Are the Squirrels Getting In the Way of Reliability in Your Facility? The Movie Series

No today's post is not about fuzzy little animals chewing through your control wiring or completing the circuit to ground in your switch gear although many may have noted these as root causes for reliability issues in the past. Today is about an even a bigger root cause of under-performance in manufacturing today. Squirrel! or as I am calling it corporate distraction. Dug and the rest of the dogs in in the Disney Pixar movie Up suffered from this problem. Lets take a look at a promo clip if you haven't already.

Dug and his compadres, they have trouble staying focused on the task at hand and we can hear that because of the verbalizer around their necks. You see the verbalizer allows us to hear their thoughts. What if you could hear all the thoughts flying around your facility. What distractions might we hear? Is the organization focused on a goal or does it seem to chase after every squirrel that comes along.
Manager that are just making a quick stop as they climb the ladder can be especially affected with corporate distraction. When they hear of an initiative that someone in the organization fancies then they want to do it to impress that person. Just as they get started they find out about another one and in their haste to be promoted they go after that one as well. In a nut shell they over commit and under deliver. I have seen this over and over. It becomes a lot like chasing squirrels, on the way to one you see another one that you just have to go after.
I have also seen managers who live for real bottom line results and long term plant performance. They do not let the squirrels get them off track. They take the time to have a leadership planning session regularly where they look at all of the initiatives that are here or on the horizon for the plant as a whole. They look at the value and return for each and how multiple initiatives might fit together to enable the organization to get to the current vision and the goals that have been set. Sometimes they need to change the goals and adjust the mission to match changing business needs that have arisen but when this happens it is communicated well to the organization. Either way they look at the resources that exist for the plant and the funds available to support improvement initiatives prior to committing the plant to them. The next thing they do is start a high level plant master plan that shows not just what, but how and when they are going to execute the initiatives chosen for the site. They also have gates or systems in place to prevent the new squirrels from distracted them from their current focus as they begin execution.
What do you do in your site to keep the squirrels at bay and the focus on results in the forefront?

Saying the Same Thing Differently: A Tip for Change Initiatives

As you start any large change initiative one of the first things you do is form a guiding coalition, a leadership team. That group will champion the change. One of the first things that group is then tasked with is to create a vision and mission for the change initiative. Where do we want to go? How will we get there? This vision and mission is then ratified by the group and should then be communicated to the larger organization. This is where some organizations run into their first major issue. They create the vision without a full understanding by each of the involved parties as to what details the vision conveys. Human resources only hears the part that affects them and misses the operational component or maintenance only hears the changes in their function and ignores the quality aspects. Then the leadership group begins the communication process to the masses and the message is both delivered and received differently by various parts of the organization. An organizational mess can then be created one word at a time.
The suggestion is to take time to practice, as a leadership team, conveying the message to each other. It is expected that everybody will delver the message slightly different using their stories, filters, and life experiences to add the context to the vision. However, in the end the message received by the organization needs to be the same regardless of the communicator or the communication style. This is harder than it sounds and may even require teaming up of leaders from different parts of the organization to ensure consistent messaging reaches the affected associates. If we do not get this step correct the organizational components can go down different paths that may in the end lead to to different locations and inadequate initiative results.
Have fun with this step use role play, single point lessons, and scripting within the leadership team to refine the message and delivery. Work together where needed to generate a cohesive message. In the end this will provide the team with a practiced method to say the same thing differently with in the comforts of their preferred styles and should remove one more barrier from your initiative's success.

What things do you do to refine your communications and messaging around change initiatives?

Is Your Production Line a Race Car or a Minivan? Process Thinking for Maximum Output

So during a recent conversation with Duane Siemen, a reliability engineering manager and classic "tweaker", we were discussing process improvement. Duane was sharing some of the work that he had done in the past to improve system reliability and throughput by focusing on the controls, communication, and tweaking how each machine in the system interacts with the system as a whole. I could not help but to compare the work that he did to the work of some of the great car tuners like Hennessy, Stillen, Roush, and Lingenfelter. When you think about cars or process equipment a few things are true for both. When you buy a stock car or a production line it is tuned to be conservative and somewhat mediocre. The car is not tweaked for the way you drive or where you drive from an environmental stand point and it is always "value engineered" to control production cost. It is set up to more or less work everywhere but excel nowhere. This means that without tuning and an understanding of operating context you leave a lot of performance on the table. Your production line is ordered with equipment from different manufactures that may or may not be set up to communicate with each other and may or may not like to run at the system rate. Many of the elements of the system may have been just dropped into the line without any concern for the up and down stream equipment in the system. Designers some time work under the philosophy of "will it work"not "will it work best." Did that designer know all the specifics of your widget packaging process or did they just create a packaging line?
So what if you wanted to tune your production line like Hennessy tunes a Viper.
The first step would be to understand operating context. A drag car is completely different from a track car.

• What are you using the line to do?

Second, learn all the equipment in the line. Without a full understanding of the dynamics and capability of the components then you can not begin to tweak. Roush would never take a car they had never studied and start changing ECU settings. They take the time to understand the parts before they tune the whole.

• What is the full capability of the equipment and parts in the production line?

Third, we focus on getting the system unified through communication. We want each piece of equipment in the line to have solid communication with the others so that each can tell the other parts what is needed to push performance. Some parts of the line may actually slow down to improve quality and this in turn will increase overall output but only if they can communicate their need to us or the system. In racing they say, "you have to slow down to go fast" that is what we want to be able to do with the equipment.

•  Are the parts talking reliably with the whole? Are they using that information to improve system output?

 Forth, we begin to problem solve and truly tune. We change a parameter and ensure we get the response we predicted. Does it effect the whole positively. We then use root cause to understand when it does not.

• Do the changes give the results we expected?

Lastly, we focus on sustaining the changes. As you tune and increase performance tolerances get tighter. Precision become more important. Operating context needs to be stable or at least understood. Because of these factors you may need more built in checks and possibly more preventive task to keep the equipment in spec and operating at peak performance. You may have to go so far as to build a daily management plan to maintain the levels you expect to produce the performance you want. 

So in the end you need to understand your conditions, capability and components to get from  minivan performance to race day ready production.

Facts and Statistics on Growth, Skills, Reliability, and Manufacturing

Today's blog post includes many facts and statistics that I have collected while preparing to present at the American Fuel and Petrochemical Manufactures Reliability Conference this week. This is the group formally known as NPRA and if you are going to be their look me up. These tidbits are from various recent magazine articles and studies and will help you communicate the need for both education and retention of talent in your facility.

According the Group Outlook Survey and and an article in Plant Engineering mid size manufactures are seeing the following:

• 68% of respondents expect revenue to increase in 2013
• 87% of companies expect capital expenditures to grow or remain constant and 39% expect to spend more than 2012
• 43% plan to hire more employees in 2013 versus 24% in 2010 with 52% maintaining current employment levels this is up from the last few year
• 68% expect increased sales in 2013 over strong sales in 2012
• 61% are attributing this to new products for 2013
•  70% have increased material and services purchases from American suppliers with Mexico following second as an effect of near-shoring 

What does all this mean? Manufacturing is growing. They are hiring. They are buying new equipment. They are buying more raw materials here in the US. That effects most of us.
Questions: Are they building reliability into the new assets? Are these new hires ready to operate and maintain equipment at a level that can facilitate the increased output that is required? With this growth in the market and the 401k investment value now returning to per-recession levels will we see baby-boomers retire in mass?

According to a 2011 ARC Advisory Group report:

• The average impact of unplanned downtime in process industries is $20 billion or 5% of production
• With every 10 workers retiring only 5 will take their place

 What does this tell us? We will continue to have to do the same or more with less people so automation will grow and efficiency through skills and application will be more important.
Questions: Do we have the skills? Are we spending on training to create the skills to operate, maintain and troubleshoot automation and increasing equipment complexity?

According to Fractional Research Inc. a company that does distillation research for chemical and engineering companies:

• An estimated 10,000 workers a day are leaving the work force for the next 20 years
• That's 400,000 years of experience leaving each day

What does this tell us? We can't wait. The time is now. We have to collect the historical knowledge via our Maintenance Planners through the job plan library, Reliability Engineers through FMEAs and through our Process Engineers by incorporating existing knowledge into our automation system logic.
Questions: Are you collecting experience?

According to a 2012 report by the Construction Labor Market Analyzer (CLMA):

• Demand in the south eastern U.S. for skilled workers is expected to average 2.3 million during the 2012 to 2017 time period
• That is 3.4 million skilled crafts needed in North and South Carolina alone through January 2016
• Prior to 2008 it was estimated that 20 percent of current work force would retire. This was slowed by the recession but now it is happening during the recovery further hampering supply of skilled trades when we need them most.

These skilled trade represent a drain of trades from manufacturing and capital improvement and shows a systemic issue with the trades in general.
Questions? What are you doing to retain and up-skill your trades?  Will you have what you need to meet the sales growth and increased volume we mentioned above?

Chemical Processing's Annual Salary Survey of Engineers shared the following tidbits:

• The average raise is 4.27% which is up from 4.15% last year
• Bonuses also increased from $6,318 to $6,483 this year
• 39% mentioned lack of recognition as the main driver for job discontent.
• 68% mentioned challenge and stimulation of the job as one of their top satisfaction drivers
• 58% mentioned Salary and Benefits as one of their top satisfaction drivers

ChemicalProcessing.com recently ask their readers "How will the retirement of 'baby boomers' affect your site over the next 5 years?"

• 46% of respondents expect a significant impact and 37% expect to be effected somewhat. 

What does this mean to us?
With companies offering a 10% increase in compensation over the current level as a new hire, engineers are entertaining offers of employment elsewhere. Others are retiring. You could be loosing talent and experience.
Questions:
What are you doing to retain your engineering talent? Are you providing recognition? Are you increasing wages to match the industry?

The "Perfect Storm?"
With the need for skilled trades and skilled engineers in manufacturing increasing due to demand driven by economic recovery and capital expansion battling with the departure of the "baby boomers" of both disciplines with the return of the value of the 401K retirement plans, we could be set for a "Perfect Storm." That storm is a skills shortage not a people shortage. To compound the situation many companies underspent on maintenance during the recession creating assets that are unreliable and running with the defects of not being properly cared for. Now we are asking those same assets to produce more and run harder and those induced defects are coming to light. Do you have the skills to fix them?
What are you doing to keep the skilled, collect their knowledge, and equip the future employees for your success?
Will the loss of skills and knowledge take with it your reliability and in turn your ability to meet market demand?