Productivity increases 24.6% in just a few weeks
Situation
The Molding dept. has been a troubled dept. with 4 different managers over a 5 year period (ouch). Employee turnover was high, productivity was low and there was tension between supervisors and staff. The culture was “every man for himself” resulting in a well played “blame game” when it came to accountability.
MM is a systems oriented, analytical person who is a little uncomfortable with exercising authority. In spite of being an experienced supervisor, MM is overwhelmed by the chaos and palpable dysfunction of the department. Not knowing where or how to begin, a kind of paralysis has set in. Little has been accomplished over the past six months and there is pressure from the boss to “get things on track”.
Actions
We created some focus by honing in on the purpose of the Molding Department within the context of the larger organization. From this purpose we defined the four primary performance factors necessary for success. The top priority turned out to be staff productivity. The next step was to use a similar process to bring his supervisory staff on board.
We were now positioned to develop a workable plan based on Employee Engagement principles to involve the staff in becoming accountable for productivity:
- Create a productivity feedback system for the department and each operator
- Engage the staff in a “meaningful” discussion about their role in achieving Molding’s purpose
- Stimulate the staff to analyze and discuss the wide variation in operator productivity (range of 350 – 500 parts per shift)
- Trust the staff to determine an appropriate level of productivity
- Continue to provide measurement and feedback to the staff
This turned out to be a wise approach in that staff actively engaged in this process and selected a higher productivity goal than MM was prepared to set for them.
Results
In a matter of weeks the staff achieved the productivity goal:
- Average productivity increase by 24.6% with a significant reduction in overtime
- The mythical “maximum output” of 550 parts for a single operator was shattered by several people producing over 700 parts per shift
- Cost per part produced decreased by as much as 22% during this time
- Gains are being maintained – staff will meet soon to set new productivity goals
- Staff morale is high – MM’s chief complaint is that he is getting more suggestions for improvements than he can handle.
- MM is now beginning to lead performance improvement initiatives in other departments. The ROI for the investment in coaching is 407%.
Let’s discuss your opportunities over a cup of coffee.
- Alan Adyniec
Performance Edge, LLC