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Should everybody know their performance?

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  • #40705

    Fontanilla
    Participant

    We colected 4 month worth of data. It is analyzed and ready to be posted on the board in the specific department for everybody to see. The charts will be updated every month.
    1) My question: Do I show the names of real people under each chart or use X1, X2 and then talk to those Xs in private for any improvement requests/evaluations?
    2) We found out that in order to improve our Y (avg. footage of labels produced per day) we need to concentrate on “Motivation”. One of the way to do that is to assign $ (bonus/wage review) to the actual metrics. Any other good/working ways?
    Any comments would be appreciated.
    Dan

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    #126956

    BTDT
    Participant

    Dan:I can guarantee that if the names go up, then you will never get reliable data ever again.The military has a credo – discipline privately, celebrate publicly. It’s good advice. The reward can be dinner for two, a half day off, lunch with the CEO*, ’employee of the month’, etc. Talk to HR about the best way to celebrate.BTDT

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    #126974

    tottow
    Member

    Dan,
    I do not know who “we” is that analyzed the data, but it sounds suspiciously like managers or supervisors sitting in a room looking at data that had not been discussed with the process owners… I could be wrong.  If I am not, go talk to the process owners about problems with the process, machines they are using, etc before you start trying to “motivate” them into turning out more product.  If the output is bound by the process, or machinery being used, or defects, you may end up with more product that is not usable, and machines with more downtime, and rewarding your people for it.
    Just my opinion.  

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    #126976

    Fontanilla
    Participant

    The process owner is involved. We have 6 different machines. The questions here is why 3 operators on the same machine produce different (statistically) amount of footage on average/day in one month time frame?
    For example: In August, operator X produced AVG. 30,000′ per day. But, operator X2 produced 36,000′. SAME machine, different shift. What do you do with the operator X?
    Dan

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    #126979

    Scott Roberts
    Member

    Dan,
    Be careful with this one!!  What factors are effecting the shifts?  You state they are using the same machine but different output.  Are there “noise” factors effecting the employees?
    Consideration,
    Is X on 1st shift?  If so, then there could be more interuptions based on population around the production floor.
    X2 on 2nd shift?  If so, general population is not around therefore they are not slowed down by these factors.
    Make sense?

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    #126981

    Scott Roberts
    Member

    Another consideration…..
    You mentioned 30,000 to 36,000.  Does 6,000 make a big diffence?  Are you meeting customer demand? 
    Be careful with what you are promoting and the effects of this change.

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    #126982

    Fontanilla
    Participant

    6,000 x 20 working days = 120,000′ less per month
    That’s is a big difference if you pay them tha same wage and they work on the same machine/same types of jobs…

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    #126983

    Scott Roberts
    Member

    Understand what you are saying….but
    Where is this in consideration to Customer Demand?  Are you meeting this?  What factors are effecting the employees?  Before you make the statement that an employee is not pulling their weight, consider all factors before drawing these conclusions.  Your statement that they are using the same machine, makes me believe they are on different shifts.  This can be a HUGE factor to consider.
    If you don’t, this could make you a HERO, or a GOAT.  And the teams you seek to form for future projects will be less likely to work with you.

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    #126988

    tottow
    Member

    Dan,
    Thanks for the reply and thanks for having the process owner(s?) involved.
    Understand all I know is what you are telling me here and although there are people who would argue the point I am not trying to be a dxxk.
    Are you sure the problem is with operator X.  You are asking what to do with him/her.  How about asking X if they have any idea why they  produced 6000 less lables than X2, or asking X2 how he produced 6000 labels more than X? 
    You said it was an average.  What is the standard deviation?  Are there trends by day/week/month? Are there other factors involved –  temperature/time/ humidity/machine down time?  I am not trying to point you down a rat hole, but I want to make sure the questions get asked to get you to the root cause. 
    What happens if you cannot motivate operator X enough, move him/her out the door, hire operator X3 and he/she starts producing 42,000′ per day. Is it then operator X2’s turn to get motivated? 
    Again, I am NOT trying to be argumentative, Just trying to help.
    Darth, Stan, HF Chris, BTDT, any help?
     

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    #126990

    Scott Roberts
    Member

    Tottow….
    Thank you for reinforcing with some great examples….there just has to be consideration of all factors before making such bold statements with posted data.
    For the record, you aren’t being argumentative at all….you are presenting opportunites to consider and areas to look.

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    #126994

    pt
    Participant

    Friends,
    Let me put to your consider what we do in our companie.
    Instead of evidence the “best operator”, we choose to evidence “worst operator of week or month”.
    Why?
    It’s money saver, and use self motivation. (if the problem real is motivation).
    We decided this way because everybody will be motivated (or glad) by not beeing the worst, and operator “worst of the month” will certainlly try to improve. He might even ask for help showing the problems he’s having and how to help him to improve!
    What do you think?
    regards

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    #126996

    Scott Roberts
    Member

    PT,
    I will try not to sound close minded or mean about this…but here is what I think.
    Stop asking this question….your approach is absolutely rediculous and shocking.  I don’t want to know your company name, and if I had stock I would sell it. 
    This is the most rediculous approach to motivation I have ever seen.  You have not defined your root cause conclusively and have not considered noise factors within your process. 
    And if they are the “worst” operator…..do they come off the worst sheet the next month?  This completely skews the data because of the fear factor!!  So basically, every operator is taking turns being the WORST…..sorry but this is just plain nasty!!

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    #126998

    jimmie65
    Participant

    What you will get:
    1. Most people will be motivated to not be the worst. But no one will be motivated to improve beyond “not the worst”.
    2. Resentment of productive operators. With your “incentive” plan, they aren’t making themselves look good. They make others look bad.
    3. High turnover.
    4. Intentional sabotage, lying or manipulating numbers, and looking the other way.
    5. Ingoring maintenance needs or quality issues so numbers can be met.
    So the results should be a demoralized workforce of mediocre performers.
     
    So share with us how well this plan is working.
     
    And if you can change before your company goes bankrupt:
    1. Fire all of the managment that approved this plan
    2. Hire new managers that view employees as the company’s greatest asset
    3. Ask the employees to become involved in a real incentive plan.
    If you don’t do 1 & 2, skip 3. The employees at this point won’t trust anything that you do.
     

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    #127003

    Fontanilla
    Participant

    tottow,
    “What happens if you cannot motivate operator X enough, move him/her out the door, hire operator X3 and he/she starts producing 42,000′ per day. Is it then operator X2’s turn to get motivated? ”
    YOU GOT IT! Look for the best possible entitlement untill you reach that accross the shifts. If X3 could do that, damn right I will be all over X2 for not matching or not being statistically close to the best performance of X3. Assume quality checks are done on the regular basis.
    Scott,
    I understand that you are trying to find OTHER sources of variables. However, what if I tell you that the operator’s skill/experience and motivation are the only sources of variation in footage produced…what would YOU recommend in order for the weakest link to be in line with everybody else on this machine?
    Does anybody else can share their experience in posting metrics on the main board?

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    #127007

    tottow
    Member

    Sorry, Dan. Now I am starting to be argumentative. 
    Put the shoe on the other foot.  Your manager hires a new person in a peer position to you and has you train them in your area.  Immediately the output on all of the label machines and all of the operators goes up.  It must be because of the new person.  You obviously need to be motivated, right?
    Until you can show me the means you used to derive the fact that the only/largest contributing factor to the amount of footage produced is operator X, I am going to tell you to keep asking questions.
    If you can PROVE the person is the only/largest factor in the amount of footage produced than by all means do whatever you want to/with them, but you would have to prove it to me, and if the person has a good case you might have to prove it to a judge/jury.
    Metrics boards are used to show the output of the process/system not the people.

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    #127009

    CT
    Participant

    I have been a Lead person, a Supervisor, an Engineer and, High level Production Manager. My technique is simple. EXPECTATION of the job must be fully understood by all.
    1)Make sure every employee knows his/her expectation
    2)Communicate his/her performance to them on a monthly basis
    3)Address concerns of performance when they happen, not later          Many times I find that an operators lack of performance is a lack of performance of his Supervisor simply not making sure the operator understands his/her role. (in all levels of Management as well).
    4)Be considerate of “Noise” or out of operator control circumstances
    5)Dont be bias to anyone, it creates dissention among the troops
    PT- sorry, but the worst employee of the month in my plant could be someone that runs 98% productivity. Your plants program is the most ridiculous I have ever heard.
    To answer the question, YES everyone should know thier performance, if they dont, how can justify not giving someone a raise or rewarding one employee over another for a better job, if they dont know why other than just because. In todays market you have to communicate all these things to ensure protection against labor and ethical suits.
    CT

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    #127010

    AB
    Participant

    Dan
    As other’s have indicated, it is hard to believe that motivation alone has a causal relationship with the productivity of the operators.
    Nevertheless, let’s for argument sake, assume that your conclusion is absolutely well substantiated with underlying analysis of the data. Your question therefore is how do you motivate the rest of the operators to target higher productivity.
    There are various cash and non cash reward mechanisms that can serve to motivate as BTDT suggested, talk to your HR organization about it. The key is to integrate the incentive with the overall compensation policy otherwise you risk a potentially serious negative unintended consequence on some other part of the organization. HR organizations can help you understand when/how to reward and recognize. If people merely do their job (which is where understanding customer demand comes into play) they should just get their basic entitlement. So you would have to first define what is the minimum expectation.  Then work with HR to link the expected output with compensation/reward/recognition.
    Hope this helps.

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    #127012

    Fontanilla
    Participant

    “So you would have to first define what is the minimum expectation.  Then work with HR to link the expected output with compensation/reward/recognition.”
    I think this is the perfect solution to my problem :)
    Thank you
     

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    #127049

    Fontanilla
    Participant

    “Your statement that they are using the same machine, makes me believe they are on different shifts.  This can be a HUGE factor to consider.”
    Yes, night shift is slacking off because nobody is around and they get 15 % extra in pay…not fair to the owner.
    Dan
     

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    #127050

    G
    Participant

    A couple of points that I didn’t read in this thread to consider:
    No mention of takt time. Someone asked the question are you meeting customer demand. A great question. If everyone understands what the rate at which they must produce labels then you’ve got the first step in setting expecations for a motivated production team.
    Second, I didn’t see anything on machine capacity… what is the maximum number of labels a machine can produce? If maximum productionon all three shifts (after Preventive Maintenance) are needed to meet customer demand that’s one thing, but possibly each operator only need prioduce x/3 (x/3 labels for each shift) to meet demand, in which case you can set a pace and have operators do other things after their production quota has been met, or use the third shift as a part-time or flex shift to meet growing demand from time to time. If demand is different for each shift then you should set targets for each shift and post the results for that shit (only), and the combined daily total to meet customer demand as a whole for all three shifts, this way each operator knows his/her performance to the expected and their contribution to the total daily goal.
    If the problem remains that one or more operators can not meet demand, what should be done is personal on-shift obersvation of the operators to see what they do differently. (Don’t ask them they may not know what they do differently.) If another machine is available can the operator who produces the most labels on machine A duplicate that production on machine B? That observation may be worth noting.
    g~
     

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    #127071

    C.R.Shetye
    Participant

    Definitely. Everyone has a right to know how he is doing, especially when it is linked to compensation. In number of companies, the sincere and the insincere employees know exactly how they are doing and it is for the benefit of the people in between, that the exercise is necessary.
    Assuming that it is rotating shift and the data was collected over four months implies that shift effect has been eliminated. Also accepting that all the other factors have been satisfactorily accounted and it is the individual’s ability/motivation, which causes the difference in production levels.
    Incidentally, totally how many employees were considered in the study? What were the average and the SD of production?
    If, the outlying values are within +/- one-sigma values, or, the distribution is flat, I will not worry about the lower production of an employee.
    The next question is, how are the 80 values (4 months x 20 days) of poorly performing individual varying? Are they closely grouped or widely scattered? Closely grouped data indicates lower capability and may be, he does not know the correct method/procedure, while scattered data indicates ability to achieve the target is present, but not willing to do the work. The next point is whether you want to help the individual achieve the target or want him to fend for himself. In the former case training is recommended and in the later case penalty/punishment.
    In both cases, the outcome is not guaranteed; it will be guided mainly by the culture of the company and to certain extent by the psychology of the individual. And naming the worst employee also works equally well in certain companies.
    Coming to your questions, name the top performers and indicate others by X. As for rewarding/punishing the employees, set a range as acceptable production (average +/- one-sigma value is a good starting range). Reward EVERY better performance while punish only if persistently low. I have seen it work amazingly.C.R.Shetye

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    #127072

    Fontanilla
    Participant

    Thank you C.R.Shetye!
    It seems like you have a great deal of experience and pay attention to details. You answered my questions precisely to the point!
    Thank you, Dan

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