1. 1
VISUAL MANAGEMENT
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

19. 19
Whiteboard DASHBOARD

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?