If you want to unlock Continuous Improvement and Shopfloor potential, then Performance Management cycles of Controlling, Improving and Visioning should be implemented on each management layer.
This is video discusses the need to align KPI's (and Performance Control in general) to the different layers of management - you'll want to control direct process performance on a shift or daily level, while on a weekly and monthly level you should not just be summarising those daily KPI's into a monthly aggregate, but instead be looking at higher level of those same indicators and at the performance of departments and processes.
For managing Improvement efforts and for setting the Performance Targets and Vision, the same holds true - they should also be set on multiple management levels. Quite likely, your factory budget is set once a year, but in a larger organisation (with multiple factories) it's not actually set by the factory, rather the BU/Region/Segment sets your factory budget. This is an example of the Visioning cycle working at the level above the factory - any factory would do well to set/adjust targets for their Performance targets roughly quarterly.
Is your site management team perhaps controlling performance too frequently or at the whole level of detail? Do your department managers even manage their department's improvement resources and performance target setting? Check out the video to get a good yardstick to compare your Performance Management with.
#continuousimprovement #performancemanagement #pcs
• Managing Improvement e...
00:00 Setting Performance Standards
02:16 Control Loop vs. Improve Loop
04:16 Layered Management Structure
07:33 Frequency of Improvement Cycles
13:28 Improvement Project Management
20:21 Performance Control and Priority Setting