Volume 1 / Issue 5 / May 23, 2016
Each business unit should have an improvement plan for the current year which advances the organization’s strategic journey towards its Vision. These plans should enable the achievement of the primary metrics selected by the company executive. Each member of the business unit team should participate in and understand the plan. These plans should be specific and measurable against agreed-upon milestones. They will take each strategic element and create a plan to achieve the annual target through the deployment of specific Lean tools and programs. Under the strategic element of “Increased Inventory Turns” we might typically create a tactical plan such as:
• Complete A, B, C (Runners, Repeaters, Strangers) analysis of products
• Value Stream Map all ‘A’ items
• Create work Cells
• Halve Set-up Time
• Halve Batch Sizes
These milestones must be able to answer the question, “Where are we now?” This is a one to two page "Traffic Light Report" with the main tactical elements of the improvement program. These metrics are reviewed monthly.
There must be tactical operating plans for the achievement of all the strategic elements.
The Second Level report must be able to show how we are tracking year-to-date in the achievement of this tactical plan for each element.
Work Team Objectives
Each work team must have targets for the achievement of the tactical items under their control. These would typically be things such as:
• Production to plan
• First time quality
• Employee hours per part
• Average number of set-ups
• Average set-up times
• Number of continuous improvement ideas implemented