Situation / Scenario –
Hourly employees at a Midwest company were not rewarded for long-term facility success and were, therefore, mostly unwilling to participate in projects that would contribute towards improved facility metrics. The plant suffered from a poor safety record, periods of inadequate quality and productivity well below industry benchmarked standards.
Opportunities / Problems Identified –
The facility was well-capitalized and, despite spates of poor quality, was relatively well-respected in the marketplace. However, the facility lacked an overall vision of what success looked like and had no means to reward hourly employees for their buy-in and participation in efforts to improve plant performance. It was also apparent that front-line supervisors were poorly trained to lead their production crews. Most supervisors had proved themselves successful as machine operators when they were promoted to crew leadership roles but lacked the skill sets to lead change and drive excellence among their crews.
Action Development –
The plant leadership team focused on change management and the steps necessary to develop widespread buy-in from all employees. Over the course of two weeks, a concise plan was laid out to begin driving the facility towards true excellence. Specifics included:
- A business Vision Statement was brainstormed, written and published.
- Crew meetings were held to share the Vision Statement with all employees.
- Key metrics were introduced; each employee met with management to discuss how their specific role and responsibilities contributed towards the key metrics.
- A gainshare program was introduced to all employees that would financially reward everyone in the plant for driving and achieving gains in safety, quality and productivity.
- Supervisors were trained in the metrics and other leadership skills needed to lead their crews in change and, more importantly, drive employees to push for and expect significant improvement.
- Monthly plant-wide meetings were conducted for all employees to share progress towards business goals and the results from the previous month. Gainshare payouts were also estimated and discussed monthly with all employees.
Results Generated –
2 ½ years after the project was initiated, the facility won a prestigious safety award for continuous safe manhours. The facility won “supplier of the year” awards from two of their largest customers. The gainshare program which was self-funded, paid out 5% of 10% maximum the first year. The next two years, the plant employees earned 8% and 9% respectively.
Bottom Line –
Plant turnover went to almost zero. Employees recognized and relished in the praises that were heaped on the facility. Sales grew by 5% each of the next three years and the profitability grew accordingly. Employees were no longer being needlessly injured and the facility claimed its rightful position as the flagship facility within the organization.