OEE.  OEE improves but schedule attainment decreases and batch sizes increase.

Frivolity: Not being serious about measurement itself.  Not being serious about improvement such as we can't stop the line to look at problems.

Are you committing even ONE of the seven deadly sins of Performance Measures?

Because if you are, you are wasting money at a minimum, and in the worse case, you are threatening the survival of your organization.  Avoid these 7 deadly sins in your performance measurement system if you want to achieve success.



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Checking Out Measures

In continuation with performance measures I want to talk a little about how to review your measures.  Any discussion on Lean measurement should begin by recognizing that measurement is waste. It should be limited and minimized. It has been said "You can't fatten a calf by weighing it." At the same time, you must recognize that an effective measurement system is one of the most powerful tools for change, and for Lean transformation, that exists. 

A good method to check out your measures is to consider Kipling's Six Honest Serving Men or the Five Why's and One How.

Measure: a self-explanatory title

Purpose: why is it being measured?  To which business objective does this measure relate?

Target: what is to be achieved, and by when?

Formula: the formula or ration used.

Frequency: how often should the measure be taken, and reviewed?

Who measures?  Who is responsible for collection and reporting?

Source of data: wher does it come from?

Who acts?  Who is responsible for taking actions?

What to do? What action should be taken?

Limits: What are the control limits within which no action is required?

Since we would like to have the minimum set of measures to evaluate our performance as possible using this approach is vital.  If the measure is ineffective or ineffecient then we can expect more waste in our system then necessary.


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Measuring System Performance

With the end of the year approaching organizations are working on coming up with next years plan.  Hopefully Lean organizations are using Hoshin Kanri or policy deployment to shape their future.  Nonetheless, next years objectives will certainly include performance measures.  I am going to highlight some thoughts on good measurement systems in this weeks Daily Tips on A Lean Journey's Facebook Page.  In the mean time I will start the week with a look at how to define performance measures.

It is useful to start with question "what is a performance measure?" 

Andy Neely of London Business School proposed these definitions of performance measurement, a performance measure and a performance measurement system:

“Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action.”

“A performance measure can be defined as a metric used to quantify the efficiency and/or effectiveness of action.”

“A performance measurement system can be defined as the set of metrics used to quantify both the efficiency and effectiveness of actions.”

An effective measurement system is one of the most powerful tools for change.  The measurement should:

- Provide short-term indicators of problems - and no problems.
- Be part of a feedback or capability of the process or people.
- Focus on improving performance.
- Be capable of being acted upon.

Having identified what is meant by performance measurement, the next post will cover how to check out your performance measures for effectiveness.


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Lean Quote: Leaders Communicate

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"The more elaborate our means of communication, the less we communicate." — Joseph Priestley

 

Every form of multimedia is at our doorstep and they are all fighting for our attention.  We are inundated by ellectronic media like email, text, notifications, and others.  More than ever, we cannot live and prosper without information.  Not in business, not in our private lives.

Reliable, fast, and complete information has never been as important for success as it is today.  Yet, there is a new headache to deal with: excess information by email or cell phone.  The leader must now be more selective, and restrict the exchange of information to what is important.  We can't allow the loss of precious time reading and forwarding unecessary messages.  Everyone needs information to work as a team striving to achieve common goals and to share responsibilities.

A breakdown in communication can result in:

• Rumor mills due to unreliable information
• Wrong information due to interpretation, distraction, and incomplete information
• Conflicting priorities among peers and departments

There must be an open exchange of ideas among peers and between managers and their reports.  In this process all people must be treated as equals and fresh ideas encouraged, whoever they come from.  Information must reach all levels and involve everyone to achieve common goals.

Among all forms of communication, nothing equals a face-to-face exchange.  There is no substitute for body language; the tone, facial expressions, and gestures that accompany language cannot be expressed in writing or even over the phone.

It is important to stress that even the best of all new technology must remain subordinated to the needs of the business.
  

 

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Lean Tips Edition #6

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #76 - When creating a cell consider the location of support teams.

Locate design and engineering areas close to manufacturing.  Place production control in the middle of the plant floor.  Make them share common break areas.  Foster communication and visibility by sharing information on visual displays and have common meeting areas.

Lean Tip #77 - There is much to be said for combining operations rather than specialization in a series.

Think about the checkout line at a grocery store.  Would you rather progress through a series of checkouts, each one specializing: the first on fruit and vegetables, the second on drinks, the third on dairy, etc.  Shopping would be a pain.

Lean Tip #78 - Batching causes time lost while waiting of three components.

The waiting time has 3 components, which are the time lost while waiting for:

 - Completion of the batch a particular product or service is part of

 - Completion of the batch ahead of the batch a particular product or service is part of

 - Management to get around to making and executing the decision to send the batch on to the next step of the value added process

Lean Tip #79 - Use problem cards as an SOP for troubleshooting.

Problem (Trouble shooting) cards are "what if" cards to cope with relatively rare but important contingencies.  What to do if the chuck breaks, for example.  Most air force pilots are used  to the idea of these cards in an emergency in order to avoid potentially disastrous mistakes in a time of crisis.

Lean Tip #80 - A test card can help you with your tasks.

Test cards include a small number of questions on the task - true or false, or multiple choice - used for standard ops where:

•Tasks are done infrequently

•A new operator requires confirmation

•There is a job rotation amongst the team.

Lean Tip #81 - Single Point Lessons can be used as a reminder of a training aid.

A single point lesson is sheet of paper focused on a single lesson that can be covered in 5 minutes of less.  It is often used in TPM (Total Productive Maintenance).   The purpose is to reinforce ares where difficulties have been experienced in quality, safety, downtime, etc.  It can be used as a reminder or a training aid.

Lean Tip #82 - A RACI chart is a good practice for SOPs (Standard Operating Procedures).

RACI denotes who is R = responsible, A = accountable, C = needs to be consulted, I = needs to be informed.  For example:

                           Supervisor    Operator     Facilitator  Area Manager

Prepare SOP              C                 C                   R               A             

Write SOP                  C                 R                   I                A

Approve SOP             R                 I                   C                A

Audit SOP                R & A             I                   I                 A

The RACI charts also has a wide application outside SOPs like use on A3.

Lean Tip #83 - Standards are not to be used for a 'Gotcha' moment.

Standards should not be used to catch people but to enable them.  This is  like a tennis or golf lesson.  You don't hide your weaknesses from the coach, your bring them out because you want to improve.  This is the essential spirit that needs to be fostered with standards.

Lean Tip #84 - When reducing changeovers consider categorizing adjustments into three.

Adjustment is an important consideration that can consume much time.  Moreover, adjustment is the root of many quality problems.  List all adjustments on paper, then categorize into three items.  First, adjustments that should not be made.  Second, adjustments that have a limited number of standard settings.  And third, adjustments that truly need adjustment.  Start by attacking the first category.

Lean Tip #85 - Variation in changeover time is almost as important as the changeover time itself.

 If a changeover has large variation, then good scheduling practice is made difficult.  Therefore, track the major elements of changeover and determine which stages have greatest variation.  Then tackle variation as a separate exercise.

Lean Tip #86 - Successful changeover comprises of four key elements.

There are four elements to successful changeover.  Attitude, including workplace culture and receptiveness to change.  Resources, including time, money, personnel, training, tools.  Awareness,  including the contribution of changeover to flow, flexibility, inventory, capacity and awareness of different  possibilities achieving quick changeover.  Direction, including leadership and vision. priority and ranking, (and presumably impact on the value stream).

Lean Tip #87 - Address the four areas of changeover for real improvement.

In all changeovers there are four areas to address:

1. 'On line activities' - by internal and external task reallocation, or by designs that allow the sequence to be altered - for example simultaneous rather than sequential steps

2. Adjustment - by reducing trial and error by for example indicators and shims, or by design which allows 'snap-on' adjustment

3. Variety - by standardization and standard operations or by design which reduces the possibilities of variation - poka yokes

4. Effort - by work simplification and preparation or by design which incorporates simplification - for example fixing multiple hoses by one fixture.

Lean Tip #88 - For Lean supply to work there must be a few or even single suppliers per part.

The idea is to work with a few good, trusted suppliers who supply a wide range of parts.  An objective is to remove the long tail of the supplier Pareto curve by 10% whereby perhaps 10% of the parts are supplied by 80% of the suppliers.  Generally, collaborative long-term supplier partnerships make sense for 'A' and possibly 'B' parts, less so for commodity items.

Lean Tip #89 - There are essentially two basic and opposing models of how to relate to suppliers.

The two models: the cost-driven adversarial model and the long term collaborative model.  The former is the traditional model where you aim to negotiate hard, get the best unit cost.  And if next year another supplier offers you a better price, you switch.  The Lean model is very different.  Here the relationship is built on trust, and long-term commitment.

Lean Tip #90 - A Lean supplier partnership features 4 key elements.

The features of a Lean supplier partnership are:

1.  Long-term collaborative relationships: where trust and commitment, as well as respect of the right of mutual existence are the prime directive.

2.  Dual sourcing: each component will have few, but at least two sources.

3.  Joint improvement activities: there is a strong collaboration with suppliers on operational improvement.

4.  Operations and logistics: Level production schedules are used to avoid spikes in the supply chain.

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