OEE - Overall Equipment Effectiveness and the New Project.

It is about time I am updating this blog again, as I have been managing a project in Austria since April. Since it is an active project, I cannot say who the client is and what he produces. But they are producing something MTO (Make to Order) which is made of metal and which one can find in most buildings. 

I think I should write about a few features of the project in the next few entries - what I am doing here, what I am learning, etc...

The project is about raising efficiency levels in the factory and the good thing about it is, it is a coaching project where I am coaching everyone from key operators to the managing director in efficiency raising techniques. 

We are tasked to do mainly 3 things - implementing OEE, doing some core SMEDs, and installing a "Lean Corner" (daily review meetings, action plans, etc). 

OEE Definition in German

 This poster about the OEE definition is in German but it shows the 3 areas OEE is looking at - Availability (V for Verfügbarkeit), Performance (L for Leistungsgrad) and Quality (Q for Qualität). OEE itself is calculated as a multiplication of all the 3 of them. 

KPIs of SCP

SCP has a few KPIs by which one can see how well (or not so well) they have done.

Customer Service measured as Customer OTIF (On Time In Full). This KPI measures the orders a customer wants at what date with the ones actually delivered on that date. Whether these should be orders or order lines needs to be decided case by case.

Internal OTIF from factory to distribution centre (also called Factory OTIF). This is a shared KPI with SCO and measured the weekly planned orders with the actually produced orders which enter the distribution centre for distribution to the customers. This is more interesting in an MTS (Make To Stock) environment where SCP would be responsible for reorder points, safety stock, etc, as MTS orders are mainly generated by SAP or any other production planning system.

Stock. These stock KPIs can be expressed in total nominal stock value (raw material, finished goods, work in progress, packaging, goods for resale) or days of stock/inventory. Also, obsolete stock should be measured.

Post Mortem

Even though it ended all spectacularly dramatically I actually must admit I enjoyed those nearly 3 years with IMPAC. I cannot even tell how much I learned during that time.

I was able to stand in front of people and "perform" and train them on any subject. One learns to be fully flexible and able to anything in front of people.

I learned that the behavioural part when it comes to change management is even more important than the sheer operational implementation. Implementation of management tools is important, but in the end my client's managers and staff have to use them even after the project. And the role of the consultant is to make sure changes are sustainable and stick.

I learned how to coach and train my clients effectively.

I left the company with a big management consultant "toolkit" and am able to analyse and develop any area or department in any industry.

I learned how to deal with people within a team and be a good team-player.

And most importantly I learned how to "read" people's behaviours and take appropriate action. Some would call it manipulation, well, a minor version maybe. A disaster like the last project would never happen again.

Oh yes, most, most importantly I learned how to deliver results for my clients regardless whether I am technically able or not. Just go for it and "swim"!!!

Training, Training, Training

After I survived that training camp and returned to Europe I also switched from the operations to the training department and kept on doing training till I quit my job with that company 2 1/2 years later. For myself but also within the company guidelines I established a couple of rules. Below a few:

- Training can only be to accompany the implementation of changes and management tools by the operations consultants (remember, I was one when I did that purchasing department),
- Apart from team building events, I like training to be on site and not in some fancy location. Training is all about applying new management tools, and for that one needs to be surrounded by reality,
- Training should be around 2 to 3 hours every 2 weeks or so. In between every training session each participant must get a 1-2-1 coaching session of about an hour,
- Till week 10 of the project at least 3 sessions should have been held in order to ensure the desired behaviour change,
- Training has to be interactive and is not to be mixed up with teaching. Tasks will be given after every workshop and those tasks are the foundation for the personal coaching session.

In those years as trainer I led 200 to 300 workshops, coached around 200 clients in ca 1000 coaching sessions.