Return On Investment (ROI) Metrics

How do you measure the effectiveness of your TWI implementation? How can you sell this to the management team? What should you expect on each TWI module?

Absenteeism and Employee Turnover:
Job Relations (JR) helps the supervisor or team leader develop a professional, positive relationship with those that report to them. The program will assist the supervisor in making better decisions that will make better relationships. The most effective metric for JR is employee absenteeism. An employee who feels valued and is respected for their individual knowledge and contributions tends to want to be at work. As Job Relations training takes hold, the company should also see a reduction in unscheduled absenteeism. This should then be able to be measured. An additional measure would be employee turnover. Both of these metrics indirectly affect the productivity and capacity metrics which most organizations track.

Training Time, Rework, Operator Error (PPM):
Job Instruction has a high impact on standard work and training time. Implementation of this program will drive several metrics including time to proficiency, and increased quality. The additional benefit of minimizing rework is accomplished by having the currently best known process utilized by all operators. Commonly the root causes for many quality issues are defined as operator errors. Training to a defined standard will allow the company to drill beyond the typical problem and address process short comings to further reduce ppm defects and simultaneously reduce rework. Sustainability is the result of making the best currently known method the standard and training all operators in the same way. An indirect benefit will be seen on the productivity and capacity metrics.

Productivity, Cost, Quality:
Job Methods impacts the most traditional metrics. However, if you have not established a groundwork with Job Relations and Job Instructions, the gains may not be long term or consistent. Job Methods trains workers to evaluate every detail and eliminate those that have no purpose, combine and rearrange those that are still required, and simplify those that add value. As a net result, the dramatic impact on productivity can be significant. Elimination of 10-20% of detailed steps is typical on a first pass, with more reductions to follow due to simplifying the remaining processes. The impact the increased productivity has on cost is amplified when processing materials are also eliminated. The final benefit, improved quality, will easily be demonstrated in the reduction of ppm defects.