Visual Management in an ORGANIZATION…..! How to Implement It.
Background: Visual Management systems are used widely in lean manufacturing; Visual Systems make sure the right things must happen at the right time and that problems which can inhibit flow or degrade quality are easily and speedily identified and fixed. Waste is eliminated because there is no need to waste time and motion looking for tools, drawings and the like. The visual work place is safer. The Properly designed work place is an essential foundation for creating standardized work.
Employees can focus on creating value for the customer. They become better team members, and also are empowered because they have access to information at every turn.
Visual systems fall into a number of board categories; each category serves specific purpose in the lean workplace.
These Categories are:
- Systems for Sharing information
- Systems for sharing standards and instructions.
- Systems for building standards into the workplace.
- Systems for raising alerts or alarms when needed.
- Systems for stopping defects.
- Systems for eliminating defects.
A visual workplace is self-ordering, self-explaining, self-regulating and self-improving work environment where what happens is what is supposed to happen because of visual methods.
Visual Performance Boards
Why to use it ?
- Visual controls and signals are widely used in lean manufacturing to manage and operate the factory. From identifying the flow of materials to visual standard work, these signals help people and teams see and react effectively to changing conditions. They keep production flowing and meeting goals. Visual systems of all types make it easy to see that the processes are under control and performing correctly at gemba.
- Visual performance boards perform analogous functions for performance and financial information. They quickly and clearly display the status of performance and promote a management by seeing approach. Performance measure are posted directly where the work is being done.
- Management happens at the same place. Managers and finance people must get out from their offices and meet around the boards and walk through the factory when they are evaluating the performance. This is very important cultural characteristics for a lean organization.
The Value stream Boards primary purpose is to control the value stream. It addresses questions like:
- What do we want to accomplish?
- How are we doing it?
- What are the problems we have?
- What improvements do we have planned to correct them?
- Who is responsible?
- Who is accountable?
The Cell performance boards purpose is to help the cell team get done today what needs to get done, to serve the customer.
What Does the Visual Board Do?
The Visual Board Supports the Lean in the following way :
- They foster management by looking, seeing, and discussing issues on the shop floor.
- They help the cells get done today what needs to get done today through cell boards.
- They drive continuous improvement by showing current state of performance against goals.
- They communicate all the information required for the day to day operation of the organization.
- They provide rapid feedback for problem solving and continuous improvement activities.
- They empower people by imparting knowledge that leads to real understanding and team building.
How do I do it ?
We use a multi – step process establish and use visual performance boards.
- Establish the performance measures to be used. This involves using the performance measurement linkage chart. This Leads to what we are measuring and why?
- Design your performance board format and content, and assign responsibility for maintaining and updating the information the data displayed should be simple and easy to gather and it should be recorded by those actually doing the work. This gives the team itself ownership of the information, and provides real time feedback. This leads to how are we showing the measurements? Who is responsible?
- Determine the periodicity of the boards, how often they should be updated. Make sure everyone understands the time frame related to the information. Make sure all performance charts carry reference dates, This leads When do we change the data? Daily? Weekly? Monthly? Generally, cell information changes daily, value stream information changes weekly and plant information changes monthly.
- Determine where the boards will be posted.
- Cell performance boards and support operation boards should be situated directly in the cell or office area where the work is being done.
- Value stream boards should be situated in a central area that allows the easy access to everyone in the organization and guarantees good visibility. Somewhere physically in the value stream is best, in a back office is probably the worst choice.
- Make it easy to maintain the information, have supplies calculators, etc. Visual performance boards are not museum pieces they are live management tools that people should see, understand and act upon it.
Typical Cell Performance measures we might see include :
- Day by the hour
- First time thru
- WIP to SWIP
- Operation equipment effectiveness
Value Stream Boards Includes
- Sales per person
- On time delivery
- Dock to Dock time
- First time thru
- Average cost per unit
- Current state value stream map
- Future state value stream map
- Value stream box score
- Value stream P&L
- Pareto charts or other priority lists of problem issues, projects for continuous improvement and the like
- Supervisors managers and support personnel should perform daily gemba walks. Cell teams should meet around their boards every day and review what happened the day or shift before, what needs to be done today, and any problems that needs to be addressed. The value stream team needs weekly to review the value stream board information, but they should also be involved individually on daily walks.
- Performance boards become an integral part of managing a lean organization. Meetings move away from conference room and on to the gemba and into the places where problems can be solved quickly. Teams at all levels are looking and seeing and discussing & taking action to make the business run better and meet customer needs that is value.