Your assessment result has positioned the operation within the red band and would indicate that the basic processes required for a sustainable manufacturing operation do not exist or are failing.
The chart shows your assessment results, the yellow line, for the seven components and clearly indicates that every aspect of the operation is status Red and requires improvement.
In this situation there is a need to understand the obstacles preventing the incumbent management team from delivering an improvement programme to achieve the desired level of performance. Faced with this scenario we would ask the following questions:
Questions to ask:
Does the management team recognise the need to improve and if so, do they have a credible plan and can you rely on them to deliver it?
Is a commitment to change evident within the organisation?
Are the operations team’s objectives aligned with the business plan?
Are the required skills, knowledge and experience to deliver the plan available within the organisation?
What are the benefits for improving and how will improvement be monitored and reported?
Ensure the need to improve is recognised and owned by the leadership team. Develop an improvement plan with them.
Determine the benefits for delivering improvements, set targets and establish a method for measuring progress.
Set milestones to review status.
Determine the training, coaching and recruitment requirements to ensure the skills, knowledge and experience to deliver the plan are available within the organisation.
A full review of the management team is necessary to determine their strengths, weaknesses and their ability to deliver the required improvements. In our experience, if the company has been operating at this level for a long period, the able and qualified people will have left the business and those who remain will be there because they can’t. They may be unable and/or unwilling to change. Recruitment and external help in the short term may be necessary to bring leadership, energy and expertise to the team. To ‘do nothing’ would risk decline.
The result of the assessment suggests there are opportunities to improve in every aspect of the operation. In this situation a campaign of improvement is essential and will be self-financing. The benefits are quantifiable with the objectives of; reducing the cost of sales, improving delivery performance, reducing the risk of HSE incidents and improving quality performance being the headliners. Further benefits in culture change and morale improvements will also boost performance.
The questions posed focus on the current operations team with a view to determining whether they have the knowledge, experience and ambition to lead an improvement programme. There is a need to strengthen the team through appropriate training and/or recruitment. A starting point is ensuring the operation is properly structured with defined job roles, responsibilities and boundaries of authority and control that are aligned with the business plan.
The level one report examines each of the components and generates; questions that determine the baseline for improvement, areas where the quick wins can be achieved and how to start.
Your result is indicative of an operation where neither the processes nor the people are aligned to the current requirements of the business. Every aspect of the operation needs improvement. The upside is that focused properly all improvement activity will be self-financing.