Small Engineering and Repair Company
This company with about 100 employees (though growing fast) involves all employees in a bonus system tied to profitability and has grown from under $1 million to over $5 million annual revenues in the last 4 years. In August 1998, Ensemble Management Consulting was asked to assess the tracking and reporting of information on the shop floor. EMC found that although work was adequately tracked, goal setting was weak, especially at the individual performer level. Individuals were given a task at the beginning of a shift. When that task was finished, most needed to find a team leader to determine what to do next. Everyone was pretty good about staying busy, but nobody was sure what needed to be completed today to stay on schedule. As a result, there was often a mad rush at the end of the week and end of the month and On-Time delivery performance was hovering at about 60%.
Based on EMC’s assessment and proposal, the management team agreed to add short interval goal setting discussions to the daily goal setting routine. Each performer now knew what they needed to complete by the end of the day to stay on schedule. They were also given simple paper tracking sheets to keep track of the jobs they finished throughout the day and the week. The performers were asked to track their own accomplishments and team leaders were asked to check in periodically and praise performers for staying on their daily goals. The client chose not to implement some other aspects of the proposal.
The graph below shows the companies On-Time Delivery performance for the 3 months prior to the intervention and the 3 months afterwards. Average weekly On-Time Delivery improved from 58% to 79%.