Month: July 2020

Why this Blog?

Hi, there! My name is Robert, and I’m happy you’re reading my blog!

20 years ago I joined to a global American company IMPAC. Along with colleagues I worked on implementation of KPI (Key Performance Indicator, meaning numeral values of relevant parameters of processes in an organization). In the framework of projects I held trainings, workshops, to users how to define, measure, interpret and control their values.

I had a chance to experience how this method gives results in a meat processing factory in Sweden (where employees spend their 10 min pause resting in arm chairs in a club-room equipped with newspapers, coffee and tea machines) and in a metal foundry factory in Ural (Russia) where operators spent their 10 min pause smoking and drinking while seating on empty cans of oil! To implement measurements were necessary in both companies, and it gave result in Sweden and Russia as well!  

Each company is unique, has his own targets and ways of realization, but they are led by managers, operated by employees and we know: people have their good and bad moments everywhere on the globe! That’s the reason, KPI system functions good as:

  • The relevant parameters of process are found (example: tiles factory – number of produced tiles is relevant, their color not that much)
  • The measurement of KPI is formulated simply and precisely (Simply summarizing of number of tiles is not OK because of different dimension tile. Now we see, that not number, but the produced surface is relevant and we convert number in a surface!)
  • Result are evaluated prompt (not after 2 weeks)
  • Value of figures are used as an entry parameter of corrective actions that are shaping next day production
  • Employees receive feedback based on measured values

In this blog you will found experiences collected working with companies while they improved their productivity figures, and made their processes safer, stabile and employees more engaged.  

What is surprising to me:

  • Managers of well-known companies I met (some of them present on the stock market) all are aware there is room for improvement in their business
  • They decided to use this room mobilizing their inner reserve
  • Gartner-s statistical data says: 80 % of companies already decided to invest in improvement

In this blog I want to share my experiences in this journey, and open possibility to give on-line/on-site support for you, who is taking the same way!

When you read about subject you are interested in, use CONTACT page, write an email or a WhatsApp message (+40 753 057 303) with your question, I respond you with more details of interest!

Please find impression of Managers, I worked with:

“In this period we experienced constant decrease of necessary worked hours for the same production volume, at the end we arrived to more than 25% and in a same time raw material yield showed remarkable increase.”

 – C.C., Production Manager, Wood Processing, B. Mare –

“In conclusion I highly recommend the services of Nopon to those who want to restructure their business and obtain major improvements. Please feel free to contact me…”

 – Marian Cristea, Sales Manager, Au – Hu – Ro Plastic Products, Bucharest – 

   Expecting your questions: Robert Buru

Freedom of KPI

KPI is a measurable value of relevant parameter what shows current status on the road towards target. For example we spend 6,6 People Worked Hour (PWH) to produce one chair => KPI1 = 6,6.

Usually we use a set of KPI-s, to describe a process (we need 0,05m3 wood for the chair =>KPI2 = 0,05; we put 0,15 kg paint on the chair =>KPI3 = 0,15; and so on).

Let’s   review  top  4 ones,  from many of benefits to have KPI’s!

  1. KPI’s gives me a possibility to know: if I continue the same way as I did today, I will arrive to the target or not!

For example: If I planned to spend 0,16 kg paint / chair, as KPI3 = 0,15 => I do O.K., I will make profit.

2. If I make a change in production process, will show me does this change help me to achieve target, or not?

For example: I found a cheaper wood supplier, I received the shipment, and now I spend 0,06m3 wood per chair. Not sure, it is a good business!

3. KPI has their value, and I can compare direct values or calculated values.

a. New KPI2 = 0,06 I spend 1% more wood from new supplier, than earlier.

b. Wood of new supplier is cheaper for 3% /m3. It seems, it’s still profitable for me to buy from the new one!

4. Possibility to compare (bench mark) values.

a. Example: In shift A they spend 6,6 PWH /chair (KPI1=6,6), however in shift B KPI1 = 7,2 (What is happening there?!?)

b. Example: In factory in Arad average value of KPI1 = 6,7; in Sibiu factory KPI1= 6,5. (It seems, factory in Sibiu is better organized!)

Myths about KPI’s:

  1. My business does need KPI’s.

Not true! Each business needs them!

Why: You do not do profit & loss calculation each day, but once (twice) per year. You should know the way how your organization performs will lead to profit, or loss!

2. I know what I’m doing and my people as well. We do not need KPI’s.

Not true!

Why: You know your good intention, and intention of colleagues. You should know the result as well!

3. I do not have time to spend for reviewing KPI’s

Hmm…

The primary task of a manager is to use certain amount of resources to achieve specific target. If you do not measure how much you used, if you don’t know how far is the target…?  

4. My business does not have KPI’s

It has. Every business has.

Can happen, it’s not visible what values should be measured, or the relevant ones it’s hard to measure (Example: customer satisfaction). An experienced Productivity specialist will guide you to establish the right measurement for relevant values of your processes.

Why people avoid to use KPI’s?

  1. Fear from the transparency

What will happen, if John discovers he has better results than Jim, but Jim is the favorite?

People on the workplace should be evaluated based on their work results, not based on sympathy or friendship. Giving appropriate feedback based on measured results will encourage the team to go after performance improvement!

2. Procrastination

As I see KPI1 =7,2 week by week and I know, it should be below 7, in my thoughts I know: I should intervene in process and I do not do, I rather avoid to watch KPI. This strategy certainly leads to loss… In this case better to employ a Productivity Consultant, to found a right solution!

After all … What to do regarding KPI’s?

  1. Have implemented set of KPI’s
  2. Check, do they represent all relevant parameters! (If not sure, ask for an audit. It is better to invest in an audit, than to have a less than optimal KPI’s!)
  3. Learn your organization to evaluate values!
  4. Encourage managers to make adjustment in process to arrive values of KPI’s to desired ones!
  5. Keep process running and enjoy your coffee!

To establish co-operation, click on CONTACT, send a WhatsApp message on +40 753 057 303 or a mail to robertburu@gmail.com !

Working with Romanian Factories – Experience of Last 10 Years

The list of experiences could be long, however applying 80/20 rule (20% of items what I met at 80% of companies) I would focus on two of them:

  1. Observed constant care how to update Physical Work Conditions (PWC)
  2. Production does not meet efficiency targets, and instead of ringing an alarm, this become forgiven and remain ongoing during period of time

A care for improvement of Physical Work Conditions has his reason: the production is organized in remained buildings of died giant companies and the infrastructure should be adjusted to the new needs and 21 century demands. That’s the reason of a constant effort to update work conditions.

Focus on 2: Not meeting the efficiency targets for a longer period could have a reason that managers are not used to handle properly the tool what could change this situation: the FEEDBACK.

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The feedback loop is working very simple:

Current status is compared with desired one, and upon result of comparising is given a kind of intervention.

Feedback loops are running in the background of our lives and they are influencing our bodies and minds. We can tell: they are the invisible forces shaping human behavior. (Source: James Clear)

To construct a feedback loop, we need 3 elements:

  1. Measure
  2. Compare
  3. Adjust

The basic element of giving feedback upon something is the measurement. If I want to give a feedback upon work of individuals, I should found a way to measure it. As the measurement is done automatically and real time (or quickly after action) gives possibility for stronger effect.

To be able to compare, the reference (target) value is needed.

Intervention (adjustment) is the action of manager that closes the loop. They should be made as rapid as possible. ”The best way to change long-term behavior is with short-term feedback.” (Seth Godin)

The very important fact is, that feedbacks are shaping our lives, weather we are aware of them or not.

See the image up, lines 1 and 4: in absence of feedback the initial status is continuing!

To produce the desired changes, adjustment (intervention) from lines 2 and 6 should be applied.

Unfortunately, in absence of conscious management practice, hectic feedback (lines 1, 3, 4, 5) is received from environment (peers, informal, incompetent leaders) what in a best case maintain the initial situation.  

After implementation of proper feedback loops (followed by management trainings), the immediate (and measurable) change happened:

\”In this period we experienced constant decrease of necessary worked hours for the same production volume, at the end we arrived to more than 25% and in a same time raw material yield showed remarkable increase\”

-C.C., Production Manager, Wood Processing, B. Mare-

Contact me at clicking at CONTACT or WhatsApp number +40 753 057 303 or email: robertburu@gmail.com

3 Figures for measuring productivity of on-line work

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Keep level of productivity working on distance

Apperiance of koronavirus generated new conditions in life of companies. Some of them entered in temporary stop, others decereased the volume of production and some companies organised part of their activity to be done from home office.

Keeping in focus group 3, can happen that:

  • The Manager is working from home office
  • The Manager is working either from home, either from company office and is coordinating subordinates who are accomplishing tasks in home office.

This articel proposes a way of control over productivity of employee who is working in home office in absence of phisical proximity. In this case „passing next to & observe” is impossible and asking/providing additional information requires extra time for communication what othervise could be used for task accomplishment.

1-st figure:

List the tasks to be accomplished. (Larger tasks split it in smaller steps (logical units)). Assign a number to each of them (the number become the code). We got number of tasks.

2-nd figure:

To each numbered task assign an amount of time for accomplishment. Summarize the amount of time needed.

3-rd figure:

Calculate the Load as a ratio of Sum of estimated time from 2 and Amount of Time employee is supposed to spend working for company in home office.

Load = (Sum of Estimated Time) / (Amount of Available Time)

Above described 3 Figures System gives the best result if tailor made for a specific company and specific tasks. At tailoring (fine tuning) of 3 figures system, a productivity coach can provide handy on line assistance. For benefits working with a coach:

  1.  Activities in the list has different importance and priority. Applying prooven methods (Eisenhower Matrix) the coach will help you to make right prioritization.
  2. Assigning time necessary for accomplishment is easy, when deal with known, repetative activities, but to correctly assign time to suddenly emerged task seems „mission impossible”. Here again help of Productivity Coach can save you from lot of disagreements.
  3. Construct a Blueprint of To Do List where beside of Three Figures priorities, tasks and due dates are easy to follow.
  4. Proposal for a way and frequency of communication between Manager and Employee (to Follow Up given tasks and assign new ones). You will receive proposal to give a motivating feedback in order to maintain (or increase) motivation level of employee who works far from company office and its conditions.

The writer of article is working for 20 years with similar task at international companies (IKEA, Caterpillar Suppliers, Velux, Friesland and others) who has in common to maintain their productivity and customer satisfaction on high level.

Benefit my expertise in your specific case contacting me at  CONTACT, or WhatsApp number +40 753 057 303 or e-mail address robertburu@gmail.com

To see more info, please visit http://noponlogistics.com/