Rickard Air Diffusion – a leading, award-winning producer of Variable Geometry VAV equipment and controls internationally with over 150 employees – needed a performance management system, which would engage the shopfloor level employees in daily meetings to coordinate the operations of the business; facilitating the visual display of performance; and providing focus, direction and alignment of all levels of employees’ goals to the goals of the business. Thus they approached Productivity SA’s Workplace Challenge Programme for assistance.
Firstly, staff were provided with an orientation programme, regarding the nature of the change management system. This was followed by the implementation of the Goal Alignment principles and the formalising of Mini-Business Units and a Meetings structure.
Finalising the goal alignment exercise, the company strategy was cascaded from the High Level Monthly Dashboard down to the MBUs in the form of quality measures (rework and scrap); cost of poor quality measures (cost of rework and scrap); delivery measures (lead times / units produced / production efficiency); safety measures (accident free days / incidents / health); and morale measures (Attendance and Innovations).
• The factory’s WPC Programme audit score has grown steadily to 80%.
• Labour efficiency has improved.
• The company’s problem solving ability (people measure) has improved. substantially, as can be seen through enhanced cooperation between diverse departments, such as Powder Coating, Engineering and Sales.
• Communication has improved throughout the business.
• Scrap rates have been reduced substantially.
• Labour costs have decreased, enhancing the company’s competitiveness.
• Material costs have decreased.