2/17/2009
APPLES TO ORANGES
Allied provided machine shop services to a number of small automotive repair shops in Southern New Jersey. Sixty-five percent of their work comprised of limited production runs to replace or repair parts that were no longer available. Daily production reports were nothing more than a written chronicle of the previous day’s activity and included the following:
- Customer Name
- Product Description
- Product Code
- Work Order #
- Line #
- Production Operation Performed
- Operator
- Hours
- Amount Produced
Absent of any comparison or analysis, each person reading the report saw a different result. And while it was probably equivalent to adding apples to oranges, the production clerk totaled the hours and totaled the production with the hope that these nondescript sums would inspire some action on the part of supervision. Copies of the report were distributed to the owner and each of the key managers while one was placed on file and never seen again.
Since most of Allied’s jobs were custom, individual expertise and effort played a major role in daily productivity. Viewing this as an opportunity for significant improvement, the game plan went as follows:
- Define every single step in the production process;
- Through consensus of key managers, set up interim standards;
- Develop a database program to record and analyze the information;
- Input the data daily and generate audience-specific reports for all;
- Explain expectations with regard to interim standards;
- After six months revise the standards to reflect history and achievability;
- Insist on accountability and reward favorable results.
One year later Allied’s productivity increased by 22%. As an added benefit, the data collected afforded the company with reports and analysis on line utilization and equipment efficiency.
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