Goals and objectives

productivityOne of the most important things when doing improvements is to define the right goals and objectives. Next, you need to decide how to measure in order to follow up. Companies spend massive resources on data acquisition, data warehouse, reporting and visualization of data. However, what information should you use in order to monitor your process and evaluate your goals?

KPI - Key performance indicators are used to measure how you are doing in relation to the goal you have set. It is of major importance to use the right KPI's in order to improve. It can be a challenge to break down overall business objectives into operational targets for departments and individuals. Lean Tech can assist you with this process.

The performance indicators for individuals must be something that the person can influence. I have experienced that operators were evaluated based on machine efficiency - OEE. When talking to them and investigating the numbers, it turned out that they had little impact on machine efficiency because it was mainly maintenance and technicians together with the process team who influenced the machine OEE. The major bottlenecks within production were missing product (problem upstream their process, controlled by the process team) or something was wrong with the machine and needed to be fixed by a technician. A better performance indicator for the operators might be to measure stop causes that they affected.

Goals can be motivating when you are measured at something you can influence. It is also important that management choose balanced targets. By having a strong focus on productivity and delivery, this can result in high quality cost or high wastage if not balanced. There may be situations where you must choose between wastage and efficiency. Then it is important that the operating personnel know what should be prioritized and when. 

OEE is a widely used productivity indicator, revealing losses and enabling us to eliminate these losses. The available production time is crucial for the OEE calculation, and its definition depends on what losses you aim to reveal. You can get input on determining available production time in this video about OEE.