Visual management controls systems techniques
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The document discusses visual management systems and techniques used to maintain an organized and efficient workplace. It describes how visual management systems provide visual trends of progress against goals and help identify opportunities for improvement. Key aspects of visual management systems include using metrics that are understood by all, have clear improvement targets, and can be tracked by the affected departments on a daily basis. Examples of common business metrics that can be visually tracked include quality, costs, delivery, inventory, customer service levels, productivity, and employee morale. Dashboards are highlighted as an effective visual tool to monitor current performance across these critical areas.
Visual management controls systems techniques
- 2. 2 Visual Management Is... A system of visual controls that are used to maintain an organized, clean, high- performance workplace Management tool that invites all to participate
- 3. 3 Visual Management System Provides visual trend of progress against goals & objectives Identifies opportunities for improvement & correction
- 4. 4 The Manager’s Role P D C A Involvement Flexible, motivated employees continually seeking a better way Jidoka Immediately respond to Abnormalities Prevent Recurrence to Achieve Zero Defects Customer Focused JITJust What is needed Just the amount Needed Just When Needed via Flow Takt Pull Foundation Disciplined predictable processes relentlessly improved through destruction of waste Involvement Flexible, motivated employees continually seeking a better way Jidoka Immediately respond to Abnormalities Prevent Recurrence to Achieve Zero Defects Customer Focused JITJust What is needed Just the amount Needed Just When Needed via Flow Takt Pull Foundation Disciplined predictable processes relentlessly improved through destruction of waste
- 5. 5 Manager’s / Leader’s Job in the KOS World 1. Manage Flow 2. Eliminate waste 3. Teach others to see
- 6. 6 P DC A Annual Plan by departmentMilestones Items 5 year rolling plan and vision - Hoshin. 1 PLAN 2 DO the PLAN. Milestones Items X 3 All data shown visually, plus A3 report format. Milestones Items 4 ACTION Change the plan. CHECK the progress. PDCA
- 7. 7 So, for our business, what are the critical metrics?
- 8. 8 QCDSM Activities Identify measures for the specific area related to the overall business objectives > Quality, Cost, Delivery, Safety, Morale (People) Create a performance board for the area Create a feedback system to ensure action is taken to solve problems, improve the process and evaluate the result
- 9. 9 Characteristics of Useful Performance Measures Visual Understood by all Includes an improvement target Can be tracked and maintained by the affected department Reviewed daily and acted upon
- 10. 10 Examples of the Key Business Metrics 1. Quality – KPIR’s 2. Customer Loyalty 3. Customer Service 4. Inventory ($$$ with coinciding DSI measure) 5. Costs 6. Effective headcount (includes O/T) with strong emphasis on Employee Development and Succession Planning 7. Revenue Market Share 8. Growth 9. Return on Sales 10. Etc.
- 11. 11 Quality Measures Defects • Bad transaction • Input error (keying error) Right First Time • Incomplete information • Inaccurate information Customer feedback • Positive or negative Service calls / help desk #1
- 12. 12 Cost Measures Overtime per day Productivity • Transactions completed per employee • Number of call per employee Cost per transaction (quality & productivity) Premium change services (FedEx, fax, etc.)
- 13. 13 Delivery Measures Response time (calls) • Missed calls & hang-ups • Total backlog (input vs. output) Late delivery / on-time performance System downtime
- 14. 14 Ergonomic & Safety Measures Record injury incident days (safety cross) Identify & eliminate hazards Identify & eliminate ergonomic problems Identify & eliminate accident locations Perform 5S audit
- 15. 15 Morale Measures “Presenteeism” (vs. Absenteeism) Employee suggestions received / implemented Employee turnover / attrition Skills matrix Employee recognition
- 16. 16 DASHBOARD What’s Happening Right Now! Not What happened Yesterday or last week! Car Dashboard > Speed > Fuel level > RPM > Radio Station > Warning Lights
- 17. 17 DASHBOARD Kodak Dashboard > Used in morning market meeting > Located in area > Easier to understand current situation • Green – will meet today’s plan • Yellow – still running now, will not meet today’s plan • Red – Shutdown • Documented Root Cause & Countermeasures for Yellow or Red conditions > Updated throughout the day as required
- 18. 18 Dashboard Also Included Data Required to Run Area > Cost > Quality > Delivery > Inventory > Cycle Time
- 20. 20 Sample Dashboard Customer Complaints #/M orders ?? ?? ?? ?? ?? YE 2004 Goal Current Month Inventory M M M YE 2003 Act Mix vs AOP Volume vs 2004 AOP 0 J A J O A OP A ct ual C urrent Est imat e Orders vs 2004 AOP 0 200 400 600 800 1000 1200 1400 J A J O A OP A ct ual C urrent Est imat e 45%15% 30% 0% 60% 38.0% Goal 34.7% Cost $0.00 $1.00 $2.00 Total Variable PUD Other Fixed 2003 Actual Jan. Actual AOP Jan 03 27.7% YE 2004 Goal YE 2003 Act
- 21. 21 Morning Market & Dashboard •8:00 am today: •You ran a Morning Market Meeting using a Dashboard
- 22. 22 What performance measures do you use?