Introducing self-managing teams in production
The new management team came to the BPO Beratergruppe with the following requests:
- to introduce process thinking in production
- to develop a business strategy
- to develop staff and structures in each individual department
- to introduce self-managed teamwork in multiple production areas
- to train management to ensure they had the appropriate qualifications
Other consulting groups had been given parallel assignments in restructuring, production process optimisation, and KPIs and management systems.
The Starting Point
The company was facing the following situation:
- increasing pressure on profitability in the production process
- fundamental changes had been carried out by new management after a change in ownership
- a modernised leadership and cooperative culture
- rigid structures and processes, silo mentality
- need for systematic internal and external customer focus
- rapid increase in the rate of change, complexity and flexibility required across the entire sector
- increasing competition and sinking prices
- restructuring and increases in efficiency necessary
- an outdated production process and philosophy, rigid processes, highly qualified employees but with low procedural and self-management abilities
Introducing Self-managing Team Work
The following goals were defined:
- profitable production
- flexible and safe processes
- a clear focus on quality and customers
- a modern management philosophy including individual accountability, leadership at every level, management tools such as appraisal interviews, MbO, regular and efficient communication, process optimisation, performance feedback
- a production process that can be shown to customers
- the highest level of safety, organisation and cleanliness in the production process - a radical reduction in guarantee costs and goodwill expenses
- a reduction in unit labour costs without reducing the number of jobs and with appropriate training measures
- a consistent project cycle including sales, development, purchasing, production and shipping - all of which must be integrated into controlling
The Approach
The approach of the BPO Beratergruppe consisted of separate steps at multiple levels:
- create a concept phase in which in-house experts were involved
- apply the principle that “if you are affected, you should be involved” rigorously at all levels
- introduce simpler and more comprehensible performance ratios
- cooperate and coordinate closely with other consultants to optimise the production process
- carry out intensive training sessions for the entire production group on self-managed teamwork, cooperation, conflict and collaboration with process partners, and team leader training
- design a concept for intensive technical training
- arrange visits to competitors (who are often also subcontractors) and other companies to establish benchmarks: “think outside the box”
Strategic Leadership
- introduce strategy-oriented leadership by means of regular tests and training sessions for managers and executives
- systemic use of management tools: MbOs, appraisal interviews, feedback for executives, regular and efficient communication, on-the-job coaching
- organise and run workshops with process partners
- carry out systematic training or hire new people for key posts
The Result
- within 12 months production costs were reduced by about 20% after the pilot phase was initiated
- safety, organisation and cleanliness were visibly and measurably improved
- sickness and injury-related leave times were significantly reduced
- new and growing trust among clients and increased orders from regular customers
- new and growing employee pride as motivation increased
- a greater willingness to take risks, a culture of trust and personal involvement - increased interdivisional cooperation
- new cooperative relations to competitors and sub-contractors
- spirit of cooperation between engineering and production departments to achieve goals
- engineering was restructured to be matrix- and project-oriented while increasing product throughput and shortening project timelines
- high-tech engineering was implemented for subcontractors as an independent, future-oriented service
- separate production areas in the group were successfully established as independent businesses