The Performance "U"

What is the Performance “U” and how can this model help companies implement agile collaboration in classic matrix organizations with the help of Shopfloor Management?

This basic and important question is answered in this blog article.

Das Performance „U“

The Performance “U” is a model developed by Dr. Andreas Romberg for the optimal networking of the line hierarchy and project hierarchy in a common communication cascade. The Performance U connects process and line view and thus enables cross-functional collaboration.

Cascading Communication – Projects/Processes

In the left side of the communication cascade, the project/process cascade is organized. At the top level, multi-project management visualizes all of the company’s projects on a process board and controls them together with the management team in a weekly regular communication of about 30 minutes. Deviations from the project progress are corrected with measures.

Work packages are derived for each project, which are processed on the task boards of the respective specialist teams in the line hierarchy.

Cascading Communication – Line hierarchy/Teams

The line hierarchy with its specialist teams is organized in the right-hand side of the communication cascade. The line hierarchy with its specialist teams is the service provider for the left-hand side of the communication cascade in which the project/process cascade is organized. Disciplinary management and clarification of capacity issues takes place in the specialist teams.

The project sets the priority

Since the projects in the project/process cascade always represent customer needs, the requirements from the project/process cascade have priority over the needs of the line hierarchy with its specialist teams.

Teams

The corresponding specialist teams work through the work packages in their team according to the available capacities. The task of the management in the line hierarchy is to work through the work packages resulting from the project cascade with the team and to deliver them. The managers control the capacities of the team members, solve problems and also counteract any deviations with measures. The specialist teams control themselves via team boards on which all work packages are visualized accordingly.

Single Point of Tasks

An essential of the performance “U” is the clear assignment of a task to a team. The goal is that no duplicates are allowed in the processing of the task packages. This is 100% possible with the digital solution of ValueStreamer. If analog boards are in use, a corresponding coordination and agreement among each other is required.

Planning on 80% Capacity

The queuing theory states that the throughput time in processes decreases disproportionately at 80% of their utilization. Therefore, it is crucial to know the true capacity of resources and on the other hand to utilize the resources only to 80%.

This is a challenge especially in matrix organizations, as employees experience multiple subordination towards line managers or project managers and are often overbooked. This in turn leads to disruptions in the process, because employees usually cannot keep their commitments.

The performance “U” combines process and line view and thus enables cross-functional collaboration

By networking the project/process cascade with the line/expert team cascade in the cascade of rule communication that runs through the entire company, it is possible to achieve optimal cross-functional collaboration.

In addition to multi-project management based on KPI-driven performance measurement, capacities are jointly controlled and optimally utilized within the framework of rolling planning in the specialist teams. Any disruptions in the flow of work are systematically eliminated through structured problem solving so that optimal flow can be achieved.

Core concept: Shopfloor Management

Shopfloor management is a key concept in lean management and also the basis for developing a functional communication cascade based on Performance U.

Shopfloor management comprises two core concepts. The visualization of information on team or process boards on the one hand and the execution of daily short-cycle rule communications of about 15 minutes on the other hand.

The rule communications that take place are carried out in a networked manner as part of a communication cascade and are based on each other.

SFM focuses on operational control and deviation management of expected standards on the “gemba” – the place where tasks are performed. Effective Shopfloor Management means great leadership and great processes at the same time.

Shopfloor management is the methodology. A digital store floor management software solution is a tool that supports the SFM methodology.

An alternative to the agile organization

By establishing a performance “U” as part of a store floor management cascade with simultaneous further development of the collaboration model in the direction of agile collaboration, it is possible to achieve a highly efficient organizational structure and process organization even within the framework of a classic matrix organization.

For companies that shy away from the path to the agile organization, in which the entire management and organizational model is adapted, the application of Performance U in the context of a store floor management cascade with simultaneous further development of the collaboration model in the direction of agile collaboration is a real alternative to the agile organization.

Results

By applying this method, we regularly achieve on-time delivery values of +90% with an increase in throughput of 40-50% and corresponding productivity increases.

In the following figures you will find the results of a Bench Mark project in the automotive sector.

Valuestreamer Software

ValueStreamer software is a fantastic solution based entirely on the store floor management methodology.

Developed by Dr Andreas Romberg and his team, ValueStreamer GmbH is a great product developed by a great team.

Especially the link between dSFM in the line and dSFM in the project world is particularly well represented in the ValueStreamer. In addition, ValueStreamer includes the necessary tools and processes for deviation management and problem solving processes, just as one would expect on an analog SFM board.

Premium Delivery Partner

We are proud to have been selected as Premium Delivery Partner for ValueStreamer.

We support our customers in the implementation of this software as a service solution (SaaS) by introducing the methodology, setting up the team and process boards and by accompanying the teams in the context of dSFM coaching.

With ValueStreamer we are able to offer a great tool to implement a great methodology.