October 5, 2016 / best practices, continuous improvement, Cost Management, customer satisfaction metrics, Employee Morale, human capital, lean manufacturing, maintaining talent, operations metrics, operator training, productivity, ROI, Safety
Industrial metal-cutting companies know running an efficient and productive operation is imperative to keeping up with and, more importantly, staying ahead of the changing industry and customer demands. However, in industrial metal cutting—as well as any manufacturing process—an operation is only as good as its operators.
This is why operator accountability is so important. As reported in the white paper, The Top Five Operating Challenges for Metal Service Centers, as more metal service centers rely on automated technology, managers need to work closely with machine operators to ensure their knowledge and skill sets align with the company’s technology assets and productivity goals. The objective is to encourage employees to take ownership of their impact on the operation so they not only care about the quality of their work, but also understand the role they play in the company’s overall success. Working closely with employees to create a culture of accountability can help metal service centers achieve the operational excellence they desire.
According to an article from IndustryWeek, accountability can be a powerful manufacturing tool because it is a broad-based effort to define and track an organization’s standards. “Accountability systems serve to prompt and encourage people to keep their promises to each other,” Jon Thorne, senior consultant, Daniel Penn Associations, says in the IW article. “Accountability monitors whether promises are being kept and reminds us to hold up our end of the bargain. When we all keep our promises to each other the result is human reliability. And with human reliability, your organization can accomplish anything.”
While using accountability to improve your metal service center operations is not an exact science, it is systematic. In fact, accountability is a set of systems that overlap and reinforce each other, according to the IW article. The following three systems are just a few ways manufacturers can boost accountability (You can read the full list here):
- Customer satisfaction. Measuring your service to internal customers puts interdepartmental cooperation on an objective basis: You confront issues rather than people. The plant manager’s role is to insist that the organization seek out and satisfy its customer’s needs, but it is the customers and suppliers who decide how to do it.
- Weekly staff meetings. The idea sounds simple, but having a regular and consistent forum where information can flow both ways enables employees to hold management accountable by asking questions and discussing any issues. Two meetings per week are recommended.
- Action item lists. Many times, regular staff meetings result in new policies and processes, or changes to those that are existing. Keeping an action list or planner helps prioritize activities, highlights important information, and enables employees to hold each other accountable for keeping the agreements they’ve made.
Another simple strategy is to regularly share performance reports with employees by either posting them or discussing them in staff meetings. As stated in the white paper, Accounting for Operator Inefficiencies in the Metals 2.0 Environment, sharing report results encourages accountability, provides motivation, and reminds operators that they are a critical aspect of the company’s success. This approach falls in line with the culture of lean production environments, and research has shown it positively affects employee morale.
How does this help optimize operations? Although employee investments are often hard to quantify, the following two manufacturers have seen measurable results after implementing accountability practices:
- As reported here, a maker of bulked continuous filament carpet yarn recently realized an estimated $27 million in savings a full year ahead of schedule by focusing on accountability. According to the article, an eight-person team used a Six Sigma process to improve operator, equipment and product accountability by defining metrics, creating and following processes, tracking data and making improvements based on their findings.
- Ocean Spray, the largely known beverage and cranberry food product company, also saw huge improvements at its manufacturing facility in Kenosha, WI. The plant, which was nicknamed “Broken Down Kenosha,” was transformed into what the company’s executives now call “New and Improved Kenosha” due largely to its focus on company culture and workforce accountability. As reported by Training magazine, the tactic didn’t come without some financial investment, but the company said the cost far outweighed the outcome, which resulted in safety, cost, and material use improvements.
Running an efficient operation is essential to every metal service center, but far too many managers fail to understand the role their operators play in their optimization efforts. By implementing a few processes that hold operators accountable for their actions, managers can create a culture in which employees care about their jobs and, even more so, the long-term success of the company.
What accountability practices have you implemented at your metal service center?