Self-Managed Work Teams --
Reality or Fad?
A number of companies are demonstrating that work teams
work, and produce major benefits. But management has to provide long-term
support and leadership to achieve success.
by Ray Kulwiec
Flexible Steel Lacing Company, Downers Grove, Illinois, has
been making fasteners for conveyor belts, as well as conveyor-belt fastener
application tools, for many years. But the way it has conducted manufacturing
has changed dramatically in recent years. Today, the company's manufacturing is
based on a product-focused work-cell concept instead of a functional department
scheme. And operators assigned to each cell work in self-managed teams.
Operations include metal stamping, cold heading, heat treating, machining and
assembly.
Although mentored by a manager/coach, the teams are
accountable for their performance measurements, which are reviewed quarterly by
the plant manufacturing manager. There are no area managers, supervisors or
foremen in between. Significant benefits have resulted in order fulfillment
cycle time (reduced 30 percent), and plant productivity as measured by sales
dollar per employee (12 percent in the last three years). The team concept here
has been applied to all areas of the enterprise, not just work-cell production.
It includes teams for purchasing, shipping, facilities and office.
Work teams have been around for a while. Unfortunately they
have not always worked. As a result, the concept has sometimes been thrown into
the category of "another management fad." In fact, work teams can be
extremely successful and beneficial. But they have to be nurtured, and provided
leadership from top management. They also require open access to company
information.
The essence of a work team is empowerment. Individual team
members assume responsibility and make all decisions regarding workplace
operations (as opposed to just making "employee suggestions"). They
rotate in different roles on the team. Workers buy into the process, use
"brain power," and enjoy improved morale. Increased productivity and
quality, and continuous improvement, are the result. The benefits of opening up
the power of the "thinking worker" and flattening the organization
chart can be enormous. Figures 1 and 2 contrast the bureaucratic hierarchic
layers of the traditional organization chart with the simplified one of the
team-based organization.
How can it work?
Individuals operating within classical organization
structures are used to 1) decision-making from the top down, 2) information
systems designed to support top management, 3) departments based on functions,
4) planning, control, and improvement functions separated from operations, and
5) specialization of work.
From this viewpoint, the question, "How can it
work?" is valid. Self-managed work teams truly represent a major paradigm
shift. A good deal of time and effort must be invested to achieve the cultural
change necessary for overcoming built-in barriers and putting work teams to
work.
Given that a team, rather than an individual, is necessary
to get the job done, one obvious question is how large the team should be. At
Flexible Steel Lacing, the number varies from five to 20, depending on the work
mission, and averages around 10 to 12. According to manufacturing manager Bob
Hafey, each team goes through four phases in its development as an autonomous,
decision-making, working team.
"In each phase there is education, which is classroom
training during company hours," says Hafey. "When ready, the team
applies for phase certification, after which its performance is audited. After
the final phase the team is certified to operate on its own, with a coach
available as needed," he adds. A monetary reward is provided upon
certification in each of the four phases.
The manager coach, who in some cases was a supervisor under
the old structure, mentors the group during its development. Typically the
coach works with several teams at once in this way, according to Hafey.
Material handling, team style
Material and tools are brought to work-cell locations from
receiving by lift truck operators, who are members of the receiving team at
Flexible Steel Lacing. The work-cell team manages its own point-of-use
inventory. Typically, the work cells produce to stock, with completed product
moving from the production floor to a finished-goods storage area. From here,
another work group, the shipping team, takes over.
Shipping team members pick items from storage to fill orders
for distributor customers. As its name implies, this team also performs the
packaging and shipping activities. Measurements of shipping-team performance
include order accuracy and customer service (on-time delivery). In this way, a
link is provided between employees and the customer, an important facet of customer
service for the ISO 9001-certified company.
The shipping team was actually the pilot group for the
entire team program. Because of this team's close visibility to customers, the
coach and mentor was the then chief operating officer, Jerry Paulson, who now
serves as company CEO. During the team development phase, the COO actually
moved his operation down from the corporate office to the shipping area. As a
general rule, self-managed teams tend to have closer visibility to senior
management because of the reduction of management layers across the
organization.
Self management = self measurement
Working with the manufacturing manager and coach, each team
at Flexible Steel Lacing sets target performance goals for the year, and tracks
progress toward the goals. The areas tracked for improvement include:
• Safety;
• Quality;
• Cooperation;
• Productivity;
• Delivery;
• Continuous improvement.
Progress and performance are reported in quarterly meetings
with the manufacturing manager. Although team performance is an important
criterion, each individual likewise is responsible for his/her own performance.
Information makes it work
A key to successful teams is consistent availability of
accurate information. For self-management to work, decision-making on the part
of team members must be based on good information. An example can be provided
by Kraft Foods Inc., a subsidiary of Philip Morris Companies Inc. Kraft
operates 62 plants in the U.S., Canada and Mexico. Operators at many of the
company's plants work within self-directed teams.
Order information and production instructions are downloaded
from the enterprise level -- through a manufacturing execution system (MES) --
to the plant floor, directly to an operator running a production line. It is
important that the company be connected throughout, from top to bottom, with a
common, uniform database, and that all units operate with a single set of
user-friendly, information and work-practice systems.
To make it happen, Kraft is not only completing its
information connectivity infrastructure, but is also providing the capability
for measuring the integrity of the information used. Validity of data is tested
and measured by employees at geographic-area, plant, and sub-plant levels.
Trends in accuracy performance are monitored regularly, as part of a continuous
improvement program.
Still an individual matter
As indicated earlier, teams are typically measured against
agreed-upon goals, and team incentives frequently provided when goals are met.
But teams are made up of individuals, and individual performances add up to the
performance of a team as a whole. Therefore, individual performance goals are
usually also necessary. What happens when an individual is not pulling his/her
weight, and bringing down the performance of the entire team?
Obviously individual sub-par performance is a concern of the
entire team, particularly when performance is tied to incentives. For a
self-managed team, the group tries to help the individual raise performance to
acceptable levels. If adequate progress is not made, the manager coach or
supervisor is brought in to help effect a solution. If various improvement
efforts fail, the individual may have to leave the team, and, in some cases,
the company. Some self-managed groups also have the responsibility of
interviewing and hiring new or replacement team members.
From plant floor to executive suite
Despite some rocky experiences, the team concept is catching
on in a number of companies, and is even being extended to include the CEO and
senior executives. While improved productivity is one of the major reasons
cited for establishing various work teams across an enterprise, there is
evidence of a direct relationship between profitability and a cohesive
top-level team.
According to John W. Hunt, writing in the Financial Times (1/5/01), the challenges for achieving successful
top teams include:
1) Keeping the team size within workable limits (about six);
2) Assessing the proper skill mix needed on the team;
3) Recognizing that consensus, while desirable, is not the
ideal for all situations;
4) Devising different kinds of meetings and meeting
frequencies to achieve different short-term and long-term objectives;
5) Providing an open forum for all to express their views,
not just the CEO.
In an era when partnering and collaboration are becoming
business models for supply-chain success, the idea of work teams within an
enterprise is gaining greater validity than ever before. The resulting benefits
make excellent business sense, so long as managements realize that the team
concept won't produce results overnight -- it requires a long-term commitment.
About the author
Ray Kulwiec is a communications consultant and writer
specializing in material handling and manufacturing topics. Based in Arlington
Heights, Illinois, he has covered the field of material handling for many years
as an editor and has served on the Board of Directors of the Materials Handling
& Management Society. Kulwiec has also been a member of the College
Industry Council on Material Handling Education. Currently he is on the board
of trustees for the Material Handling Institute. He may be reached at
Rkulwiec@aol.com.
