How Training Enriches the Soil for a Culture of Operational Excellence

Training - Freeway Exit Sign

In business, we make guarantees. We guarantee excellent quality, world-class service, and competitive prices. We need to make guarantees because are customers need to know that we will deliver, and they deserve that peace of mind. This allows our customers to place their focus on other important things.

The ability to deliver to those guarantees is a matter of integrity. However, businesses are made up of a system of imperfect people, machines, and processes. How can a business make guarantees to their customers on one end, and on the other end be riddled with so much imperfection? The answer is in the the design of the business system. If you were to read a company’s mission statement, and it says, for example, that they will make products of unparalleled quality, then you should be able to audit their business system to determine if it is truly capable of delivering to that standard. Although the goal of any business system should be to eliminate the opportunity of failure of delivering what is guaranteed to the customer, the execution of the business system is often heavily reliant on people. That’s right – imperfect people.

This is where training enters the stage. Training is defined (by Google of coarse) as: “the action of teaching a person or animal a particular skill or type of behavior.” In this case, the desired behavior would be to effectively execute the business system or designated process within the system. Training helps imperfect people to become more perfect; at least at a specific thing. An effective training program ensures that people have the capability to execute the business system according to what the business has guaranteed the customer.

There are four primary categories to an effective training program:

  1. Standard Operating Procedure Development and Management
    1. Entails documenting critical system and procedural knowledge and making sure that they remain current and complete
    2. Ensures that all Standard Procedures are readily accessible to relevant personnel
  2. Training Execution & Records
    1. Ensures that trainees know and understand what is needed for effective system execution
    2. Tracks who has been trained on what content
    3. Helps to ensure that gaps in training are closed in a timely manner
  3. Validation of Learning
    1. Provides immediate verification that sufficient learning has been achieved
    2. Validates that learning has been retained and has been put into operational practice
  4. Change Management
    1. Ensures cross-functional buy-in to pending process changes
    2. Supports the sustainment of good practices and desired behaviors

Business systems (especially in manufacturing) are constantly evolving creatures. In a culture of continuous improvement and operational excellence, the manufacturing process, procedures, and knowledge requirements change almost daily. A training program that is capable of delivering the right knowledge to the right people at the right time; than ensures that the capability is acquired and is put into action; is essential to drive out operating costs and sustaining strong performance. Often times businesses start their continuous improvement initiatives without having a solid foundation such as an excellent training program in place. They quickly learn how frustrating it can be to make brilliant process changes only to have them undermined by poor training and people development. Implementing an effective training system is an initiative within itself; but it is essential to optimizing the performance of your most powerful asset; your people.

How robust is your training program? How is it impacting your ability to sustain or improve business performance? Reach out to us to assess what can be done to improvement the integrity of your training systems.

© Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.

The Manufacturing Agility Index: Measuring the Efficiency of Change

Agility

How well does your organization handle change? Is it managed deliberately or do you use a shoot first, ask questions last approach to changes? What is the level of resistance that you face for easy process changes? What about the difficult ones?

Change is inevitable. The only choice we have is to proactively work to change for the better. And if you’re not actively getting better, then you only have one other way to go. Staying the same is just not a realistic expectation. This is the driving force behind the concept of Continuous Improvement.

In this post, I want to introduce the concept of the Agility Index, which is a measure of your organization or factory’s ability to process change. The lower the number, the more difficult change is; likewise the higher the number, the more agile the organization or process. The term Agile in business is much more popular in the world of software development and project management but the concept of Agile Manufacturing is increasing in popularity driven by the realization that markets are demanding greater variety and Agility can absolutely help drive down manufacturing costs. Agile Manufacturing is a relatively underdeveloped discipline that many believe is the next step in productivity to Lean Manufacturing. However, in my view, Lean and Agile are uniquely independent disciplines. Each is more applicable to some manufacturers than others. The goal of each is ultimately improved customer service and retention. Although Agile attempts to help manufacturers break into new markets sooner than competitors to gain advantage.

Agility can be described as the cost of change. Cost can be measured in time, energy, dollars, or even psychological displacement. And since change is inevitable, its in every manufacturer’s best interest to reduce the cost of change – or increase its Agility.

To measure a manufacturer’s agility, you first need to create a scale that measures magnitude of change. There are three factors that are used to quantify the magnitude of a change: Degree of Change, Scale of Change, and Complexity of Change.

Degree of Change: To get the full grasp of agility, you have to first see the business system as a process (or array of processes). All processes have three core elements – Inputs, Process, Outputs (with Suppliers and Customers being conditional factors as in the SIPOC model). Based on these three core elements, there are 4 degrees of change that I’ll go into detail about in a future blog post. The  greater the degree of change, the more difficult it is to implement. At the simplest level, a product changeover would represent a change from the current state to a future state process.  On the other end of the spectrum, a full implementation of a new product line or production plant would be a change in the fourth degree.

Scale of Change: Scale of change measures how many people or assets are affected either directly or indirectly. Some people will have an immediate need to change their behaviors and some will just need to be aware of the change that has taken place. For obvious reasons, the more people affected by the change, the more difficult the change is to implement.

Complexity of Change: This is a measure of how much of a learning curve is needed for the people affected by the change. A future state process that requires one new process step is much easier to implement than a future state process that requires 100 new steps for example. The greater the complexity of change, the more difficult it would be for an organization to implement and return to steady state.

Each of these factors are measured on a scale of 0 and 100% and multiplied across to measure the magnitude of change.

So here’s where all of this matters. One can fairly easily determine how much a change should cost. For example, if all of the waste was moved from a changeover process, it would require XX minutes. However, the actually process it taking YY minutes historically. The Agility score for that type (or magnitude) of change can be calculated as XX / YY. From there, you can actually calculate a savings potential for increasing Agility to 100% for that process.

Based on this information, you can use what is called the Agility Index to determine what the true cost of changes of greater magnitude such as implementing a new production plant would cost due to poor agility and how much could be saved by increasing Agility. Organizations with great agility will have a much lower “cost of change” than an organization with poor agility. Therefore, increasing Agility in the manufacturing environment would be substantially lucrative in many cases.

Good luck with your efforts to increase your organization’s Agility. Feel free to reach out to us if you would like a 50+ point analysis of your manufacturing Agility with recommendations for what could be done to drive improvement.

© Calvin L Williams blog at calvinlwilliams.com [2015]. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Calvin L Williams with appropriate and specific direction to the original content.