Are You Working on the Right Things? Getting the bang for your buck.


Dog-catches-own-tail_1We all chase our tails at some point in our careers.  Some of us more than others.  We are looking for a result that is not even possible to achieve but we are so consumed with the chase that we aren’t even looking beyond the circle in which we are spinning.

I had such a situation when I was managing a production department.  I was tasked by my managers to reduce changeover times on my high-speed bottling lines.  Changeovers accounted for over 8 hours of downtime each week.  When you cyphered how much production that amounted to it became quiet the priority to reduce that number.  It was also the number one cause of downtime on my production lines when Pareto’d with all of the other documented downtime reasons in my department.

As a result of the data, we were putting a lot of time and energy into reducing changeover times.  We were trying alternative crewing, modification of equipment parts, timing of lunches and breaks and alternative scheduling whenever possible.  We did see some modest improvements, but nothing that removed changeovers from the top spot of the downtime list.

During a meeting I was asked by the V.P. what the improvement on the line would be if we were to reduce changeovers.  Through all of the efforts we had made, we had never stopped to ask the simple question of the potential of the improvements.  So, I answered with a political, “I’ll get back to you on that,” and I went to my office to crunch the numbers.

It turned out that we were only capturing 20% of our actual non-productive time (some of that was in reduced performance and minor stops as well as untracked downtime events).  But changeovers were tracked 100% of the time.  Using these numbers along with our scheduled run time over the previous year I learned that changeovers only accounted for 7% of our inefficiencies.  Even if we were able to cut changeovers in half we would only realize a 3.5% gain in efficiency on the line.  My lines were running at an average of 85% efficiency (against an accounting standard, that is a whole other topic) when my budget was 98% efficiency (again, a whole other topic).

All of that effort wasn’t going to get me even close to my goal.  My efforts had to be in other areas and it would take a combination of improvements to get to where I wanted to go.  I immediately changed by tactic and went back to the meeting with a whole new approach on how to improve my production.

Excited about the new opportunity, I began informing the V.P. of my intentions and how they would better our systems.  His reply, “That’s great, but when are you going to get changeovers down?”

The moral of the story is that you need to look at the potential gains before you invest all of the effort.  This can be a hard science application like my example, or building a team, or investing in the development of an individual (you can’t send a duck to eagle school, see here, and here).  Understanding what you can gain will not only give you proper motivation when the gain is significant, it will help you set a plan to put the efforts of you and, more importantly, your team in the right proportions to maximize success and reduce frustration.  In short, as Mr. Stephen Covey stated, “Begin with the End in Mind.”