Work Group Effectiveness PCI 2004 Productivity Workshop

1. Work Group EffectivenessPCI 2004 Productivity Workshop

2. Workgroup effectivenessPCI 2004 Productivity Workshop Session Objectives: • Communicate some ideas about work group leadership • Provide you a practical program template • Share the results obtained by others AGENDA • Six Core Values • Sick organization symptoms • What’s a work group • Group Problem Solving • Role of the supervisor • An Effective Format • Barriers to overcome • Results in real life

3. Workgroup effectivenessPCI 2004 Productivity Workshop Core Values for a World Class Organization Customer Driven We will always exceed our customer expectations (both internal and external) and we will strive to provide new products and services to better satisfy our customers. Leadership We will provide clear direction for all employees so that everyone understands our company’s mission and understands how their individual efforts affect the key results areas of our business. Empowerment We will give each of our employees the resources and training required to make the necessary changes for improvement, ultimately providing employees with the responsibility, authority and accountability for their own process. Cycle time reduction We will work toward reducing the amount of time requi9red to perform each function within our organization ultimately allowing us to accomplish more work with faster schedules and more free time for employees. Management by fact We will work toward using measurement and analysis of measurement to make decisions within our organization thereby preventing employees (especially management) from making uninformed decisions. Shareholder partnerships We will work toward establishing win-win partnerships with our owners, employees, suppliers, subcontractors, and customers so that we all benefit from the organization growing and prospering.

4. Workgroup effectivenessPCI 2004 Productivity Workshop The everyday world “The more I get caught up, the more I get behind”

5. Workgroup effectivenessPCI 2004 Productivity Workshop Sick Organization Symptoms • Focus on optimized production system, capital intensive • Focus on job descriptions, documented work procedures • Multi-layered, high overhead expenses • Bureaucratic, functionally organized • High control, micro-management • High hourly employee turnover • High cost, with quality problems • Focus on doing things “right,” [according to procedure] • rather than doing the right thing

6. Workgroup effectivenessPCI 2004 Productivity Workshop Hidden costs Labor Turnover . • Productivity • Training • Labor short, OT, missed schedules • Rework Over-management . • High overhead costs • Low initiative • Slow to take action • Quality problems • React mode management style

7. Workgroup effectivenessPCI 2004 Productivity Workshop The better way – Some key principles • Organize around mission – not function • Flatter organization – 3 layers, 4 max • Clear up organizational overlaps • Delegate responsibility and authority to lowest level • Focus on developing skills • Focus the plant on supporting the needs of the workgroup • Fact based decisions The most significant wasted resource in many businesses is the talents and interest of the non-management personnel – work group effectiveness -

8. Workgroup effectivenessPCI 2004 Productivity Workshop What’s a work group? • 3-6 Employees working as a team • Includes supervisor • Most employees are part of a work group Why is it important? • Basic building block of the organization • Where the work gets done • Effectiveness of the work group = success of organization

9. Workgroup effectivenessPCI 2004 Productivity Workshop Typical work group difficulties • High turnover means inadequate training • Short staffed, can’t get the job done in 8 • Doesn’t know the plan • Feedback on problems is not timely • Performance feed back is spotty, often negative • Not recognized for success • Group knows how to make improvements, • has not been asked • Is reluctant to speak up

10. Workgroup effectivenessPCI 2004 Productivity Workshop What’s Empowerment? • Has the knowledge & training to do the job • Has the tools to do the job • Knows when there is a problem • Expected to take initiative • Applies to work groups and individuals

11. Workgroup effectivenessPCI 2004 Productivity Workshop Individual decision & initiative rating system: 1. Wait until told what to do 2. Ask what to do 3. Recommend then take action 4. Act and then advise 5. Act on own initiative As a supervisor, you can affect this • Rate each individual in the work group • You don’t need anybody at Level 1 • Most individuals can reach Level 3 or Level 4 • Initiative will be developed by group problem solving & coaching

12. Workgroup effectivenessPCI 2004 Productivity Workshop What is Group Problem Solving? Structured, Work group focused, Problem focused, Teamwork focused. • Take up problems that can be solved by that team. • Focus on: • Waste • Cycle time reduction • Methods improvements • Non-conformances • Safety • Length of time 15 minutes. • 1 or 2 mtgs. / team/ week

13. Workgroup effectivenessPCI 2004 Productivity Workshop Group Problem Solving Participative • Focus on asking, not telling • Each group member is expected to contribute • Group accountability for results • Solution oriented • Success oriented

14. Workgroup effectivenessPCI 2004 Productivity Workshop Group Problem Solving The Results • Solve problems • Harness the creativity of the work group • Obtain buy-in and commitment of the work group • Learn to take initiative • Be accountable for group results There is power in collective wisdom The whole is greater than the sum of its parts

15. Workgroup effectivenessPCI 2004 Productivity Workshop Group Problem Solving Models Daily startup • (start the day with a session) Brainstorming session • (Structured 1 step root cause session) Problem elimination • (9-steps, take one or two steps per session) Facilitated Group Problem Solving • (5-step, 1 session process conducted by a facilitator) Best methods training/development • (6-step process to develop and implement work processes. Brown paper room • (Multi-session process to understand and develop work flows)

16. Workgroup effectivenessPCI 2004 Productivity Workshop Role of the salaried supervisor • Review and set the agenda of problems to be addressed • Keeps minutes, notes, records • Don’t bring solutions, bite tongue during sessions • Stop any B/S and nonsense • Steer group away from unrealistic solutions (careful!) • Keep the corrective actions focused within the group • Carefully note action assignments • Make sure the action assignments get done • Find the resources to support the needs of the group Role of the QC Manager, engineer, management, visitors • Minimum of 1 session per month led by an outsider • Visitor does not bring solutions, tell, or lecture

17. Workgroup effectivenessPCI 2004 Productivity Workshop Daily StartupWork Group Meeting Format Typically 15 minutes at beginning of shift • Safety • Recognition • Scheduling and goals • - Team problem solving • or • - Methods improvement • Action assignments this meeting • Follow up on action assignments from last meeting

18. Workgroup effectivenessPCI 2004 Productivity Workshop Barriers to overcome– at the individual level • Fear of failure • Fear of criticism • Distraction by the here and now • Status quo, don’t rock the boat • Hierarchical reticence (pecking order reluctance to speak) • Deaf ear by management • Conventional wisdom • Language

19. Workgroup effectivenessPCI 2004 Productivity Workshop Barriers to overcome–at the corporate level • Too busy • Doesn’t fit my management style • Waste of time • Top management not interested • Management insincere • We started, but somehow we got busy and stopped Be sincere, or group problem solving will quickly be seen through as manipulation

20. Workgroup effectivenessPCI 2004 Productivity Workshop A word about management style Traditional role: Supervisor • Enforces rules • Assigns tasks • Acts as expert Proposed role: Supervisor • Team leader • Sets goals • Trains • Provides for the needs of the work group • Leads problem solving (but doesn’t provide the solutions) • The chief role is to enhance the effectiveness of the group The most effective work groups are self tending

21. Workgroup effectivenessPCI 2004 Productivity Workshop Management style is driven by the needs of the group

22. Workgroup effectivenessPCI 2004 Productivity Workshop Results Applied in a large prestressed plant – 100+ employees Requirements • Every employee had to be in a work group • Work groups had to meet at least twice / month • Production work groups typically met daily – 15 min. • Staff work typically met weekly or monthly for 1 hour • Work groups could develop their own agenda / format • Must be participative – no lectures • Must include problem solving or methods improvement • Work group chair did not have to be dept. mgr or supervisor • Management visited work groups • Work group chairs reported to management, rotating basis

23. Workgroup effectivenessPCI 2004 Productivity Workshop Results across a 6-month period Cycle time improved 7% Labor efficiency per engineered standards from 70% to 85% Employee turnover improved from over 100% to 15% Quality improved from more than 3 nonconformances/day to 0.5 Unit labor cost improved 19%

24. Workgroup effectivenessPCI 2004 Productivity Workshop “The more I get caught up, the more I get behind” The supervisor is successful when he can turn over to the work group the responsibility for self-assignment This can transform your organization

25. Workgroup effectivenessPCI 2004 Productivity Workshop Summary The most significant wasted resource in many businesses is the talents and interest of the non-management personnel 1. Get turnover under control 2. The better way develops the skills of your people 3. Take up problems that the work group can solve 4. Be sincere, or group problem solving will quickly be seen through as manipulation 5. There is great power in collective wisdom This can transform your organization Developed by Bill Ray Precast Consulting Services 770-979-3711 www.precastconsulting.com

26. Work Group EffectivenessPCI 2004 Productivity Workshop