Quality Progress - December 2016 - 47


TRAINING

Financial acumen allows employees to
participate in process improvement and
cost-cutting efforts they can directly affect.
ganization while changing departmental procedures along

income statement and balance sheet, providing critical

the way to allow for more transparency. One of the first

information on revenue and expenses.

tasks the management team took on was to teach the staff

Employees met in their departments before a huddle to

basic financial literacy. This meant English and Spanish

evaluate expenses, such as supplies and labor costs per-

versions of finance lessons would be taught during all

taining to their areas. They had to plan for these types of

three shifts, and several classes were held to ensure ev-

expenses and announce the plan at huddles. These fore-

eryone understood the concepts and could participate.

casted expenses were recorded on the scoreboard so em-

Classes continued until everyone could answer basic
questions about the organization's financial statements:
*	 They were taught to understand the income statement
and balance sheet.

ployees could review them and ask questions. This also
showed them whether they were winning the game.
At a huddle, all employees had the opportunity to ask
questions about any department's costs to help under-

*	 They learned about basic concepts such as cost of

stand what was being monitored and how, and what ac-

goods sold, inventory, direct labor, overhead, assets,

tions were being taken to reduce costs. This provided or-

liabilities and equity.

ganizationwide accountability from entry level to senior

They started realizing that if they didn't do their jobs

management. The huddle also provided a great forum for

correctly or efficiently, it increased the organization's

discussion and mini-game updates.

chance of losing money on a particular job. That was

Every department at Induction Heat Treating consis-

when everyone began understanding the importance of

tently played mini-games. They used them to reduce cy-

the GGOB and how it directly related to their roles.

cle times on their machines, reduce turnaround time for

The production department learned why its labor and
material goals were so important. Not meeting its goals

their customers, and monitor paper and printer supplies
to consider ways to reduce waste.

meant the organization was losing money every time a

Improving quality procedures reduced time for inspec-

job was processed. The quality department realized re-

tors on each job, and affected production by allowing

work or work rejected by the customer had high costs in

more time for machine operators to perform their duties

money and efficiency.

more carefully and with less stress. If mini-games' goals

Eventually, employee engagement and communica-

were met, employees earned a small reward they set for

tion improved, and employees were eager to learn what

themselves, which helped maintain a high level of enthu-

they could do to help. This was when the rules of the

siasm for the game.

game were taught to employees.

One of the GGOB's most important components is providing a reward, or in great-game terms, a "stake in the

Setting the rules

outcome." During the planning phase of Induction Heat

A score was given each week during a huddle-an orga-

Treating's game, the bonus plan was designed. Consider-

nizationwide meeting-to illustrate how costs and rev-

ing the work that had to be done to improve the orga-

enue were recorded and whether they were on target. At

nization's net profit to a level at which a bonus payout

Induction Heat Treating, these huddles were held twice

was feasible, the owner and financial team determined a

a week, which allowed everyone to participate in report-

bonus would likely be out of reach for its employees for

ing numbers for their departments.

the first year.

These numbers were recorded on a floor-to-ceiling

Employees cut costs and found better ways of com-

scorecard located on an office wall that was visible to

pleting work and shipping product to customers. Enthusi-

everyone. This scorecard mirrored the organization's

asm was high, and employees were communicating more

December 2016 * QP 47



Table of Contents for the Digital Edition of Quality Progress - December 2016

Quality Progress - December 2016 - cover1
Quality Progress - December 2016 - cover2
Quality Progress - December 2016 - 1
Quality Progress - December 2016 - 2
Quality Progress - December 2016 - 3
Quality Progress - December 2016 - 4
Quality Progress - December 2016 - 5
Quality Progress - December 2016 - 6
Quality Progress - December 2016 - 7
Quality Progress - December 2016 - 8
Quality Progress - December 2016 - 9
Quality Progress - December 2016 - 10
Quality Progress - December 2016 - 11
Quality Progress - December 2016 - 12
Quality Progress - December 2016 - 13
Quality Progress - December 2016 - 14
Quality Progress - December 2016 - 15
Quality Progress - December 2016 - 16
Quality Progress - December 2016 - 17
Quality Progress - December 2016 - 18
Quality Progress - December 2016 - 19
Quality Progress - December 2016 - 20
Quality Progress - December 2016 - 21
Quality Progress - December 2016 - 22
Quality Progress - December 2016 - 23
Quality Progress - December 2016 - 24
Quality Progress - December 2016 - 25
Quality Progress - December 2016 - 26
Quality Progress - December 2016 - 27
Quality Progress - December 2016 - 28
Quality Progress - December 2016 - 29
Quality Progress - December 2016 - 30
Quality Progress - December 2016 - 31
Quality Progress - December 2016 - 32
Quality Progress - December 2016 - 33
Quality Progress - December 2016 - 34
Quality Progress - December 2016 - 35
Quality Progress - December 2016 - 36
Quality Progress - December 2016 - 37
Quality Progress - December 2016 - 38
Quality Progress - December 2016 - 39
Quality Progress - December 2016 - 40
Quality Progress - December 2016 - 41
Quality Progress - December 2016 - 42
Quality Progress - December 2016 - 43
Quality Progress - December 2016 - 44
Quality Progress - December 2016 - 45
Quality Progress - December 2016 - 46
Quality Progress - December 2016 - 47
Quality Progress - December 2016 - 48
Quality Progress - December 2016 - 49
Quality Progress - December 2016 - 50
Quality Progress - December 2016 - 51
Quality Progress - December 2016 - 52
Quality Progress - December 2016 - 53
Quality Progress - December 2016 - 54
Quality Progress - December 2016 - 55
Quality Progress - December 2016 - 56
Quality Progress - December 2016 - 57
Quality Progress - December 2016 - 58
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Quality Progress - December 2016 - 60
Quality Progress - December 2016 - 61
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Quality Progress - December 2016 - 65
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Quality Progress - December 2016 - 70
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Quality Progress - December 2016 - 73
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Quality Progress - December 2016 - 76
Quality Progress - December 2016 - 77
Quality Progress - December 2016 - 78
Quality Progress - December 2016 - 79
Quality Progress - December 2016 - 80
Quality Progress - December 2016 - cover3
Quality Progress - December 2016 - cover4
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