Chasing Production Records isn’t very Smart

5 May 2017 Lean in Industry Blog
by Ross Kennedy, 5 May 2017


Too often we find sites obsessed with trying to achieve new production records in an attempt to increase their overall output. The sad reality is that trying to achieve new production records rather than focusing on why the average or target performance was not achieved will nearly always lead to less total output over the longer term.

Of course chasing new production records may sound very heroic and may create great motivation within the workforce, especially if linked to attractive rewards or bonuses. However when compared to the long term average performance that can be achieved through Reactive Improvement, the shortfall can be quite significant.

Chasing production records will often widen the distribution curve (see visual below), as there is often very poor performance after a record has been achieved because the plant has been pushed too hard resulting in unforeseen failures or disruptions.

Distribution Curve of typical Output Performance

By reviewing performance daily through rapidly identifying and addressing the root causes, and putting the effort into why the desired (average or target) performance was not achieved, you will progressively reduce the variation and increase the average in performance. Therefore resulting in a greater output over the long term.

Reactive Improvement is about developing an effective Daily Management Process covering all levels, so that you have the ability to rapidly recover from an event or incident that stops you from achieving your budgeted or expected performance, and most importantly initiating corrective actions at the earliest possible time so that the event or incident will not re-occur anywhere across the organisation.

Most organisations have Daily Review Meetings as part of their Daily Management Process however far too often they are not effective. They often start late or drag on for too long, they accept poor performance standards, they skip over below target performance by accepting ‘work-a-round’ corrective actions, and the list goes on. How do your Daily Review Meetings compare?

If you would like to learn more about CTPM – The Centre for Australasian TPM & Lean, and our approach to Daily Management, contact myself Ross Kennedy at ross.kennedy@ctpm.org.au or purchase my Daily Management book using this link.

Daily Management Book Cover

 

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