Piece by Piece: Performance Reviews Amid the Changing Nature of Manufacturing
The recent economic recession and the always-competitive pressures in global manufacturing continue to push companies to pay closer attention to the evolving nature of performance and the practices and benchmarks they use to assess and measure performance.
This isn’t a simple case of implementing a standard performance review, though. Manufacturing, by its very nature, has specific challenges and considerations when going through the performance review process.
· Smarter manufacturing systems create a more sophisticated workforce. While an organization previously rated a riveter or machinist based on their speed and technical ability, they now rate on the ability to run complex machinery and anticipate problems.
· Lean manufacturing processes have changed priorities in many manufacturing organizations. Working on problems happens in offices, not on shop floors, and being consistent and on budget is essential.
· The changing competencies of the modern manufacturing employee mean that performance is now a moving target for managers to approach with care and consideration.
In a meta-analysis of studies on manufacturing performance measures, the authors found that modern performance management in manufacturing takes into account factors such as meeting the needs specific to manufacturing and making sure goals are simple to understand while focusing on long-term results, as well as accurately articulating business strategy and results.
How can manufacturing organizations accomplish this in their own business?
Incorporate change into the performance evaluation process. With changes in manufacturing processes, new technologies being introduced, and the global nature of the industry, the ability for employees to evolve is as important as ever. The ability to change and learn should be something that every manufacturing organization is measuring and setting goals around.
Align manufacturing goals with individual performance. With lean protocols in place, every person who touches the manufacturing process is important to the success of the entire operation. Employees’ performance should be in tight alignment with the entire manufacturing process, factoring in individual contributions and their impact on the system.
Measure what is necessary rather than what is easy. In a manufacturing environment, what is important to the organization may not always be what is easiest to measure. While speed and quality of work may seem most important, factors like teamwork and flexibility in tasks may actually be more important and impactful to the bottom line.
While manufacturing may be shifting and changing, effective performance management should be able to meet these challenges head on. Following these best practices can help managers focus their efforts to meet the specific issues manufacturing organizations face on a daily basis.