Tuesday, April 15, 2008

Expected vs. Actual

Phoenix has been working hard to integrate the concept of expected versus actual thinking in production. Following a basic LEAN concept, we are establishing an objective standard based on prior performance in a given area. We measure our actual performance against that standard. Both expected and actual performance are recorded on an MDI board or document. Some measurements are taken during the shift, while others measure the entire shift.

As the actual data is posted with the expected data, abnormalities are discovered. These abnormalities are discussed in the Tier 2 meeting by the Leads and Supervisor of the team, and with frontline associates in the next Tier 1 meeting. These abnormalities can be either favorable or unfavorable. Efforts are made to understand and replicate the favorable abnormalities, while unfavorable results receive countermeasures as soon as possible to get back on track.

Areas where Phoenix is applying this principle include Bin Production, Bulk Production, Truck Loading, Item Profiling, and Delivery Performance. Improvements have been noted in each of these areas.

Expected versus Actual performance measurement doesn't accomplish the desired result by itself. It must be combined with Tier Meetings, Leader Standard Work, and use of an Action Item Board to apply countermeasures quickly. When those elements are used together, the results can be very powerful!