1st Edition

Fundamentals of Daily Shop Floor Management A Guide for Manufacturing Optimization and Excellence

By Philip J. Gisi Copyright 2023
    362 Pages 81 B/W Illustrations
    by Productivity Press

    362 Pages 81 B/W Illustrations
    by Productivity Press

    362 Pages 81 B/W Illustrations
    by Productivity Press

    Survival and thriving in today’s business environment require companies to continuously strive for operational excellence at all levels of the organization. Simply working to maintain existing operations is not an adequate or sustainable business strategy, especially when competing in a global market. To remain relevant, companies must adopt a process control and continuous improvement mentality as an integral part of their daily work activities. These two operational disciplines form the foundation and stepping stones for manufacturing excellence. Processes must be stable, capable, and controlled as a prerequisite for sustainable improvement. Sustainable improvements must be strategic, continuous, and focused on process optimization.

    Modern-day manufacturing is rapidly changing in the face of technological, geopolitical, social, and environmental developments. These challenges are altering the way we think and act to transform raw materials into finished goods. Meeting these challenges requires particular attention to how we develop and engage people and apply technology for long-term sustainability and competitive advantage. This book takes you on a journey to explore the fundamental elements, management practices, improvement methods, and future direction of shop floor management.

    Part 1 of this five-part book considers workplace culture, organizational structure, operational discipline, and employee accountability as the foundation for a robust manufacturing system. Part 2 studies the impact of process standardization, data analytics, information sharing, communication, and people on daily shop floor management. Once the management system has been adequately described, Part 3 concentrates on its effective execution, monitoring, and control with a deep look into the people, methods, machines, materials, and environment that make it possible. Like every good manufacturing text, efficiency and productivity are key topics. That’s why Part 4 explores various methods, tools, and techniques associated with product and process development, productivity improvement, agile methods, shop floor optimization, and manufacturing excellence. The final section, Part 5, shifts focus to emerging technologies, engaging the reader to contemplate technology’s impact on the digital transformation of the manufacturing industry.

    Fundamentals of Daily Shop Floor Management:

    A Guide for Manufacturing Optimization and Excellence

    Table of Contents:


    Figure P.1: Steps to Operational Excellence

    Figure P.2: Daily Shop Floor Management Roadmap



    About the Author



    Book Contents

    Part 1 - Shop Floor Foundation

    Part 2 - Shop Floor Fundamentals

    Part 3 - Shop Floor Management

    Part 4 - Shop Floor Improvement

    Part 5 - Shop Floor - Next Generation

    The Journey to Manufacturing Excellence

    Daily Shop Floor Management

    Essential Practices of Shop Floor Management

    Figure I.1: Principles and Practices of Daily Shop Floor Management


    Side Bar: 8 Steps for Improving Shop Floor Performance

    Key Points

    A Note about Supply Chain Management (SCM)

    Manufacturing Supply Chain Management




    Figure I.2: Key Supply Chain Functions

    Figure I.3: Supply Chain Management (SCM) Activities

    Figure I.4: Production Activities


    Part 1 - Shop Floor Foundation


    Figure 1.0.1: The Fundamental Elements of DSFM

    1.1 Organizational Culture)


    Lean Mindset and Culture

    Key Points – Culture

    Organizational Commitment

    Key Points - Commitment

    Organizational Alignment

    Key Points

    Side Bar: A Multicultural World

    Side Bar: Influencing Commitment


    1.2 Organizational Structure


    Figure 1.0.1A: Fundamental Elements of Daily Shop Floor Management

    Figure 1.2.1: Elements of Organizational Structure

    Organizational Framework

    Business Strategy

    Guiding Principles

    Routine Practices

    Shop Floor Management Planning

    Manufacturing Operations Manual (MOM)

    Side Bar: A Manufacturing Management System

    Guidelines, Procedures & Standards

    Shop Floor System Execution

    Standard Work Routines

    Figure 1.2.2 Operating Instructions

    Shop Floor System Monitoring

    Figure 1.2.3: System Monitoring Practices

    Key Process Indicators (KPI)

    Visual Controls

    Gemba Walks

    Performance Reviews

    Layered Process Audits

    Process Control

    Deviation Management

    Action Item List

    Structured Problem Solving

    Total Productive Maintenance

    Productivity Improvement

    Key Points

    Side Bar: Shop Floor Expectations

    1.3 Operational Discipline


    Figure 1.0.1B: Fundamental Elements of Daily Shop Floor Management

    Sustainable Discipline

    Improving Operational Discipline

    How to Maintain Operational Discipline

    Side Bar: Discipline Matters

    Key Points




    1.4 Employee Accountability


    Figure 1.0.1C: Fundamental Elements of Daily Shop Floor Management

    Corporate Accountability

    Employee Accountability

    Side Bar: Ways to Enhance Employee Accountability

    Peer Accountability

    Shop Floor Accountability

    Setting Employee Expectations

    Employee Feedback

    Employee Empowerment

    Rewards and Consequences

    Treat People with Respect


    Strategy Alignment

    Case Study: Are you a Management Tool or Empowered?

    Accountability vs. Micro-management

    Attitude, Behavior and Accountability

    Commitment and Accountability

    Key Points:

    Side Bar: Personal Accountability

    Part 2 - Shop Floor Fundamentals


    Figure 2.0.1 Fundamentals of Shop Floor Management

    2.1 Standardization


    Figure 2.1.1: Shop Floor Control and Improvement

    Workplace Cleanliness and Organization (5S)

    Procedures and Standard Work Instructions (SWI)

    Figure 2.1.2: Standard Work Instruction (SWI)

    Standard Operation Sheet (SOS)

    Figure 2.1.3: Standard Operation Sheet (SOS)

    Work Place Design

    Key Points

    2.2 Shop Floor Data and Information

    Measurement Data

    Figure 2.2.1 Typical Manufacturing Metrics

    Key Process Indicators

    Figure 2.2.2: Input, Process, and Output indicators

    Figure 2.2.3: Types of Metrics

    Sidebar: Setting Performance Expectations

    Data Gathering

    Figure 2.2.4: Data Collection Plan

    Data Analysis

    Data Reporting

    Key Points

    2.3 Data Visualization


    Visual Controls for Process Management

    Figure 2.3.1: Visual Communication Elements

    Common Visual Control Displays

    Information or Communication Boards

    Figure 2.3.2: Information or Communication Board Example

    Figure 2.3.3: A Production Line Board Hourly Output Template

    Manpower Planning Boards

    Employee Cross-Training / Qualification Matrix

    Figure 2.3.4: Employee Qualification Matrix

    Andon Boards & Lights

    Tip: Chart Preparation

    Key Points

    2.4 Shop Floor Communication


    Figure 2.4.1: Five Shop Floor Communication Methods

    Machine to Machine (M2M) Communication

    Machine to Business (M2B) or Machine to Enterprise (M2E) Communication

    Shop Floor Communication

    Daily Meetings

    Figure 2.4.2: Daily Meeting Hierarchy

    Weekly Meetings

    Monthly Meetings

    Project Performance Reviews

    Gemba Walks

    Case Study: Gemba Walks in Action

    Mobile Devices

    Key Points

    2.5 Shop Floor People

    People Overview

    Employee Empowerment

    Respect, Honesty, Trust

    Training & Development

    Side Bar: Developing People through Workshops

    Mentoring & Coaching

    Recognition & Reward

    Stakeholder Management

    Side Bar: Employee Satisfaction

    Key Points

    2.6 Facilities Management

    Shop Floor Environment

    Technical Cleanliness




    Key Points

    Part 3 - Shop Floor Management


    Figure 3.0A: Fundamental Elements of Daily Shop Floor Management

    3.1 Manufacturing System Execution


    Figure 3.0B: Fundamental Elements of Daily Shop Floor Management

    Standard Work Routines

    Figure 3.1.1: Roles, Responsibilities, and Standard Work Routines Hierarchy

    Figure 3.1.2: Snapshot of Standard Work Routines.

    Preparing Standard Work Routines

    Key Points

    3.2 Manufacturing System Monitoring


    Figure 3.0C: Fundamental Elements of Daily Shop Floor Management

    Process Monitoring / Verification

    Figure 3.2.1: Shop Floor Monitoring Practices

    Go, See, Observe

    Gemba Walks

    Side Bar: The 10 Minute Gemba Walk

    Scrap Walks / Reviews

    Layered Process Audits

    Side Bar: Standard Process Audit Questions

    Performance Reviews

    Key Points

    3.3 Manufacturing System Control


    Figure 3.0D: Fundamental Elements of Daily Shop Floor Management

    Manufacturing System Control

    Figure 3.3.1: Manufacturing Practices and System Elements

    Process Control

    Figure 3.3.2: A View of Shop Floor Management

    Manufacturing System Integrity

    Standard Work Routines

    Deviation Management

    Figure 3.3.3: Deviation Management Methodology

    Structured Problem Solving

    Action Items

    Figure 3.3.4: Example of Action Item Format

    Decision Making

    Poka Yoke


    Figure 3.3.5: Jidoka Process Flow

    Change Management

    Production Change Points

    Bottleneck Management

    Additional Manufacturing System Controls

    Figure 3.3.6: Manufacturing System Control Methods

    Key Points

    3.4 Manpower


    Figure 3.4.0 Engaging with People

    People Availability

    People Flexibility

    Workload Balancing

    Manufacturing Gages and Tools

    Employee Motivation

    Training & Experience

    Workplace Design & Ergonomic

    Working Conditions (environment)

    Autonomous Maintenance

    Labor Efficiency

    Employee Safety

    Side Bar: Covid-19 in the Workplace

    Key Points

    3.5 Materials


    Materials Requirements Planning (MRP)

    Material Deployment and Replenishment

    Milk Run

    Water Spider

    Material Handling and Storage


    Inventory Management

    Figure 3.5.1: Categories of Manufacturing Materials

    Health and safety

    Side Bar: Material Kitting

    Key Points

    3.6 Manufacturing Equipment, Fixtures & Tooling


    Equipment Optimization (Effectiveness, Reliability and Durability)

    Overall Equipment Effectiveness (OEE)

    Efficiency Losses (Big Six Losses)

    Figure 3.6.1: OEE Losses and Examples

    OEE Calculation

    OEE Improvement Cycle with PDCA

    Equipment Improvement Metrics - MTTR / MTBF

    Figure 3.6.2: Visual of Time to Repair and Time Between Failure

    Spare Parts Management

    Side Bar: Tips for Reducing Equipment Downtime - Good Operating Disciplines

    Equipment Reliability

    Equipment Calibration

    Measurement Systems Analysis

    Figure 3.6.3: Measurement System Analysis Overview

    Total Productive Maintenance (TPM)

    Autonomous Maintenance

    Systemic Maintenance

    Training & Qualification

    Asset Management

    Equipment Durability

    Key Points

    3.7 Methods



    5S Method

    Deviation Management

    Side Bar: Investigating Abnormalities

    Change Management

    Structured Problem Solving

    Figure 3.7.1: Problem Solving Methods

    Just-in-Time Inventory

    Policy Deployment

    Figure 3.7.2: Policy Deployment

    Side Bar: Organizational Policy

    Single Minute Exchange of Die (SMED)

    Figure 3.7.3: Changeover Time Reduction Process

    Agile Manufacturing

    Side Bar: Negative Side to Company growth


    Key Points

    3.8 Environment


    Building layout/design



    Figure 3.8.1: Safe Workplace




    Air Quality

    Air Current



    Facility Space

    Case Study: The Value of Space


    Key Points

    Part 4 - Shop Floor Improvement


    4.1 Product & Process Development


    Design for Manufacturing

    Figure 4.1.1: Design for Manufacturing Overview

    Design for Six Sigma

    Figure 4.1.2.: DFSS Methodology (DICOV)

    Design & Process FMEA

    Figure 4.1.3.: Failure Modes & Effects Analysis

    Key Points

    4.2 Productivity Improvement


    Figure 4.2.0: Process Maturity

    Incremental Improvement

    Sustainable Improvement

    Side Bar - Leveraging Organizational Knowledge

    Improvement Methods

    Quality Circles

    Figure 4.2.1 - Seven Basic Quality Tools

    Employee Idea Management

    Set-up and Changeover (SMED)

    Six Sigma DMAIC

    Figure 4.2.2: Six Sigma DMAIC Methodology

    Kata / PDCA Project

    Figure 4.2.3 The Five Toyota Kata Questions and Four Reflections

    Value Analysis

    Figure 4.2.4. Value Analysis Process

    Kaizen Events

    Figure 4.2.5: Kaizen Event Process

    Jishuken (Self-study) Workshops

    Side Bar: Jishuken Workshops

    Improvement Tools & Techniques

    Go, See, Observe, Understand and Confirm

    Side Bar: Tip for Effective Observation

    Workplace Design

    Process Mapping

    Six Thinking Hats

    Workload Balancing

    Figure 4.2.6: Workload Balancing - Before and After

    Production Leveling

    Figure 4.2.7: Production Leveling.

    Yamazumi Charts

    Figure 4.2.8: Yamazumi chart

    Buffer Management

    Best Practice Sharing

    Lessons Learned

    Key Points


    4.3 Agile Methods

    Agile Overview

    Application of Agile Practices

    Predictive, Iterative and Incremental Life Cycles

    Figure 4.3.1: Predictive Life Cycle

    Figure 4.3.2: Iterative Life Cycle

    Daily Stand-up meetings



    Side Bar: Agility Response

    Case Study: Manufacturing Agility

    Key Points

    4.4 Shop Floor Optimization


    Figure 4.4.0: Optimize

    Knowledgeable and Skilled People

    Cooperation and Collaboration

    Available and Reliable Equipment

    Materials Management

    Practices and Procedures

    Operator Movement Optimization

    Material Flow Optimization

    Environmental Optimization

    Optimization Methods, Tools and Techniques

    Process Characterization

    Design of Experiments

    Response Surface Analysis

    Process Flow Optimization Methods

    Value Stream Mapping / Design

    Figure 4.4.1 Value Stream Improvement

    Side Bar: Optimization Beyond the Shop Floor

    Constraint Management

    Spaghetti Diagram

    Figure 4.4.2 – Spaghetti Diagram Example

    Lessons Learned

    Case Study: A Pitch for Lessons Learned

    Key Points

    4.5 Manufacturing Excellence


    Enterprise Alignment

    Organizational Structure

    Operational Discipline

    Employee Accountability

    Side Bar: Organize and Prioritize

    Agility Mindset

    Employee Development

    Process Control

    Continuous Improvement

    Side Bar: Welcome Visitors

    Technical Advancement

    Supplier Partnerships

    Lessons Learned

    Shop Floor Practices


    Case Study: Rules of Engagement

    Key Points

    Part 5 - Next Generation Shop Floor


    Industry 4.0 Expectations

    Digital Transformation

    Productivity Improvements that make a Difference

    Part 1 - Technical Innovations

    Collaborative Robots (Cobots)

    Figure 5.1: Cobot

    Robotic Process Automation (RPA)

    Automated Guided Vehicles (AGVs)

    Micro AGVs

    Smart Glasses

    Centralized (Automated) Inspection (AOI)

    Case Study: Visual Inspection with Artificial Intelligence

    Fixed Production Cell

    Autonomous (digital) Workforce

    Part 2 - Thinking Differently

    Big Data

    Side Bar: Improvement Projects Using AI

    Equipment Robustness (Reliability & Durability)

    Predictive Equipment Maintenance

    Figure 5.2: Evolution of Predictive Maintenance

    Spare Parts Management

    3D Printing of Spare Parts

    Suitcase Tester

    Vendor Managed Inventory (VMI)

    Figure 5.3: Vendor Managed Inventory

    Machine Learning

    Modular Product Architecture

    Mobile Devices


    Environmental Sustainability

    Key Points


    Appendix 1 - Daily Shop Floor Management Checklist

    Appendix 2 - Manufacturing Operations Manual

    Appendix 3 - Standard Work Routines

    Appendix 4 - Tips for Shop Floor Monitoring

    Appendix 5 - SMED Workshop

    Appendix 6- Jishuken Workshop Outline

    Appendix 7 -Acronyms & Terms


    Philip Gisi, PMP, SSMBB, has over 30 years of experience in the automotive, commercial and aerospace industries. His areas of expertise include new product development, process technology, quality management, automotive electronics, and manufacturing. He has worked internationally in multi-cultural environments and is currently involved in manufacturing operations as a manufacturing operations manager at Vitesco Technologies. Phil has a Master of Science in Engineering, a Master’s Certificate in Project Management, Lean Management Certification from the University of Michigan, Project Management Professional certification and a Six Sigma Master Black Belt (SSMBB). Phil is the author of the book “Sustaining a Culture of Process Control and Continuous Improvement: The Roadmap for Efficiency and Operational Excellence” and continues to share his experiences in Project Management, Lean Concepts, and Six Sigma Process Improvement as a DePaul University instructor for over 20 years.